March 23, 2002

'27'

    The Standing Committee of Union Ministers and Chief Ministers on Food Management AND Agricultural Exports which met here today has recommended that State Cooperative Acts need to be amended to make cooperatives autonomous, self-reliant, democratically managed and member -driven institutions. "The cooperatives should be enabled to function as economic enterprises to achieve their stated objectives in accordance with the cooperative principles", it felt. The Committee referred to the removal of restrictions on storage, movement, distribution of wheat, paddy, rice, coarse grains, sugar, edible oilseeds and edible oils by the Central Government through a notification on February 15, 2002 and recommended that similar restriction relating to pulses also need to be removed. It suggested that the States should also carry out further review to reduce various Control Orders issued by them. Endorsing Government of India’s decision to delete 11 items in full and others in part from the list of Essential Commodities, the Committee felt that the list should be subject to further review from time to time to delete more commodities from the list.

    On agricultural marketing reforms, the Committee recommended suitable amendments to the State Agricultural Produce marketing Regulation Acts to promote development of marketing infrastructure in private/cooperative sectors, direct marketing and contract farming programmes. The Committee felt that a major thrust was also needed to promote pledge financing and introduction of negotiable warehousing receipt system, to assist farmers in realizing better prices for their produce. Processing and value addition in the farm sector was also emphasized to increase farm incomes.

    On diversification, the Committee reiterated its earlier recommendation that the diversification of agriculture needs to be implemented as a programme. "Such a programme is particularly necessary for diversification from paddy to other crops in intensive cultivated areas. The Government intervention may include interalia incentives on inputs like quality seeds and pest management, Minimum Support Price (MSP) operations for diversified crops, promotion of rural storage godown, infrastructure for post -harvest management and processing industry to protect the income of farmers", the Committee suggested.

    On decentralization of procurement operations, while some States expressed reservations, other States wanted the scheme to be operated in such a way that it does not create any financial burden on the States. It was clarified that all the implementation issues raised by the State Governments on decentralized procurement like adequate credit limits, revision of storage and milling charges, etc. were being addressed by the Central Food and Public Distribution Department. It was also clarified by the Union Government that procurement operations in respect of food grains by Food Corporation of India would continue and at the same time States would also be encouraged to take up decentralized procurement to reach the benefit of MSP to farmers in all States.

    Union Agriculture Minister, Shri Ajit Singh said that the Expanded Grain Bank Scheme would be launched shortly. He also said that an amended Crop Insurance Scheme for better risk management in agriculture was likely to be introduced soon.

    The meeting was attended by Union Ministers, Shri Ajit Singh, Shri Yashwant Sinha, Shri Shanta Kumar, Shri Ashok Pradhan, Deputy Chairman, Planninng Commission, Shri K.C.Pant, Chief Ministers of Madhya Pradesh and Assam besides the concerned Ministers from the States.