Lok Sabha Question No. 222 (STARRED), answered on 2016-05-10
Subject: Rise in Prices of Essential Commodities
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: PRALHAD VENKATESH JOSHI, B. S. YEDDYURAPPA

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

## LOK SABHA STARRED QUESTION NO. *222

TO BE ANSWERED ON 10.05.2016

## RISE IN PRICES OF ESSENTIAL COMMODITIES

*222.   SHRI PRALHAD JOSHI:

SHRI B.S. YEDIYURAPPA:

## 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 prices of essential commodities including those monitored by Price Monitoring Cell  continued  to  rise  over  a  period  of  time  despite  various  steps  taken  by  the Government, if so, the details thereof and the reasons therefor;
- (b) whether the Government has received all necessary information/logistics on price trends during the last three years, if so, the details thereof and the action taken thereon;
- (c) the steps taken by the Union Government to check hoarding and ensure compliance with various rules related to supply of essential commodities and price control by the States, if so, the details and the outcome thereof; and
- (d) whether any assessment has been made about impact of water shortage on prices and if so, the details thereof?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=ky; ea=h ¼Jh jke foykl ikloku½

THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI RAM VILAS PASWAN)

(a) to (d) :

A Statement is laid on the Table of the House.

*****

## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO.* 222 FOR 10.05.2016 REGARDING RISE IN PRICES OF ESSENTIAL COMMODITIES.

------------------------------------------------------------------------------------------------------------------------

- (a) :  Prices of most of the essential food items monitored by Price Monitoring Cell (PMC) has remained relatively stable or declined over the year. The food items which showed an increase in prices include pulses (especially tur, urad and chana), potato and sugar. Increase in prices of food items is mainly on account of shortfall in production owing to adverse weather conditions, increased  transportation  costs,  supply  chain  constraints  like  lack  of  storage  facilities  and artificial shortage created by hoarding and black marketing. The details are at Annnexure I.

(b)  :  Yes sir. The requisite information is given at Annexure II & III .

- (c)  :  States  have  been  advised  to  take  effective  action  against  hoarders  of  essential commodities  under  the  Essential  Commodities  Act,  1955  and  the  Prevention  of  BlackMarketing and Maintenance of Supplies of Essential Commodities Act 1980. States/UTs have been conducting raids and seized pulses are being disposed, as per the provisions under the EC Act, 1955. The Action Taken Report is given at Annexure IV .
- (d)  :  Water  shortage  adversely  affects  the  sown  area  and  productivity  of  crops.  The resultant shortfall  in  production  in  turn  affects  the  quantum  of  market  arrivals  and  thereby  prices. However, no official assessment of direct impact of water shortage on prices has been made.

*****

STATEMENT  REFERRED  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA  STARRED QUESTION NO.* 222 FOR 10.05.2016  REGARDING  RISE IN PRICES OF ESSENTIAL COMMODITIES.

-------------------------------------------------------------------------------------------------------------------

ALL INDIA AVERAGE RETAIL PRICES (Rs./Kg)

| Commodities            |   Prices as on (5/5/2016)* |   Prices as on (5/5/2015) |   Percent change |
|------------------------|----------------------------|---------------------------|------------------|
| Rice                   |                      26.92 |                     27.29 |            -1.36 |
| Wheat                  |                      23.3  |                     22.06 |             5.62 |
| Atta (Wheat)           |                      24.49 |                     24.34 |             0.62 |
| Gram Dal               |                      72.33 |                     53.5  |            35.2  |
| Tur/Arhar Dal          |                     141.38 |                     87.92 |            60.81 |
| Urad Dal               |                     149.39 |                     86.37 |            72.97 |
| Moong Dal              |                     101.34 |                    100.97 |             0.37 |
| Masoor Dal             |                      83.07 |                     76.33 |             8.83 |
| Sugar                  |                      38.93 |                     31.85 |            22.23 |
| Milk@                  |                      40.25 |                     38.93 |             3.39 |
| Groundnut Oil (Packed) |                     128.28 |                    120.9  |             6.1  |
| Mustard Oil (Packed)   |                     108.95 |                     99.6  |             9.39 |
| Vanaspati (Packed)     |                      73.22 |                     75.55 |            -3.08 |
| Soya Oil (Packed)      |                      82.09 |                     85.32 |            -3.79 |
| Sunflower Oil (Packed) |                      95.14 |                     94.48 |             0.7  |
| Palm Oil (Packed)      |                      69.32 |                     67.58 |             2.57 |
| Gur                    |                      40.93 |                     40.29 |             1.59 |
| Tea Loose              |                     197.67 |                    205.05 |            -3.6  |
| Salt Pack (Iodised)    |                      14.8  |                     14.65 |             1.02 |
| Potato                 |                      18.52 |                     13.48 |            37.39 |
| Onion                  |                      16.33 |                     22.02 |           -25.84 |
| Tomato                 |                      22.8  |                     25.08 |            -9.09 |

NR -> Not Reported      * -->    (Iodised) @ -->    (Rs./Ltr.)      *latest available Source:-  State civil supplies Department

*****

## STATEMENT REFERRED IN REPLY TO PART (b) OF LOK SABHA STARRED QUESTION NO. *222 FOR 10.5.2016 REGARDING RISE IN PRICES OF ESSENTIAL COMMODITIES.

------------------------------------------------------------------------------------------------------------------------------

## RETAIL  AND  WHOLESALE  PRICES  OF  ESSENTIAL  COMMODITIES  FOR  LAST  THREE YEARS.

| Sl.No.   | Commodities            | ALL INDIA AVERAGE RETAIL PRICES (Rs./Kg)   | ALL INDIA AVERAGE RETAIL PRICES (Rs./Kg)   | ALL INDIA AVERAGE RETAIL PRICES (Rs./Kg)   | ALL INDIA AVERAGE WHOLESALE PRICES (Rs./Qtl)   | ALL INDIA AVERAGE WHOLESALE PRICES (Rs./Qtl)   | ALL INDIA AVERAGE WHOLESALE PRICES (Rs./Qtl)   |
|----------|------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------|------------------------------------------------|------------------------------------------------|------------------------------------------------|
| Sl.No.   | Commodities            | 2016-17 as on (5/5/2016)*                  | 2015-16 as on (5/5/2015)                   | 2014-15 as on (5/5/2014)                   | 2016-17 as on (5/5/2016)                       | 2015-16 as on (5/5/2015)                       | 2014-15 as on (5/5/2014)                       |
| 1        | Rice                   | 26.92                                      | 27.29                                      | 27.08                                      | 2410.66                                        | 2442.5                                         | 2447.56                                        |
| 2        | Wheat                  | 23.3                                       | 22.06                                      | 20.81                                      | 2066.96                                        | 1988.78                                        | 1858.4                                         |
| 3        | Atta (Wheat)           | 24.49                                      | 24.34                                      | 22.94                                      | 2164.29                                        | 2154.92                                        | 2017.7                                         |
| 4        | GramDal                | 72.33                                      | 53.5                                       | 47.96                                      | 6721.13                                        | 4909.63                                        | 4343.62                                        |
| 5        | Tur/Arhar Dal          | 141.38                                     | 87.92                                      | 69.92                                      | 13278.55                                       | 8345.58                                        | 6552.45                                        |
| 6        | Urad Dal               | 149.39                                     | 86.37                                      | 66.78                                      | 14006.1                                        | 8142.28                                        | 6176.17                                        |
| 7        | Moong Dal              | 101.34                                     | 100.97                                     | 87.76                                      | 9355.12                                        | 9482.69                                        | 8246.36                                        |
| 8        | Masoor Dal             | 83.07                                      | 76.33                                      | 63.04                                      | 7643.1                                         | 7110.42                                        | 5818.14                                        |
| 9        | Sugar                  | 38.93                                      | 31.85                                      | 36.12                                      | 3621.02                                        | 2894.83                                        | 3374.67                                        |
| 10       | Milk@                  | 40.25                                      | 38.93                                      | 36.51                                      | 3748.83                                        | 3704.92                                        | 3471.13                                        |
| 11       | Groundnut Oil (Packed) | 128.28                                     | 120.9                                      | 121.61                                     | 12090.62                                       | 11379.4                                        | 11355.58                                       |
| 12       | Mustard Oil (Packed)   | 108.95                                     | 99.6                                       | 97.38                                      | 9981.67                                        | 9242.74                                        | 8907.23                                        |
| 13       | Vanaspati (Packed)     | 73.22                                      | 75.55                                      | 76.58                                      | 6792.69                                        | 6969.32                                        | 7163.71                                        |
| 14       | Soya Oil (Packed)      | 82.09                                      | 85.32                                      | 85.46                                      | 7609.45                                        | 7774.88                                        | 7900.21                                        |
| 15       | Sunflower Oil (Packed) | 95.14                                      | 94.48                                      | 95.21                                      | 9017.24                                        | 8873.96                                        | 8951.42                                        |
| 16       | Palm Oil (Packed)      | 69.32                                      | 67.58                                      | 71.56                                      | 6516.3                                         | 6252.21                                        | 6760.38                                        |
| 17       | Gur                    | 40.93                                      | 40.29                                      | 39.12                                      | 3658.75                                        | 3496.9                                         | 3463.32                                        |
| 18       | Tea Loose              | 197.67                                     | 205.05                                     | 205.11                                     | 18024.03                                       | 18322.7                                        | 17650                                          |
| 19       | Salt Pack (Iodised)    | 14.8                                       | 14.65                                      | 14.24                                      | 1249.75                                        | 1266.13                                        | 1229.07                                        |
| 20       | Potato                 | 18.52                                      | 13.48                                      | 19.64                                      | 1467.47                                        | 1021.05                                        | 1532.77                                        |
| 21       | Onion                  | 16.33                                      | 22.02                                      | 17.96                                      | 1221.42                                        | 1711.63                                        | 1369.96                                        |
| 22       | Tomato                 | 22.8                                       | 25.08                                      | 18.58                                      | 1796.18                                        | 1918.1                                         | 1380.84                                        |

* --> (Iodised) @ --> (Rs./Ltr.)       * latest available

Source:-

State civil supplies Department

## STATEMENT REFERRED IN REPLY TO PART (b) OF LOK SABHA STARRED QUESTION NO. *222 FOR 10.5.2016 REGARDING RISE IN PRICES OF ESSENTIAL COMMODITIES.

----------------------------------------------------------------------------------------------------------------------------------------------

Steps taken by the Government to improve the availability and to contain prices of essential food items:

## General Measure:

1. National Consultation Meeting of the minister of states/UTs in-charge of Consumer Affairs and Food held on 7thJuly, 2015 at New Delhi resolved to take steps to keep prices of essential commodities, especially Pulses and onion under control.
2. Advisory  were  issued  to  State  Governments  to  take  strict  action  against  hoarding  &  black  marketing  and effectively enforce the  Essential  Commodities  Act,  1955  &  the  Prevention  of  Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980.
3. Regular review meeting on price and availability situation is being held at the highest level including at the level  of  Finance  Minister,  Committee  of  Secretaries,  Inter  Ministerial  Committee,  Price  Stabilization  Fund Management Committee and other Departmental level review meetings.
4. Higher  MSP  has  been  announced  so  as  to  incentivize  production  and  thereby  enhance  availability  of  food items which may help moderate prices.
5. A  Plan  Scheme  titled  Price  Stabilization  Fund  (PSF)  is  being  implemented  to  regulate  price  volatility  of agricultural commodities.

## Specific Measures:

## Onion

6. Export of onion were restricted through imposition of Minimum Export Price (MEP) when prices were ruling high and import is allowed at zero duty.
7. Retail sale of onion was undertaken from the stock held by SFAC and NAFED.
8. Imported 2000 MT of onion from Egypt and China through MMTC. As no demands from state were received, the onion were disposed off through tender in the open market.
9. The stock limits in respect of onion have been extended by one more year i.e. up to 2nd July 2016 under the Essential Commodities Act.
10. Procurement of 15000 MT of onion by SFAC and NAFED for market intervention during lean period has been approved.

## Pulses

11. Export of all pulses is banned except kabuli channa and up to 10,000 MTs in organic pulses and lentils.
12. Import of pulses are allowed at zero import duty.
13. Stock limit on pulses extended till 30.9.2016.
14. Government imported 5000 MT of Tur from Malawi/Mozambique and allocated it to States for retail sale to consumers to improve availability and to moderate prices.
15. MSP (including bonus) raised for kharif pulses for Tur and Urad and Moong. MSP also raised for Rabi pulses for Gram and Masoor.
16. Government has approved creation of buffer stock of 1.5 lakh MT of pulses for effective market intervention.
17. Government  has decided  to  immediately  release  10,000  MT  of  pulses  from  the  buffer  stock  (consisting  of 8,000 MT of Tur and 2,000 MT of Urad) to States/UTs at subsidized rates for retailing by them at not more than Rs 120/- per kg to improve availability and stabilise prices.
18. Regulatory measures by  Securities & Exchange Board of India (SEBI) on Chana contracts including increase in the margin requirement to discourage speculation and to moderate the price volatility in forward market and close monitoring by SEBI
19. Strict  vigilance  by  Directorate  of  Revenue Intelligence to prevent importers  from mis-using the  facilities  of Customs Bonded Warehouse facility
20. Setting  up  of  a  Group  of  Officers  for  regular  monitoring  and  exchange  of  information  on  hoarding, cartelization etc.

## Edible Oils

21. Export of edible oils in bulk is prohibited except coconut oil and other edible oils in branded consumer packs of up to 5 kgs is permitted with a minimum export price of USD 900 per MT.
22. MSP increased for various rabi and kharif oil seeds

*****

## STATEMENT REFERRED IN REPLY TO PART (c) OF LOK SABHA STARRED QUESTION NO. *222 FOR 10.5.2016 REGARDING RISE IN PRICES OF ESSENTIAL COMMODITIES.

----------------------------------------------------------------------------------------------------------------------------------------------

## ACTION TAKEN UNDER THE ESSENTIAL COMMODITIES ACT, 1955 DURING 2016

(Relating to offences under EC Act- for other than violation of stock control orders/ for violation of stock control orders)

Updated as on 03.05.2016

| Sl. No.   | STATES/UTs        | No. of Raids Conducted   | No. of Persons   | No. of Persons   | No. of Persons   | Value of goods Confiscated (Rs. In Lakhs)   | Detentions Ordered   | Reported upto       |
|-----------|-------------------|--------------------------|------------------|------------------|------------------|---------------------------------------------|----------------------|---------------------|
| Sl. No.   | STATES/UTs        | No. of Raids Conducted   | Arrested         | Prosecuted       | Convicted        |                                             |                      |                     |
| 1         | 2                 | 3                        | 4                | 5                | 6                | 7                                           | 8                    | 9                   |
| 1.        | Arunachal Pradesh | Nil                      | Nil              | Nil              | Nil              | Nil                                         |                      | January             |
| 2.        | Delhi             | 1                        | -                | -                | -                | -                                           |                      | January             |
| 3.        | Goa               | 8                        | Nil              | Nil              | Nil              | Nil                                         |                      | March               |
| 4.        | Gujarat           | 1641                     | 0                | 1                | -                | 21.29                                       | 4                    | February            |
| 5.        | Haryana           | 17                       | -                | -                | -                | -                                           |                      | *                   |
| 6.        | Himachal Pradesh  | 3912                     | -                | -                | -                | 5.03                                        |                      | February            |
| 7.        | Kerala            | 10                       | 4                | 1                | 0                | 0.10                                        |                      | January             |
| 8.        | Maharashtra       | 75                       | 93               | 45               | 0                | 26.95                                       |                      | February            |
| 9.        | Manipur           | Nil                      | Nil              | Nil              | Nil              | Nil                                         |                      | January             |
| 10.       | Mizoram           | 3                        | -                | -                | -                | -                                           |                      | January             |
| 11.       | Nagaland          | Nil                      | Nil              | Nil              | Nil              | Nil                                         |                      | January             |
| 12.       | Rajasthan         | 35                       | Nil              | Nil              | Nil              | Nil                                         |                      | *                   |
| 13.       | Sikkim            | 30                       | -                | -                | -                | -                                           |                      | February            |
| 14.       | Telangana         | 479                      | 67               | 5                | 5                | 25.52                                       | 7                    | February            |
| 15.       | Uttarakhand       | 591                      | 2                | -                | -                | -                                           |                      | March (Except Feb.) |
| 16.       | Uttar Pradesh     | 10886                    | 27               | 21               | 3                | 30.84                                       |                      | March               |
| 17.       | West Bengal       | 113                      | 23               | 11               | NIL              | 9043.96                                     |                      | February            |
| 18.       | A&NIslands        | 29                       | -                | -                | -                | -                                           |                      | March               |
| 19.       | Chandigarh        | Nil                      | Nil              | Nil              | Nil              | Nil                                         |                      | February            |
| 20.       | D&N Haveli        | Nil                      | Nil              | Nil              | Nil              | Nil                                         |                      | February            |
| 21.       | Puducherry        | 231                      | -                | -                | -                | 0.14                                        |                      | March               |
| 22.       | Tamilnadu         | NR                       | NR               | NR               | NR               | NR                                          | 50                   | -                   |
|           | TOTAL             | 18061                    | 216              | 84               | 8                | 9153.83                                     | 61                   |                     |

Note: Other States have not submitted report so far., NR  : Not Reported,

* :  Raids under Pulses only

*****