Lok Sabha Question No. 349 (UNSTARRED), answered on 2020-09-15
Subject: Retail Food Inflation
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Faizal P.P. Mohammed

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 349

TO BE ANSWERED ON 15.09.2020

## RETAIL FOOD INFLATION

## 349. SHRI MOHAMMED FAIZAL P.P.:

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION उपभोक् तामाम  ,खाद्यऔरसार्वजनिकनर्तरणमंत्री be pleased to state:

- (a) whether the Government is aware of the 14.12 per cent retail food inflation which is a six year high;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether during the lockdown large section of people have lacked salaries and daily wages, if so, the details thereof; and
- (d) the steps taken/being taken by Government for the reduction of food prices?

## ANSWER

## उपभोक् तामाम  ,खाद्यऔरसार्वजनिकनर्तरणराज् यमंत्री )श्रीदािर् रार्साह बदादारार्(

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI DANVE RAOSAHEB DADARAO)

(a) & (b)  : Details of retail food inflation based on Consumer Food Price Index (CFPI), brought out by M/o Statistics and Programme Implementation (MoSPI) for the last six years from January 2014 to July 2019 and January to July of the current year 2020 is annexed.

Prices of food items are inter-alia affected by mismatch in demand and supply, shortfall in production owing to adverse weather conditions, seasonality, increased transportation costs, supply chain  constraints  like  lack  of  storage  facilities,  artificial  shortage  created  by  hoarding  and  black marketing, etc.

(c) & (d) : To  ameliorate  the  hardships  faced  by  large  section  of  people  due  to  livelihoods disruption caused by COVID-19, foodgrains are distributed at the rate of 5 kg per person per month, and  pulses  are  distributed  at  the  rate  of  1  kg  per  household  per  month  ,  free  of  cost,  to  all beneficiaries of the National Food Security Act (NFSA), 2013 under Pradhan Mantri Garib Kalyan Anna  Yojana    (PMGKAY)  for  the  period  of  eight  months  from  April  to  November  2020.  In addition,  foodgrains  at  the  rate  of  5  kg  per  person  per  month,  and  pulses  at  the  rate  of  1  kg  per household are distributed, free of cost, to migrant workers who are not covered under NFSA for the period  of  two  months,  from  April  and  May  2020.  Distribution  of  foodgrains  and  pulses  under PMGKAY and ANB have contributed to ensuring the availability of food items during lockdown and in controlling food inflation.

Government  has  taken  various  measures  from  time  to  time  to  stabilize  prices  of  essential food items which, inter-alia, include appropriately utilizing trade and fiscal policy instruments like import duty, Minimum Export Price, export restrictions, etc. to regulate domestic availability and moderate prices; imposition of stock limits and advising States for effective action against hoarders and black marketers ; and, provision of higher Minimum Support Prices to incentivize farmers for increasing  production.  Government  is  also  implementing  Schemes  which, inter  alia ,  include Mission  for  Integrated  Development  of  Horticulture  (MIDH),  National  Food  Security  Mission (NFSM),  National  Mission  on  Oilseeds  and  Oil  Palm  (NMOOP),  etc  for  increasing  agricultural production and productivity through appropriate interventions. Government also implements Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities like pulses, onion, and potato.

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ANNEXURE

## ANNEXURE REFERRED IN REPLY TO PARTS  (a) & (b) OF LOK SABHA UNSTARRED  QUESTION  NO.349  FOR  15.09.2020  REGARDING  RETAIL FOOD INFLATION.

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## Consumer Food Price Index (Inflation %)

| Month     |   Years |   Years |   Years |   Years |   Years |   Years | Years    |
|-----------|---------|---------|---------|---------|---------|---------|----------|
| Month     | 2014    | 2015    | 2016    | 2017    | 2018    | 2019    | 2020     |
| January   |    9.68 |    6.14 |    6.85 |    0.61 |    4.7  |   -2.24 | 13.63    |
| February  |    7.89 |    6.88 |    5.3  |    2.01 |    3.26 |   -0.73 | 10.81    |
| March     |    8.64 |    6.14 |    5.21 |    2.01 |    2.81 |    0.3  | 8.76     |
| April     |    9.21 |    5.11 |    6.4  |    0.61 |    2.8  |    1.1  | *        |
| May       |    8.89 |    4.8  |    7.47 |   -1.05 |    3.1  |    1.83 | *        |
| June      |    7.21 |    5.48 |    7.79 |   -2.12 |    2.91 |    2.25 | 8.72     |
| July      |    8.85 |    2.15 |    8.35 |   -0.36 |    1.3  |    2.36 | 9.62 (P) |
| August    |    8.7  |    2.2  |    5.91 |    1.52 |    0.29 |    2.99 |          |
| September |    6.22 |    3.88 |    3.96 |    1.25 |    0.51 |    5.11 |          |
| October   |    3.88 |    5.25 |    3.32 |    1.9  |   -0.86 |    7.89 |          |
| November  |    1.13 |    6.07 |    2.03 |    4.35 |   -2.61 |   10.01 |          |
| December  |    3.96 |    6.4  |    1.37 |    4.96 |   -2.65 |   14.19 |          |

Source: MoSPI

,

P - Provisional

*CFPI not released in the month of April & May, 2020 by Ministry due to data inadequacy.