NEW DELHI: Asserting that steps were being taken to further improve the Public Distribution System (PDS) and the Minimum Support Price (MSP) mechanism for farmers, the Government on Tuesday assured the Rajya Sabha that both PDS and MSP would not be removed and further strengthened to benefit the farmers and those living below poverty line.

Replying to a discussion on the working of the Food and Consumer Affairs Ministry, the Minister of State Akhilesh Prasad Singh said the Government had also taken a number of measures to improve and streamline the functioning of the Food Corporation of India (FCI).

UPA's priority

"It is not only the priority of the United Progressive Alliance (UPA) Government to make the PDS more effective, it is also the commitment given to the people. PDS will not be removed and the mechanism of MSP will be implemented with enhanced benefits to the farmers so that they continue to get remunerative prices for their produce," Mr. Singh told the House.

Denying corruption in the ranks of FCI, the Minister said the Government had emphasised upon effective management of the system and also put in place several cost-cutting measures in the FCI to tone up its functioning.

"After the steps taken by the UPA Government, the FCI has saved Rs. 1,165 crores, last year and managed yet another saving of Rs. 700 crores through effective stock management system," he said.

Wheat buffer stock

Mr. Singh said the buffer stock of wheat had touched 41 lakh tonnes while that of rice was placed at 133 lakh tonnes. He said the Government did not allow any increase in Central Issue Prices adopted in 2000 which had resulted in government subsidies amounting to Rs. 25,746 crores in 2005 compared to the food subsidy bill of Rs. 24,173 crores in 2000.

The Government had also initiated a "decentralised procurement policy of foodgrains" which was being implemented in 10 States, he said adding that Food for Work Programme and the Antyodaya Anna Yojana Scheme were being implemented to benefit the poor.

No starvation deaths

Denying reports of starvation deaths due to food shortages, Mr. Singh said the Food Corporation of India had come forward to procure the farmers' produce to save them from distress sale.

He said that ambit of the crop insurance scheme would also be widened.

He said the off-take under the Targeted PDS (TPDS) had increased in recent months.

Referring to consumer courts, Mr. Singh said 85 per cent of the 23 lakh cases had been disposed of. He said 5,000 grain banks would be set up in drought-prone areas and tribal belts and the Planning Commission had already made allocations for them.

Sugar mills

On the closed sugar mills, he said efforts would be made to make them viable and productive and added that arrears of sugarcane growing farmers were being drastically reduced.

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