The ministry is of the view that though drought conditions were prevailing in 11 states of the country, this does not warrant a declaration of famine as there are adequate stocks of foodgrains in the country. Negligence and bureaucratic delays can cause artificial famine and the consequent price rise in localised areas. This should be no concern for price rise due to the prevailing situation.

The national consumer price index (CPI) for agricultural and rural labourers (base 1986-87) for February and March this year has remained unchanged over the corresponding periods in the previous year. The point-to-point rate of inflation based on CPI-AL has increased marginally from 3.03 per cent in February, 2000 to 3.38 per cent in March, 2000. Similarly, the point-to-point rate of inflation based on CPI-RL has increased from 3.02 per cent in February to 3.72 per cent in March, this year. In March 1999, the rate of inflation based on CPI-AL was 8.82 per cent and that based on CPI-RL was 8 per cent.

The inflation rate as measured by WPI (new base 1993-94) is only 4.64 per cent in the week-ended April 8. This increase is mainly due to rise in prices of kerosene and LPG. The primary articles' index remained static at its previous week's level of 162. Index for food articles rose by only 0.1 per cent mainly due to rise in prices of jowar, gram, fruits, vegetables, condiments and prices.

Thus the indications are clear that there can be no adverse hike in prices of essential commodities in rural areas due to drought conditions, if the situation is handled carefully and in time, the sources in the ministry stated.

The Union ministry for consumer affairs and public distribution noted that there are sufficient quantities of foodgrains in FCI godowns in both Rajasthan and Gujarat at present. While there is a stock of 7.3 lakh tonne of wheat in Rajasthan, the stock of wheat in Gujarat is about 7.22 lakh tonne. Further, about a lakh tonne of rice is available each in Gujarat and Rajasthan.

There are also good stocks of foodgrains in FCI and state godowns in other drought affected states. In Andhra Pradesh, there is a stock of 19.37 lakh tonnes of rice and 4.56 lakh tonnes of wheat, in MP there is a stock of 6.03 lakh tonnes of rice and 6.23 lakh tonnes of wheat.

In Himachal Pradesh there is a stock of 0.08 lakh tonnes of rice 0.08 lakh tonnes of heat, in J&K there is a stock of 0.55 lakh tonnes of rice and 0.26 lakh tonnes of wheat, in Karnataka there is a stock of 2.95 lakh tonnes of rice and 2.60 lakh tonnes of wheat, in Manipur there is a stock of 0.09 lakh tonnes of rice and 0.01 lakh tonnes of wheat, in Mizoram there is a stock of 0.01 lakh tonnes of rice and 0.01 lakh tonnes of wheat, in Tripura there is a stock of 0.14 lakh tonnes of rice and 0.01 lakh tonnes of wheat and in West Bengal there is a stock of 1.67 lakh tonnes of rice and 3.17 lakh tonnes of wheat.

At present the total stock of rice in the central pool is 162.32 lakh tonnes as against the buffer norm of 118 lakh tonne. The total wheat stock in the central pool is 145.11 lakh tonnes as against the buffer norm of 40 lakh tonnes. The expected procurement of wheat by the central agencies in the current rabi marketing season is 160 lakh tonnes.

On April 24, the ministry had released one lakh tonnes of foodgrains comprising both wheat and rice each to Rajasthan and Gujarat for distribution in drought affected areas. These are ad hoc releases to these states for distributing 20 kg of additional foodgrains to all people in the drought affected areas at issue price fixed for below the poverty line (BPL) families.

Foodgrain will be supplied under food-for-work programme to Rajasthan and Gujarat to be distributed at the rate of 2 kg per manday at BPL rate. The state governments can forward their demand of foodgrains for the programme through the Union rural development ministry. The department of public distribution has allocated 15,000 tonne of foodgrains each for Gujarat and Rajasthan under food-for-work programme. These ad hoc releases have been made on basis of the demand that has already been made by the states.

The Centre has further allocated 20,000 tonne of foodgrains for running community kitchens in the drought affected areas of Rajasthan and Gujarat.