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LATEST NEWS UPDATES | Centre to regulate private retail chain

Centre to regulate private retail chain

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published Published on Jan 29, 2011   modified Modified on Jan 29, 2011

Centre will bring in amendments to the essential commodities Act to achieve this purpose: Thomas

Union Minister of State for Food and Civil Supplies K.V. Thomas has said the Central government will soon institute mechanisms to regulate private retail chains in the context of the fluctuating price regime and shortages in the supply of essential commodities.

Addressing a ‘meet-the-press' programme organised by the Kesari Memorial Journalist Trust here on Saturday, Prof. Thomas said the Centre had sent a clear message to private retail chains that it would not remain a mute spectator and would not permit these groups to book excessive profits. The Centre would soon bring in amendments to the essential commodities Act to achieve this purpose, he said.

The Minister said several studies conducted by various agencies had led to an apprehension about the role of private retail chains in the recent shortage and unprecedented price for onions. He said that initially, it was thought the crop loss suffered due to floods in Nasik, the major onion growing region, was to be 80 to 90 per cent. Later, it turned out that the loss was only 10 per cent. After accounting for the 10 per cent export of onion (which was later banned following a rise in prices), the shortage was unprecedented. “We have decided to revisit the wholesale mechanism. Besides, the States have also been advised about the Centre's stand on private retail chains,” he said.

Prof. Thomas said his Ministry was all set for implementing the food security regime. The proposed food security Bill would soon be cleared by the Cabinet. There were a few recommendations of the Economic Advisory Committee and the National Advisory Committee that needed to get Cabinet clearance, particularly in relation to targeting the subsidy to general and priority households. Terming the proposed food security system as the flagship of the second term of the United Progressive Alliance (UPA) government, Prof. Thomas laid out the policy initiatives he proposed to undertake to achieve food security, improve the efficiency of the public distribution system (PDS) and controlling prices of essential commodities.

“The basic concept is to ensure a fair price for farmers and essential commodities at affordable price to consumers. This is not possible without the support of the State governments. The Centre, however, did not want to wriggle out of its responsibility,” he said.

Central agencies such as National Agricultural Cooperative Marketing Federation of India (Nafed) and National Cooperative Consumers' Federation of India would directly procure agriculture commodities, including perishables, from farmers as part of the UPA government's decision to implement a market intervention programme.

A conference of Food and Civil Supplies Ministers of the Southern States would be held in Thiruvananthapuram on February 3.

The Hindu, 30 January, 2011, http://www.hindu.com/2011/01/30/stories/2011013058260100.htm


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