Page 547 - ES 2020-21_Volume-1-2 [28-01-21]

174 Economic Survey 2020-21 Volume 2

inflation in December 2020. However, in December 2020, inflation of all pulses, except peas
and ‘other pulses’ declined as compared to the previous month.
5.18 Imports can add to the availability of any commodity and thus moderate prices in case of
shortfalls in domestic supply. In the case of pulses, it is seen that import is highly negatively
correlated with production (Figure 14). In the year of low production, import increases and in
the year of bumper crop, imports fall. Each year, import policy is changed according to the level
of production. However, such frequent changes in import policy adds to confusion of market
participants owing to uncertainty in policy regime.

Figure 14: Production, import and import production ratio

Source: CMIE

5.19 CPI inflation in oils and fats has been increasing since August 2019 and has reached
20 per cent in December 2020. While inflation in mustard oil, groundnut oil and refined oil
(sunflower, soyabean etc.) is above 20 per cent, coconut oil is above 10 per cent in December
2020. India is the largest importer of edible oils. Demand for edible oils is rising in India, while