Centre to meet states on July 29 to curb surge in food prices

The Centre will hold a meeting with states on July 29 to ensure that prices of essential commodities do not see a spurt during July-October, when prices of these items usually shoot up. From September, the festival season starts and there are three crucial assembly elections by the end of this year.
 
The meeting has been convened by the union food and consumer ministry with state food and civil supplies ministers.
 
Officials said the routine meeting to take stock holds added importance this time, as major BJP-ruled states of Madhya Pradesh, Rajasthan and Chhattisgarh go to polls in the next few months, and any flare up in prices of essential commodities could be cashed in by opposition parties.

 
July to October is traditionally the period when prices of major essential commodities, be it pulses and oilseeds or even potatoes, onions and tomatoes, tend to push up due to limited supplies and rising demand.
 
This time, the government is going to announced minimum support price on the basis of its new formula that ensures 50 per cent more rates over the cost of production.
 
Though prices of most food items are well below last year’s levels and inflation is widely under control, any artificial flare-up is nevertheless possible in the coming months, more so when major festivals like Diwali, Dussehra, and Janmashtami are celebrated.

 
Except for prices of potatoes and onions, inflation is either subdued or there is deflation (fall in prices) of these essential commodities (see chart).
 

Officials said that invitation has been sent this time to several other related ministries to participate in the discussion with state representatives, of which few have confirmed attendance.
 
Textiles Minister Smriti Irani might also attend the meeting.
 
Officials said that apart from matters related to price and supply of essential commodities, issues related to legal meteorology and consumer protection would also be taken up.