Cong panel member calls for action against grain hoarders

MUMBAI: Former member of Maharashtra legislative council Kanhaiyalal Gidwani has urged the state government to take measures to implement an ordinance promulgated by the Centre against stocking of wheat and pulses.

Mr Gidwani, who is the convenor of the Congress’ forum on essential commodities, trading, and consumer rights, submitted a letter to CM Vilasrao Deshmukh and Maharashtra minister for food and civil supplies Sunil Tatkare in this regard.

Mr Gidwani told journalists that the Centre has promulgated an ordinance on August 29, imposing restrictions on stocking of wheat and pulses to check rising prices of these commodities in view of the festive season. The ordinance could be implemented in letter and spirit only if the state government took measures accordingly before September 15.

The Centre has empowered state governments to take measures in accordance with the ordinance so that prices of these commodities do not see an artificial increase due to excessive stocking by exploitative traders and also users, Mr Gidwani said.

The Congress leader said the state government needed to issue directions to district collectors and district supply officers to ensure that traders and stockists of these commodities adhere to the restrictions. The ordinance allows wholesale licensed traders to stock not more than 1,000 quintals of wheat or pulses each.

Strict compliance with the ordinance would lead to a reduction of 10% to 15% in the prices of wheat and pulses in the open market, it is believed.

The price of wheat in the wholesale market has shot up to Rs 900 per quintal, Rs 250 more than the minimum support price fixed by the Centre. Due to a low MSP this year, the Centre has been able to procure only 95 lakh tonnes of wheat for subsidized sale under the public distribution system (PDS) against the PDS demand of 160 lakh tonnes.

This shortfall has caused a sharp hike in the price and also forced the Centre to take a decision to import 8m tonnes of wheat for PDS and also to check price in the open market.