Lok Sabha Question No. 1529 (UNSTARRED), answered on 2016-05-03
Subject: Price of Essential Commodities
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: ANANT KUMAR DATTATREYA HEGDE, PRALHAD VENKATESH JOSHI, MAJ. GEN. (RETD) BHUWAN CHANDRA KHANDURI AVSM, PONNUSAMY VENUGOPAL

## Government of India Department of Consumer Affairs

## ORIGINAL IN HINDI

## Ministry of Consumer Affairs, Food and Public Distribution

## LOK SABHA UNSTARRED QUESTION NO. 1529

TO BE ANSWERED ON 03.05.2016

## PRICE OF ESSENTIAL COMMODITIES

1529.   SHRI ANANTKUMAR HEGDE:

(OIH) SHRI PRALHAD JOSHI:

MAJ GEN B C KHANDURI AVSM (Retd):

DR. P. VENUGOPAL:

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

- (a) the criteria and norms for fixation of the prices of essential commodities in the country;
- (b) whether there has been unprecedented rise in prices of essential commodities including vegetables and pulses in the country, if so, the details thereof and the reasons therefor; and
- (c) the corrective steps, including imports, being undertaken by  the  Government  to contain/stabalise the prices of above commodities; and
- (d) whether any cases of hoarding of essential commodities including grains and pulses have been  reported/detected  during  the  last  three  years,  if  so,  the  details  thereof  and  the corrective steps taken/proposed in this regard?

## 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) : Prices  of  food  items  are  largely  market  determined  except  for  subsidised  food  items distributed through Public Distribution System.
- (b) : The requisite details based on the Wholesale Price Index (2004-05) is given below:

| Annual Inflation rate (%)   | Annual Inflation rate (%)   | Annual Inflation rate (%)   | Annual Inflation rate (%)   | Annual Inflation rate (%)   |
|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| Group/Sub Group             | 2012-13                     | 2013-14                     | 2014-15                     | 2015-16 P                   |
| Food articles               | 9.9                         | 12.8                        | 6.1                         | 3.73                        |
| (i) Pulses                  | 19.6                        | -5.5                        | 5.9                         | 34.45                       |
| (ii) Vegetables             | 17.2                        | 40.2                        | -6.1                        | -2.26                       |
| Food products               | 8.1                         | 3.2                         | 2.4                         | 4.47                        |

Source: Office of Economic Adviser, DIPP P= Provisional

- (c) : The requisite information is at Annexure I .

- (d) : The requisite information is at Annexure II.

*****

## STATEMENT REFERRED IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO.1529 FOR 03.05.2016 REGARDING PRICE OF ESSENTIAL COMMODITIES.

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## 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.

******

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## 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 28.04.2016

| 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        | Value of goods Confiscated (Rs. In Lakhs)   | Detentions Ordered   | Reported upto       |
| 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                                          | 46                   | -                   |
|           | TOTAL             | 18061                    | 216              | 84               | 8                | 9153.83                                     | 57                   |                     |

Note: Other States have not submitted report so far.,    NR  : Not Reported,     *     :  Raids under Pulses only

## ACTION TAKEN UNDER THE ESSENTIAL COMMODITIES ACT, 1955 DURING THE YEARS 2014-2015 (Relating to offences of violation of stock control orders)

## Updated as on 28.4.2016

| Sl. No.   | STATE/Uts                | No. of Raids Conducted   | No. of Raids Conducted   | No. of Persons   | No. of Persons   | No. of Persons   | No. of Persons   | No. of Persons   | No. of Persons   |
|-----------|--------------------------|--------------------------|--------------------------|------------------|------------------|------------------|------------------|------------------|------------------|
|           |                          |                          |                          | Arrested         | Arrested         | Prosecuted       | Prosecuted       | Convictecd       | Convictecd       |
|           |                          | 2014                     | 2015                     | 2014             | 2015             | 2014             | 2015             | 2014             | 2015             |
| 1         | Andhra Pradesh           | 6884                     | 1300                     | 64               | 0                | 0                | 23               | 0                | 23               |
| 2         | Arunachal Pradesh        | NR                       | 3                        | NR               | 1                | NR               | -                | NR               | -                |
| 3         | Assam                    | 148                      | NR                       | NIL              | NR               | NIL              | NR               | NIL              | NR               |
| 4         | Bihar                    | 25                       | 299                      | 9                | NIL              | 6                | NIL              | -                | NIL              |
| 5         | Chattisgarh              | 101                      | 673                      | 0                | 0                | 0                | 0                | 0                | 0                |
| 6         | Delhi                    | NR                       | 24                       | NR               | 2                | NR               | NIL              | NR               | NIL              |
| 7         | Goa                      | 93                       | 96                       | NIL              | NIL              | NIL              | NIL              | NIL              | NIL              |
| 8         | Gujarat                  | 11089                    | 9098                     | 41               | 25               | 25               | 16               | -                | -                |
| 9         | Harayana                 | 99                       | 3229                     | 46               | 123              | 13               | 138              | 1                | -                |
| 10        | Himachal Pradesh         | 27220                    | 39314                    | 0                | -                | -                | -                | -                | -                |
| 11        | Jammu &Kashmir           | NR                       | NR                       | NR               | NR               | NR               | NR               | NR               | NR               |
| 12        | Jharkhand                | NR                       | 140                      | NR               | NR               | NR               | NR               | NR               | NR               |
| 13        | Karnataka                | 525                      | 4529                     | 225              | 199              | 0                | 0                | 1                | 6                |
| 14        | Kerala                   | 24855                    | 8465                     | 17               | 26               | 3                | 12               | 0                | 1                |
| 15        | Madhya Pradesh           | 3255                     | 38648                    | 35               | -                | 89               | 111              | 3                | 6                |
| 16        | Maharashtra              | 973                      | 6302                     | 7173             | 777              | 250              | 277              | 0                | 2                |
| 17        | Manipur                  | NIL                      | NIL                      | NIL              | NIL              | NIL              | NIL              | NIL              | NIL              |
| 18        | Meghalaya                | 373                      | 41                       | NIL              | NIL              | NIL              | NIL              | NIL              | NIL              |
| 19        | Mizoram                  | 145                      | 141                      | 0                | -                | 0                | -                | NIL              | -                |
| 20        | Nagaland                 | NIL                      | NIL                      | NIL              | NIL              | NIL              | NIL              | NIL              | NIL              |
| 21        | Orissa                   | 10102                    | 2291                     | -                | NIL              | 18               | NIL              | -                | NIL              |
| 22        | Punjab                   | 1763                     | 10443                    | 3                | -                | NIL              | -                | NIL              | -                |
| 23        | Rajasthan                | NR                       | 840                      | NR               | NR               | NR               | NR               | NR               | NR               |
| 24        | Sikkim                   | NIL                      | 71                       | NIL              | -                | NIL              | -                | NIL              | -                |
| 25        | Tamil Nadu               | 9176                     | 29                       | 3949             | 41               | 1980             | 41               | 2068             | 0                |
| 26        | Tripura                  | 447                      | 4601                     | 10               | 349              | 10               | 2                | NR               | 0                |
| 27        | Uttarakhand              | NR                       | 199                      | 1                | NR               | 1                | 1                | 1                | NR               |
| 28        | Uttar Pradesh            | 25879                    | 5                        | 202              | 9                | 738              | 9                | 0                | 1                |
| 29        | West Bengal              | 729                      | 2045                     | 173              | 107              | 28               | 121              | -                | 17               |
| 30        | Andaman &Nicobar Islands | NIL                      | 780                      | NIL              | 174              | NIL              | 52               | NIL              | -                |
| 31        | Chandigarh               | NR                       | 86                       | NR               | NIL              | NR               | NIL              | NR               | NIL              |
| 32        | Dadra &Nagar Haveli      | 3                        | 2                        | 0                | 1                | 0                | 17               | NIL              | 3                |
| 33        | Daman &Diu               | NR                       | NIL                      | NR               | NIL              | NR               | NIL              | NR               | NIL              |
| 34        | Lakshadweep              | NB                       | NR                       | NB               | NR               | NB               | NR               | NB               | NR               |
| 35        |                          |                          |                          | 14               | NIL              | 24               | NIL              | 0                | NIL              |
|           | Puducherry               | 848                      | 3                        |                  |                  |                  |                  | 0                | -                |
| 36        | Telangana TOTAL          | 7136 131868              | 741 134438               | 55 12017         | 1 1835           | 0 3185           | 2 822            | 2074             | 59               |

Source:  Reports received from State Governments/UTs, NR:  *Not Reported, NB:   No Blackmarketing.