On table: Eye on prices of 16 more food items to protect 'garib ki thali'

In response to escalating food inflation, the central government is planning to add 16 new commodities to its price monitoring list, increasing the total to 38, said people in the know.

This move aligns with the Bharatiya Janata Party’s 2024 manifesto pledge to protect “garib ki thali” as part of its commitment to the country’s poorer families.

The expansion of price-monitored items is likely to be included in the new government’s 100-day agenda, currently under discussion in various forums, the sources said. The majority of the 16 new commodities are expected to be vegetables, given their volatile prices.

By tracking the retail and wholesale prices of a larger number of essential commodities, the government aims to better understand price movements and manage them through existing intervention programmes. 

At present, the government monitors the prices of 22 essential commodities — to assess their impact on the Consumer Price Index —across 167 centres throughout India, collecting data daily from both wholesale and retail markets.

The commodities that form part of the 22 items are rice, wheat, atta, sugar, gur, salt, milk, tea, potato, onion, tomato, pulses -- including gram dal, tur dal, urad dal, moong dal, and masoor dal -- and edible oils, including groundnut oil, mustard oil, sunflower oil, soya oil, palm oil, and vanaspati.

The Reserve Bank of India (RBI) recently expressed concerns that an exceptionally hot summer and low reservoir water levels could put pressure on food prices, particularly fruits and vegetables. RBI Governor Shaktikanta Das emphasised the need for careful monitoring of the rabi arrivals of pulses and vegetables.

The retail food inflation, according to data from the National Statistical Office, remained nearly flat in May at 8.69 per cent vis à vis April’s 8.7 per cent – the highest this calendar year. In May 2023, food inflation was only 2.96 per cent.

Persistent high food inflation has been a concern for over a year, prompting the Centre to implement measures, such as banning cereal exports and allowing duty-free imports of pulses and edible oils.

The collection and analysis of essential commodity prices form the basis for decisions on trade restrictions and interventions in the event of unusual price spikes. These interventions are supported by schemes, such as the Price Stabilisation Fund (PSF) and the Price Support Scheme (PSS), both designed to stabilise essential commodity prices for farmers and consumers.

At present, the PSF is managed by the Department of Consumer Affairs, while the PSS is run by the Ministry of Agriculture.

The PSF, established in 2014-15 under the Ministry of Agriculture, regulates the price volatility of key agricultural and horticultural commodities, such as onions, potatoes, and pulses. It was transferred to the Department of Consumer Affairs in April 2016. The scheme maintains a strategic buffer of commodities for calibrated release to moderate price volatility and discourage hoarding and unscrupulous speculation. For building such stock, it promotes direct purchase from farmers at the farm gate or mandi.

The PSS, in operation for over three decades, ensures adequate returns to farmers by procuring agricultural commodities, such as pulses, oilseeds, and copra, at minimum support prices through the nodal agency (Ministry of Agriculture). It is implemented in collaboration with state governments.

It became part of the broader Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) in September 2018, which also includes the Price Support Scheme, Price Deficiency Payment Scheme, and Pilot of Private Procurement and Stockist Scheme.

The government is also expected to introduce a more predictable policy for graded responses to price volatility of commodities like pulses and onions, the sources said. Other priorities include enhancing onion storage infrastructure to minimise storage loss.

In addition, the government plans to introduce guidelines on unsolicited commercial calls and the prevention and regulation of greenwashing within the first 100 days.

The Department of Consumer Affairs set up a committee in February to draft these guidelines, which included members from the cellular industry, regulatory bodies, and telemarketing companies. The department also sought public comments on draft guidelines for the prevention and regulation of greenwashing, including clear definitions and proposed disclosure requirements for companies making green claims.

To keep pulse on price

> Price monitoring cell under Department of Consumer Affairs was set up in 1998 to keep an eye on essential commodities and help policy recommendations regarding price and availability of such items

> It initially collected price information for 14 items from 18 centres

> This basket was later expanded to 22 items; data was collected from 167 centres

> Many price data points are now collected via mobile apps

> Interim Budget-FY25 proposed to spend over Rs 43 crore for strengthening price monitoring cells at Centre and states