IMPORT AND EXPORT OF WHEAT AND RICE
ON GOVERNMENT ACCOUNT
According to the
Annual Report of the Department of Food and Public Distribution,
2002-03 a quantity of 104.01 lakh metric tonnes of wheat and 57.23
lakh metric tonnes of rice have been lifted for export till December
31, 2002.
During the financial
year 2001-02 the Government also decided to permit Food Corporation
of India (FCI) to offer 20 lakh metric tonnes of wheat from central
pool to the Roller Flour Mills for export of wheat products.
The central pool
of foodgrains has been created primarily to maintain a minimum
butter stock for meeting unforeseen exigencies like drought, flood
and other natural calamities and also for providing foodgrains
required for public distribution system and other food based welfare
programme launched by the Government. In addition, the FCI has
been resorting to sale of foodgrains at predetermined prices to
the open market from time to time to achieve the objectives of
enhancing supply of foodgrains during the lean season to moderate
influence on the open market prices; to off load the excess stock
in the central pool and to reduce the carrying cost of foodgrains
to the extent possible; to save foodgrains from deterioration
in quality and to release much needed storage space for stocks
procured during the ensuing marketing season of wheat/rice.
During 2001-02 51.88
lakh MTs (provisional) of wheat was sold under open market sales
scheme (domestic). The Government has fixed a target of 50 lakh
tonnes of wheat for sale under the scheme during 2002-2003. During
the first six months of the year i.e. upto September 2002, 25
lakh MTs of wheat has been disposed of under this scheme.
The Report further
says that the subsidy provided to FCI is the main instrument of
the Government for procurement and distribution of wheat and rice
under PDS and for maintaining the buffer stock of foodgrains as
a measure of food security. Six States,namely, Madhya Pradesh,
Uttar Pradesh, Chhattisgarh, West Bengal, Uttranchal and Tamil
Nadu have undertaken the responsibility of not only procuring
foodgrains from within the states but also distributing the same
to the targeted population under PDS. Under this scheme of decentralised
procurement, state specific economic cost is determined by the
Government of India and the difference between the economic cost
so fixed and the central issue price is passed on to the states
as food subsidy. Efforts are being made to pursue other states
to adopt the scheme. A provision of Rs. 21190 crore was made in
the Budget for 2002-03 on the basis of issue prices and economic
cost for wheat and rice as on April 1, 2002 as subsidy as against
Rs. 17494 crore during 2001-02.
