Govt to ensure farmers don't pay price of inflation control
The government, after announcing a host of measures to check the price line, is worried about its fallout on farmers, a large political constituency.
By Amiti Sen, TNN |
NEW DELHI: Call it pollonomics. The government, after announcing a host of measures to check the price line, is worried about its fallout on farmers, a large political constituency. The committee of secretaries on prices led by the Cabinet secretary will now have to monitor how cheaper imported commodities ��� thanks to duty cuts or softening of prices in global markets ��� could impact the farmers.
The committee has to ensure the realisation by farmers and producers does not fall beyond a particular level due to policy changes.
The CCS is expected to prompt policy interventions from time to time if and when domestic farmers are unable to get remunerative prices.
Speaking to ET, government sources said while international prices of most commodities on which Customs duties have been eliminated or reduced recently are lower than domestic prices, a future fall in global prices cannot be ruled out.
The committee has to ensure the realisation by farmers and producers does not fall beyond a particular level due to policy changes.
The CCS is expected to prompt policy interventions from time to time if and when domestic farmers are unable to get remunerative prices.
Speaking to ET, government sources said while international prices of most commodities on which Customs duties have been eliminated or reduced recently are lower than domestic prices, a future fall in global prices cannot be ruled out.
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Whenever prices of a commodity, for instance edible oil, falls, the committee would look at the effect on domestic prices and work backwards, from refined oil to crude oil down to the farmers. ���If we see the prices of a certain farm product is falling below a threshold level, we will suggest measures to the EGoM on how the price fall could be stemmed. Measures such as increasing customs duty on the final product will then be considered,��� the official said. The CCS will meet twice a week.
Monitoring cells are being set up in the ministries and departments concerned to regularly collect relevant data on farm prices and report to the CCS. The CCS, in turn, will report to the empowered group of ministers (EGoM) on prices which would take measures like increasing customs duties on particular products if necessary.
The CCS includes secretaries from the ministries and departments of revenue, commerce, agriculture, consumer affairs, food, steel and the Planning Commission.
The decision to monitor farm prices was taken by the Cabinet committee on prices in its meeting earlier this week. Prices will also be monitored for products like steel and cement.
In its bid to check inflation, the government recently announced a host of measures to bring down prices of essential commodities. These include imposing a ban on export of non-basmati rice, eliminating import duty on crude oil and maize, reducing duties on refined edible oil to 7.5% and extending ban on export of prices.
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