With crucial elections due in UP and Punjab in 2017, the Centre is actively trying to arrest the sharp rise in food prices, especially the price of pulses.
With crucial elections due in UP and Punjab in 2017, the Centre is actively trying to arrest the sharp rise in food prices, especially the price of pulses. Union finance minister Arun Jaitley on Wednesday held a meeting with his Cabinet colleagues where it was decided to import more pulses from countries like Myanmar and some in Africa to increase its buffer stocks.
The Centre will also release more pulses from its stocks to the states to be sold at not more than Rs 120 per kg. A team will be sent to Myanmar and pulses-producing African countries to explore government-to-government imports as supplies are estimated to be short by around 70 lakh tonnes due to two straight droughts in many producing states.
The Centre also tried to shift part of the blame for rising prices to the states, saying they are equally responsible for keeping the rates of essential commodities under control.
The meeting saw discussion on how to increase sowing area, take action against hoarders and improve transparency in the functioning of private importers. However, the Modi government is investing most of its hope in a normal monsoon this year.
Agriculture minister Radha M. Singh, food minister R.V. Paswan, transport minister Nitin Gadkari, commerce minister Nirmala Sitharaman, urban development minister M. Venkaiah Naidu and CEA Arvind Subramanian attended the meeting.
As per the wholesale price index, food inflation doubled to 7.88 per cent in May as against 4.23 per cent in April. Pulses are being sold at Rs 170 per kg and tomato prices have hit a high of Rs 60-80 per kg in June.
According to sources, Prime Minister Narendra Modi also discussed the rise in food prices with his ministerial colleagues.
Mr Paswan said the rise in the prices of tomato and other vegetables is “seasonal” and happens around June. He said such commodities cannot be stored due to their short shelf-life. “State governments have been urged to take the pulses from the buffer stock and sell them for not more than '120 per kg to ensure availability at reasonable prices,” said the minister. But, he said, not many states have shown interest.
Mr Paswan on Wednesday flagged off mobile vans run by the National Cooperative Consumer Federation of India to sell pulses, mainly tur and urad, at Rs 120 per kg in various parts of Delhi. Kendriya Bhandar and Safal outlets are already selling pulses in the NCR at these rates.
