Lok Sabha Question No. 2412 (UNSTARRED), answered on 2015-08-04
Subject: Rise in Prices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SANTOSH AHLAWAT, BHARAT SINGH, RAMDAS CHANDRABHANJI TADAS, T.G. VENKATESH BABU, RAVINDRA VISHWANATH GAIKWAD, KINJARAPU RAM MOHAN NAIDU, PREM SINGH CHANDUMAJRA, PASHUPATI NATH SINGH, KAUSHALENDRA KUMAR, MALLIKARJUN  KHARGE, P. KARUNAKARAN, PR. SENTHILNATHAN, RAJESH RANJAN  (PAPPU  YADAV), RITI PATHAK, KAMLA DEVI PATLE, P. C. MOHAN, MUTHAMSETTI SRINIVASA RAO (AVNTHI), ASHOK MAHADEORAO NETE

**ORIGINAL IN HINDI**

**Government of India**

## Ministry of Consumer Affairs, Food and Public Distribution

**Department of Consumer Affairs**

**LOK SABHA**

##### UNSTARRED QUESTION NO. 2412

##### TOBE ANSWERED ON04.08.2015

**RISE IN PRICES**

2412. 	SHRIMATI RANJEET RANJAN:

**(OIH)** PROF. RAVINDRA VISHWANATH GAIKWAD:

SHRI RAMDAS C. TADAS:

SHRI P. KARUNAKARAN:

SHRI MALLIKARJUN KHARGE:

SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

SHRIMATI SANTOSH AHLAWAT:

SHRI PREM SINGH CHANDUMAJRA:

SHRI RAM MOHAN NAIDU KINJARAPU:

SHRI RAJESH RANJAN:

SHRI VENKATESH BABU T.G.:

SHRI PR. SENTHIL NATHAN:

SHRI ASHOK MAHADEORAO NETE:

SHRI PASHUPATI NATH SINGH:

SHRIMATI RITI PATHAK:

SHRI KAUSHALENDRA KUMAR:

SHRIMATI KAMLA DEVI PAATLE:

SHRI BHARAT SINGH:

SHRI P.C. MOHAN:

**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 shortage and price rise of essential commodities including various types of pulses have been reported irrespective of their production, if so, the details thereof and the reasons therefor along with the steps taken to ensure adequate supply of these commodities at affordable rate;

(b)	whether the Government proposes to import these commodities and ban their import to improve domestic availability and if so, the details thereof indicating the proposed imports commodity-wise;

(c)	the steps taken/proposed to check hoarding and blackmarketing of essential commodities along with the success achieved therein;

(d)	whether a conference of State Chief Ministers/Food Minister was convened recently to discuss price rise and suggest measures to mitigate the suffering of poor who are most affected as indicated by CRISIL study, if so, the details and the outcome thereof indicating the issues discussed and suggestions made therein;

(e)	whether the Government has conveyed its concerns and directed the States to put in place their action plan for controlling prices, if so, the details thereof and the response of the States thereto; and

(f)	whether the Government proposes to put in place a foodgrid to check price rise and if so, the details thereof?

**ANSWER**

**miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=ky; ea=h**

**¼Jh jkefoykl ikloku½**

**THE MINISTERFOR**

**CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION**

**(SHRI RAM VILAS PASWAN)**

(a)	:  	Shortages and rise in the prices of essential food items including pulses may be caused by several factors such as adverse weather conditions, rise in transportation costs, supply constraints and artificial shortages due to hoarding and black-marketing.

Recent steps taken by Government to ensure adequate supply of essential food items at affordable prices are at **Annexure-I** .

(b)	: 	In order to augment domestic availability and stabalise prices of pulses Government has taken a decision to import 5000 metric tonnes of Arhar/Tur.  Export of all pulses is banned except kabuli channa and up to 10,000 MTs in organic pulses and lentils. Zero import duty on pulses has been extended till 30 th September, 2015.

(c)	: 	To protect the consumers from exploitation by unscrupulous traders, the Government has enacted the Essential Commodities Act, 1955 and the Prevention of Black-Marketing and Maintenance of Supplies of Essential Commodities Act, 1980. As these Acts are implemented by the State Governments/UTs, they have been regularly advised to ensure effective implementation of both.

Action Taken under the Essential Commodities Act, 1955 during 2015 as reported by the States/UTs are as follows:-

|   **S. No.** | **Particulars**            | **No.**         |
|--------------|----------------------------|-----------------|
|           1. | No. of raids conducted     | 25432           |
|           2. | No. of persons arrested    | 678             |
|           3. | No. of persons prosecuted  | 220             |
|           4. | No. of persons convicted   | 11              |
|           5. | Value of goods confiscated | Rs.950.76 lakhs |

(d) & (e):  	A National Consultation Meeting of Ministers of States and UTs in-charge of Food and Consumer Affairs was held on 7 th July 2015 at Delhi wherein a six month Joint Action Plan(July-December 2015)  for improving the availability and containing the prices of essential commodities was adopted for implementation. Details of the Joint Action Plan are at **Annexure- II** .

(f)	: 	There is no proposal under consideration to set up a National Foodgrid to check price-rise.

*****

**ANNEXURE- I**

**STATEMENT REFERRED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.2412 FOR 4.08.2015 REGARDING RISE IN PRICES.**

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**Recent steps taken by the Government to improve the availability and to contain prices of essential food items:**

- Minimum Export Price (MEP) for onion has been raised from USD 250 per M.T to USD 425 per MT w.e.f. 26.6.2015.

- The stock limits in respect of onion has extended by one more year i.e. up to 2nd July 2016 under the Essential Commodities Act.

- Export of all pulses is banned except kabuli chana and up to 10,000MTs in organic pulses and lentils. Zero import duty on pulses has been extended till 30 th September, 2015.

- Export of edible oils in bulk is prohibited except coconut oil and other edible oil in branded consumer packs of up to 5kgs with a minimum export price of USD 900 per MT w.e.f. 6.2.2015.

- States have been advised to allow free movement of fruits and vegetables by delisting them from the APMC Act.

- A new Plan Scheme titled Price Stabilization Fund (PSF) has been implemented for regulating price volatility of agricultural commodities.

- States have been advised to exempt levy of market fee on fruits and vegetables and to allow establishment of “Kisan Mandis”/ Farmers markets where producers and Farmer Producer Organizations (FPOs) can directly market their produce to wholesalers, organized retailers and ordinary consumers.

- Advisory to State Governments issued 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.

- Rice and wheat is being released into the open market from the central pool stock over and above the buffer norm.

- Following a National Consultation Meeting held with States/UTs on 7 th July 2015 a six months Joint Action Plan (July to December) has been agreed to for implementation. This covers identification of vulnerable areas where supply shortages occur, ensure that stock out situation do not occur for items of common consumption and also review of APMC Act with reference to onion, potatoes and tomatoes to remove inter-State barriers to internal trade.

*********

**ANNEXURE-II**

**STATEMENT REFERRED IN REPLY TO PARTS (d) & (e) OF LOK SABHA UNSTARRED QUESTION NO.2412 FOR 4.08.2015 REGARDING RISE IN PRICES.**

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**JOINT ACTION PLAN ADOPTED AT THE STATE FOOD MINISTER’S MEETING TO CONTAIN PRICE RISE OF ESSENTIAL FOOD ITEMS.**

- Sustained action will be initiated against hoarding and black-marketing and States will undertake effective enforcement of the Essential Commodities Act and Prevention of Black Marketing Act.

- States will identify vulnerable areas where supply shortages occur and ensure that “stock out” situations do not occur especially of items of common consumption.

- States will mobilize existing storage capacity utilizing the Government/private/co-operative storage infrastructure to ensure that adequate decentralized stocks are maintained across different cities/rural areas of the State to ensure adequate supplies of these commodities.  States will also mobilize Food & Civil Supplies Corporations, Co-operative Societies and Fair Price Shops for augmenting distribution avenues for essential food items.

- The existing Price Monitoring Cells in the States will be strengthened to monitor the prices of these specific commodities on the basis of wholesale prices at the mandis as well as the retail prices obtaining in various parts of the State.  This should enable the States to make market interventions on a real time basis.

- Review of APMC Act with reference to onions, potatoes and tomatoes to remove inter-State barriers to internal trade will be taken up.

- The meeting recognized the importance of the effective implementation of National Food Security Act in all the States which is yet to be implemented by 24 States and these States were requested to ensure implementation of the Act at the earliest.

****