Lok Sabha Question No. 101 (UNSTARRED), answered on 2021-02-02
Subject: Rise in Prices of Domestic Products
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Su Thirunavukkarasar

## Government of India

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

LOK SABHA UNSTARRED QUESTION NO. 101 TO BE ANSWERED ON 02.02.2021

## RISE IN PRICES OF DOMESTIC PRODUCTS

## 101. SHRI THIRUNAVUKKARASAR SU:

## Will  the  Minister  of  CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government is aware of the steep rise in the prices of pulses, onion, tomato, and potato in the domestic market in the recent months;
- (b) if so, whether there is a gap between demand and supply of onion, tomato and potato in the country;
- (c) whether the Government has imposed stock limits on wholesalers and retailers, put ban on its export and resorted to import; and
- (d) if so, the details thereof and the steps taken by the Government to provide remunerative prices to onion and potato farmers and make them available at a reasonable price to consumers along with the action taken by the Government against the hoarders and black marketers of onion in various States?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh nkuos jkolkgsc nknkjko½

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

(a) to (d) :  The retail prices of pulses, Onion, Potato & Tomato which were on upward trend from September, 2020 are on a declining trend from December, 2020.

In  terms  of  Consumer  Price  Index  (CPI),  the  inflation  rate  for  Pulses  and  Products  in December, 2020 was 15.98% as against 18.05% in November, 2020.  In case  of vegetables  which include  onion,  potato  and  tomato,  the  inflation  rate  in  December  2020  was  (-)10.41%  as  against 15.48% in November, 2020.

Seasonality in the arrival of onion, tomato and potato, rather than overall demand-supply gap, is a major determining factor of the availability and prices of these highly perishable commodities.

To ensure the availability of onion to domestic consumer at affordable prices, the Government imposed a ban on export of onion with effect from 14.09.2020. As the retail price of onion breached the Price Trigger for imposition of stock limit under Essential Commodities (Amendment) Act, 2020, the Government imposed stock limit of 25 Metric Ton for wholesaler and 2 Metric Ton for retailer with effect from 23.10.2020.  Further, to augment the domestic availability of onion and potato, the Government relaxed quarantine and  fumigation norms for imports, and  onions were  also  procured and disposed of through NAFED from the Indian seaports. As the prices of onion stabilised, the ban on onion export was lifted w.e.f. 01.01.2021  and also the stock limit notified for the period up to 31.12.2020 was allowed to lapse.

The Government operates buffer stock of onion under the Price Stabilisation Fund (PSF) as a measure  to  moderate  prices.  Under  this  scheme,  stock  of  rabi  onion  is  procured  directly  from  the farmers and Farmer Producer Organizations (FPOs) during harvest time to ensure remunerative prices to  the  farmers.  The  stock  is  released  during  the  lean  season  through  retail  outlets  of  the  State  and Central Governments and also in the open market in a calibrated manner to make onion available to the  consumers  at  reasonable  prices. With  a  view  to  maintaining  supplies  of  essential  commodities, State  Governments as  well as Central Government exercise powers under the Prevention of Black Marketing  and  Maintenance  of  Supplies  of  Essential  Commodities  Act,  1980  which  provides  for detention  in  such  cases  for  the  purpose  of  prevention  of  black-marketing,  hoarding,  speculative trading etc.

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