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LATEST NEWS UPDATES | In Wake of Ukraine War, India Set to See Rising Food Grain Prices -Siraj Hussain and Shweta Saini

In Wake of Ukraine War, India Set to See Rising Food Grain Prices -Siraj Hussain and Shweta Saini

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published Published on Apr 21, 2022   modified Modified on Apr 21, 2022

-TheWire.in

The wholesale price inflation for wheat in March was 14%. The retail prices will, therefore, reflect the same once the peak arrival season is over, in June 2022.

Even the critics of India’s public distribution system (PDS) acknowledge that it worked well during the Covid-19 pandemic. Additional allocations of free food grains at 5 kg per person per month, under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), helped prevent mass hunger over the last two years. Some states also provided gram, salt and edible oils to ration card holders.

What’s more, in the Uttar Pradesh assembly elections held in February and March this year, the voters seemed to have taken this ‘generosity’ into account.

These allocations were possible due to the excess procurement of rice and wheat over the last four years. Rice procurement increased from 38.18 million tonnes in 2017-18 to 60 million tonnes in the Kharif Marketing Season (KMS) 2020-21. This year, too, procurement is likely to reach the same level.

Similarly, the procurement of wheat increased from 30.8 million tonnes in 2017-18 to 43.3 million tonnes in 2021-22. This year though, due to export pressures and a lower crop yield due to high temperatures in March, wheat procurement may only reach about 35 million tonnes. 

The government made good use of excess stocks by distributing them through the PDS in the pandemic years. Moreover, it seems as though leakages under the PDS have also come down.

While no official study on leakages has been conducted since the implementation of National Food Security Act, 2013, it appears that use of biometrics and point of sale (PoS) machines at ration shops has helped in checking diversion and leakages. The portability of ration cards,  which permit a card holder to draw their ration from anywhere in India, also seems to have helped.

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TheWire.in, 21 April, 2022, https://thewire.in/agriculture/in-wake-of-ukraine-war-india-set-to-see-rising-food-grain-prices


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