GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARREDQUESTION NO: 870

ANSWERED ON: 25.02.2011

INFLATION

(a)whether the rise in the prices of essential commodities coupled with spike in general inflation and food inflation is a cause of concern; 

 (b)if so, the details of general and sector-wise inflation registered since January 2010, till date alongwith the reasons for such hike in inflation, month-wise; 

 (c)whether the Union Government has suggested/given directions to the State Governments to check inflation; 

 (d)if so, the details thereof and the follow-up action taken by the State Governments thereon; and

   (e)the other measures taken/proposed to be taken by the Union Government to check inflation and control food price in the country? 

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA) 

(a) & (b) The headline WPI and 31 essential commodities inflation rates were 8.23 per cent and 4.11 per cent in January 2011 respectively compared to 8.53 per cent and 24.17 per cent respectively in January 2010. The sectoral breakups of WPI since January 2010 to January 2011 are given in Table below: 

Weight WPI All  WPI 31   (%) commodity Essential  (wt.100%) commodities    (wt.14.60%)  

2010   

Jan 8.53  24.17 Feb 9.68  21.88 Mar 10.23  18.55 Apr 11.00  15.95 May 10.60  14.59 Jun 10.28  12.87 Jul 10.02  12.66 Aug 8.82  10.55 Sep 8.93  9.55 Oct 9.12  7.67 Nov 8.08  4.72 Dec 8.43  4.52   

2011   

Jan 8.23  4.11 

(c) to (e) The Government monitors the price situation regularly as price stability remains high on its agenda. Measures taken to contain prices of essential commodities include selective ban on exports and futures trading in food grains, zero import duty on select food items, permitting import of pulses and sugar by public sector undertakings, distribution of imported pulses and edible oils through the PDS and release of higher quota of non-levy sugar. State Governments are empowered to act against black marketers and hoarders of food items by holding in abeyance the removal of restrictions on licensing, stock limits and movement of food articles under the Essential Commodities Act 1955. In addition, the Government has been rolling back the fiscal stimulus and the Reserve Bank of India has taken policy measures to curb excess liquidity.