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Sunday, July 20 1997

Import order for 10 lakh tonnes wheat withheld

Our Economic Bureau

New Delhi, July 19: The Union food and consumer affairs minister Raghuvansh Prasad Singh on Saturday said he had withheld the recent import order for 10 lakh tonnes of wheat.

The order was prepared on basis of the government's decision to import 2 million tonne of wheat in 1995-96 and an additional 2 million tonnes in 1996-97. Chaturanan Mishra, who held the additional charge of the food ministry prior to Singh, had given the green signal for the planned import. The move was prompted by the centre's resolve to contain escalating prices, check black marketeering and hoarding spawned by shortfall in the previous year's output. In all, 1.75 million tonnes of wheat have been imported from Australia, Canada and Argentina so far.

The landed cost of imported wheat works out to Rs 7,100 per tonne on an average compared with Rs 6,763 per tonne on domestic procurement at the declared minimum support price offered by the government.

Singh criticised the quality of wheat imported from Australia, saying that the consignment was infested with weeds. Keeping in view the estimated foodgrain production at 198.17 million tonnes in 1996-97 and wheat production estimated at 68.71 million tonne, it was not considered advisable to persist with wheat imports.

Singh, while inaugurating the the special convention of Grain Traders in capital on Saturday, was hesitant opn the discontinuaion of the special provisions of the Essential Commodities Act, 1981. The All-India Foodgrain Dealers' Association, which convened the meeting, made a demand that the government should not extend the special provisions of Essential Commodities Act, 1981 after it lapses in August 31.

Singh said the law was at hand to slap penalties on offendors, but hels out an assurance that innocent people would not be entangled in disputes of such a nature. According to him, it was only the trader community which had demanded the end of the special provisions in the Essentail Commodities Act. The industry, the consumer organisations and the state governments have, till now, neither suggested nor pressed for the discontinuaion of the act's provisions.

The minister said he would closely examine the issue after consulting the consumer organisations, industry organisations and the state governments.

Given that the quantum of foodgrain production in the country and the planned procurement of 9.5 million tonne of wheat in the current kharif season, the centre would be in a position where it would be able to meet the minimum requirements of the public distribution system. In doing so, it would cater to all families below the poverty line and a few families above the poverty line.

He said the public distribution system has taken up only 15 per cent of distribution and the balance 85 per cent was carried out by traders. Singh had a word of praise for the efforts of traders in this direction.

He said it was almost impossible to satisfy the needs of everybody. The government can, however, ensure that the minimum needs for the targeted poor are fulfiled.

The country, with a population of 95 crore, had 20 per cent of the global livestock population. To satisfy all types food needs for both human beings and animals, the country would require three crore and eighty-four lakh tonnes of foodgrains. Former Delhi food and civil supplies minister Lal Behari Tewari bemoaned the reduction of foodgrain allocation to Delhi from 65,000 tonnes to 40,000 tonnes in June. The state government was previously distribution 12 kg per family and now it was compelled to issue 10 kg per family under the restructured public disribution system.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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