February 23, 2024

On Top of the Food Chain

At a time when global food supply is stressed by market vulnerability to war, weather and volatility, the situation in India is conspicuously comfortable both for consumers and farmers.

On Thursday, the Union cabinet raised the fair and remunerative price (FPR) of sugarcane by 8%, to benefit farmers, who are already getting the highest cane price in the world, while Gol ensures that Indian consumers get the cheapest sugar in the world. The ex-mill price of sugar has fallen 3.5-4% after the start of the new cane-crushing season. The ethanol-blending programme has boosted the viability of the industry, helping millers clear about 99.5% sugarcane dues in 2022-23. This is the lowest-ever pendency of dues, demonstrating this government’s focus on farmer welfare.

There is a series of such initiatives that combine farmer welfare with con- sumer interest. Earlier this month, the PM once again ensured the supply of grains for citizens at affordable prices with the launch of Bharat Rice’ at 29 a kg, carrying forward his mission to provide nutritious food to every citizen. Thanks to our farmers, Gol is providing free food grains to over 80 crore people under the Pradhan Mantri Garib Kal- yan Anna Yojana (PMGKAY), and very reasonably priced food products for the rest of the population.

The Modi government has always acted swiftly to counter any abnormal rise in prices of sensitive food commodities. Last year, it launched ‘Bharat Dal’ at the highly subsidised rate of 60 a kg, and ‘Bharat Atta’ at 27.50 a kg. Similarly central agencies sell affordable onions. It even supplied tomatoes when prices were soaring, with Gol picking upa large bill for the differential. Sale of ‘Bharat food items has been quickly scaled up and is available at more than 18,000 outlets.

Never before has Gol sold food grains or pulses in the retail market. Last year, as soon as unseasonal rains disrupted tomato supply Gol swung into action and reversed the rise in prices. It has ensured that good quality dal, rice and atta are supplied at moderate rates. These mea- sures are implemented without discrimi- nation, to help every section of society.

Gol has also introduced a dedicated price stabilisation fund to create a buffer of agri-horticultural commodities for prompt market intervention. It took the landmark initiative to ensure availabili- ty and affordability of major pulses and onions with a cumulative budgetary sup- port of 27,489 crore.

Gol has given a strong message that any attempt to hoard supplies or manipulate the market will backfire. While a record wheat harvest is expected in a few mon- ths, Gol is not taking any chances. It has imposed stock limits on wheat and is ready to increase supply in the market.

Every day retail and wholesale prices of 22 essential food commodities are monitored. With inputs from 550 price- monitoring centres in 34 states/UTS, price trends are analysed for taking ap- propriate decisions for release of stocks from the buffer to cool down prices, and imposition of stock limits to prevent hoarding.

Cooking oil prices are at a two-year low following proactive steps, including ch anges in import duties. In the past year, retail prices of mustard oil are down 18.3%, soyabean oil 17.1%, sunflower oil 23.8% and RBD palmolein 12%. Gol is also tak- ing effective steps to control wheat pri- ces. All-India average prices of wheat and atta in the retail and wholesale markets are showing a declining trend.

Gol has restricted exports of wheat, rice and sugar to ensure adequate domestic supply and moderate prices, while mak- ing sure that farmers get remunerative prices. It has stepped up sales of rice and wheat under the ‘Open Market Sales Sch- eme’ to increase domestic supply Laun- ch of Bharat Rice’, which follows a seri- es of other measures, will go a long way in moderating rice prices.

The free-food scheme had helped Indi- ans withstand the pandemic. Post-Covid Gol’s generous welfare schemes conti nue. Gol has already committed 11.80 lakh crore in the next five years under PMGKAY. This scheme carries forward the PM’s record of running welfare sch- emes without compromising on fiscal discipline. Similarly, Gol ensures ethics and discipline in the market for essential food commodities.

As a result, the past decade has been India’s best in inflation control, despite the twin shocks of pandemic and war in Ukraine. This has been achieved despite inheriting a ‘Fragile 5’ economy with double-digit inflation.