Date:16/05/2006 URL: http://www.thehindu.com/2006/05/16/stories/2006051603860900.htm

National

Clarification on wheat imports sought

Special Correspondent

Procurement policy marginalised: Brinda Karat

Government not paying attention to drop in wheat production

Manipulating capacity of private trade has increased

NEW DELHI: Communist Party of India (Marxist) Polit Bureau member and Rajya Sabha member Brinda Karat has sought clarification from Agriculture and Food Minister Sharad Pawar on wheat imports and the revision in the safety norms for imported wheat.

In a letter to Mr. Pawar, Ms. Karat questioned the Government decision to import another three million tonnes of wheat over and above the five-lakh tonnes already imported since the level of buffer stocks was low. "Unfortunately, the Government has not paid sufficient attention to the fact that production of wheat has not increased over the last several years. On the contrary it has been encouraging diversification from foodgrain production including wheat," she said.

To her queries in Parliament, the Minister had said this year's wheat procurement would reach 162 lakh tonnes, she said.

"However from reports it appears that in Punjab, for example, Government procurement has been poor. Aggressive interventions by private traders including companies such as Reliance have resulted in their being able to corner a much larger share of the grain that came to the market. There are also reports that big foreign companies have entered the market through agents."

Ms. Karat said the higher market rates paid by private trade to Punjab farmers were still lower than the price paid to foreign traders by the Government and much higher than the support price of Rs. 650 including the bonus of Rs. 50 a quintal.

"Although a section of farmers may have benefited, the net result is that the Government's procurement policy has been completely marginalised, the clout and manipulating capacity of private trade has increased and the import of wheat signals a dangerous erosion in food self sufficiency and self reliance which is not in the national interest."

Consumers suffering

Challenging the Ministry's claim of wheat prices softening once the new crop reached the mandis, Ms. Karat said: "Wheat prices in the market are still high and consumers are suffering with widespread concern that this gross food mismanagement will lead to a further cut down in the public distribution system and the quantities of food required to ensure food security and to meet the requirements of various foodgrain based schemes."