Lok Sabha Question No. 343 (UNSTARRED), answered on 2024-11-27
Subject: Food Inflation
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Adv K. Francis George

## Government of India

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

## LOK SABHA

## UNSTARRED QUESTION NO. 343

TO BE ANSWERED ON 27.11.2024

## FOOD INFLATION

## 343. ADV K. FRANCIS GEORGE:

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  has  assessed  the  impact  of  reducing  food  stocks  on  inflation,  specifically food inflation and if so, the findings of this assessment;
- (b) the details of measures the Government has taken to address the rise in food prices, particularly for essential  items  such  as  vegetables  and  edible  oils,  given  the  recent  spike  in  Consumer  Price  Index (CPI) inflation to a 14-month high of 5.81%;
- (c) whether  the  Government  is  aware  of  inflationary  expectations  created  by  stock  reductions,  which could lead to speculative buying and further price escalation;
- (d) if  so,  the  steps  taken  to  manage  speculative  activities  that  affect  food  prices  and  to  ensure  the availability of government-held stocks in times of inflation; and
- (e) whether there are any plans to reconsider recent policy decisions, such as the increased import taxes on edible oils to mitigate inflationary pressure and if so, the details thereof?

## 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 (d) :   As an indicator of availability situation, stock position in food commodities impacted the prices and inflationary expectations. The government keeps a close watch on the production, availability and prices of  essential  food  commodities  through  regular  reviews  by  the  Inter-Ministerial  Committee  (IMC).  The Committee  reviews,  on  regular  basis,  the  situation  of  prices  and  price  trends  of  essential  agri-horticulture commodities  and  suggests  measures  to  enhance  availability  through  increased  domestic  production  and imports.

In order to tackle the volatility in prices, the government maintains buffer stocks of pulses and onion for  market  interventions  through  calibrated  and  targeted  release  to  moderate  the  prices  in  the  market.  The buffer stock with the government also discourages hoarding and unscrupulous speculations. 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.

The  Essential  Commodities  Act,  1955  and  the  Prevention  of  Black  Marketing  and  Maintenance  of Supplies  of  Essential  Commodities  Act,  1980,  are  enforced  to  deal  with  the  regulation  of  the  production, supply  and  distribution  of  essential  commodities  and  malpractices  like  black  marketing,  hoarding  and profiteering of pulses and wheat. In order to prevent hoarding and unscrupulous speculation, the government had, vide orders dated 21.06.2024 and 11.07.2024, imposed stock limits on Tur and Chana which remain in force till 30.09.2024. The government also, vide notification dated 24.06.2024, imposed stock limit on wheat till 31.03.2025.

(e) :    The Government is closely monitoring the international and domestic prices of edible oils to take necessary measures to mitigate inflationary pressure, keeping in mind the interest of the consumers, domestic farmers and domestic edible oil industry.

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