Lok Sabha Question No. 165 (UNSTARRED), answered on 2015-07-21
Subject: Price Rise
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: R.K. BHARATHI MOHAN, BOORA NARSAIAH GOUD, BHEEMRAO BASWANTHRAO PATIL, KURUPPASSERY VARKEY THOMAS, PONNUSAMY VENUGOPAL, RAM CHARITRA, SURESH KODIKUNNIL, T.G. VENKATESH BABU, KAUSHALENDRA KUMAR, CHANDRAKANT RAGHUNATH PATIL

**Government of India**

## Ministry of Consumer Affairs, Food and Public Distribution

**Department of Consumer Affairs**

**LOK SABHA**

##### UNSTARRED QUESTION NO. 165

##### TO BE ANSWERED ON 21.07.2015

**PRICE RISE**

165.	SHRI BHARATHI MOHAN R.K.:

DR. BOORA NARSAIAH GOUD:

SHRI BHEEMRAO B. PATIL:

PROF. K.V. THOMAS:

DR. P. VENUGOPAL:

SHRI RAM CHARITRA NISHAD:

SHRI KODIKUNNIL SURESH:

SHRI VENKATESH BABU T.G.:

SHRI KAUSHALENDRA KUMAR:

SHRI C.R. PATIL:

**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 the Government is aware of the rise in prices of various essential commodities including foodgrains, edible oils, various pulses, vegetables and onion in the country, if so, the details thereof and the reasons therefor indicating the comparative prices during the last three years, item-wise;

(b)	the remedial steps taken/being taken by the Government to contain the rising food prices in future along with the alternative measures proposed for evolving a proper mechanism for price monitoring and control;

(c)	whether a conference of Ministers from various States was organised recently to discuss the issue of price rise; and

(d) 	if so, the details and the outcome thereof indicating the suggestion received and the action taken thereon?

**ANSWER**

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

**¼Jh jke foykl ikloku½**

**THE MINISTER FOR**

**CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION**

**(SHRI RAM VILAS PASWAN)**

(a)	: 	Yes Madam. The requisite information based on the All India Wholesale Price Index (WPI) is given at **Annexure-I.**

Rise in the prices of essential food items are due to several factors such as adverse weather conditions, rise in transportation costs, supply constraints and artificial shortages due to hoarding and black-marketing.

(b)	:	 Government monitors the prices of essential commodities on a daily basis. These price trends are analyzed and based on these appropriate policy measures for improving availability and ensuring stability in prices of essential commodities are taken.

The details of such step taken are at **Annexure-II.**

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

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**ANNEXURE-I**

**STATEMENT REFERRED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.165 FOR 21.07.2015 REGARDING PRICE RISE.**

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**Percent variation in selected essential commodities over the last 3 years**

| **COMMODITY**          |   **2012-13** |   **2013-14** |   **2014-15** |
|------------------------|---------------|---------------|---------------|
| **CEREALS**            |         13.41 |         12.84 |          3.60 |
| Rice                   |         12.69 |         16.51 |          6.70 |
| Wheat                  |         15.51 |          9.20 |         -0.29 |
| **PULSES**             |         19.57 |         -5.52 |          5.88 |
| Gram                   |         37.43 |        -18.41 |         -8.90 |
| Arhar                  |          8.82 |          6.49 |          8.71 |
| Moong                  |          6.16 |         14.03 |         20.99 |
| Masur                  |         19.10 |         12.01 |         22.20 |
| Urad                   |         -5.14 |          2.92 |         23.04 |
| FRUITS & VEGETABLES    |          8.33 |         23.11 |          5.35 |
| **VEGETABLES**         |         17.19 |         40.16 |         -6.06 |
| Potato                 |         60.45 |          6.34 |         35.05 |
| Onion                  |         24.56 |         107.4 |        -30.81 |
| Tomato                 |         -6.56 |          78.4 |          2.21 |
| Cauliflower            |          4.84 |         14.17 |          9.80 |
| Brinjal                |          8.90 |         26.68 |         -8.24 |
| Okra (Lady finger)     |         -1.94 |          8.44 |        -12.00 |
| Cabbage                |         28.53 |         23.69 |         -6.20 |
| Sugar                  |         11.34 |         -2.42 |         -0.31 |
| **EDIBLE OILS**        |          9.13 |         -0.78 |         -1.32 |
| Vanaspati              |          3.48 |          0.45 |         -1.77 |
| Groundnut Oil          |         17.55 |         -5.71 |         -7.86 |
| Palm Oil               |          4.21 |          1.18 |          0.78 |
| Mustard & Rapeseed Oil |         13.49 |         -0.14 |          2.27 |
| Soyabean Oil           |         10.20 |         -1.86 |         -3.56 |
| Sunflower Oil          |          4.48 |         -4.47 |         -5.24 |

**Source : DIPP**

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**ANNEXURE- II**

**STATEMENT REFERRED IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO.165 FOR 21.07.2015 REGARDING PRICE RISE.**

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**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 channa 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 is permitted 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) with a corpus of Rs.500 crores approved aimed at regulating price volatility of agricultural and horticultural commodities. Under the scheme a decision has been taken to augment the domestic supply of pulses by importing 5000MT of Arhar.
- 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.
- Government is also encouraging production of horticultural crops through a Centrally Sponsored scheme, namely Mission for integrated Development of Horticulture w.e.f 2014-15.
- 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.
- The joint action plan following the consultation meeting held on  7 th July 2015 with States/UTs inter-alia agreed to identify vulnerable areas where supply shortages occur and 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.

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**ANNEXURE- III**

**STATEMENT REFERRED IN REPLY TO PARTS (c) & (d) OF LOK SABHA UNSTARRED QUESTION NO.165 FOR 21.07.2015 REGARDING PRICE RISE.**

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**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.

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