Lok Sabha Question No. 1130 (UNSTARRED), answered on 2015-12-04
Subject: Food and Retail Inflation
Ministry: FINANCE
Asked by: SATISH KUMAR GAUTAM, MEENAKASHI LEKHI, PREM DAS RAI, VIRENDRA  KUMAR

- (a) the details of food and retail inflation levels in the country during each of the last three years and the current year;
- (b) whether there has been increase in inflation particularly food inflation during the last six months, if so, the details thereof and the reasons therefor;
- (c)  whether the Government has taken any fiscal and non-fiscal measures to curb inflation  particularly  food  inflation  along  with  the  steps  taken  to  boost  growth, sector-wise; and
- (d)  if so, the details and the outcome thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) The details of food and headline inflation levels based on Consumer Price Index (New Series) in the country during each of the last three years and the current year are in Table 1.

| Table 1: Inflation based on Consumer Price Index- New Series (in per cent)          | Table 1: Inflation based on Consumer Price Index- New Series (in per cent)          | Table 1: Inflation based on Consumer Price Index- New Series (in per cent)          | Table 1: Inflation based on Consumer Price Index- New Series (in per cent)          | Table 1: Inflation based on Consumer Price Index- New Series (in per cent)          |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
|                                                                                     | 2012-13                                                                             | 2013-14                                                                             | 2014-15                                                                             | 2015-16 (Apr-Oct) P                                                                 |
| Headline (All Groups)                                                               | 10.2                                                                                | 9.5                                                                                 | 5.9                                                                                 | 4.6                                                                                 |
| Food (CFPI)                                                                         | 12.2                                                                                | 11.3                                                                                | 6.4                                                                                 | 4.1                                                                                 |
| P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office. | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office. | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office. | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office. | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office. |

- (b)  Headline  inflation  and  food  inflation  in  terms  of  Consumer  Price  Index  (New Series) during the last six months are in Table 2.

| Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   | Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   | Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   | Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   | Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   | Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   | Table 2: Month-wise inflation based on Consumer Price Index- New Series (in per cent)   |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                                                                         | May-15                                                                                  | Jun-15                                                                                  | Jul-15                                                                                  | Aug-15                                                                                  | Sep-15                                                                                  | Oct-15 (P)                                                                              |
| Headline (All Groups)                                                                   | 5.0                                                                                     | 5.4                                                                                     | 3.7                                                                                     | 3.7                                                                                     | 4.4                                                                                     | 5.0                                                                                     |
| Food (CFPI)                                                                             | 4.8                                                                                     | 5.5                                                                                     | 2.2                                                                                     | 2.2                                                                                     | 3.9                                                                                     | 5.2                                                                                     |
| P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     | P: Provisional, CFPI: Consumer Food Price Index. Source: Central Statistics Office.     |

Headline inflation and food inflation based on Consumer Price Index (New Series) has increased in  recent  months  mainly  due  to  high  inflation  of  pulses  &  products, which is attributed to shortfall in domestic production.

(c)  &  (d)  Government  has  undertaken  a  number  of  measures  to  curb  inflation, particularly food inflation. These include, advising States to allow free movement of fruits and vegetables by delisting them from the APMC Act, banning of export of all pulses except kabuli channa and up to 10,000MTs in organic pulses and lentils, zero import  duty  on  pulses  except  for  chana  and  lentils,  empowering  States/UTs  to impose stock limits in respect of onion, pulses, edible oil, and edible oilseeds under the Essential Commodities Act etc.

The Government has taken various initiatives to boost growth of the economy which, inter alia, include; boost  to  agricultural sector  with  focus  on  micro  irrigation, watershed development, soil conservation and credit; fiscal consolidation; rationalization of tax structure and  various measures  to  improve  clarity  and transparency  in  economic  policy-making;  fillip  to  manufacturing  and  infrastructure through fiscal  incentives  and  measures  for  transport,  power,  and  other  urban  and rural infrastructure; reforms and liberalization of foreign direct investment in 15 major sectors; Skill India and Digital India initiatives; 'Make in India' initiative along with the attendant  facilitatory  measures  for  a  more  conducive  environment  for  investment; financial  inclusion  though  'Pradhan  Mantri  Jan  Dhan  Yojana'  which  also  helps  to strengthen  banking  and  insurance  services;  introduction  of  'Gold  Monetization Schemes' to mobilize the gold held by the household and institutions in the country for  productive  use  and  reduce  the  country's  reliance  on  the  import  of  the  gold; launching  of  Micro  Units  Development  and  Refinance  Agency  Ltd.  (MUDRA),  for developing and refinancing all micro-finance Institutions, which are in the business of lending  to  micro  /  small  business  entities  in  manufacturing,  trading  and  service activities.

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