The Department of Consumer Affairs, Government of India, has taken significant steps to enhance the monitoring of essential commodities’ prices. On 1st August 2024, Union Minister Shri Pralhad Venkatesh Joshi announced the inclusion of 16 additional commodities under the Price Monitoring System (PMS), coinciding with the launch of Version 4.0 of the PMS Mobile App.
Current and Expanded Scope
Previously, the Department monitored the daily prices of 22 commodities. With the inclusion of the new 16 items, a total of 38 commodities will now be under surveillance. This initiative aims to provide comprehensive data to assist in policy-making and inflation control.
Monitoring Network
The Department gathers daily price data from 550 centers across 34 States and Union Territories. This data is crucial for the Government, RBI, and analysts in making informed decisions regarding CPI inflation.
New Commodities Added
The newly added commodities include:
- Bajra
- Jowar
- Ragi
- Suji (wheat)
- Maida (wheat)
- Besan
- Ghee
- Butter
- Brinjal
- Egg
- Black Pepper
- Coriander
- Cumin seed
- Red chillies
- Turmeric powder
- Banana
Impact on CPI Weights
The 38 monitored commodities now constitute close to 31% of the total CPI weights, an increase from the 26.5% covered by the original 22 commodities. This expansion is expected to improve policy interventions aimed at stabilizing food prices and controlling overall inflation.
Government Measures to Contain Food Price Inflation
The Government of India has implemented several measures to address food price inflation:
- Affordable Pricing:
- Bharat Chana Dal at Rs.60 per kg
- Bharat Atta at Rs.27.50 per kg
- Bharat Rice at Rs.29 per kg
- Retail Sale Initiatives:
- NCCF retailing Tomatoes at Rs.60 per kg since 29th July 2024
- Anti-Hoarding Measures:
- Stock limits on Tur and Desi Chana from 21st June 2024 to 30th September 2024
- Import Policies:
- Zero duty on the import of pulses like Tur, Urad, Masur, Yellow Peas, and Desi Chana to augment domestic supply
- Buffer Stock:
- Building a buffer stock of 5 LMT for release during lean months to ensure availability and affordability
Results of Price Control Measures
These measures, along with a good progress in the sown area under Kharif pulses for 2024-25, have stabilized the market. Prices of Chana, Tur, and Urad in major mandis have declined by up to 4% over the past month. This decline in mandi prices is also reflected in retail prices, with a week-on-week decrease in the all-India average retail prices of pulses.
Multiple Choice Questions (MCQs):
1. From when has the Department of Consumer Affairs included 16 additional commodities under price monitoring?
a) 1st July 2024
b) 1st August 2024
c) 1st September 2024
d) 1st October 2024
Answer: b) 1st August 2024
2. How many total commodities are now monitored under the Price Monitoring System?
a) 22
b) 30
c) 34
d) 38
Answer: d) 38
3. What percentage of the total CPI weights do the 38 monitored commodities constitute?
a) 26.5%
b) 29%
c) 31%
d) 35%
Answer: c) 31%
4. Which commodity is NOT among the newly added 16 items under price monitoring?
a) Bajra
b) Suji (wheat)
c) Coriander
d) Potato
Answer: d) Potato
5. What is the price of Bharat Chana Dal provided by the Government to retail consumers?
a) Rs. 50 per kg
b) Rs. 55 per kg
c) Rs. 60 per kg
d) Rs. 65 per kg
Answer: c) Rs. 60 per kg