Lok Sabha Question No. 1000 (UNSTARRED), answered on 2023-07-26
Subject: Steps to Control Increasing Prices of Commodities
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: M. P. Abdussamad Samadani

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

## LOK SABHA UNSTARRED QUESTION NO. 1000

TO BE ANSWERED ON 26.07.2023

## STEPS TO CONTROL INCREASING PRICES OF COMMODITIES

1000.  DR. M.P. ABDUSSAMAD SAMADANI:

## Will  the  Minister  of CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC  DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h be pleased to state:

- (a) whether the Government is aware of the financial burden that the people are compelled to bear due to the hike in essential commodities;
- (b) if so, the steps taken by the Government to control the situation and to prevent the rise in prices;
- (c) whether the Government is going to take necessary steps for reduction in the prices of essential commodities by monitoring wholesale and retail prices; and
- (d) if so, the details thereof?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ( श्री अश्विनी कु मार चौबे )

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI ASHWINI KUMAR CHOUBEY)

(a)  to  (d)  :    The  Department  of  Consumer  Affairs  monitors  the  daily  prices  of  22  essential  food commodities submitted by the 536 price monitoring centres that have been set up with Central assistance by  State  Governments  and  UT  Administrations  across  the  country.  The  daily  report  of  prices  and indicative price trends are duly analysed for taking appropriate decisions for release of stocks from the buffer  to  cool  down  prices,  imposition  of  stock  limits  to  prevent  hoarding,  changes  in  trade  policy instruments like rationalization of import duty, changes in import quota, restrictions on exports of the commodity etc.

In  order  to  check  the  current  increase  in  prices  of  tomato  and  make  it  available  to  the  consumers  at affordable  prices,  the  Government  has  started  the  procurement  of  tomatoes  under  Price  Stabilisation Fund  and  is  making  it  available  at  a  highly  subsidised  rate  to  consumers.  The  National  Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED) are  continuously  procuring  tomato  from  mandis  in  Andhra  Pradesh,  Karnataka  and  Maharashtra  and making it available at affordable prices in major consuming centres in Delhi-NCR, Bihar, Rajasthan, etc. after subsidizing the price to the consumers. The tomatoes have been disposed initially at retail price of Rs.90/kg which has been reduced to Rs.80/kg from 16.07.2023 and further reduced to Rs.70/kg from 20.07.2023.

In order to check the volatility in prices of onion, the Government maintains onion buffer under the PSF. The buffer size has been increased year after year from 1.00 LMT in 2020-21 to 2.50 LMT in 2022-23. The  onions  from  the  buffer  are  released  in  major  consumption  centres  during  the  lean  season  from September to December in a calibrated and targeted manner to cool down prices. The onion buffer target for 2023-24 has been enhanced further to 3.00 LMT.

To augment domestic availability and moderate the prices of pulses, import of tur and urad have been kept  under  'Free  Category'  till  31.03.2024  and  import  duty  on  masur  has  been  reduced  to  zero  till 31.03.2024. Import duty of 10% on tur has been removed to facilitate smooth and seamless imports.

To prevent hoarding, stock limits has been imposed on tur and urad under the Essential Commodities Act, 1955 on 2 nd June, 2023 for a period till 31 st October, 2023. Disposal of 50,000 MT of tur from the Price  Stabilisation  Buffer  has  been  undertaken  in  a  targeted  and  calibrated  manner  to  augment  the availability of stocks for milling into tur dal for the consumers.

Stocks of chana and moong from the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) buffer are continuously released in the market to moderate prices. Chana is also supplied to the States at a  discount  of  Rs.15/kg  for  welfare  schemes.  Further,  the  government  introduced  the  mechanism  to convert chana stock into chana dal for retail disposal under the brand name of 'Bharat Dal' at highly subsidized rate of Rs.60/kg for 1kg pack and Rs.55/kg for 30kg pack in order to make pulses available to consumers at affordable prices by converting chana stock of the government into chana dal. Bharat Dal is  being distributed through retail outlets of NAFED, NCCF, Kendriya Bhandar and Safal. The chana dal, under this arrangement, is also made available to state governments for supplies under their welfare schemes, police, jails, and also for distribution through the retail outlets of state government controlled cooperatives and corporations.

In  order  to  manage  the  overall  food  security  of  the  country  and  control  the  increasing  prices  of foodgrains, the export policy of wheat has been prohibited w.e.f. 13 th May, 2022 and from 12 th July, 2022  the  export  of  atta  (wheat)  has  been  subjected  to  the  recommendation  of  Inter-Ministerial Committee  (IMC)  on  Export  of  Wheat.  To  prevent  hoarding  and  unscrupulous  speculation,  the Government of India has imposed stock limits on the Wheat from 12th June 2023 for a period till 31st March, 2024. The Government is also continuously offloading the wheat from central pool under Open Market Sale Scheme (Domestic) (OMSS (D)) 2023 to flour mills/private traders/bulk buyers/manufacturers of wheat products through e-auction to control retail prices of wheat.

Further, the export of broken rice has been banned w.e.f. 9th September, 2022 and the export of nonbasmati White Rice prohibited w.e.f. 20th July 2023 to check the increase in prices. The government is also continuously disposing rice under the OMSS to augment availability in the market and control the prices.

In order to control and ease the prices of edible oils in the domestic market, the Government of India has taken the following steps:

- The basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil was reduced from 2.5% to Nil. The Agri-cess on Oils was brought down from 20% to 5%.
- The basic duty on Refined Soybean oil and Refined Sunflower Oil was rationalised on 15.06.2023 by reducing it from 17.5% to 12.5% in line with the basic duty on Refined Palm Oils which was reduced from 17.5% to 12.5% on 21.12.2021.
- The import of Refined Palm Oils under free category has extended untill further orders.
- Regular meetings are conducted with leading Edible Oil Associations and industry wherein they are being advised to pass on the benefits of decrease in the international prices of major edible oils to the domestic end consumers.