Lok Sabha Question No. 1592 (UNSTARRED), answered on 2024-12-04
Subject: Increase in Prices of Consumer Goods by FMCG Companies
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Giridhari Yadav

## Government of India

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

## LOK SABHA UNSTARRED QUESTION NO. 1592 (OIH) TO BE ANSWERED ON 04.12.2024

## INCREASE IN PRICES OF CONSUMER GOODS BY FMCG COMPANIES

## 1592.  SHRI GIRIDHARI YADAV:

(OIH)

## 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 it is a fact that the country's leading FMCG companies, which manufacture everyday consumer goods are considering to increase the prices in view of the reduction in profit margins in the quarter of September, 2024;
- (b) whether the prices of daily consumable items like tea, biscuits, oil, shampoo etc. are likely to increased as a result of the same;
- (c) whether inflation is likely to hit the lower and middle class people by this rise in prices;
- (d) if  so,  whether  the  Government  proposes  to  put  a  check  on  proposed  increase  in  prices  by  FMCG companies based on their profit margins; and
- (e) if so, the time by which it is likely to be done and if not, the reasons therefor?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h (श्री बी.एल. वर्मा )

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L.VERMA)

(a) to (e)  : Department of Consumers Affairs does not maintain specific data regarding pricing of consumer goods manufactured by FMCG companies.

Department of Consumer Affairs monitors the daily retail and wholesale prices of selected essential food commodities, submitted by the 555 price monitoring centres that have been set up with Central assistance by the State Governments and UT Administrations across the country. The daily report of prices and indicative price trends are duly analysed for taking appropriate decisions such as release of stocks from the buffer, stock disclosure  by  stockholding  entities,  imposition  of  stock  limits,  changes  in  trade  policy  instruments  like rationalisation of import duty, changes in import quota, restrictions on exports of the commodity etc.

In order to tackle volatility in prices of agri-horticultural commodities, the government maintains buffer stocks of pulses and onion for market interventions through calibrated and targeted release to moderate the prices in the market. As a measure of direct intervention in the retail market, part of the stock of pulses from the buffer are converted into dals for retail sale to the consumers at affordable prices under the Bharat Dal brand. Similarly, atta and rice are distributed to retail consumers under Bharat brand at subsidized prices. Onion from the buffer are released in a calibrated and targeted manner to moderate prices in high price consuming centres at wholesale markets and through retail outlets. Onion is distributed among retail consumers at Rs.35 per kg through stationary retail outlets and mobile vans in major consumption centres. These measures have helped in making essential food commodities such as pulses, rice, atta and onion available to consumers at affordable prices and also in stabilising the prices.

In order to ensure accessibility and availability of foodgrains for the poor, the government has decided to provide free foodgrains to about 81.35 crore beneficiaries of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for a period of next five years with effect from 1 st January, 2024, as per their entitlement (i.e. 35 kg of foodgrains per month per AAY household and 5 kg of foodgrains per person per month in case of Priority Household).

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