Lok Sabha Question No. 569 (UNSTARRED), answered on 2018-07-20
Subject: Rural Inflation
Ministry: FINANCE
Asked by: SURESH KODIKUNNIL

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 569

TO BE ANSWERED ON JULY 20, 2018

## RURAL INFLATION

569. SHRI KODIKUNNIL SURESH:

Will the Minister of FINANCE be pleased to state:

- (a) the details of steps taken by the Government to contain and control inflation in the country;
- (b) whether rural inflation trends show an upward trend, affecting rural purchasing capabilities and a decline in rural wages falling from 7 per cent in July 2017 to 4 per cent in February 2018, while rural inflation rising from 1.5 per cent to 5 per cent over the same period; and
- (c) if so, the steps taken and policy interventions initiated to address the rural inflation by the Government?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI P. RADHAKRISHNAN)

- (a) & (c) Government monitors the price situation on a regular basis as price stability is high on its agenda. Government has taken a number of measures to control inflation especially food inflation which, inter alia, include regular review meetings on price and availability situation at the highest level including at the level of Committee of Secretaries, Inter-Ministerial Committee, Price Stabilization Fund Management Committee and  other  Departmental  level  review  meetings,  a  dynamic  buffer  stock  of  pulses  upto  20  lakh  tonnes, appropriate  market  interventions  under  Price  Stabilization  Fund  to  control  price  volatility  of  agricultural commodities  as  and  when  required,  and  advisories  to  State  Governments  to  take  strict  action  against hoarding  &  black  marketing  and  effectively  enforce  the  Essential  Commodities  Act,  1955  and  the Prevention  of  Black-marketing  and  Maintenance  of  Supplies  of  Essential  Commodities  Act,  1980  for commodities  in  short  supply.  National  Food  Security  Act,  2013  (NFSA)  has  been  implemented  in  all States/UTs under which access to highly subsidized foodgrains at Rs.1/2/3 per kg. for coarse grains/wheat/rice, respectively, is provided.
- (b) Annual rural inflation based on Consumer Price Index - Rural (CPI-R) has declined from 6.2 per cent in 2014-15 to 5.6 per cent in 2015-16 to 5.0 per cent in 2016-17 and 3.6 per cent in 2017-18. However, rural inflation (CPI-R) in July, 2017 and February, 2018 was 2.4 per cent and 4.5 per cent, respectively. Growth rates  of  rural  wages  for  general  agriculture  labourers  and  non-agricultural  labourers  for  July,  2017  and February, 2018 are presented below.

Table: Growth in rural wages (per cent)

|        | General Agriculture Labourers   | General Agriculture Labourers   | Non-Agricultural Labourers   | Non-Agricultural Labourers   |
|--------|---------------------------------|---------------------------------|------------------------------|------------------------------|
|        | Man                             | Woman                           | Man                          | Woman                        |
| Jul-17 | 7.3                             | 8.3                             | 5.6                          | 9.7                          |
| Feb-18 | 4.7                             | 5.3                             | 3.9                          | 6.2                          |