Lok Sabha Question No. 53 (STARRED), answered on 2025-12-03
Subject: Price Monitoring of Essential Commodities
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Alok Sharma, Shri Vijay Kumar Dubey

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

## Department of Consumer Affairs

## LOK  SABHA

## STARRED QUESTION NO. *53

TO BE ANSWERED ON 03.12.2025

## PRICE MONITORING OF ESSENTIAL COMMODITIES

*53. SHRI VIJAY KUMAR DUBEY:

SHRI ALOK SHARMA:

(OIH)

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state:

- (a) the  details  of  new  tools/systems  implemented  to  strengthen  price  monitoring  systems  of  essential commodities;
- (b) the efforts being made by the Government to ensure buffer stock levels to stabilize the market prices of pulses and edible oils;
- (c) whether  revised  stock  limit  orders  have  been  issued  by  the  Government  to  prevent  hoarding  of pulses and wheat, if so, the details thereof; and
- (d) the manner in which the Government is coordinating with the States to ensure strict action against black marketing and price manipulation?

## ANSWER

## THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI PRALHAD JOSHI)

(a) to (d)  :   A Statement is laid on the Table of the House.

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## STATEMENT REFERRED IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO.*53 FOR 03.12.2025 REGARDING PRICE MONITORING OF ESSENTIAL COMMODITIES.

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(a)  :  Department  of  Consumer  Affairs  monitors  the  daily  prices  of  38  essential  food  commodities submitted by the 575 price reporting centres across the country. Price Monitoring System (PMS) Mobile App has been introduced to improve the ease of reporting and quality of price data. Data reported through PMS Mobile App are geo-tagged to ensure reporting from the market locations and has inbuilt feature to calculate  and  report  the  average  price  from  three  collection  centres  thereby  avoiding  human  errors  in calculation.  An  analytical  dashboard  has  been  developed  for  analysis  of  prices  data  through  graphical visualisation, heat map, comparison between commodities and geographies etc.

(b)  :    The  dynamic  buffer  stock  of  pulses  maintained  by  the  government  under  Price  Stabilisation  Fund (PSF) plays important role in controlling extreme volatility in the prices and in ensuring the availability of these  essential  food  commodities  to  consumers at  affordable  prices.  Fluctuations  in  domestic  production, seasonal variations in  demand and  speculative activities of market players often leads to volatility  in  the prices of pulses. Market interventions through buffer stock augments the availability in the open market and helps in cooling down prices. Further, buffer stock of pulses with the government acts as deterrent against manipulative hoarding and unscrupulous speculations by market players.

In respect of edible oils, Government does not maintain any buffer stock for price stabilization of edible  oils.  In  order  to stabilize  the  market  prices  of edible  oils  rationalization  of  Basic  Import  Duty (BCD) are being done from time to time. Duty rationalization helps stabilize prices by influencing both the cost and availability of essential goods. When the government reduces import duties on items such as edible oils,  the  landed  cost  of  these  products  falls,  which  in  turn  lowers  wholesale  and  retail  prices.  Cheaper imports  also  help  increase  overall  market  supply  during  periods  of  domestic  shortage,  preventing  price spikes and discouraging hoarding or speculative behaviour. By easing supply constraints, duty cuts act as an effective  tool  to  control  inflation  and  protect  consumers  from  sudden  price  shocks.  Conversely,  when domestic prices fall too sharply affecting farmers' incomes the government may increase duties to reduce cheaper imports, thereby stabilizing prices on the lower side as well. In this way, rationalization of duties provides flexibility to manage both high and low price situations, ensuring smoother market functioning and long-term price stability in the country.

(c) & (d) :   Currently there is no stock limit imposed on pulses. In respect of wheat, in order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Government issued revised stock limits order on 26 th August, 2025 under the Essential Commodities Act (EC Act), 1955, applicable till 31 st March, 2026. As per the order, the stockholding limit for trader/wholesaler is 2000 MT; for retailer - 8 MT for  each  retail  outlet;  for  bigchain  retailer  -  upto  8  MT  for  each  retail  outlet  subject  to  maximum quantity (8 multiplied by total no. of outlets) MT; and for processor  - 60% of monthly installed capacity multiplied by remaining months of FY 2025-26.

EC  Act,  1955  and  the  Prevention  of  Black  marketing  and  Maintenance  of  Supplies  of  Essential Commodities  Act  (PBMMSEC  Act),  1980  provide  the  legislative  and  administrative  foundations  to  the Government  to regulate prices, production, supply, distribution etc. of essential commodities  for maintaining or increasing their supplies and for securing their equitable distribution and availability at fair prices,  and  to  prevent  hoarding/black-marketing  of  foodstuffs.  The  implementation  of  EC  Act  and PBMMSEC  Act  is  collaborative  effort  among  the  Central  Government,  State  Governments  and  UT Administrations. States and UTs are responsible for implementing and enforcing these regulations on the ground. States/UTs are required to submit action taken reports on the implementation the Acts on monthly basis  through  online  portal.  Directives  are  issued  to  States  and  UTs  to  monitor  the  disclosure  of  pulses stocks  by  various  entities  like  traders,  dealers,  importers,  millers,  stockists  and  bigchain  retailers  on  the online stock disclosure portal. Meetings with State/UTs and various stakeholders have been held from time to review the implementation of the Acts.

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