Price rise recorded in some food items like tomato: Government

NEW DELHI: Prices of some food items like tomato, onion, potato and rice have gone up in recent months because of supply-demand mismatch following adverse weather conditions among other issues, Parliament was informed today.

However, states have powers to take appropriate action against hoarding of vegetables and other essential commodities, Minister of State for Food C R Chaudhary said in his written reply to the Lok Sabha.

Prices of most essential food items monitored by the ministry have "declined or were relatively stable" in recent months. Prices of pulses, wheat and edible oils generally showed a decline, he said.

He, however, added: "A few food items like rice, gur, potato, onion and tomato recorded an increase."

The minister attributed the increase in prices of some food items to "demand-supply mismatch owing to shortfall in production due to adverse weather condition, seasonality, increase in transportation costs and supply chain constraints".

To a query if prices of vegetables are likely to see a steep rise in future, the minister replied: "Prices of vegetables depend on their production and availability."

The supplies are affected by factors such as weather conditions, seasonal fluctuations in market arrivals and imperfections in marketing channels, among others, he said.

To check hoarding, the minister said, the states have been empowered to enforce provisions of the Essential Commodities Act, 1955, and the Prevention of Black Marketing and Maintenance Supply of Essential Commodities Act, 1980.

States have been empowered under these two Acts to take action against hoarding of essential commodities, including vegetables.

To address the problem of price rise, the government under an horticulture scheme provides assistance for creation of infrastructure for post-harvesting and marketing of fruits and vegetables.

A separate Price Stabilisation Fund (PSF) has also been created to moderate price volatility of agriculture and horticulture commodities like onion and potatoes.