(a) whether the Government is aware of the 14.12 per cent retail food inflation which is a six year high;
(b) if so, the details thereof and the reasons therefor;
(c) whether during the lockdown large section of people have lacked salaries and daily wages, if so, the details thereof; and
(d) the steps taken/being taken by Government for the reduction of food prices?
THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI DANVE RAOSAHEB DADARAO)
(a) & (b) : Details of retail food inflation based on Consumer Food Price Index (CFPI), brought out by M/o Statistics and Programme Implementation (MoSPI) for the last six years from January 2014 to July 2019 and January to July of the current year 2020 is annexed.
Prices of food items are inter-alia affected by mismatch in demand and supply, shortfall in production owing to adverse weather conditions, seasonality, increased transportation costs, supply chain constraints like lack of storage facilities, artificial shortage created by hoarding and black marketing, etc.
(c) & (d) : To ameliorate the hardships faced by large section of people due to livelihoods disruption caused by COVID-19, foodgrains are distributed at the rate of 5 kg per person per month, and pulses are distributed at the rate of 1 kg per household per month , free of cost, to all beneficiaries of the National Food Security Act (NFSA), 2013 under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for the period of eight months from April to November 2020. In addition, foodgrains at the rate of 5 kg per person per month, and pulses at the rate of 1 kg per household are distributed, free of cost, to migrant workers who are not covered under NFSA for the period of two months, from April and May 2020. Distribution of foodgrains and pulses under PMGKAY and ANB have contributed to ensuring the availability of food items during lockdown and in controlling food inflation.
Government has taken various measures from time to time to stabilize prices of essential food items which, inter-alia, include appropriately utilizing trade and fiscal policy instruments like import duty, Minimum Export Price, export restrictions, etc. to regulate domestic availability and moderate prices; imposition of stock limits and advising States for effective action against hoarders and black marketers ; and, provision of higher Minimum Support Prices to incentivize farmers for increasing production. Government is also implementing Schemes which, inter alia, include Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), National Mission on Oilseeds and Oil Palm (NMOOP), etc for increasing agricultural production and productivity through appropriate interventions. Government also implements Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities like pulses, onion, and potato.
*****
ANNEXURE
ANNEXURE REFERRED IN REPLY TO PARTS (a) & (b) OF LOK SABHA UNSTARRED QUESTION NO.349 FOR 15.09.2020 REGARDING RETAIL FOOD INFLATION.
------------------------------------------------------------------------------------------------------
Consumer Food Price Index (Inflation %)
Month Years
2014 2015 2016 2017 2018 2019 2020
January 9.68 6.14 6.85 0.61 4.70 -2.24 13.63
February 7.89 6.88 5.30 2.01 3.26 -0.73 10.81
March 8.64 6.14 5.21 2.01 2.81 0.30 8.76
April 9.21 5.11 6.40 0.61 2.80 1.10 *
May 8.89 4.80 7.47 -1.05 3.10 1.83 *
June 7.21 5.48 7.79 -2.12 2.91 2.25 8.72
July 8.85 2.15 8.35 -0.36 1.30 2.36 9.62 (P)
August 8.70 2.20 5.91 1.52 0.29 2.99
September 6.22 3.88 3.96 1.25 0.51 5.11
October 3.88 5.25 3.32 1.90 -0.86 7.89
November 1.13 6.07 2.03 4.35 -2.61 10.01
December 3.96 6.40 1.37 4.96 -2.65 14.19
Source: MoSPI, P – Provisional
*CFPI not released in the month of April & May, 2020 by Ministry due to data inadequacy.
*****