Cong wants higher MSP for wheat
The wheat import controversy involving Union agriculture minister Sharad Pawar is likely to set the NCP chief on a collision course with Congress leaders.
By TNN |
MUMBAI: The wheat import controversy involving Union agriculture minister Sharad Pawar is likely to set the NCP chief on a collision course with Congress leaders. Several Congressmen want PM Manmohan Singh to look into the matter and set the wheat policy right for the forthcoming season.
Kanhaiyalal Gidwani, president, Congress affiliated committee on consumer protection, market, and industry, recently called on the PM and requested him to adopt a ’correct policy on wheat for the season ’07 with futuristic planning to benefit both the wheat farmers and the consumers.’
Mr Gidwani also cautioned Mr Singh against considering a minimum support price (MSP) of Rs 700 per quintal of wheat for the forthcoming procurement season.
“An MSP of Rs 700 per quintal, which is only Rs 50 higher than the current season, would be a continuation of flawed policies on wheat. It would not ensure adequate procurement of produce for the public distribution system (PDS) stock as well as for supply in the open market,” Mr Gidwani has written to the PM.
Sources feel a low MSP would create problems similar to those being experienced this season, like huge deficit in the PDS stock, high price of wheat in the open market, and the massive cost of import in the form of subsidies to make wheat affordable in the domestic market.
ADVERTISEMENT
Traders and multinational companies would pay better prices to wheat farmers and procure entire or most of the crop, sources said. This would be similar to the situation witnessed earlier this year when as against the requirement of 16.5m tonnes per annum for the PDS, the government could procure only 9.5m tonnes, thus necessitating imports. On the other hand, the traders and hoarders sold wheat at a price as high as Rs 1,250 per quintal, sources added. To avoid repeat of this scenario in ‘07, the government must immediately announce an MSP of at least Rs 775 per quintal, Mr Gidwani said. The decision to import, necessitated by shortfall in the PDS stock and price rise, has cost the exchequer around Rs 4,000 crore, he has pointed out.
Mr Gidwani has also criticised the recent announcement by Mr Pawar that duty-free imports of wheat would be allowed only up to December ‘06. “This would again be a wrong move as once duty gets imposed, the prices would rise,” he has said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
