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LATEST NEWS UPDATES | New food scheme based on Tendulkar report likely

New food scheme based on Tendulkar report likely

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published Published on Apr 12, 2010   modified Modified on Apr 12, 2010


A“reworked and realistic” food guarantee scheme is on the anvil. The Suresh Tendulkar panel report is likely to form the basis for poverty estimation required for this.

A hint to this effect came during a meeting of the core group of chief ministers on price rise chaired by Prime Minister Manmohan Singh here on Thursday.

The government has been under pressure from state governments to make a fresh BPL assessment. The Planning Commission’s assessment of 6.52 crore BPL families was seen to be unrealistic. In the event of the Suresh Tendulkar Committee’s 8.1 crore families becoming the basis for the food scheme, it could satisfy a large number of states.

But identification of the beneficiaries is going to be a tough task. “The government will get caught in an identification conundrum,” said a senior official. At the meeting, Bihar chief minister Nitish Kumar said “the government should constitute an identification commission that can address grievances of those who may not find a place in the BPL list.”

Mr Kumar’s counterparts spoke about issues confronting their respective states on the prices front and agreed with the Centre about the need to increase agricultural production. The picture is quite grim as grain production has been registering a steep decline of 8.94% in the past one decade. There is also large variation in productivity across states and districts in all crops.

At the meeting the Centre also acknowledged major shortfall in agricultural production, particularly in pulses and oil seeds as well as the need for augmenting warehousing.

Reducing the gap between farm and retail prices, better implementation of the Essential Commodities Act and delivery to vulnerable sections were also identified as key issues to be addressed immediately. Three sub groups, headed by Haryana chief minister B S Hooda, Andhra Pradesh chief minister K Rosaiah and Planning Commission deputy chairman Montek Singh Ahluwalia, were formed to deliberate on these issues. The panels are expected to submit their reports to the core committee in the next 45 days.

Against the backdrop of food inflation consistently remaining over 17%, food minister Sharad Pawar said that state governments would strictly monitor trade margins for essential commodities and strengthening PDS.

The sub committee constituted in Thursday’s meeting will get back to the core committee on the re-introduction of Essential Commodities (Special Provisions) Act and amendments to the provisions of the Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities Act to provide for stronger penalty. It will also study authorisation of state governments to issue control orders prescribing upper ceiling of retail prices of commodities/maximum profit margins on wholesale and retail trade in essential commodities to check profiteering. Mr Nitish Kumar, however, cautioned that Centre should take care that these initiatives do not end up bringing back “inspector raj.”

The Centre, which has acknowledged big shortfall in agricultural production and the need to augment warehousing capacity, has decided to come out with an action plan to address these issues.


The Economic Times, 9 April, 2010, http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2010/04/09&PageLabel=4&EntityId=Ar00400&ViewMode=HTM


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