Lok Sabha Question No. 2176 (UNSTARRED), answered on 2016-07-29
Subject: Price Rise
Ministry: FINANCE
Asked by: VINCENT H PALA, RAKESH SINGH, KAMAL NATH, PREM SINGH CHANDUMAJRA

- (a)  the rate of inflation of pulses and factors responsible for the same during each of the last 14 weeks along with the reaction of the Government thereto, commodity-wise;
- (b)  whether India has entered into a contract with third world countries in connection with the rising inflation in certain commodities;
- (c)  if so, the details thereof; and
- (d)  the steps taken or proposed to be taken to reign in inflation in the country?

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

(a) The Central Statistics Office releases inflation based on Consumer Price Index (Combined) on a monthly basis. The rate of inflation of pulses and products in terms of Consumer Price Index (Combined) for the last three months is given in Table 1 below. High inflation in pulses is mainly on account of low production due to two successive drought years.  According to the latest estimates (third advance estimates 2015-16) released by Department of Agriculture & Cooperation,  the  total  pulses  production  in  the  country  during  2014-15  was  17.15  million  tonnes  as  against  19.25 million tonnes in 2013-14 and is estimated to be 17.06 million tonnes in 2015-16.

| Table 1: Inflation in Pulses & products in terms of Consumer Price Index (Combined)   | Table 1: Inflation in Pulses & products in terms of Consumer Price Index (Combined)   | Table 1: Inflation in Pulses & products in terms of Consumer Price Index (Combined)   | (in per cent)      |
|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------------------|
|                                                                                       | Apr-16                                                                                | May-16                                                                                | Jun-16 (P)         |
| Pulses & products                                                                     | 34.2                                                                                  | 31.6                                                                                  | 26.9               |
| Arhar, tur                                                                            | 55.1                                                                                  | 49.1                                                                                  | 39.7               |
| Gram: split                                                                           | 29.2                                                                                  | 28.0                                                                                  | 27.3               |
| Gram: whole                                                                           | 24.0                                                                                  | 24.3                                                                                  | 24.0               |
| Moong                                                                                 | 10.7                                                                                  | 9.3                                                                                   | 6.9                |
| Masur                                                                                 | 19.5                                                                                  | 16.9                                                                                  | 13.2               |
| Urd                                                                                   | 52.4                                                                                  | 49.6                                                                                  | 43.7               |
| Peas                                                                                  | 7.8                                                                                   | 10.7                                                                                  | 10.9               |
| Khesari                                                                               | 22.2                                                                                  | 22.5                                                                                  | 19.0               |
| Other pulses                                                                          | 12.3                                                                                  | 13.3                                                                                  | 11.6               |
| CSO P: Provisional                                                                    | CSO P: Provisional                                                                    | CSO P: Provisional                                                                    | CSO P: Provisional |

(b)  &  (c)  To  mitigate  the  shortfall  in  availability  of  pulses  and  supplement  the  existing  efforts  at  meeting  the requirements,  Government  has  entered  into  long  term  Government-to-Government  (G2G)  arrangement  with Mozambique  so  as  to  ensure  assured  availability  of  pulses.  The  Memorandum  of  Understanding  (MoU)  with Mozambique provides for import of pulses either through the private channels or G2G sales through State Agencies nominated by the two countries.

(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  Black-marketing  and  Maintenance  of Supplies of Essential Commodities Act, 1980; (v) imposed 20 per cent duty on export of sugar.