Parliament Question: Impact of West Asia Conflict on Prices of Essential Commodities

Government of India Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs LOK SABHA UNSTARRED QUESTION NO. 6039 TO BE ANSWERED ON 01.04.2026 IMPACT OF WEST ASIA CONFLICT ON PRICES OF ESSENTIAL COMMODITIES 6039. SHRI PUSHPENDRA SAROJ: Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state: (a) whether the Government has undertaken any assessment of the rise in domestic prices of essential commodities following the increase in global crude oil prices due to the ongoing Iran– Israel conflict and tensions in the Gulf region and if so, the details thereof; (b) the extent to which higher fuel and transportation costs have increased the procurement, storage and distribution expenditure of foodgrains and other commodities under the Public Distribution System; (c) whether the Government has reviewed the impact of fuel-driven inflation on the retail prices of pulses, edible oils and other essential commodities during the current financial year and if so, the details thereof; (d) the number of instances where buffer stock release, Price Stabilisation Fund intervention or import duty changes were required due to fuel price shocks; and (e) the steps taken by the Government to protect consumers from inflation arising from geopolitical conflicts affecting energy prices? ANSWER THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L.VERMA) (a) to (c) : Empowered group on prices and supply of essential commodities comprising Department of Consumer Affairs, Department of Pharmaceuticals, Department of Health and Family Welfare, Department of Agriculture and Farmers’ Welfare and Department of Animal Husbandry and Dairying is one of the seven empowered groups constituted by Government to monitor and assess the impact of the West Asia situation and take necessary remedial measures. The Group monitors the availability and prices of essential commodities and deliberated the remedial measures to be taken by the Ministry/ Department concerned in order to address the issues. The daily prices of 40 essential food commodities monitored by the Department of Consumer Affairs through 578 price monitoring centres across the country are analysed and closely monitored by the Government. Prices of edible oils like sunflower oils and mustard oil recorded increasing trend on year-on- year basis while prices of pulses, foodgrains and vegetables remains largely stable.(d) to (e) : Government maintains buffer stock of pulses and onion under Price Stabilisation Fund (PSF) to tackle extreme volatility in the prices and in ensuring the availability of these essential food commodities to consumers at affordable prices. Regulated release of pulses from the buffer helps in cooling down the market prices, and retail sale to consumers at discounted prices ensures affordable prices. At present, prices of pulses are stable and procurement of Kharif and Rabi pulses for buffer stocking is ongoing for possible intervention in an event of price volatility. Buffer stock of onion plays critical role in controlling the seasonal fluctuation in prices. The period between Rabi and Kharif onion harvests is associated with rise in prices due to the depletion in stored Rabi onions. During 2025-26, the disposal of onions from the buffer was started from 4th September, 2025 with retail sale at discounted prices followed subsequently, by targeted release in wholesale markets of major consumption centres across the country. Government keeps a close watch on the production and availability of essential commodities through regular reviews by the Inter-Ministerial Committee (IMC). The Committee reviews, on regular basis, the scenario and the indicative trends in prices of essential agri-horticultural commodities and suggests measures to enhance availability through increased domestic production and rationalisation in export-import policies. *****