RISE IN PRICE OF ESSENTIAL ITEMS #EDUCRATSWEB

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  • Details of retail inflation based on Consumer Price Index (CPI), brought out by M/o Statistics and Programme Implementation (MoSPI) from January to August 2019 and current year 2020 is as follows-

     

    Consumer Price Index (Inflation %)

    Months

    2019

    2020

    January

    1.97

    7.59

    February

    2.57

    6.58

    March

    2.86

    5.84

    April

    2.99

    *

    May

    3.05

    *

    June

    3.18

    6.23

    July

    3.15

    6.73

    August

    3.28

    6.69(P)

    Source: MoSPI,           P – Provisional

    * - Inflation figures not released due to data inadequacy issues

    The 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 and export 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 & 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. Besides, Government is also implementing Price Stabilization Fund (PSF) to help moderate the volatility in prices of agrihorticultural commodities like pulses, onion, and potato. Ministry of Food Processing and Industries (MoFPI) has also formulated a new scheme “Operation Greens” for integrated development of Tomato, Onion and Potato (TOP) value chain which, inter alia, has the objective of price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties. These policy interventions by Government had ensured that the consumer price index of majority of essential food items have remained relatively stable or decline with only a few recordings marginal increase during January to July, 2020. The details of prices are 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.

    This information was given in a written reply by the Union Minister of State for Consumer Affairs, Food and Public Distribution, Shri Danve Raosaheb Dadarao in Rajya Sabha today.

    Sources https://pib.gov.in/PressReleseDetail.aspx?PRID=1656159

    Rise in Price of Essential Items
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