How does the Indian government control inflation
Learn about the center's method to control inflation by stopping supply of rice and wheat to states
- The government keeps track of the supply of essential commodities and takes measures to regulate it.
- When the supply is low, the government may decide to suspend the supply to the states.
- This helps the central government manage the supply-demand dynamics and avoid further price hikes.
- The decision to stop supply to states is taken by the food ministry and is reviewed periodically.
- The central government also monitors the prices of essential commodities at various levels, including wholesale and retail prices.
- The government may also take measures such as reducing import duties on essential commodities to increase the supply.
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2 years ago