Lok Sabha Question No. 277 (STARRED), answered on 2025-03-19
Subject: Spike in Essential Food Prices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Joyanta Basumatary

## Government of India

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

## LOK  SABHA

STARRED QUESTION NO. *277

TO BE ANSWERED ON 19.03.2025

## SPIKE IN ESSENTIAL FOOD PRICES

## *277.   SHRI JOYANTA BASUMATARY:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state:

- (a) whether  the  Government  has  taken  cognizance  of  the  spike  in  essential  food  prices  across  the country;
- (b) if so, the details of the steps taken to curb the persistent inflationary pressures in the food sector and if not, the reasons therefor;
- (c) the appropriate steps taken or likely to be taken to ensure the availability and affordability of such food items for the vulnerable sections of society;
- (d) whether  the  Government  has  taken  any  initiatives  to  improve  post-harvest  storage  facilities  and reduce losses to minimize price fluctuations and volatility in the food market; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI PRALHAD JOSHI)

- (a) to (e)  :   A Statement is laid on the Table of the House.

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## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (e) OF LOK SABHA  STARRED QUESTION NO.*277 FOR 19.03.2025 REGARDING SPIKE IN ESSENTIAL FOOD PRICES.

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- (a) & (b) :   Department of Consumer Affairs monitors the daily prices of 38 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. Inter-Ministerial Committee (IMC) reviews and deliberates, 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 through imports.
- (c) : In  order  to  ensure  accessibility  and  availability  of  foodgrains  for  vulnerable  section  of  the  society,  the Government 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 1st 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). To tackle the volatility in prices, government maintains buffer stocks of pulses and onion for market interventions through calibrated and targeted release to moderate the prices in the market. Part of the stock of pulses from the buffer is converted to  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 had been released during September to December, 2024 in a calibrated and targeted manner to moderate prices in high price consuming centres at wholesale markets and through retail outlets. Onions from the buffer were 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  available  to  the  general  consumers  at affordable prices and also in stabilising the prices. The overall food inflation rate had declined to 3.75% in February, 2025 from 10.87% in October, 2024

- (d) & (e)     : Government takes various initiatives to improve post-harvest storage facilities and reduce losses to minimize price fluctuations and volatility in the food market. These are:
- (i) Department of Agriculture & Farmers Welfare (DA&FW) implements Agriculture Infrastructure Fund (AIF) to  provide  a  medium  and  long  term  loan  facility  for  investment  in  viable  projects  for  post-harvest  market infrastructure including warehousing facility and community farming assets through interest subvention and financial support.
- (ii) DA&FW  is  implements  the  Mission  for  Integrated  Development  of  Horticulture  (MIDH)  for  holistic development of horticulture  sector  to  increase  the  postharvest  management  infrastructure  and  reduce  postharvest losses in the country, under which financial assistance is provided for various horticulture activities including setting up of pack houses, cold storages, reefer transport, ripening chamber, primary processing etc.
- (iii) DA&FW implements Agricultural Marketing Infrastructure (AMI), a sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM) under which assistance is provided for construction of warehouses in the rural areas in the States to enhance the storage capacity for agriculture produce.
- (iv) Ministry  of  Food  Processing  Industries  (MoFPI)  implements  Pradhan  Mantri  Kisan  Sampada  Yojana (PMKSY) with the objective of reducing post-harvest losses of horticulture and non-horticulture produce and providing remunerative price to farmers for their produce.
- (v) The Ministry of Cooperation implements the 'World's Largest Grain Storage Plan in Cooperative Sector' for creation of various agri infrastructure at Primary Agriculture Cooperative Societies (PACS) level, including setting  up  decentralized  godowns  through  convergence  of  various  existing  schemes.  Under  these  schemes PACS can avail subsidies and interest subvention benefits for construction of godowns/storage facilities and setting  up  of  other  agri  infrastructure.  Further,  NABARD  is  also  extending  financial  support  to  PACS  by refinancing them at highly subsidized rates of around 1 percent, after incorporating the benefits of 3% interest subvention under AIF scheme for projects up to Rs. 2 crore. Establishment of decentralized storage capacity at  PACS level  would  reduce  post-harvest  losses  by  creating  sufficient  storage  capacity  in  the  country  and strengthen food security of the country up to Panchayat/village level. It will also prevent distress sale of crops by farmers and enable them to realise better prices for their crops.

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