Supply side interventions helped mitigate price rise of essential commodities: Eco Survey
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Creating a buffer for pulses and onions, suitable import policy for lentils, strict measures against speculation and hoarding, and offering incentives for production and alternates are among the measures that the government has undertaken to mitigate rise in prices of essential commodities, the Economic Surver 2021-22 said.
The government procured pulses in 2020-21 and 2021-22 from farmers/farmers' producer organisations (FPOs) to ensure effective intervention during price rise through utilisation of buffer stocks. it said, adding that the target for pulses buffer in 2021-22 is at 23 LMT while onion buffer of 2.08 LMT has been created in 2021-22 and released in a calibrated and targeted manner to contain price rise.
Tur and urad are kept under 'free' import category till March 31, 2022 to augment domestic availability of pulses, it said, adding, that the basic import duty and Agriculture Infrastructure and Development Cess on masur have been brought down to zero and 10 per cent, respectively.
Five-year MoUs have been signed with Myanmar for annual import of 2.5 LMT of urad and 1 LMT of tur, and with Malawi for annual import of 0.50 LMT of tur. The MoU with Mozambique has been extended for another five years for annual import of 2 LMT tur.
The basic duty on refined palm oil/palmolein, refined soyabean oil and refined sunflower oil has been reduced to 17.5 per cent from 32.5 per cent with effect from October 14, 2021 to soften the prices of edible oils.
Futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed, the Economic Survey said.
"The Department of Food and Public Distribution has imposed stock limits on edible oils and oilseeds for a period up to March 31, 2022. The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued w.e.f. October 8, 2021. It has also been directed to ensure that edible oils and edible oilseeds stock is regularly declared and updated on the portal of the Department of Food & Public Distribution," it added.
The government is also taking steps to improve the production of secondary edible oils, especially rice bran oil, to reduce the import dependence. Soyameal has been included as an essential commodity in a bid to cool down its domestic prices.
