The Hindu : Freeze sought on support price of wheat

Online edition of India's National Newspaper
Saturday, Mar 16, 2002

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National

Freeze sought on support price of wheat

By Gargi Parsai

New Delhi March 15. The Food and Public Distribution Ministry has sought a freeze on the minimum support price (MSP) of rabi wheat 2002-03 to be procured for the central pool in view of the huge foodgrain stocks lying with the Government. The Ministry wants the MSP to be frozen at last year's level of Rs. 610 a quintal.

However, the Union Agriculture Ministry proposes to marginally raise the support price by about Rs .15 a quintal. This will be a 2.4 per cent increase over what the Commission of Agriculture Costs and Prices has recommended _ which is to freeze at last year's level.

A final view will be taken by the Union Cabinet within the next week as the announcement of the MSP is already delayed. The sowing for rabi has already been long done.

The Chief Ministers of Punjab and Haryana have been pressuring the Centre for a hefty increase in the MSP. Punjab has asked for an MSP of Rs .760 a quintal, while Haryana wants it to be Rs. 700 . Some other States have asked for a 100 per cent increase.

Attempts by the Centre for decentralised procurement were resisted by most State Governments. Thereafter, the Centre set up a high-power committee to look into the question of delinking foodgrains procurement from the minimum support price. The committee is yet to submit its report.

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