MINISTER OF THE STATE IN THE MINISTRY OF AGRICULTURE AND
MINISTER OF THE STATE IN THE MINISTRY OF CONSUMER AFFAIRS,
FOOD AND PUBLIC DISTRIBUTION (PROF. K. V. THOMAS)
(a) to (b): The prices of some essential commodities including foodgrains have risen on account of various
factors like poor rainfall, rise in cost of inputs, high international prices and rising demand. In
commodities like pulses and edible oils, imports take place every year because domestic production
is not sufficient; thus when international prices rise, the domestic prices also rise. In the case
of rice, prices increased due to increase in MSP and poor monsoon leading to lower kharif production.
Similarly in the case of sugar, production has fallen short of demand in 2008-09; on account of this
and rising demand as well as high international prices, domestic prices have increased. Procurement
of wheat and rice by FCI and agencies of the State Governments in the last three years is as under:
Marketing Year Wheat (in lakh tones) Rice (in lakh tones)
2006-07 92.26 251.07
2007-08 111.28 287.36
2008-09 226.89 336.84
2009-10 253.82 221.03 (As on 18.02.2010)
Procurement is sufficient and prices can not be said to have increased because of inadequate procurement.
(c): The details of the raids conducted, persons arrested, persons convicted and value of goods seized/
confiscated for violation of rules under the Essential Commodities Act, 1955, during the year 2007, 2008
and 2009 as reported by State Governments/UT Administrations are at Annexure I to III.
(d) to (f): In order to check hoarding and blackmarketing, the Government of India has taken the following
steps:-
(i) Powers have been vested with State Governments for taking action under the provisions of
Essential Commodities Act, 1955 and Prevention of Blackmarketing and Maintenance of Supplies
of Essential Commodities Act, 1980.
(ii) To enable the State Governments/UT Administrations tp take effective action for undertaking
de-hoarding operations under the Essential Commodities Act, 1955, it was decided to enable State
Governments to impost stockholding limits by keeping in abeyance some provisions of the Central
Order dated 15.02.2002 in respect of pulses, edible oils, edible oilseeds, rice and paddy for
the period upto 30.09.2010. The commodity wheat which had also been included in the above list
has been removed w.e.f.01.04.2009.
(iii) Further, in respect of sugar, the Central Government have also issued Orders providing
for stock-holding/turnover limits which are as follows:
Stockholding:
(i) in Kolkata and extended area -
(a) recognized dealers who import sugar from outside West Bengal- 10,000 quintals;
(b) other recognized dealers-2000 quintals;
(ii) in other places - 2000 quintals.
Turnover: No dealer can hold the stock of sugar for a period exceeding 30 days from the date of receipt
by him of such stock.
(iv) The State Government/Union Territory Administrations have fixed the stock limits as per their requirement.
As per information furnished by the State Government/UT Administrations 23 State Governments/UTs have either
issued stock limits for all the six items or for individual items or have issued only licensing requirements/
stock declaration (of these 23, 18 States/UTs have actually issued stock limit Orders; 5 States/UTs have
issued licensing requirements/stock declarations).
(v) The State Governments/UT Administrations are empowered to detain such persons under the Prevention
of Blackmarketing and Maintenance of Supplies of Essential Commodities Act, 1980, whose activities `are
found to be prejudicial to the maintenance of supplies of commodities essential to the .community. In 2009,
147 detention orders have been issued under the Act.
(vi) The State Governments/UT Administrations have been repeatedly advised to strictly enforce both the Acts
and also monitor such enforcements.
(vii) Several other Fiscal and Administrative Measures have been taken by the Government to moderate price
rise.
