Lok Sabha Question No. 5107 (UNSTARRED), answered on 2023-04-03
Subject: Impact of Price Rise
Ministry: FINANCE
Asked by: Komati Reddy Venkat Reddy, Manne Srinivas Reddy, Raghu Ramakrishna Raju Kanumuru

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

## LOK SABHA UNSTARRED QUESTION NO. 5107 DUE FOR ANSWERED ON 03.04.2023

## IMPACT OF PRICE RISE

## 5107.  SHRI KOMATI REDDY VENKAT REDDY: SHRI MANNE SRINIVAS REDDY: SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

Will the Minister of Finance be pleased to state:

- (a) whether the Government has taken note of the fact that the soaring prices of cereals such as wheat and rice are a concern for the Indian economy even though the latest set of inflation data may overstate the extent of  the  increase,  including  rising  prices  of  protein  items  like  milk,  eggs  and  meat  pushed  up  food  and beverages inflation and also besides their effect on rates, elevated food prices will be a burden on India's rural areas, where disposable income is low and wage hikes have not kept pace with the rise in inflation and higher inflation in more heavily weighted components such as staple cereals and proteins is worrying and if so, the details thereof and the reaction of the Government thereto; and
- (b) the reasons for such situation along with the prices of each food/consumable item particularly ration which are used in daily consumption in houses and the corrective steps being taken by the Government to control the prices and inflation and the targets fixed/achieved by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): The 'food & beverages' retail inflation rate based on Consumer Price Index-Combined (CPI-C) has moderated from 7.70 per cent during the first half (April-September 2022) of the current year to 5.84 per cent during  the  second  half  of  the  year  till  February  2023.  The  average  rural  wage  rates  for  men  and  women  in agricultural and non-agricultural activities increased from 2021-22 to 2022-23 (April-November). The details of retail inflation for cereals and protein-based items during 2022-23 (April-February) and details of rural wage rates during 2021-22 to 2022-23 (April-November) are given in Annexure 1.

Government has taken measures to mitigate the impact of inflation on the  rural  population.  Pradhan  Mantri Garib Kalyan Anna Yojana (PMGKAY), the largest public food security program in the world, covers around 80 crore people with free food grains as per entitlement. The Government is also implementing various schemes like  Prime  Minister's  Employment  Generation  Programme,  Mahatma  Gandhi  National  Rural  Employment Guarantee Scheme, Deen Dayal Upadhyaya Grameen Kaushalya Yojana and Deen Dayal Antodaya YojanaNational Rural Livelihoods Mission to generate income for rural population.

Factors like pandemic-induced supply-demand imbalances, increase in international commodity prices, RussiaUkraine conflict, and erratic climatic conditions pushed up prices. The price situation of essential commodities is  monitored by the Government on a regular basis and corrective action is taken from time to time. Several supply-side measures have been taken by the Government to address inflation. These steps, inter alia, include reduction in excise duty on petrol and diesel,  prohibition of export of wheat products under HS Code 1101, imposition of export duty on rice, maintenance of buffer stock for onion and pulses, imposition of stock limits on edible oils and oil seeds, monitoring of stocks declared by entities to prevent hoarding  and also requisite changes in trade policy instruments.

## STATEMENT REFERRED TO PART (A) IN REPLY TO THE LOK SABHA UNSTARRED QUESTION NO.5107 RAISED BY SHRI KOMATI REDDY VENKAT REDDY AND OTHERS FOR 3 RD  APRIL 2023

Table 1: Retail Inflation in Cereals and Protein based items (per cent)

| Items                    |   2022-23 (April-Feb) |
|--------------------------|-----------------------|
| Cereals and products     |                 10.61 |
| Rice_other sources       |                  7.57 |
| Wheat/atta_other sources |                 16.72 |
| Meat and fish            |                  4.72 |
| Egg                      |                  0.39 |
| Milk and products        |                  7.22 |
| Food &beverages          |                  6.85 |

Source: MoSPI

Table 2: All-India Average Daily Rural Wage Rates (Rs.)*

| Year                | Agriculture Activities   | Agriculture Activities   | Non-agriculture Activities   | Non-agriculture Activities   |
|---------------------|--------------------------|--------------------------|------------------------------|------------------------------|
|                     | Men                      | Women                    | Men                          | Women                        |
| 2021-22             | 343                      | 252                      | 387                          | 253                          |
| 2021-22 (April-Nov) | 342                      | 249                      | 384                          | 252                          |
| 2022-23 (April-Nov) | 359                      | 268                      | 402                          | 262                          |

Source: Labour Bureu

Note:  Calculated  by  averaging  the  data  published  by  Labour  Bureu  for  different  agricultural  and  non- agricultural activities

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