No reduction in food subsidy on AAY and BPL – Pawar
PARLIAMENTARY CONSULTATIVE COMMITTEE OF FOOD MINISTRY MEETS
The Parliamentary Consultative Committee of the Ministry of Consumer Affairs, Food and Public Distribution met here today under the chairmanship of the Minister for Agriculture, Consumer Affairs, Food and Public Distribution Shri Sharad Pawar to discuss the issue of ‘Reforms in the Foodgrains Management System and Rationalization of Food Subsidy’.
Shri Sharad Pawar in has opening remarks underlined that the Government is fully committed to ensuring that farmers get remunerative prices for their produce and equally that there is no compromise in the area of food security. He said that though there is an urgent need for reforms in the Foodgrains Management System there is no thinking in the Government to reduce subsidy on Antyodaya Anna Yojna and Below Poverty Line Schemes. Shri Pawar said that the Government has in fact expanded the coverage of the Antyodaya Anna Yojana from 50 lakh families to 2.5 crore families, while ensuring that the issue prices remain unchanged at Rs.2 and Rs.3 per kg. for wheat and rice respectively for Antyodaya, so that the poorest of the poor households can get the full benefits of the scheme. Issue prices for APL and BPL households have also not been increased in the last 5 years.
Shri Pawar said that the food subsidy bill of the Government has grown exponentially from a level of Rs.9200 crore in 1999-2000 and crossed Rs.25,700 crore in 2004-05. Upward pressures on food subsidy have largely been on account on of the increase in the cost of grain which primarily depends on the Minimum Support Prices and the size of procurement. Other factors that have led to an increase in the food subsidy bill have been on account of the high level of State taxes and levies, interest payments, freezing of TPDS issue prices, increase in the offtake under the TPDS and other Welfare Schmes, expansion of the Antyodaya Anna Yojana, and increases in other procurement incidentals, he added.
Shri Pawar further said that the National Common Minimum Programme (NCMP) has clearly laid down that farmers all over the country, particularly in backward areas should benefit from the MSP regime. It is for this reason that in the last two-three years the Government has been consciously focusing on encouraging procurement of foodgrains in the non-traditional areas outside Punjab and Haryana. Underlining that this strategy has been quite successful in the case of paddy and rice procurement, Shri Pawar said that not only has overall procurement of paddy and rice this year been over 20 lakh tonnes more than last year, over 80% of this increase has been outside Punjab and Haryana with States like Chattisgarh, Orissa and West Bengal leading the way. “In the case of wheat procurement also we have been trying to encourage States like MP, UP and Bihar to increase their procurement”, he added.
Underlining the imperative need to improve the delivery system at the State level, especially with a view to reducing diversion and leakages under the TPDS, Shri Pawar recalled that two recent studies by the Planning Commission and ORG-Marg have highlighted the failure in checking leakages and diversions under the TPDS. The Planning Commission report has estimated that leakages are 36.38% and diversion of foodgrains to unintended beneficiaries was 21.45%. The report has estimated that out of 14 million tonnes of foodgrains issued for BPL families in 2003-04, only 5.93 million tonnes was delivered to BPL families. He informed the members that the Ministry had recently convened a day long conference of Food Ministers on the 29th of March to discuss the Action Plan to reduce the level of diversion and leakages and other steps to strengthen the TPDS.
Shri Pawar also underlined the need to improve the operational efficiency of the FCI and the State Agencies and significant steps have been taken which was brought considerable savings. Further savings are possible through improved stock management, savings in transport costs, savings in interest payments, and reduction in establishment costs, as well as in other procurement incidentals.
During the deliberations, some members suggested that card holders may be provided with coupons so that accounting of grains could be properly maintained by shop-keepers with simultaneously having a check on pilferage and diversion of foodgrains. Some members suggested that foodgrains to the above poverty line (APL) categories need not be provided from PDS because maximum diversions take place in this category. Some other suggested that pulses, edible oils and others items should also be distributed through PDS particularly in the remote and tribal areas. It was also suggested that there should be a uniform tax-structure on foodgrains procurement so that the farmers are able to get a better price for the produce. It was also suggested that income from such taxes should be spent by the States in improving rural infrastructure like roads etc. Some members pointed out the deficiencies of the process adopted by the local authorities in selection of BPL families. Suggestions for evolving a mechanism for constant evaluation of the PDS including better godown management strategies were also made by the members.
S/Sh. N. Janardhana Reddy, Hansraj Gangaram Ahir, Suresh Ganapat Waghmare, Bhanu Pratap Singh Verma, Gauri Shankar Chaturbhuj Bisen, K. Francis George, C. Kuppasami, Mohammad Tahir, M. Appadurai, Alok Kumar Mehata, Chandrapal Singh Yadav, Ms. Archana Nayak, Thennala G. Balakrishna Pillai and M. Venkaiah Naidu, Members of Parliament, attended the meeting.
AK/AMT/SAK
(Release ID :16983)