Pulses And Vegetable Price Inflation Moderating

Ministry of Consumer Affairs, Food & Public Distribution noted in a latest update that the retail prices of pulses, Onion, Potato & Tomato which were on upward trend from September, 2020 are on a declining trend from December, 2020. In terms of Consumer Price Index (CPI), the inflation rate for Pulses and Products in December, 2020 was 15.98% as against 18.05% in November, 2020. In case of vegetables which include onion, potato and tomato, the inflation rate in December 2020 was (-)10.41% as against 15.48% in November, 2020. Seasonality in the arrival of onion, tomato and potato, rather than overall demand-supply gap, is a major determining factor of the availability and prices of these highly perishable commodities.

To ensure the availability of onion to domestic consumer at affordable prices, the Government imposed a ban on export of onion with effect from 14.09.2020. As the retail price of onion breached the Price Trigger for imposition of stock limit under Essential Commodities (Amendment) Act, 2020, the Government imposed stock limit of 25 Metric Ton for wholesaler and 2 Metric Ton for retailer with effect from 23.10.2020. Further, to augment the domestic availability of onion and potato, the Government relaxed quarantine and fumigation norms for imports, and onions were also procured and disposed of through NAFED from the Indian seaports. As the prices of onion stabilised, the ban on onion export was lifted w.e.f. 01.01.2021 and also the stock limit notified for the period up to 31.12.2020 was allowed to lapse.

Powered by Capital Market - Live News