The Hindu : National : "Wheat issue is food for thought"

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Wednesday, May 24, 2006

National

National

"Wheat issue is food for thought"

Gargi Parsai

Foodgrains management not satisfactory; review food policy, says panel

NEW DELHI: Even as Food and Agriculture Minister Sharad Pawar defended wheat import, the Parliamentary Standing Committee on Food on Monday expressed its dissatisfaction with foodgrains management.

The committee, in its report tabled in the House, asked the government to review its food policy in view of the lower than expected production of foodgrains, low procurement of wheat this rabi season, cornering by private players, the decision to import huge quantities of wheat and the rising prices of commodities in the open market.

The committee said multinationals and private players had taken undue advantage of the liberal policy offree trade and movement of agricultural produce. "They entered the market in a big way and procured wheat in excess of their requirement leading to profiteering, hoarding and black market."

Impose procurement ceiling

The panel urged the Centre and the States concerned to impose a ceiling on procurement by private trade and multinationals. It pointed out that the Uttar Pradesh Government imposed curbs on private trade this rabi season in the interests of consumers.

The committee, chaired by Devendra Prasad Yadav, recommended that the government, to replenish buffer, bar the Above Poverty Line (APL) category from availing itself of subsidised foodgrains under the Public Distribution System. The differential in the price of subsidised foodgrains for the APL and the market price was very high, leaving scope for their diversion into the open market. Even while reducing the APL quota — if not altogether withdrawing it — the issue price should be raised to bridge the gap with the open market rate. At present APL wheat is priced at Rs. 6.10 a kg, while the open market rate is Rs. 8.50.

Fall in production

Wheat production declined from 72.15 million tonnes in 2004-05 to 71.54 million tonnes during 2005-06 and procurement also fell substantially this rabi season. The situation became so alarming that the government decided to import 3.5 million tonnes of wheat during the year. "In such a scenario, the government may find it difficult to manage and operate the Public Distribution System and replenish its dwindling stocks."

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