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LATEST NEWS UPDATES | Enhance pvt role in grain storage: Panel

Enhance pvt role in grain storage: Panel

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published Published on Nov 23, 2010   modified Modified on Nov 23, 2010

A parliamentary committee has asked the government to consider incentivising private players to set up grain storage facilities as it prepares to implement the right to food.

The government will require around 620 lakh tonnes of foodgrain annually to implement the food security law. The official procurement stood at 539.75 lakh tonnes in the recent marketing year.

“(The) government should provide soft loans at affordable rates and subsidies to private players to set up godowns,” said the parliamentary committee on estimates in its report on ministry of consumer affairs, food and public distribution.

Rotting of grain in a number of states due to lack of storage facilities had led to a furore in Parliament and the Supreme Court reprimanded the government on the issue.

The committee said it was high time that the government streamlined the entire chain of procurement , storage, transportation and distribution of food grains to ensure timely availability. “Construction of proper godowns for storage must be completed on (a) war footing to prevent further loss,” it said.

The panel also asked the Centre to ensure better enforcement of the Essential Commodities Act. The government could check the huge difference between the farm gate and retail prices by curbing the activities of various middlemen and better utilisation of the Essential Commodities Act.

It observed that the standing core group of state chief ministers and central ministers must come out with effective suggestions on better implementation of the Essential Commodities Act, otherwise it could fuel price rise.

It criticised the government’s management of prices, saying it was resorting to ad-hoc measures. “The menace of rising prices can be tackled only through concerted efforts of the Centre and the states,” it said adding that the state government should be prevailed upon to implement the Act in letter and spirit.

Food inflation fell by two percentage points to a three-month low of 10.30% in the first week of November.

The panel also wanted the government to enhance the role of the price monitoring cell under it so it can move beyond its role of merely collating data on retail and wholesale prices. “Price rise needs a constant and independent monitoring at the ministry’s level and regular corrective action,” it said.

FOOD FOR ALL

A parliamentary panel has asked government to consider incentivising private players to set up grain storage facilities

Rotting of grain in a number of states due to lack of storage facilities had led to a furore in Parliament and SC too had reprimanded govt.

The Economic Times, 23 November, 2010, http://economictimes.indiatimes.com/news/economy/policy/Enhance-pvt-role-in-grain-storage-Panel/articleshow/6973334.cms


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