Among others he has also suggested a consistent policy on exports of wheat and wheat products for, proper management of foodgrains has become an issue of debate in the country. There is a huge stock of foodgrains amounting to over 400 lakh tonne in the central pool, record foodgrain output of about 204 million tonne, including 74 million tonne of wheat. The probles of handling gets more complicated with assured prospects of good production in the future.

The Centre is aiming at arriving at a permanent solution for which a group of ministers (GoM) has been constituted under the chairmanship of the Union home minister, LK Advani to suggest remedies. The Union ministry for consumer affairs, food and public distribution has decided to come out with a national policy on foodgrains management after detailed discussions with all stakeholders involving the concerned industry.

In a freewheeling interview with the The Financial Express Shantilal said FCI too needs to act proactively to handle the problem in the right manner. Excerpts:

On a permanent solution regarding foodgrains managementYes, there is a longterm solution, if not permanent, if the farmers are motivated to grow quality foodgrains. The farmers have worked hard and have achieved record production of 204 million tonnes of foodgrains, including over 74 million tonnes of wheat. But increase in quantity is not enough. We must take care to produce quality grains as per globally accepted standards and those grains which have high nutritive value. If these quality grains are produced, the industry will not hesitate to procure them from farmers at more remunerative prices. There will be no problems of procurement of grains or their offtake from the central pool. Further the exporters will not find any problem in creating niche markets abroad. Also, both central and the state governments, research institutes and agriculture universities should help and motivate farmers to produce quality grains.

On whether Indian grains are of international qualityThe wheat produced in Punjab and in some parts of the country are not as per globally accepted standards as the protein content is low. Only in a large parts of western MP, wheat having high protein content is produced. The Punjab farmers should be motivated to produce these high quality wheat instead of the usual PVW 343 variety.

The flour produced from these low quality wheat are not accepted by the consumers in western countries for preparation of bread. They are only good for preparation of flat breads (rotis).

On how grains can be distributed to far flung areas without adding to the cost of transportation.

Many states of the country have the potential to produce wheat and are coming up in a big way. UP has emerged as the largest producer of wheat in the previous year amounting 280 lakh tonnes, surpassing Punjab. Punjab now ranks second in production with 142 lakh tonnes, followed by MP with 91 lakh tonnes, Haryana with 83 lakh tonnes, Rajasthan with 58 lakh tonnes and Gujarat with 10 lakh tonnes. Bihar and West Bengal are also gearing up to increase wheat output. An analysis of the production has established that MP and Rajasthan are set to become major producers of wheat in the immediate future and influence the trade trends in a big way.

The FCI and other procuring agencies should concentrate on procurement in all these potential states, and make distribution plans to other areas on the economies of scale, regarding transport.

On ways to export wheat flour from low grade subsidised wheatOur suggestion is to help the government in their current crisis of grain management. We have suggested that as the government is willing to hand over some quantity of wheat to MMTC, STC and PEC against a benchmark price of Rs 390 per quintal, they should also sell some wheat to millers at a negotiated price for export of flour at competitive prices. The global price of flour is prevailing at $180 per tonne. Keeping this in view our export of flour should be atmost at $140 per pone on CIF basis. If the millers do not get wheat from the central pool at a subsidised rate it will be difficult for them to export flour.

As the flour from these wheat will be inferior in quality we have planned to export it to Gulf countries, African nations, CIS countries and southeast Asian countries.

On the role of the FCI in ensuring quality in procurementThe FCI should start categorisation of wheat for specific end uses and not merely as per the existing fair and average quality (FAQ) norms. Procurement should be done as per these norms. The Prevention of Food Adulteration (PFA) Act should also be given a fresh look vis-a-vis global laws affecting the trade specially in relation to food products which are considered adulterated and substandard. PFA Rules should also be amended to cover deterioration of agro commodities like wheat due to natural causes which does not figure in it presently.