Page 220 - economic_survey_2021-2022

194 Economic Survey 2021-22

which are part of COVID-19 protocol, on Government intervention, MRPs of various brands
of Remdesivir have been reduced voluntarily by the major manufacturers/marketers.
l Multi-pronged approach is followed to monitor and coordinate equitable distribution of
Remdesivir, Tocilizumab and Amphotericin.

l The availability of key medicines is also being monitored through regular surveys being
conducted at chemist shops at various locations across the country by DCG(I). The same is
also being supplemented w.e.f. May 2021 through weekly availability surveys of COVID-19
management drugs conducted by the Price Monitoring and Resource Units (PMRUs).

LONG TERM PERSPECTIVE FOR MANAGEMENT OF SUPPLY SIDE
FACTORS
Given the importance of supply-side factors in having a predominance in determination of
inflation in India, long-term policies are likely to help.

1. Changing Production Patterns: Encouraging farmers to shift from cultivation of rice and
wheat to pulses and oilseeds would help ensure that the country is self-reliant in pulses and
oilseeds and also assist in reducing import dependence. Shift in cultivation towards pulses
would also enable the government to maintain realistic buffer stocks of rice and wheat.
Recently, government has been prioritizing increasing production of pulses and oilseeds
through area expansion, productivity through HYVs, MSP support and procurement.

2. Calibrated Import Policy: Knee jerk reactions to price rise of essential commodities
like pulses and edible oils through frequent import duty/tariff revisions though providing
immediate relief to the consumers in the way of lower prices, send wrong signals to domestic
producers and create an environment of uncertainty. A long-term consistent approach is
mandated. A step in this direction has been taken by the government where five year MoUs
have been signed with Myanmar for annual import of 2.5 LMT of Urad and 1 LMT of Tur,
with Malawi for annual import of 1 LMT of Tur, and MoU with Mozambique for annual
import of 2 LMT Tur has been extended by another five years. These MoUs will ensure
predictability in the quantity of pulses being produced abroad and exported to India, thus
benefiting both India and the pulse exporting country.
3. Focus on transportation and storage infrastructure for perishable commodities: Better
storage and supply chain management is required to ensure availability in lean season and
reduced wastages of horticulture and other perishable essential commodities to reduce
the seasonal spikes in prices for consumers, glut for the farmers in times of good harvests
due to lack of marketing infrastructure, resulting in distress sales. Effective utilisation of
Agriculture Infrastructure Fund for investment in viable projects for post-harvest management
infrastructure for perishable commodities can help improve agriculture infrastructure in the
country. Schemes like Operation Green and Kisan Rail need to be exploited further to protect
the interests of the farmers as well as the consumers .