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Friday, Apr 18, 2008
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Pawar: price control steps paying off

Sandeep Dikshit

Rejects plea on universal PDS

NEW DELHI: The government on Thursday rejected the Left parties’ plea to restore the universal public distribution system (PDS) and was lukewarm to their second major demand for scrapping futures trading in agricultural commodities.

Agriculture Minister Sharad Pawar’s reply in the Rajya Sabha to a short duration discussion on the “unprecedented price rise of commodities” left the Bharatiya Janata Party (BJP), the Left parties and the United National Progressive Alliance dissatisfied leading to separate walkouts.

Allaying fears of food riots as the “situation was not so bad,” Mr. Pawar said the government’s efforts to build stocks were bearing fruit.

However Gujarat, Bihar, Madhya Pradesh and Rajasthan were lagging behind. “Next year is election year when we can settle our differences. But when the whole country is facing price rise, it is the duty of the States to try to contribute to the national kitty. Otherwise, it will be difficult to provide foodgrains to all States,” he said during his hour-long reply.

The government was facing a serious problem in ensuring adequate supply of pulses. As the crops were grown in largely rain-fed areas, increasing production and productivity was a problem.

Public sector enterprises would import an additional 15 lakh tonnes of pulses this year and the government offered to bear 15 per cent of the losses.

As for edible oil, the Minister said the situation was “serious” and reiterated the government’s move to offer a subsidy on its supply through the PDS.

On universalisation of the PDS, Mr. Pawar said the restoration of the earlier system would not only require huge quantities of foodgrains but also result in price increases which would hurt below the poverty line families.

As for banning futures trading in agricultural produce, Mr. Pawar said economist Abhijeet Sen’s report on the issue had been delayed and the government would call a meeting of experts to take action, if it was not submitted in 10 days.

However, after their removal from forward trading, wheat prices were stable and those of urad dal rose. Forward trading gave farmers advance intimation of which crops to sow, he suggested.

Mr. Pawar blamed the previous government for depleting food stocks.

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