Govt Taking Measures To Curb Food Inflation

The central government took stock of the food inflation on Tuesday and decided to impose a minimum export price on onions, release more rice in the open market and crack down on hoarders. State governments have been advised to delist the trade of fruits and vegetables through the Agriculture Produce Market Committee, so that farmers can sell them in the open market at lesser prices.

“The situation is not alarming and the price rise is only marginal. We are acting to discourage hoarding (in anticipation of a deficit monsoon) and prevent middlemen from taking advantage of the spike,” said Finance Minister Arun Jaitley. He said this while talking to the Press after a meeting with Agriculture Minister Radha Singh and Food and Consumer Affairs Minister Ram Vilas Paswan.

Jaitley also said that the government is monitoring the prices of 22 food items and there has been some increase in the prices of onions, potatoes and some pulses.

The government has imposed a minimum export price (MEP) of $300 per tonne on onions while the Commerce Ministry will announce an MEP for potatoes. State governments will be given a line of credit to import pulses, if required. The Food Corporation of India has been directed to release five million tonnes of rice in the open market.