Measures to Check Food Inflation

In order to check food inflation during the current year 2014-15from, Government has released additional 66.45 lakh tons of foodgrains from  Central Pool to States/Union Territories (UTs) for distribution at BPL rates and APL rate under Targeted Public Distribution System (TPDS) and  7.11 lakh tons of foodgrains for festivals, calamity relief, additional requirement under TPDS, etc. 

This is in addition to the provisional allotment of 483.30 lakh tons of foodgrains made to States/UTs under normal TPDS allocation, including the allocation under National Food Security Act.  This information was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve in a written reply in Rajya Sabha today.

 He said that Central Government has authorized State Governments to impose levy for rice on millers/dealers and various State Governments have been imposing levy to varying extent ranging from 25% to 75%.  Delegation of powers given to the State Governments has now been restricted by the Central Government to limit the imposition of levy on the millers/dealers to the maximum extent of 25%.

           

             Details of other steps taken by the Government to contain the price rise of essential commodities are as follows:

·        Reduced import duties to zero – for wheat, onion and pulses.

·        Banned export of edible oils (except coconut oil, forest based oil and edible oils in blended consumer packs up to 5 kg with a Minimum Export price of USD 1500 per MT) and pulses (except Kabuli chana and organic pulses and lentils up to a maximum of 10000 tonnes per annum).

·        Imposed stock limits form time to time in the case of select essential commodities such as pulses, edible oil, and edible oilseeds for a period up to 30.9.2014 and in respect of paddy and rice up to 30.11.2014.

·        Maintained the Central Issue Price (CIP) 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 2 per kg for AAY) since 2002.

·        Suspended Futures trading in rice, Urad and Tur.

·        Fixed Minimum Export Price (MEP) of USD 300 for onion w.e.f. 17.6.2014 and increased to USD 500 w.e.f. 2.7.2014.

·        Fixed Minimum Export Price (MEP) of USD 450 for potato w.e.f. 26.6.2014.

·        Imposed stock holding limits on Onions & Potatos under Essential Commodities Act and empowering State Governments to impose limits on stocking of these vegetables by traders w.e.f  03.07.2014.

·        States advised to allow free movement of fruits and vegetables by delisting them from APMC Act.

·        Government has approved the release of additional five million tonnes of Rice to BPL & APL families in states pending implementation of National Food Security Act (NFSA).

·        The Government is also implementing “The Essential Commodities Act 1955” and “The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980” with the objective of preventing hoarding and black marketing of essential commodities. Issued advisory to State Governments to take effective action against hoarding & black marketing under the Essential Commodities Act 1955 & the PBMMSEC Act 1980.