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Wednesday, December 27, 2000

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Cong. alleges mismanagement of foodstock

By Our Special Correspondent

NEW DELHI, DEC. 26. The Congress and the CPI(M) today demanded that the prices of foodgrain supplied through the Public Distribution System be reduced and criticised the Antyodaya scheme announced by the Prime Minister to tackle the accumulated stocks problem.

The Congress spokesman, Mr. Prithviraj Chavhan, charged that the current situation of overflowing foodstock arose due to `mismanagement' of food economy and raised doubts about Government's calculation that the scheme would reduce the FCI foodstocks by three million tonnes. As per the scheme the Government would release 25 kgs rice every month to one crore of the poorest of the poor who have to be identified, he said.

Under the present PDS, those living below poverty line are already entitled to 20 kgs rice and grain as outlined in the Budget. The new scheme, he said, would only increase the allocation by five kgs which works out to 60 kgs per month and at one crore population it would amount to reduction of stocks by only six lakh tonnes.

Criticising the decision to raise the PDS issue price, he said, the Government's approach to food security was ``casual and ad- hoc'' leading to practical difficulties.

The party also termed the rural road construction programme as a ``repackaged'' version (which was launched yesterday) of the Independence Day announcement made by the Prime Minister.

It said the Rs. 60,000 crore plan was ``highly ambitious'' and there was no clear indication as to how resources would be raised for the project which has earmarked only Rs. 2,500 crores in the current year collected through cess on diesel.

The option to issue tax-free bonds would have a negative impact in terms of reduction in tax revenue and also incur huge debt servicing liability for future. The parameters for distribution of revenue whether it would be on the basis of population, area, number of villages or recommendation of the Eleventh Finance Commission was also not set.

Food scheme `inadequate'

The CPI-M said termed the `Antyodaya' scheme was ``inadequate and insufficient response'' to the problem of huge accumulated food stocks and the estimated reduction would cover only a fraction of the excess stocks.

The FCI had over 40 million tonnes of foodgrain in godowns and there was some 22 million tonnes of excess stock over and above the minimum level required to be maintained. The best way to utilise the excess stock would be to reduce the prices of foodgrain supplied through PDS and also chalk out a massive ``food for work'' programme that could have generated both employment and reduced accumulated foodstocks.

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