Lok Sabha Question No. 1612 (UNSTARRED), answered on 2025-12-10
Subject: Price Volatility of Essential Commodities
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Yaduveer Wadiyar, Shri Ashish Dubey, Shri Brijendra Singh Ola, Shri Chandra Prakash Joshi

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution

## Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 1612 TO BE ANSWERED ON 10.12.2025

## PRICE VOLATILITY OF ESSENTIAL COMMODITIES

1612.   SHRI YADUVEER WADIYAR: SHRI BRIJENDRA SINGH OLA: SHRI CHANDRA PRAKASH JOSHI: SHRI ASHISH DUBEY:

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

- (a) the new tools/systems currently implemented by the Government to strengthen price monitoring of essential  commodities  including  the  details  of  the  various  initiatives  implemented  by  the Government to manage price volatility of essential commodities in the country;
- (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 the Government has issued revised storage limit orders to prevent hoarding of  pulses and wheat and if so, the details thereof; and
- (d) the manner in which the Government is coordinating with States including Uttar Pradesh to ensure strict  action  against  along  with  black  marketing  and  price  manipulation  along  with  the  details thereof?

## ANSWER THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L. VERMA)

(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.

The daily report of prices and indicative price trends is duly analysed for taking appropriate decisions such as release of stocks from the buffer, stock disclosure by stockholding entities, imposition of stock limits, changes in trade policy instruments like rationalisation of import duty, changes in import quota, restrictions on exports of the commodity etc. Inter-Ministerial Committee (IMC) reviews and deliberates,  on  a  regular  basis,  the  situation  of  prices  and  price  trends  of  essential  agri -horticulture commodities and suggests measures to enhance availability through increased domestic production and through imports.

(b) :     The dynamic buffer stock of pulses maintained by the government under Price Stabilisation Fund (PSF) plays an 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 lead to volatility in the prices of pulses. Market interventions through buffer stock augment the availability in the open market and help in cooling down prices. Further, the buffer stock of pulses with the government acts as a deterrent against manipulative hoarding and unscrupulous speculations by market players.

In respect of edible oils, the 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) is 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  a 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 a 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 of the Acts every month through  the  online  portal.  Directives  are  issued  to  States  and  UTs,  including  Uttar  Pradesh,  to monitor the disclosure of pulses stocks by various entities like traders, dealers, importers, millers, stockists and  big  chain  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.