Steps Taken by the Government to contain prices of Essential Food Items

The Government has taken a number of steps to improve the availability and to contain prices of essential food items which include following: i. The Central Issue Price (CIP) under the existing Targeted Public Distribution System (TPDS) has not been increased since 2002. Under the National Food Security Act (NFSA), 2013, the issue prices have been further reduced to Rs. 1/2/3 per kg for coarse grains/wheat/rice. ii. The Government has approved for the current year i.e. 2014-15 Open Market Sale of ten million tonnes of wheat in the domestic market. Under the said scheme a total of 38.67 lakh MT of wheat at a reserve price of Rs. 1500 per quintal (old crop)/Rs. 1570 per quintal (new crop of 2014-15) has been sold upto 19.02.2015. iii. During the current financial year 2014-15, the Government has allocated additional 66.45 lakh tons of foodgrains (rice & wheat) for distribution to BPL & APL families to States/UTs pending implementation of National Food Security Act (NFSA). iv. The Retail Issue Price (RIP) of sugar supplied through PDS is Rs.13.50 per kg, whereas the prices of sugar in the open market are much higher. v. In order to protect consumers from the impact of fluctuating crude oil prices in the international market, the Government continues to modulate the price of PDS kerosene and its basic price has not been revised in line with the prices in the international market since 25.06.2011. vi. Minimum Export Price (MEP) fixed for potatoes at USD 450 per M.T. w.e.f. 26.06.2014 (now withdrawn with improved availability and fall in prices w.e.f. 20.2.2015) and of onions at USD 300 per M.T. w.e.f 21.08.2014 respectively. vii. States have been advised to allow free movement of fruits and vegetables by delisting them from the APMC Act. viii. A Plan Scheme titled Price Stabilization Fund (PSF) with a corpus of Rs.500 crores has been approved for implementation aimed at regulating price volatility of agricultural and horticultural commodities both when there is price rise or vice-versa through procurement of farm produce, maintenance of buffer stocks and regulated release into the market. ix. States have been advised to exempt levy of market fee on fruits and vegetables and to allow establishment of Kisan Mandis/ Farmers markets where producers and Farmer Producer Organizations (FPOs) can directly market their produce to wholesalers, organized retailers and ordinary consumers. Such alternative marketing channels promoted to reduce intermediaries and to contain marketing costs, are intended to benefit both farmers and consumers. x. Government is also encouraging production of horticultural crops through a Centrally Sponsored scheme, namely Mission for integrated Development of Horticulture w.e.f. 2014-15. xi. Authorized States/UTs to impose stock limits in respect of onion and potato for a period of one year with effect from 3rd July, 2014 under the Essential Commodities Act. xii. Advisory to State Governments issued to take 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. xiii. Authorized States/UTs to impose stock limits from time to time in the case of select essential commodities such as pulses, edible oil, and edible oilseeds for a period up to 30.9.2015. xiv. Based on interaction with the State Governments/UTs on 4th July, 2014, a decision has been taken to amend the Essential Commodities Act to make hoarding and black marketing a non-bailable offence and increase the period of detention to one year from existing six months. 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 Lok Sabha today.

Steps Taken by the Government to contain prices of Essential Food Items

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