Measures Taken to Check Price Rise

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The Government has taken a number of steps to check price rise and to improve the availability of essential food items. These include:

General Measures:

National Consultation Meeting of the Minister of States/UTs in-charge of Consumer Affairs and Food held on 7th July, 2015, at New Delhi resolved to take steps to keep prices of essential commodities, especially pulses and onions under control.

Advisory were issued to State Governments to take strict action against hoarding & black marketing and effectively enforce the Essential Commodities Act, 1955 & the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980.

Regular review meeting on price and availability situation is being held at the highest level including at the level of Finance Minister, Committee of Secretaries, Inter-Ministerial Committee, Price Stabilization Fund Management Committee and other Departmental level review meetings.

Higher MSP has been announced so as to incentivize production and thereby enhance availability of food items which may help moderate prices.

A new Plan Scheme titled Price Stabilization Fund (PSF) is being implemented to regulate price volatility of agricultural commodities.

current affairsOnion

Export of onion is restricted through Minimum Export Price (MEP) and Import is allowed at zero duty.

Retail sale of onion was undertaken from the stock held by SFAC and NAFED.

Imported 2000 MT of onion from Egypt and China through MMTC. As no demand from states were received, the onion has been disposed off through tenders in the open market.

The stock limits in respect of onion has been extended by one more year i.e. up to 2nd July 2016 under the Essential Commodities Act.

Pulses

Export of all pulses is banned except kabuli channa and up to 10,000MTs in organic pulses and lentils.

Zero import duty on pulses has been extended till 30.9.2016.

Stock limits on pulses extended till 30.9.2016.

Government of India imported 5000 MT of tur from Malawi/Mozambique and allocated it to States with a subsidy of Rs. 10 per kg for retail sale to consumers, to improve availability and to help moderate prices.

MSP (including bonus) raised for kharif pulses by Rs.275 per qtl. for Tur and Urad, and and Rs. 250 per qtl. For Moong. MSP also raised for rabi pulses by Rs.325 per qtl. for Gram and Masoor.

Edible Oils

Export of edible oils in bulk is prohibited except coconut oil and other edible oil in branded consumer packs of up to 5kgs is permitted with a minimum export price of USD 900 per MT.

MSP increased in the range of Rs.30 per qtl. to Rs.250 per qtl. for various rabi and kharif oil seeds.

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