“Government Implements Stringent Measures to Curb Food Price Inflation Amidst Festive Season”

In an effort to control soaring food prices, the Union government has announced more stringent measures, including prescribing new limits on the quantities of wheat that traders can stockpile and tightening monitoring of rice stocks. These measures come ahead of the festive season, which is set to begin next month.

Addressing Artificial Scarcity

Union Food Secretary Sanjeev Chopra emphasized that while there is sufficient availability of essential commodities such as rice, wheat, and sugar, attempts are being made to create artificial scarcity under the pretext of a poor monsoon. Chopra added that the government anticipates a bumper rice crop despite a patchy monsoon due to robust acreage reported by the agriculture ministry.

According to data from the food ministry, the government currently holds 25.5 million tonnes of wheat, surpassing the minimum stock requirement of 20.2 million tonnes. Furthermore, 8.7 million tonnes of wheat surplus are being offloaded in the markets.

Regarding sugar stocks, the government maintains a supply of 8.5 million tonnes, sufficient for the next three-and-a-half months. The crushing of cane from summer harvests is scheduled to commence next month.

Mitigating Concerns Over Sugar Production

Chopra addressed concerns over potential declines in sugar output, which could impact prices, stating that good rains in September, particularly in crucial states like Karnataka and Maharashtra, have revived cane crops. This development has mitigated concerns about a significant dip in sugar production this year.

Revised Stock Limits

Effective immediately, the government has reduced the quantity of wheat that traders, wholesalers, and supermarkets can store to 2,000 tonnes, down from the previous limit of 3,000 tonnes. Millers can stock up to 75% of their total installed capacity. These measures are primarily aimed at bolstering supplies in retail markets and preventing traders and wholesalers from creating artificial scarcities.

Cereal Inflation and Government Actions

Despite a 4% increase in spot prices of wheat on the National Commodity and Derivatives Exchange Limited and a ban on exports, cereal prices have remained elevated at 11.6% in August, compared to 13% in July. Consumer inflation in August stood at 6.83%, which, while slower than the previous month, remains above the Reserve Bank of India’s target of 4% (+/-2).

Chopra expressed concern over rice inflation, which reached 10%, and emphasized that rice is under close scrutiny. The government plans to intensify enforcement of stock limits in collaboration with states to combat hoarding and take more aggressive measures to control prices if necessary.

As the festive season approaches, the government is determined to ensure that food prices remain stable, providing relief to consumers during this crucial time.

The Indian government introduces stricter measures to combat food price inflation, focusing on wheat and rice stocks, ahead of the festive season, amid concerns about artificial scarcity and elevated cereal prices.

Sources By Agencies

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