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There is enough food stock, says Chidambaram

Sandeep Joshi

“Highest priority to agriculture”

Good procurement policies led to buffer stocks
Worst kind of food inflation, fertilizer famine: Jaswant

NEW DELHI: Union Finance Minister P. Chidambaram on Wednesday said the country had enough stocks of foodgrains, thanks to a dramatic improvement in procurement. The government’s highest priority was the agriculture sector and it would take all measures, including increasing fertilizer subsidy, to help farmers.

The Minister was replying to a Rajya Sabha debate on the Finance Bill, which was returned, completing the budget process for 2008-09.

“The Centre’s good procurement policies have led to buffer stocks. We have enough foodgrains. We are also providing enough foodgrains to the States to meet their demands. For the United Progressive Alliance government, agriculture has been the highest priority. This and the last budget are being described as the ‘green budgets’.”

Refuting the Opposition’s charges that there was a “fertilizer famine,” Mr. Chidambaram said that on the contrary, there were enough stocks. The government was ready to bear even a higher subsidy bill on fertilizers to help farmers.”

Referring to the commodity transaction tax (CTT), the Minister said it was the mirror image of the securities transaction tax (STT) imposed on the stock markets, which met with similar resistance. Sooner or later, the CTT would also be accepted.

Mr. Chidambaram assured the House that the banking transaction tax (BTT) would be withdrawn by year-end. It was introduced for detecting unaccounted money in the absence of alternative methods. After its withdrawal, alternative methods to catch people with unaccounted money would be provided by the new money laundering law.

Agreeing with N.K. Singh of the Janata Dal (United) that the budget was “slightly expansionary,” Mr. Chidambaram said it might fuel inflation, but was necessary to keep the growth momentum growing.

“We want to grow at 9-10 per cent. The growth may not be as high as last year, but still it would be between 8 and 9 per cent. Our ambition is to become the world’s fastest growing economy and not the second fastest growing.”

Jaswant’s charge

Earlier initiating the discussion, Leader of the Opposition Jaswant Singh (BJP) charged the government with an unbudgeted fiscal overhang of Rs. 3,00,000 crore combined with the “worst kind of food inflation” and fertilizer famine.

Advising the Finance Minister to “leave” rather than be “sent out,” the BJP leader said the unbudgeted expenses including the Sixth Pay Commission burden, the farm loan waiver scheme, the food and fertilizer subsidy and oil bonds could destroy the country’s economy and lead to the worst kind of inflation that could hit a country. He urged the government to have fewer tax controls.

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