The Hindu : National : Pawar opposes `excessive' subsidies to farmers

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Thursday, Nov 18, 2004

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National

Pawar opposes `excessive' subsidies to farmers

By Our Special Correspondent

NEW DELHI, NOV. 17. The Union Agriculture and Food Minister, Sharad Pawar, said today he was against providing "excessive subsidies'' to those farmers who could afford to pay for the services. He said the Centre planned to restructure the Food Corporation of India, not dismantle it.

He was answering questions at the Economic Editors' Conference here today.

Asked whether there could be a uniform policy on provision of free supply of power to farmers, he said a few years ago an all-party committee set up by the Planning Commission and headed by him had made the recommendation that at least the generating cost of power should be recovered. The matter was placed in the National Development Council (NDC) too. "But this being a State subject, the States do as they want.''

Locked up in battle

Mr. Pawar is now locked in a battle with alliance partner — the Congress — in Maharashtra on giving free electricity to farmers in fulfilment of an election promise. Mr. Pawar is opposed to it.

The Minister said the Committee had as members the then Rajasthan Chief Minister, Bhairon Singh Shekhawat, the then West Bengal Chief Minister, Jyoti Basu, the Uttar Pradesh Chief Minister, Mulayam Singh Yadav, and Manmohan Singh as the then Finance Minister, among others.

Referring to the FCI, he said the measures to appoint McKinsey to study the operations of the FCI, asking States to enact laws to facilitate direct marketing of farm commodities and to go in for decentralised procurement of foodgrains were not meant to do away with the FCI.

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