IAS Gyan

Daily News Analysis

Measures taken to Control the Inflation

21st December, 2021 Economy

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  • Recently, Finance Minister outlined that government has taken measures to control the inflation.


Steps Taken

Crude Oil/Petroleum Products

  • To check the petrol and diesel prices, Central Government has reduced Central Excise Duty on Petrol & Diesel by Rs. 5 and Rs. 10 respectively.
  • In response many states governments have also reduced Value Added Tax on petrol and diesel. 


  • A buffer stock target of 23 lakh metric tonne (LMT) has been approved for 2021-22. 
  • Stocks are subsequently utilised for cooling down prices through supply to states and disposal through Open Market sales 
  • Imposition of stock limits on some pulses under the Essential Commodities Act, 1955 in July 2021 to prevent hoarding. 
  • Changes in the import policy by keeping Tur and Urad under ‘free’ category till 31st December, 2021. 
  • Basic import duty and Agriculture Infrastructure and Development Cess on Masur have been brought down to zero and 10% respectively.
  • 5-year memorandum of understanding (MoUs) have been signed with Myanmar for annual import of 2.5 LMT of Urad and 1 LMT of Tur, and with Malawi for annual import of 0.50 LMT of Tur and MoU with Mozambique for annual import of 2 LMT Tur has been extended for another 5 years.

Edible Oils:

  • To soften the prices of edible oils, the import duty on edible oils have been rationalised and stock limits imposed to avoid hoarding upto a period of March 31, 2022. 
  • National Mission on Edible Oils- Oil Palm has been approved with a financial outlay of Rs.11,040 crore to encourage domestic production and availability of oil palm.