RECORD FOODGRAIN PROCUREMENT

RECORD FOODGRAIN PROCUREMENT
COMFORTABLE FOODGRAIN STOCKS; STABLE PRICES
SUGARCANE ARREARS COME DOWN SIGNIFICANTLY

CONCURRENT EVALUATION OF PDS; RATION CARD HOLDERS TO GET SMART CARDS



YEAR-END REVIEW:
FOOD SECTOR

The year 2008 saw India achieving record food production followed by record procurement. This has ensured the country’s food security and has helped in keeping food prices in check except for seasonal and temporary price variations.

In the crop year ending September 2008, over 28.4 million tonne rice was procured. The procurement of rice during the current crop year as on 23.12.2008 is 20.5% higher at 14.23 million tones as against 11.8 million tones during the same period.

Coming after a record 22.6 million tonne wheat procurement during the year, it has helped in maintaining very comfortable foodgrain stocks with government agencies. This would facilitate timely intervention in the market to keep the prices at reasonable level.

Procurement of wheat and rice has reached record levels this year.The Government has also decided to create a strategic reserve of 5 million tonne of food grains out of the domestic procurement, in addition to the buffer stock held by FCI.

The sugar industry reeled under excess production in the 2007-08 sugar season, and the government took several measures for helping the industry and the farmers. These included interest subsidy to sugar mills for loans taken to meet cane price arrears, buffer subsidy, export assistance and blending of ethanol with petrol. Cane price arrears have considerably reduced, leaving a balance of only Rs. 802 crore, 3.3% of total price payable.

A number of steps were taken to check rise in prices of food commodities and to ensure their availability. On account of prevailing higher international prices, rising demand and to meet domestic availability, particularly in respect of pulses and edible oils, several measures were taken including regulation of export and import of essential food items. Thus, import duties on rice, wheat, pulses, edible oils (crude) other than soya oil, maize, butter and ghee have been kept at zero; and import duties on refined and hydrogenated oils and vegetable oils have been reduced to 7.5 per cent. Export of non-basmati rice, wheat, all major edible oils and pulses has been banned. Stock limits have been imposed on paddy rice, wheat, pulses, edible oils and oilseeds.

A scheme to distribute one million tonnes of edible oils to States at a subsidy of Rs. 15 per kg was also launched during the year to make edible oils available to ration card holders at subsidized rates. It was followed by distribution of imported pulses through the PDS at a subsidy of Rs. 10 per kg.

The Centre kept pressure on State Governments to improve the functioning of the public distribution system. As a result, the off take by States for TPDS has increased to 84.77% this year. Under a pilot project, smart cards are to be issued to TPDS beneficiaries in Haryana and Chandigarh. Concurrent evaluation of TPDS has been done in 12 States and is in progress in 14 States and UTs.


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Info-graphic given in this feature is available in print quality
on pib.nic.in/graphic/graphic.asp.


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