Prices and Food Management

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This site provides detail information on Prices and Food Management of India. The site also focuses on the current scenario of Food Management in India.

The general decline in the inflation rate during 2005-06 was due to sound macro-economic management along with effective management of Prices and Food Management. Reducing the uncertainty associated with high and volatile international petroleum prices, the near and medium-term inflation risks in the Indian economy appear to be manageable. The danger of an unexpected imbalance in Prices and Food Management will always be there. However, given sufficient foreign exchange reserves and Government's commitment to further trade and tariff reforms, strict fiscal management, monetary discipline and orderly movement of the exchange rate of rupee, the scenario Prices and Food Management are likely to witness stability.

Procurement higher than the off-take had resulted in a build-up of excessive stocks of food grains during the two successive years of 2001-02 and 2002-03. Subsequently, however, due to increased off-take under TPDS and other welfare schemes, stocks of food grains stood at 18.8 million tonnes on January 1, 2006, lower than not only the stocks of 21.7 million tonnes on January 1, 2005 but also the buffer stock norm of 20 million tonnes. The main reason for the decline in stocks was the lower stock of wheat.

Coarse grain procurement was higher in 2005-06 as against in 2004-05. Wheat stocks were depleted in April 2006 against a buffer stock norm. Poor procurement of wheat further reduced the actual stocks relative to buffer norms. To make up for the shortfall of wheat procurement in the rabi marketing season (RMS) 2006-07, Government decided to import 5.5 million tonnes of wheat through the State Trading Corporation. In addition, one million tonnes of wheat import on account of private traders was also contracted. On the sugar front, adequate domestic availability is ensured with sufficient supply. In so far as rice and wheat are concerned, accelerated procurement of rice together with the increment of stocks through imports of wheat has ensured adequate consumption stocks in food grains. The Government of India's timely decision of importing wheat checked the deficit and augmented the domestic availability of food grains, and saved it from major negative impact on food security for the nation.

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