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It is time the Centre extended liberalisation to the agricultural sector and freed it from shackles, according to Y Sivaji, a former member of the Rajya Sabha.
He expressed the opinion in the pre-Budget consultations with Union Finance Minister Arun Jaitley.
He said here on Tuesday that he had pleaded with the minister to adopt consistent policies on export of agricultural commodities such as onions and rice.
“While imports of many agri commodities are under OGL, there are numerous restrictions on exports. The moment there is a slight spurt in domestic prices, curbs are imposed on exports,” he complained.
He said there were too many restrictions on transport, processing and storing of agri commodities not only among States, but within a State and even within a district. These should go, he pleaded with the FM. Sivaji said foodgrain procurement should be decentralised and States should be vested with the responsibility.
With the States imposing various types of taxes, the cost of foodgrains was going up by about ₹2,500 per tonne, according to his calculations.
He said the MSPs of various crops were being fixed on unscientific lines, as the cost of cultivation was area-specific and the fact was being ignored. MSP should be linked to the index of inflation.
Sivaji suggested that the Centre take note of the appalling state of social and physical infrastructure in the rural areas and take measures to improve it.
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