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LATEST NEWS UPDATES | Modi Govt’s Policy to Reduce Oil Imports: Subsidise the Rich, Burden the Poor! -Ayaskant Das

Modi Govt’s Policy to Reduce Oil Imports: Subsidise the Rich, Burden the Poor! -Ayaskant Das

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published Published on Jun 25, 2021   modified Modified on Jun 27, 2021

-Newsclick.in

Rice meant for the poor will be sold at subsidised rates to privately-owned ethanol distilleries. The industries will be given cheap loans and exempted from Environmental Clearances.

Is the Modi government subsidising the rich at the cost of the poor by diverting foodgrains meant for the most impoverished sections of the population to private industries for producing alcohol for India’s ethanol blended petrol programme?

There’s more: For manufacturing ethanol, foodgrains will not only be sold to these industries at subsidised rates but units seeking to expand their capacities for the purpose will also no longer need mandatory Environment Clearances.

In addition, the Modi-led Union government has already identified hundreds of existing industrial units that will be provided financial assistance for enhancing their ethanol producing infrastructure. The entire exercise, as per the claims of the government, is to increase production of ethanol which will ultimately be blended with petrol for use as vehicular fuel in order to reduce India’s oil import bill.

On June 15, Union Food Secretary Sudhansu Pandey announced in a press conference that 78,000 tons of rice from the state-owned Food Corporation of India (FCI) has been allocated at subsidised rates to private industries for producing ethanol for the period December 2020 to November 2021. 

“It is just another indication that the government of India is misusing foodgrains of the public distribution system for purposes other than what it was essentially meant for. Today, with the pandemic, there is a greater need for foodgrains for those not covered under National Food Security Act, as well as for those covered under it at a higher level,” Nikhil Dey of the Right to Food Campaign told NewsClick.

“Foodgrains with the central government should first be used to universalise the public distribution system so that all people of the country are fed. For any purpose other than that, like manufacturing ethanol, foodgrains need to be procured from the open market which will give a clear idea about the viability of the ethanol blended programme,” he added.

Now, sample this: A day after the Food Secretary’s announcement, that is, on June 16, the Union Ministry of Environment, Forests & Climate Change issued a notification exempting sugar manufacturing units and distilleries from mandatory Environmental Clearances if they expand their projects or use their existing facilities for production of ethanol.

Please click here to read more. 


Newsclick.in, 25 June, 2021, https://www.newsclick.in/Modi%20Govt-Policy-Reduce-Oil-Imports-Subsidise-Rich-Burden-Poor


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