Minister Paswan says tackling of food inflation is important because if left unchecked it may hamper the revival of the economy
With food production down by 8.15 metric tonnes this year, fearing a spiral of food inflation, the central government in consultations with state governments on Tuesday announced an action plan to maintain availability of essential commodities. The food grain production this year is pegged around 257.07 million tonnes, registering an 8.15 million tonnes drop of food grains output, as compared to last year, leading to a surge of prices of many foodstuffs, hurting the government plans to initiate reforms and revive economy. Pulses, vegetables and chicken make up 12 percent of India's consumer price index, meaning that a significant price rises will hurt government's mega plans.
At a meeting of state food ministers, conducted by Ram Vilas Paswan, minister of consumer affairs, food & public distribution, it was decided to put together an action plan to maintain the availability of essential commodities like pulses, edible oil, rice, onions, tomatoes and potatoes at reasonable prices during the six-month period between July – December 2015.
Steps to control inflation
Sustained action will be initiated against hoarding and black-marketing and states will undertake effective enforcement of the Essential Commodities Act and Prevention of Black Marketing Act.
States will identify vulnerable areas where shortage of supply occur and ensure that "stock-out" situations do not occur especially of items of common consumption.
States will mobilise existing storage capacity utilising the government/private/cooperative storage infrastructure to ensure that adequate decentralised stocks are maintained across different cities/rural areas of the state to ensure adequate supplies of these commodities. States will also mobilise Food & Civil Supplies Corporations, cooperative societies and fair price shops for augmenting distribution avenues for essential food items.
The existing price monitoring cells in the states will be strengthened to monitor the prices of these specific commodities on the basis of wholesale prices at the mandis as well as the retail prices obtaining in various parts of the state. This should enable the states to make market interventions on a real time basis.
Review of APMC Act with reference to onions, potatoes and tomatoes to remove inter- state barriers to internal trade will be taken up.
The meeting recognised the importance of the effective implementation of National Food Security Act in all the States which is yet to implement by 24 States. Andhra Pradesh, Himachal Pradesh, Orissa, Jharkhand, Kerala and Lakshadweep assured implementation of the Act by this September.
Paswan said tackling food inflation was important because, if left unchecked it can easily distort the various initiatives already taken for revival of the economy and improvement in distributive justice.
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