Grain import norms to be eased further

AHMEDABAD: The UPA government at the Centre is drawing a blueprint for a ‘more liberal’ policy for import of foodgrains. The new policy is likely to be in place in two months time. In addition, a dual-pricing system for procurement of foodgrains will be introduced from next year.

Both the moves of the government are aimed at ensuring food security and maximising returns to the farmers, Union minister for agriculture and co-operation, Sharad Pawar said here at a function Cosmos Co-operative Bank. The Pune-headquartered bank began operations in Gujarat by taking over the Co-operative Bank of Ahmedabad.

“We are hoping to have a more liberalised policy for importing foodgrains. The new policy should be in place in two months time,” Mr Pawar told ET. The minister said that the move was necessitated after the changes in the Agricultural Produce Marketing Committee (APMC) Act which has been adopted by 23 states.

“Recently the government had to allow import of wheat as the farmers in Punjab, Haryana and western UP sold their produce to private players which fetched them higher price instead of the government agency, FCI, thus forcing us to import. It was an unpleasant decision,” Mr Pawar said.

FCI had about 9m tonnes of wheat against the governments requirement of 60m tonnes which forced the government to import wheat, he said. However, from next year the government plans to introduce a dual-pricing system which will enable FCI to procure foodgrains at the prevailing market price.

“In order to stop distress sale during the harvest season, the government fixes a Minimum Support Price (MSP). But if the prices of a particular agricultural produce goes above the MSP then the farmers should be paid a higher price by the government (similar to the one offered by private players),” Mr Pawar said. To enable dual pricing, changes in the procurement policy are likely to be made.

Meanwhile, Bt cotton growers in Gujarat are expecting a bumper crop this year as most parts of the state have received copious pre-monsoon showers. Traders are hoping that a good yield would give a boost to exports and are expecting a figure of 90 lakh bales of raw cotton production — a major chunk of that heading for exports.

“A bumper crop means good exports and that is just what traders are eager for. This year, raw cotton exports from Gujarat should cross 35 lakh bales as 80% of the cotton exported is from this state,” agency report said quoting a cotton trader as saying in Ahmedabad.

Farmers say that while rains are important for all the cotton growing region it is more imperative for a good shower in arid regions like Kutch where the seasonal rainfall is just 10 inches.