Question : Prices of Essential Commodities

(a) whether the Government is aware of the rise/fall in prices of various essential commodities including vegetables, tomato, edible oils, various pulses and onion in the country; .
(b) if so, the details thereof comparatively during the last three years, item-wise along with the reasons for such rise of various prices; and
(c) the details of remedial steps taken/ being taken by the Government to contain the rising food prices in future along with the alternative measures taken by evolving a proper mechanism as on date?

THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI DANVE RAOSAHEB DADARAO)

(a) & (b) : All India Daily Average Retail Prices of 22 essential food items including vegetables, tomato, edible oils and pulses during the last three years is at Annexure. Prices of food items are inter-alia affected by mismatch in demand and supply, shortfall in production owing to adverse weather conditions and seasonality, increased transportation costs, supply chain constraints like lack of storage facilities, artificial shortage created by hoarding and black marketing, etc.

(c) : 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 and export management through instruments like 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 & black marketers. Also appropriate Minimum Support Price are promulgated 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), etc. for increasing agricultural production and productivity through appropriate interventions.


Besides, Government is also implementing Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities like pulses, onion, and potato. Ministry of Food Processing Industries (MoFPI) is implementing scheme “Operation Greens” for integrated development of Tomato, Onion and Potato (TOP) value chain which, inter alia, has the objective of price stabilization for producers and consumers through production planning in the TOP clusters and introduction of dual use varieties.

Review meetings on price and availability situation of essential commodities are held at the highest level including at the level of Ministers, Committee of Secretaries, Inter Ministerial Committee, Price Stabilization Fund Management Committee and other Departmental level review meetings for taking appropriate price intervention decisions including possible market-intervention, if any.

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