Lok Sabha Question No. 253 (STARRED), answered on 2023-08-07
Subject: Surge in Food Prices
Ministry: FINANCE
Asked by: V. Kalanidhi

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

## LOK SABHA STARRED QUESTION NO. *253

TO BE ANSWERED ON 07.08.2023

## SURGE IN FOOD PRICES

## *253. DR. KALANIDHI VEERASWAMY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken note of the recent surge in food prices and the extent to which inflation has impacted these prices;
- (b) if so, the steps taken by the Government to address the significant increase in food prices resulting from inflationary pressures;
- (c) the measures taken or proposed to be taken by the Government to mitigate the adverse effects  of  rising  food  prices  on  vulnerable  populations,  particularly  those  with  limited financial resources;
- (d) whether the Government is considering to provide subsidies or other financial assistance to consumers struggling with the increased cost of food, if so, the details thereof; and
- (e) the  details  of  the  outline  of  a  long-term  plan  to  stabilize  food  prices  and  ensure affordability for consumers, particularly in light of ongoing inflationary pressures?

## ANSWER

## THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

(a) to (e): A statement is laid on the Table of the House

## STATEMENT  REFERRED  TO  IN  REPLY  TO  THE  LOK  SABHA  STARRED QUESTION  NO.253  RAISED  BY  DR.  KALANIDHI  VEERASWAMY  FOR  7 th AUGUST, 2023 ON 'SURGE IN FOOD PRICES'

- (a): The  Government  monitors  the  retail  and  wholesale  prices  of  22  essential  food commodities  submitted  by  the  536  price  monitoring  centres  across  the  country.  The recent  increase  in  the  price  of  tomato  is  due  to  crop  seasonality,  white  fly  disease  in Kolar district of Karnataka, instant arrival of monsoon rains in the northern part of the country  and  logistics  disruptions  in  isolated  areas  due  to  heavy  rains.  The  price  of tur/arhar  increased,  despite  higher  imports,  because  of  lower  production.  As  per  the Wholesale  Price  Index,  inflation  in  key  agricultural  inputs  like  fertilizers,  insecticides and pesticides declined gradually from the previous year and remained low during the first quarter of 2023-24 (April-June 2023).
- (b):  The  government  has  taken  various  measures  to  augment  domestic  availability  and stabilize  the  prices  of  essential  food  items  for  the  common  people.  These  steps, interalia ,  include  timely  releases  of  onion  and  pulses  from  the  buffer  stock,  imposition  of stock  limits  to  traders,  wholesalers  and  retailers,  monitoring  of  stocks  declared  by entities  to  prevent  hoarding,  as  also  requisite  changes  in  trade  policy  instruments  like rationalization  of  import  duty,  changes  in  import  quota  and  restrictions  on  exports  of specific  commodities.  To  bring  relief  to  consumers,  as  per  Government  directions, NCCF and NAFED have procured tomato from producing States for continuous disposal in  major  consumption  centres.  Government  has also carefully  calibrated  import  policy for different pulses, imposed stock limits on tur and urad and released tur from the buffer stock in a targeted manner.
- (c) & (d): In order to protect the vulnerable sections, Government is implementing Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY), under which food grains free of cost are  provided  to  the  beneficiaries  of  National  Food  Security  Act.  PM-GKAY  covers around  80  crore  people  in  the  country.  To  address  the  difficulties  of  migrants,  One Nation  One  Ration  Card  scheme  is  implemented  for  nationwide  portability  of  ration cards. Government is also providing a targeted subsidy of Rs.200 per 14.2 kg cylinder for up to 12 refills per year to the beneficiaries of Pradhan Mantri Ujjwala Yojana.
- (e): Interventions like timely supply of quality seeds of high yielding varieties, inputs, latest production technologies, credit, crop insurance, micro-irrigation and post-harvest facilities, targeted at increasing production  and  productivity,  help  stabilize prices. Ministry  of  Food  Processing  Industries  implements  Operation  Greens  scheme  for enhancing value addition and reducing post-harvest losses of agri-horticultural commodities.

Apart  from  these  measures,  Government  has  taken  various  measures  to  stabilise  the prices  of  specific  food  items.  In  order  to  stablilise  the  volatility  in  prices  of  onion, Government maintains buffer under Price Stabilization Fund. The buffer size has been increased  from  which  onions  are  released  in  major  consumption  centres  during  lean production season of September-December. In the last five years, Government maintains buffer  stock  of  pulses  by  procuring  from  the  mandis  and  also  by  transferring  stocks procured under the Price  Support Scheme  for  calibrated release in the market. Government  has  introduced  the  mechanism  to  convert  chana  stock  into  chana  dal  for retail disposal under the brand name of 'Bharat Dal' at highly subsidized rate.