The Hindu Business Line : Wheat bonus issue referred to Cabinet

Decision delayed
Bonus being considered at three levels: Rs 25 a quintal; Rs 50 and Rs 75.
Decision delayed as things are uncertain & market undecided.

New Delhi March 13 The Empowered Group of Ministers, which met here on Tuesday to consider announcing a bonus to wheat farmers over and above the minimum support price (MSP) of Rs 750 per quintal for the ensuing rabi marketing season, has decided to refer the matter to the Union Cabinet.

Element of politics

"The Group (headed by the External Affairs Minister, Mr Pranab Mukherjee) studied the Food Ministry's proposal to consider bonus payment and the associated financial implications at three levels: Rs 25, Rs 50 and Rs 75 per quintal.

"As there is also an element of politics involved (in view of forthcoming Assembly elections in Uttar Pradesh), a final decision has been left to the Cabinet," official sources said.

Assuming a procurement of 15 million tonnes (mt), a Rs 25 per quintal bonus would mean an additional outgo of Rs 375 crore, rising to Rs 750 crore and Rs 1,125 crore at Rs 50 and Rs 75 per quintal.

Better picture

"The crop is still a month away from harvesting. Over the next 4-5 days, a better picture of the size (including possible damage caused by the current unseasonal rains) will be available. There is no point in announcing a final bonus rate at this stage, when things are uncertain and even the market is still undecided," the sources added.

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