Lok Sabha Question No. 3430 (UNSTARRED), answered on 2016-08-05
Subject: Food Inflation
Ministry: FINANCE
Asked by: P. KUMAR, VEENA DEVI, KINJARAPU RAM MOHAN NAIDU

- (a) the food inflation and retail inflation levels in the country for the last three years;
- (b) the steps taken by the Government to reign in rising costs of food articles and vegetables;
- (c)  whether the Government has plans to intervene through policy to revive consumer spending and investment; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

- (a) The headline and food inflation in the country based on Consumer Price Index (Combined) for the last three years is given in Table 1 below:
- (b) to (d) The Government has undertaken a number of measures to curb inflation, in particular, food inflation. The steps taken, inter alia, include, (i) increased allocation of Rs 900 crore for Price Stabilization Fund in the budget 2016-17 to check volatility of prices of essential commodities, in particular of pulses. (ii) decision taken to create buffer stock of Kharif and Rabi pulses through domestic  procurement  and  imports; (iii) announced  higher  Minimum  Support  Prices  so  as  to incentivize  production; (iv) issued  advisory  to  States/UTs  to  take  strict  action  against  hoarding and  black  marketing  under  the  Essential  Commodities  Act  1955  and  the  Prevention  of  Blackmarketing and Maintenance of Supplies of Essential Commodities Act, 1980; (v) imposed 20 per cent duty on export of sugar. The prevailing higher food inflation is mainly on account of supply side  constraints  and  the  Government  has  taken  several  steps  to  augment  the  production  and supply of the key commodities.

| Table 1: General and food inflation based on CPI (Combined) (in per cent)   | Table 1: General and food inflation based on CPI (Combined) (in per cent)   | Table 1: General and food inflation based on CPI (Combined) (in per cent)   | Table 1: General and food inflation based on CPI (Combined) (in per cent)   |
|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                             | 2013-14                                                                     | 2014-15                                                                     | 2015-16                                                                     |
| General/Headline                                                            | 9.5                                                                         | 5.9                                                                         | 4.9                                                                         |
| Food (CFPI*)                                                                | 11.3                                                                        | 6.4                                                                         | 4.9                                                                         |
| Source: Central Statistics Office                                           | Source: Central Statistics Office                                           | *CFPI: Consumer Food Price Index                                            | *CFPI: Consumer Food Price Index                                            |

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