Lok Sabha Question No. 1000 (UNSTARRED), answered on 2021-02-08
Subject: Inflation
Ministry: FINANCE
Asked by: Dibyendu Adhikari

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1000

TO BE ANSWERED ON FEBRUARY 08, 2021

## INFLATION

## 1000.   SHRI DIBYENDU ADHIKARI:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the Consumer Food Price Index or the inflation in the food basket surged to double digit in the month of August 2020 and was above 9.6 percent average in consecutive last three quarters of 2020-21 financial year;
- (b) if so, the action taken by the Government thereon and the process to overcome post covid-19 situation; and;
- (c) the details of proposal to save the poor people from the alarming inflation?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a)  No,  Sir.  The  inflation  rate  based  on  Consumer  Food  Price Index (CFPI) recorded  9.05 per centin the month of August 2020 and monthly average of CFPI inflation during last three quarters of 2020-21 was 9.12 per cent.
- (b)  &  (c)  Government  monitors  the  price  situation  regularly  and  has  taken  various  measures  from  time  to  time  to stabilize  prices  of  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  has  taken  several steps  to  improve  the  availability  of  pulses,  onion  and  potato  and  make  them  available  to  consumers  at  affordable prices.  These  include:  i.  Banning  the  export  of  onion  with  effect  from  14.09.2020,  revoked  w.e.f.  1.01.2021.  ii. Imposition  of  stock  limit  on  onion  under  the  Essential  Commodities  Act  w.e.f.  23.10.2020  to  prevent  hoarding.  iii. Easing of restrictions on imports, facilitating imports at  integrated check-posts, issuance of licenses for imports and reduction in import duties. Government also implements Price Stabilization Fund (PSF) to help moderate the volatility in  prices  of  agri-horticultural  commodities  like  pulses,  onion,  and  potato.  Government  of  India  has  entered  into  a Memorandum of Understanding (MoU) with Mozambique to ensure assured supply of pulses (Tur and other pulses) in India. The MoU envisages imports of 2 LMT pulses during 2020-21.

On 26 th March, 2020, Government of India announced Pradhan Mantri Garib Kalyan Package of Rs. 1.70 lakh crore for the poor to help them fight the battle against Corona Virus. Under PM-Garib Kalyan Ann Yojana (GKAY), additional 5 Kg per person per month, over and above the normal entitlements under National Food Security Act (NFSA), free-ofcost foodgrains was distributed to NFSA beneficiaries (AAY & PHH) including those covered under DBT for a period of 8 months (initially for three months i.e. April-June 2020, which subsequently extended up to the end of November 2020). Under this provision, total 297.5 Lakh Metric Tons (LMT) foodgrains have been distributed during this period.

PM-GKAY also included a provision of pulses like moong, tur, chana and urad for NFSA beneficiaries at the rate of 1 kg per family, for 3 months from April to June 2020 to ensure adequate availability of protein to the poor. Under this provision,  about  5.49  LMTs  pulses  were  distributed  during  this  period. In  June  2020,  the  PM-GKAY  was  extended beyond the initial period of three months until the end of November, 2020.  During this five-month period, 1 kg free whole chana was provided to each family of NFSA beneficiary households per month free of cost.  About 8.28 LMTs chana have been distributed during these five months.

Similarly,  under  Atma  Nirbhar  Bharat  Scheme,  as  announced  on  14  May  2020,  the  migrants/  stranded  migrants labour, not covered under NFSA or without a ration card, were provided foodgrains free of cost at the rate of 5 kg per person per month for two months i.e. May and June 2020. About 2.74 LMTs foodgrains have been distributed under the scheme. Further, 1 kg chana per  family  per month during this period  was also distributed under the scheme to migrants/stranded migrants. Under this provision, total 16644.88 MTs whole chana were distributed.