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This is an archive article published on April 8, 2008

Wheat MSP will not be increased now: Pawar

Amid all-round concerns over rising prices of food items, food and agriculture minister Sharad Pawar today said government...

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Amid all-round concerns over rising prices of food items, food and agriculture minister Sharad Pawar today said government is not averse to importing farm commodities if the situation warranted. “When the question pertains to food security and if we find there is not sufficient (foodgrain) after the end of procurement season, we will take a decision,” Pawar said.

He added that government does not want that the situation of import arises but hinted that it would not hesitate (to import) when it comes to protecting consumers’ interest. “We are not happy to import agriculture commodity. However, we have to keep the interest of public in mind, a balance (in foodgrain stock) has to be maintained,” Pawar said.

Pawar clarified that there was no ban on corporates buying wheat from mandis in Punjab and Haryana. “Where is the order? Show it to me?” he said when a query was put to him about the reports appearing in a section of the media about the Union government having imposed a complete ban on private players, including corporate houses, buying wheat from farmers.

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Pawar was here to hold a meeting with the chief ministers of Punjab and Haryana on arrangements made to ensure smooth procurement as well as the loss of wheat crop in recent unseasonal rains across the region. The minister said Punjab and Haryana had assured to meet the target of 80 lakh tonne and 40 lakh tonne of wheat, respectively, for the Central Pool. He said he was hopeful that despite the rains, both states would meet their targets.

However, Pawar ruled out any immediate increase in minimum support price of wheat or payment of any bonus to farmers as demanded by the states. The minister said the proposal of Punjab chief minister for increase in MSP in view of hike of prices of agricultural inputs would be taken care of in the Cabinet meeting. “Both states have demanded bonuses for farmers. They have also sought compensation for damage to crops. But these decisions can’t be mine alone. The Union government will have to collectively decide,” he said.

Asked if the Centre had any plan to allow market forces to decide prices of wheat and paddy so as to make them comparable to international prices, Pawar pointed out that it was only in the last two years that price of wheat and paddy in the international market was more than the MSP offered by the Union. “If we allow market to decide the price, the farmers stand to lose if the prices crash. We can’t allow that to happen.” He said the Centre was committed to meet the challenge of food security and that import of foodgrains was being done only as a last resort since demand could not be fulfilled through internal procurement. Referring to the recent trend of private players buying the produce straight from the farmers without waiting for them to bring the same to the mandis, Pawar said this was being done to avoid paying the taxes that amount to 12.50 per cent.

with Agencies Input

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