Amid concerns over rising inflation, the government has provided much-needed relief to the public, ensuring that the prices of essential food items will remain stable during the upcoming festive season. The assurance comes as a welcome development for households, especially as food staples like rice, wheat, and edible oils are critical for daily consumption.
Sufficient Stock of Food Essentials
Food Secretary Sanjeev Chopra announced on Wednesday that there is no need for the public to worry about the prices of key commodities like sugar, rice, wheat, and edible oils, as the country has enough stock to meet demand. Chopra explained that the government is committed to keeping prices in check and there is no expectation of a sharp price rise in the near future.
Support for Domestic Farmers Without Price Surge
One significant measure taken recently by the government was the increase in basic customs duty on certain edible oils, such as crude soybean oil, palm oil, and sunflower oil, which saw a hike from zero to 20%. Additionally, refined variants of these oils now carry a higher duty of 32.5%. While this move aims to support domestic oilseed farmers, Chopra clarified that the impact on consumer prices will be minimal.
He emphasized that there is still a large amount of edible oil, around 13 lakh tonnes, imported at zero duty, which will be sold at current prices until the stock is exhausted. Even with the duty increase, global prices for edible oils have been falling, offering further relief to consumers. “Even after increasing the basic customs duty, the price has started decreasing at the international level,” Chopra said, hinting at even lower prices in the coming weeks.
Changes in Export Duty and Onion Prices
In another move aimed at stabilizing food prices, the government recently scrapped the minimum export price of $550 on onions and slashed the export duty from 40% to 20%. This step is expected to ensure a smoother supply of onions in the domestic market, preventing price spikes, especially during the festive season when demand typically increases.
Wholesale Inflation Hits Four-Month Low
Adding to the good news, wholesale inflation in India has also dropped to its lowest level in four months, thanks to declining prices of vegetables and fuel. Data from the Commerce and Industry Ministry reveals that inflation, measured by the wholesale price index, stood at 1.31% in August, significantly lower than the 16-month high of 3.43% recorded in June.
This drop in inflation is attributed to the falling prices of key goods, especially food items, processed food products, textiles, and machinery. Food inflation, in particular, has seen a dramatic decrease, standing at 3.11% in August, down from 11.43% a year earlier. Even compared to 3.45% in July, the August figure represents a continued downward trend, offering further relief to consumers.
Government Committed to Keeping Prices Stable
The government has repeatedly assured the public that its policies are aimed at maintaining reasonable prices for essential commodities. As the festive season approaches, consumers can breathe easy knowing that the prices of daily necessities like rice, wheat, sugar, and edible oils will remain stable. With global markets cooperating and the government taking proactive steps, the outlook for food inflation looks positive in the coming months.
By ensuring sufficient stock and strategic interventions, the government has set the stage for a stable and affordable festive season for the general public.
