The Congress-led government is exploring the possibility of lifting the ban on the export of foodgrains in the wake of a bumper wheat harvest. Another option is cheap sales to the poor as pledged by both BJP and the Congress in their manifestos.
As on April 1, 2009, the country had stocks of 13.9 million tonnes (mt) of rice and 14.99mt of wheat. Another 20mt of wheat is expected to be bought by state-run agencies from farmers at a minimum support price.
The minimum support price is the price at which government agencies promise to buy foodgrains from farmers. The price is announced ahead of the two main sowing seasons — rabi, or the winter season, and kharif, or the monsoon season.
At present, India requires just 4mt of wheat and 12.2mt of rice to ensure its food security, officials said.
A recent increase in the minimum support price for wheat to Rs 1,080 a quintal has led to more land being brought under wheat cultivation. But, the government does not have enough storage space for the excess foodgrain.
Officials said they would have to arrange for makeshift storage bins at the mandis of north India to store the fresh buys.
Punjab, Haryana and the western districts of Uttar Pradesh are the main wheat producing regions.
Madhya Pradesh and Uttarakhand have also been growing the crop in large quantities, recently.
The lifting of the ban on wheat export may reduce the burden of the surplus crop.
Wheat export has been banned since February 2007, while the shipment of non-basmati rice was curbed in April 2008.
However, export relief may not be enough to address the problem. “Moreover, it is cruel to export grain from a country where there is still malnutrition. It makes sense to sell grain at reduced rates to the poor or even to distribute it free in some districts,” said officials.
The ruling Congress has promised to give all those living below the poverty line up to 25 kg of foodgrains at Rs 3 a kg.
The opposition BJP has promised 35 kg per family at Rs 2 a kg. The cost of such massive distribution programmes is estimated at Rs 30,000-50,000 crore, say analysts.
However, since it would be more costly to store the surplus foodgrains, cheap sales may well be the best way out.
Source : www.telegraphindia.com