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Ahead of festivals, Centre plans steps to keep prices of commodities stable
The Centre has initiated several steps to keep prices of essential commodities stable ahead of the festive season, when demands soar, a senior official said.
The Centre has initiated several steps to keep prices of essential commodities stable ahead of the festive season, when demands soar, increasing the number of goods whose prices are federally monitored, a senior official said.
Prices of some commodities, such as onion, are still elevated while that of others have moderated. A good monsoon has fuelled hopes of higher harvests, prompting the government to ease restrictions on food export.
The Centre has expanded the basket of commonly consumed items it monitors for inflation to 38 from 22 to keep broader tabs on supplies and demand to “respond more effectively to adverse situations”, the senior official said.
The government has asked edible-oil processors and manufacturers to not raise prices, due to an increase in import duties, without exhausting old stocks imported cheaply.
Effective September 14, the government raised the basic customs duty on crude soyabean oil, crude palm oil and crude sunflower oil to 20% from zero, taking the effective duty rate on crude oils to 27.5%.
The duty was raised to check cheaper imports, which were undercutting domestic prices, thereby hurting farmers.
Food secretary Sanjeev Chopra last week chaired a meeting with the representatives from Solvent Extractors’ Association of India, Indian Vegetable Oil Producers’ Association and Soyabean Oil Producers Association to review their pricing strategies.
“Leading edible oil associations were advised to ensure that the MRP (minimum retail price) of each oil is maintained till the availability of edible oil stocks imported at 0% and 12.5% basic customs duty and take up the issue with their members immediately,” the official cited above said.
The Centre is aware that there is close to 3 million tonnes stock of edible oils imported at lower duty which is sufficient for up to 50 days of domestic consumption, the official added.
Consumer inflation in August rose 3.65% from a year ago, marginally higher than the previous month’s 3.6%, according to official data.
The government has also decided to increase wheat quantities given to poor households through the public distribution system from next month, a measure that will remain in place till March, according to the official.
October marks the start of a festive season which sees frenzied shopping for gifts, processed food items, consumer durables and even big-ticket purchases. The consumer affairs ministry has ramped up sales of discounted onions from its stock to ease rates, which have edged up.
The government has been selling onions at ₹35 per kg through its mobile vans and outlets of the National Cooperative Consumers Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) in Delhi and other state capitals, since September 5.
The average retail price of the essential vegetable has climbed up to ₹54 a kg, even as the government freed up exports.
