Food Inflation: Centre takes various measures to stabilize prices

Food inflation captures the year-on-year increase in the indices of food items in the consumption basket.

Sep 16, 2020 08:09 IST India Infoline News Service

Union Minister of State for Consumer Affairs, Food and Public Distribution, Danve Rao saheb Dadarao said the government has taken various measures from time to time to stabilize prices of essential food items. Currently, food inflation continues to remain on an elevated level.

Dadarao on Tuesday highlighted that the food inflation was 5.1% in September 2019 which had gone up 14.12% in December 2019. Later in January 2020, food inflation was 13.63%. As per the latest available figure, food inflation in July 2020 was 9.62% (Provisional), as per Consumer Price Index (CPI) compiled by the Ministry of Statistics and Programme Implementation (MoSPI).

Notably, food inflation captures the year-on-year increase in the indices of food items in the consumption basket. 

Dadarao said, "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 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 and black marketers; and, provision of higher Minimum Support Prices to incentivize farmers for increasing production."

He gave the information in a written reply in Lok Sabha which was held on September 15, 2020.

According to Dadarao, the 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.

Further, he said, the government also implements a Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities like pulses, onion, and potato.

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