The Hindu Business Line : Foodgrains report to be submitted next month

Mr Shanta Kumar said the Centre is considering withdrawal of powers conferred on States and introduction of direct income support to farmers instead of the existing minimum support price scheme.

Mr Shanta Kumar (left), Union Minister for Consumer Affairs, Food and Public Distribution, at a meeting with members of the Indian Chamber of Commerce and Young Leaders Forum in Kolkata on Thursday.

KOLKATA, Jan. 31

THE expert committee report on foodgrains is likely to be submitted to the Union Civil Supplies Ministry next month, based on which the Government will prepare the new foodgrains policy.

Announcing this at a meeting at the Indian Chamber of Commerce on Thursday, Mr Shanta Kumar, Union Minister for Consumer Affairs, Food and Public Distribution, said that there was a political consensus on the amendment to the Essential Commodities Act and the different orders issued by the State Governments under it. "We have decided to prepare a new foodgrains policy, but we are waiting for the expert committee to submit its report. Based on that report, we will prepare the new policy,'' he added.

The Government is considering withdrawal of powers conferred by it on State Governments and removal of some of the items from the list covered by it.

According to him, the Government is also considering direct income support to farmers instead of the existing minimum support price scheme. It may stop announcing minimum support price every season and instead give the farmers the difference between the market price and the notional minimum support price.

"This way, the Government will save on buying and storing of foodgrains and other agricultural items. Moreover, the farmers will also get a financial support which can be utilised by them for the next crop.''

On the export front, the Minister said that India has shot up to the seventh position out of 27 foodgrains exporting nations. "This we achieved in the first year itself.''

During the current fiscal, India has exported 42 lakh tonnes of wheat, 13 lakh tonnes of rice and 12 lakh tonnes of sugar. According to Mr Kumar, the target for wheat export in 2001-02 is 50 lakh tonnes.

He said that his Ministry has suggested special incentives and marketing arrangements to the farmers for shifting their focus from foodgrains to oilseeds.

Currently, 50 lakh tonnes of edible oil - about 40 per cent of India's total edible oil requirement - is imported and costs approximately Rs 14,000 crore.

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