FINANCE MINISTER(SHRI PRANAB MUKHERJEE)
(a)to(d): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.158
DUE FOR ANSWER ON NOVEMBER 19, 2010 BY
SHRI SUDARSHAN BHAGAT AND SHRI DINESH CHANDRA YADAV
(a) to (c) The rate of inflation during the last two years, month- wise, is
given below:
Table 1: WPI inflation during 2008-09 to 2010-11 (%)
2008-09 2009-10 2010-11
Apr 7.95 0.89 11.00
May 8.20 1.21 10.60
Jun 10.89 -0.71 10.28
Jul 11.25 -0.62 10.02
Aug 11.22 0.31 8.82
Sep 10.78 1.09 8.62 (P)
Oct 10.58 1.48 8.58 (P)
Nov 8.57 4.50
Dec 6.60 6.92
Jan 5.88 8.53
Feb 3.45 9.68
Mar 1.48 10.23
P: Provisional
RBI in its second quarter Policy Review based on the new series has projected
WPI inflation for March 2011 at 5.5 per cent, which is equivalent to 6.0
per cent under the old series projected by RBI in its 1st quarter Policy
Review in July 2010.
Some of the important anti-inflationary measures taken during the last six
months to control the rate of inflation are given below:
i. Maintain the Central issue price for rice at Rs.5.65 per kg. for BPL and
Rs.3 per kg. for AAY and wheat at Rs. 4.15 per kg. for BPL and Rs. 3 per kg.
for AAY.
ii. Imposed stock limit orders in the case of pulses, paddy and rice for a
further period upto 30th September 2011, edible oil and edible oilseeds for a
further period upto 31st March, 2011, sugar for a further period upto 31st
December, 2010.
iii. The scheme of upto 15 per cent subsidy to cover losses, if any, incurred
in the import of pulses by PSUs and NAFED has been extended upto 31.3.2011.
iv. Import duty on rice at zero duty till 30.9.2011.
v. Ban on export of non-basmati rice to continue till further orders.
vi. The prevailing import duty structure of zero import duty on crude oils and
75 per cent import duty on refined edible oils will be continued for one more
year from 1.10.2010.
vii. The existing ban on export of edible oils will be continued upto 30.9.2011,
except for coconut oil through Kochi port, fish oil, oils produced from minor
forest produce and edible oils in branded consumer packs of upto 5 kg with a
ceiling of 10,0000 tons from 1.11.2010 to 31.10.2011.
viii. In order to enhance the production of major agricultural commodities and
thereby safeguarding interest of consumers by making available supplies,
Government has increased the minimum support price of Rabi crops of 2010-11
season to be marketed in 2011-12. There has been a substantial increase in the
Minimum Support Price (MSP) of gram, masur, safflower etc.
ix. For the month of September, 2010, 16.72 lakh tons of levy sugar have been
made available. Besides, levy sugar quota of 2.28 lakh tones also been released.
x. Specific adhoc additional allocation of 30.66 lakh tones of foodgrains has
been made for all cardholders wef 19.05.2010 with validity for lifting up to
20.11.2010@ of Rs. 8.45 per kg for wheat and Rs. 11.85 per kg for rice.
xi. Recently, the Government has also decided on providing, an additional
allocation of 4.57 lakh tones of foodgrains per month for APL families at the
prevailing APL CIP. This is applicable initially for a period of six months to
those States where APL allocations are below 15 kg per family per month.
xii. Efforts to keep fiscal and revenue deficits on a downward trajectory as
stated in the last Union Budget are continuing.
xiii. RBI has taken suitable measures to moderate demand levels consistent with
capacity of the economy to maintain its growth without provoking price rise.
Accordingly, the Repo rate and Reverse Repo rate increased to 6 per cent and 5
per cent respectively on September 16, 2010 from a level of 5.75 per cent and
4.50 per cent respectively. Further during their Second Quarter Policy Review on
November 2, 2010 RBI raised the Repo rate and Reverse Repo rate to 6.25 per cent
and 5.25 per cent respectively. Measures taken by RBI during last six month are
given below.
Table : Changes in the Policy rates of RBI
Repo Reverse Repo Cash Reserve ratio Rate Rate (CRR)
April 24,2010 5.25 3.75 6.00
July 2,2010 5.50 4.00 6.00
July 27,2010 5.75 4.50 6.00
Sep 16,2010 6.00 5.00 6.00
Nov 2,2010 6.25 5.25 6.00
