Lok Sabha Question No. 2536 (UNSTARRED), answered on 2024-08-07
Subject: Rise Prices of Potatoes and Onions
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Dr. D Ravi Kumar

## Government of India

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

## LOK SABHA UNSTARRED QUESTION NO. 2536 TO BE ANSWERED ON 07.08.2024

## RISE PRICES OF POTATOES AND ONIONS

2536.   DR. D RAVI KUMAR:

## 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 immediate measures the Government is taking to control the price surges in view of the Department of Consumer Affairs Price Monitoring Division's data showing significant increases in the  average  retail  prices  of  potatoes  (56%)  and  onions  (67%)  as  of  July  15  compared  to  a  year earlier, if so, the details thereof;
- (b) whether there has been a sharp 76% increase since mid-June despite of tomato prices being 43% lower than a year ago and if so, the details thereof including the interventions being considered by the Government to address this sudden shift in price momentum and prevent further spikes;
- (c) the steps taken by the Government to stabilize cereal prices and ensure food security in the country; and
- (d) the manner in which the Government is planning to mitigate the impact of deficient rains on key food-growing areas like Punjab and address potential inflationary pressures?

## 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) : Prices of agri-horticultural commodities tend to be volatile as they are affected by factors, such as seasonality in production, adverse weather conditions, supply chain disruptions, artificial shortages created by hoarding and black marketing, rise in international prices etc. Sometimes slight disruptions in the supply chain or crop damage due to adverse weather condition etc. lead to spike in the prices of agri-horticultural commodities. Conversely, bulk arrival and logistics problems have the potential of creating a situation of glut in the market and resultant dip in prices.

In order to protect consumers from excessive price volatility in agri-horticultural commodities, the Government introduced the Price Stabilisation Fund (PSF) scheme in 2014-15. Under PSF, buffer stock of major pulses and onion have been maintained for market interventions and also to discourage hoarding and unscrupulous speculation. Stocks from the buffer are released in calibrated manner to augment availability in the market and stabilise prices.

Government maintains buffer stock of onion by procuring onions from rabi crop for release in the market during the lean months to stabilise the prices. In current year, about 4.64 lakh tons of onion has been procured through NCCF and NAFED and kept in the buffer. Onions from the buffer will be released in the market through various channels such as retail sales, e-Nam auction and bulk sales in wholesale markets to augment the availability.

The  recent  increase  in  tomato  prices  is  due  to  crop  seasonality  and  extreme  pre-monsoon  heat followed by supply chain disruptions due to excessive rains in some pockets. To ameliorate the hardship faced by consumers and make tomatoes available at affordable prices, NCCF started retail sale of tomatoes the consumers at Rs.60 per kg from 29 th July, 2024

In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Government imposed stock limits on wheat from 24 th June 2024 till 31st March 2025. The export of non-basmati white rice  has been prohibited and export duty of 20% imposed on parboiled rice has been imposed.

Retail sale of Bharat Atta and Bharat Rice at subsidized prices was launched for increasing supplies in the market at affordable rates and helped in continued moderation of prices of these food items.

The Government has allowed grain deficient states to directly purchase rice from Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) (OMSS [D]) without participating in the eauction from August 1st, 2024. Under the OMSS (D), the Department of Food and Public Distribution will directly  offload  rice  to  states  for  Rs.2,800  per  quintal  (excluding  the  cost  of  transportation).  If  the States/UTs want to procure more than the stipulated 5 kg of free grain per individual, then they can procure that at the same price at Rs.2,800 per quintal instead of earlier Rs.2,900 per quintal.

The  Union  Budget  2024-25  announced  focus  on  agriculture  productivity  and  resilience  by developing high yielding and climate resilient varieties. This would help mitigate the impact of deficient rains in major foodgrain producing States, including Punjab.

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