Govt weighs hike in PDS wheat prices
In what could stir a new controversy, the government is weighing an increase in the price of wheat sold through the public distribution system (PDS) and reduce its allocation per family.
By Agencies |
NEW DELHI: In what could stir a new controversy, the government is weighing an increase in the price of wheat sold through the public distribution system (PDS) and reduce its allocation per family, says Union food and agriculture minister Sharad Pawar.
The price increase is likely with the government having paid a considerably higher price than last year to farmers to procure wheat for the buffer stock, Mr Pawar said in an interview with a private TV chanel.
Asked if he would rule out raising prices and reduce the allocation of wheat in PDS, Mr Pawar said: “Why should I rule it out? For the last six years there is a rise in procurement price, there is a rise in storage charges (but) if there is no rise in public distribution prices how can you continue like this?
With the private sector and multinationals offering farmers a higher price than the government-fixed minimum price, the state-owned agencies are finding it difficult to procure enough buffer stocks leading to the decision to not just increase the price but also import 3.5m tonnes of wheat.
Mr Pawar said previous governments had increased the allocation from 20 kg to 30 kg per family because of excess stocks that were rotting in storehouses. “But now the time has come to reduce the allocation. It has to be brought down,” he said.
Although the minister admitted that the government has been able to procure only 9.5m tonnes of wheat, he said there was no target this year.
According to the minister, the government had deliberately decided to encourage direct procurement by the private sector because that would benefit farmers. He said the decision was justified in the government’s own low procurement figure.
“This is the first year after we took a major decision to ask all state governments to amend the Agricultural Produce Marketing Act (APMA).
As per the (unamended) APMA the farmer was supposed to sell his produce only in mandis (wholesale markets) and traders were not allowed to buy from farmers other than in mandis.
The price increase is likely with the government having paid a considerably higher price than last year to farmers to procure wheat for the buffer stock, Mr Pawar said in an interview with a private TV chanel.
Asked if he would rule out raising prices and reduce the allocation of wheat in PDS, Mr Pawar said: “Why should I rule it out? For the last six years there is a rise in procurement price, there is a rise in storage charges (but) if there is no rise in public distribution prices how can you continue like this?
With the private sector and multinationals offering farmers a higher price than the government-fixed minimum price, the state-owned agencies are finding it difficult to procure enough buffer stocks leading to the decision to not just increase the price but also import 3.5m tonnes of wheat.
Mr Pawar said previous governments had increased the allocation from 20 kg to 30 kg per family because of excess stocks that were rotting in storehouses. “But now the time has come to reduce the allocation. It has to be brought down,” he said.
Although the minister admitted that the government has been able to procure only 9.5m tonnes of wheat, he said there was no target this year.
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The government is soon to finalise the tenders for importing 1.2m tonnes of wheat out of the 3.5m tonne imports planned this year to shore up buffer stocks.According to the minister, the government had deliberately decided to encourage direct procurement by the private sector because that would benefit farmers. He said the decision was justified in the government’s own low procurement figure.
“This is the first year after we took a major decision to ask all state governments to amend the Agricultural Produce Marketing Act (APMA).
As per the (unamended) APMA the farmer was supposed to sell his produce only in mandis (wholesale markets) and traders were not allowed to buy from farmers other than in mandis.
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