Centre Plans Special Cell to Monitor Food Prices

November 23, 2023

To strengthen the monitoring of essential commodities and contain food inflation, the Indian government is considering the creation of a special cell under the Department of Food and Public Distribution. The proposed cell would focus on analyzing prices of key food items such as food grains, pulses, wheat, rice, maize, and others. The interministerial committee (IMC), which currently reviews essential commodities’ prices, would benefit from the specialized cell, which will alert authorities to significant variations in domestic and international food prices.

Key Points

IMC’s Role: The IMC, headed by Home Minister Amit Shah, has been reviewing essential commodities’ prices and policies weekly since 2017. However, the proposed special cell would enhance the analysis capabilities and provide timely alerts.
Scope of Special Cell: The special cell is expected to focus on comprehensive analysis, covering wheat, rice, maize, and other food items, expanding the scope beyond the existing focus on edible oils and sugar, which are tracked separately.
Preventive Measures: The government has implemented measures to curb food inflation, including export bans on essential commodities like rice. A dedicated cell would provide additional analytical support for making informed decisions.
Concerns Ahead of Elections: With general elections approaching, the government is keen on monitoring and controlling food prices to address concerns related to inflation, particularly in essential food items.
Request for Economic Service Officers: The creation of the special cell involves a request for the posting of additional director (AD) or deputy director (DD)-level economic service officers with expertise in econometric modeling and analysis.

« Previous Post Next Post »