**Executive Summary:**
This document is a response to Lok Sabha Unstarred Question No. 3642 regarding rising prices of essential commodities. The Minister of Finance addresses concerns about inflation's impact, detailing government measures to monitor prices, control inflation, and provide relief to middle and low-income households. The response covers inflation trends over the past three years and outlines short-term and long-term strategies employed by the government.
**Key Points / Main Content:**
* **Price Monitoring and Review:**
* The Department of Consumer Affairs monitors daily prices of 38 essential food commodities across 566 price monitoring centers nationwide.
* An Inter-Ministerial Committee reviews prices and availability, suggesting measures to enhance availability and stabilize prices.
* **Inflation Trends:**
* Retail inflation (CPI) has steadily declined from 6.7% (2022-23) to 5.4% (2023-24) and further to 4.6% (2024-25), the lowest in the last 6 years.
* CPI averaged 2.7% in Q1 of 2025-26, ending at 2.1% in June 2025.
* Food inflation reached -1.06% in June 2025, the lowest since January 2019.
* **Government Measures to Control Inflation:**
* Augmentation of buffer stocks for essential food items.
* Strategic sales of procured grains in the open market.
* Facilitation of imports and imposition of export curbs during periods of short supply.
* Implementation of stock limits to boost market availability.
* Retail sales of select food items under the Bharat brand at subsidised rates.
* Free distribution of food grains to around 81 crore beneficiaries under the National Food Security Act.
* Exemption of annual incomes up to ₹12 lakh and ₹12.75 lakh (for salaried individuals with standard deduction) from income tax.
* **Fuel and Transportation Inflation Mitigation:**
* Targeted subsidy of ₹300 per LPG cylinder for 10.33 crore Pradhan Mantri Ujjwala Yojana beneficiaries.
* Intrastate freight rationalisation to reduce Petrol and Diesel prices in remote areas within states.
* Augmenting domestic exploration and production of crude oil and improving the share of renewable sources in India’s energy mix.
* Reduction of Central Excise Duty on petrol and diesel by ₹13/litre and ₹16/litre, respectively, in November 2021 and May 2022.
* Oil Marketing Companies reduced retail prices of petrol and diesel by ₹2/litre each in March 2024.
* Excise duty on Petrol and Diesel was increased by ₹2/litre each in April 2025, but this increase was not passed on to consumers.
**Impact Analysis**
* **Common Man (Middle and Low-Income Households):**
* *Impact:* Benefit from reduced inflation, subsidized essential commodities, and increased disposable income through tax exemptions.
* *Action Required:* Avail of subsidies and benefits offered by the government, such as subsidized LPG cylinders and food grains.
* **Pradhan Mantri Ujjwala Yojana Beneficiaries:**
* *Impact:* Receive a targeted subsidy of ₹300 per LPG cylinder.
* *Action Required:* Continue to avail of the subsidized LPG cylinders.
* **State Governments:**
* *Impact:* Encouraged to lower VAT rates on petrol and diesel to provide further relief to consumers.
* *Action Required:* Consider reducing VAT rates on petrol and diesel.
Key Entities Referenced
MINISTRY OF FINANCE: The government ministry responsible for financial matters.
Department of Economic Affairs: A department under the Ministry of Finance.
Consumer Price Index CPI: A measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.
Department of Consumer Affairs: The department that monitors the prices of essential food commodities.
Inter-Ministerial Committee: A committee that reviews commodity prices and availability.
National Food Security Act: Act under which food grains are distributed free of cost to beneficiaries.
Pradhan Mantri Ujjwala Yojana: A scheme providing subsidized Liquefied Petroleum Gas cylinders.
Central Excise Duty: A tax levied by the central government on goods manufactured within the country.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 3642
TO BE ANSWERED ON 11.08.2025/ Sravana 20, 1947 (Saka)
RISING PRICES OF ESSENTIAL COMMODITIES
3642. SMT GENIBEN NAGAJI THAKOR:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware of the rising prices of essential commodities and
services impacting the common man;
(b) if so, the details thereof and the reasons therefor along with the inflation trends during the
last three years;
(c) the short-term and long-term measures taken by the Government to control inflation and
reduce the burden on middle and low-income households; and
(d) whether the Government has any plans to provide targeted subsidies or relief packages to
mitigate the effects of price rise on essential goods like food, fuel and transportation?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b): The Department of Consumer Affairs monitors the daily prices of 38 essential food
commodities —including rice, pulses, onions and tomatoes— across 566 price monitoring
centres nationwide. An Inter-Ministerial Committee regularly reviews the prices and
availability of these commodities and suggests measures to enhance their availability to
stabilize the prices. During the last three years, the retail inflation in terms of Consumer Price
Index (CPI) has declined steadily from 6.7 per cent (2022-23) to 5.4 per cent (2023-24) and
further to 4.6 per cent (2024-25), the lowest in the last 6 years. Furthermore, CPI declined to
an average of 2.7 per cent in the first quarter of 2025–26, ending the quarter at 2.1 per cent in
June 2025. The deceleration in food inflation continued through Q1 of 2025-26 and reached a
negative territory with (-) 1.06 per cent in June 2025, the lowest after January 2019.(c) and (d): The reduction in inflation, particularly in essential commodities, can be attributed
to a series of proactive measures undertaken by the Government to control price rise and ease
the burden on middle- and low-income households. These measures include augmentation of
buffer stocks for essential food items, strategic sales of procured grains in the open market,
facilitation of imports and imposition of export curbs during periods of short supply,
implementation of stock limits to boost market availability of essential commodities, retail
sales of select food items under the Bharat brand at subsidised rates, distribution of food grains
free of cost to around 81 crore beneficiaries under the National Food Security Act, and
increasing the disposable income of individuals by exempting annual incomes up to ₹12 lakh
(and ₹12.75 lakh for salaried individuals with standard deduction) from income tax. To
mitigate the impact of fuel and transport-related inflation, the Government has introduced
several additional measures like, providing a targeted subsidy of ₹300 per Liquefied Petroleum
Gas cylinder for about 10.33 crore Pradhan Mantri Ujjwala Yojana beneficiaries, intra-state
freight rationalisation to reduce Petrol and Diesel prices in remote areas within states,
augmenting domestic exploration and production of crude oil and improving the share of
renewable sources in India’s energy mix. The Central Government also reduced Central Excise
Duty on petrol and diesel by ₹13/litre and ₹16/litre, respectively, in two tranches (November
2021 and May 2022), with the full benefit passed on to consumers. Additionally, several State
Governments lowered their VAT rates to provide further relief. In March 2024, Oil Marketing
Companies reduced the retail prices of petrol and diesel by ₹ 2 per litre each. In April 2025,
excise duty on Petrol and Diesel was increased by ₹ 2 per litre each; however, this increase was
not passed on to consumers.
***