The Hindu Business Line : Panel calls for long-term foodgrains export policy

PULLING up the Consumer Affairs, Food and Public Distribution Ministry for subsidising exporters to the extent of Rs 14,135 crore for selling of the excess buffer stocks during 2000-04, the Committee of Public Undertakings has called for a long-term policy regarding export of foodgrains.

It pointed out that food subsidy meant for public distribution system covering below poverty line families had been `wrongfully' extended to exporters and `strongly recommended' that food subsidy to exporters should be `strictly' avoided in future.

The Committee, in its review report on export of foodgrains by the Food Corporation of India, Ministry of Consumer Affairs, Food and Public Distribution, has noted: "a subsidy of Rs 14,135 crore has been given to exporters under food subsidy."

However, the Committee was also informed that "if exports had not been done, FCI would have incurred an additional cost of Rs 27,626.34 crore for holding the stocks."

Calling for a policy to guide export of foodgrains, it said, "A high-level committee under the Chairmanship of Prof Abhijit Sen has gone into this aspect and submitted a report suggesting framing of a scheme that would open direct procurement and export to the private sector."

It further recommended that this matter be pursued "vigorously with the Ministry of Commerce so that an export policy for foodgrains is framed expeditiously."