New Delhi: Minister of State (MoS) for Finance Pankaj Chaudhary on Tuesday (July 26) said the government is monitoring the price situation of major essential commodities on a regular basis, adding that several corrective actions are taken from time to time to tame high inflation.
He added that the government took several supply-side measures to address inflation. Plus, it is important to mention in this context that the Reserve Bank of India (RBI) has taken an aggressive approach to tame inflation and hiked the key rate by 90 basis points in the last two months.
In a written reply to a question in the Rajya Sabha, the MoS said: “The central government on May 21, 2022, cut excise duty by Rs 8 per litre on petrol and Rs 6 per litre on diesel. Further, reduction in import duties and cess on pulses, rationalisation of tariffs and imposition of stock limits on edible oils and oil seeds, maintenance of buffer stock for onion and pulses, the inclusion of soya meal as an essential commodity in the schedule of the Essential Commodities Act, 1955 up to 30th June 2022 and imposition of stock limit on soya meal up to 30th June 2022 were carried out”, according to a statement by the finance ministry.
Chaudhary stated that soaring commodity prices and pandemic-induced supply-demand imbalances caused a rise in inflation rates worldwide including in India. The Russia-Ukraine conflict has exacerbated the inflationary pressures in crude oil, gas, and metals.
Further, the onset of summer heat waves has led to crop damage and a rise in vegetable prices, he added.
Retail inflation fell marginally to 7.01 per cent in June though it still remained above the central bank’s comfort level for the sixth month in a row. The retail inflation stood at 7.04 per cent in the preceding month of May and 6.26 per cent in June 2021.