Steps to boost pulses, oilseeds production

By Our Special Correspondent

NEW DELHI, MARCH 23. The broad aim of minimum support prices for wheat and crops was to encourage production of pulses and oilseeds, while at the same time provide remunerative prices for the wheat farmers. Besides, the objective was to provide for inter-seed parity, said the Union Agriculture Minister, Mr. Nitish Kumar, announcing the MSP decision taken earlier at a meeting of the Union Cabinet Committee on Economic Affairs.

Asked whether the problem of storage encountered by the Government following excess foodgrain production was taken into consideration while fixing the MSP, he said the storage problem was a totally different issue and did not come into the picture. The MSP was fixed more on the basis of the input costs and the need to provide greater income to the farmers, particularly in the rainfed areas.

In this context, he observed that the Commission for Agricultural Cost and Prices had recommended that there be no increase in the MSP of wheat and in the case of other crops too, the MSP that had been decided was far more than what was recommended by the panel.

The CCEA also decided on a financial restructure package for the Sponge Iron India Limited as a prelude to its disinvestment. Under the plan, the Government would convert outstanding loans amounting to Rs. 32.5 crores into equity, and write off the accumulated interest and penal interests amounting to Rs. 36.78 crores. The aim was to clean up the balance sheet of the sick public limited company to generate greater investor interest, official sources said.

While the Minister declined to comment on the financial implications of the increase in MSPs, official sources later said the increase in the MSP of wheat alone could impose an additional cost of Rs. 2,000 crores on the exchequer.

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