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Climate & Weather Agri-Biz & Commodities - Commodities Web Extras - Economy States must enforce stockholding limits effectively: PM
Dr Manmohan Singh Our Bureau New Delhi, Aug. 8 The Prime Minister, Dr Manmohan Singh, on Saturday asked States to ensure effective enforcement of stockholding limits and action against black marketers as part of the contingency measures to tackle the effect of the deficient rains on farm production. The Centre has already allowed State Governments to impose licensing and stockholding limits on traders for various commodities – a power it had withdrawn through an order on February 15, 2002 and which it has reinstated following the recent rise in prices of essential commodities such as pulses and sugar. Lax implementationThe States, on their part, have been slow to exercise these restored powers. Although 14 States have imposed stockholding limits on various commodities and four have mandated licensing/stock declaration by dealers, the actual implementation on the ground is said to be lax. In his meeting with the Chief Secretaries here to review the drought situation in many States, Dr Singh reiterated the Centre’s message to States to make effective use of their restored powers to tackle hoarding and speculative activity. Industry scepticalIndustry players were, however, sceptical on the proposed measures, saying they would only have limited impact in sugar, pulses and other commodities where there was underlying supply shortfalls that cannot be met in the short-term. Dr Singh also called for improving the Public Distribution System, implementing alternative crop plans in areas where paddy could not be sown, advance planning for availability of seeds, fertilisers and other inputs to farmers, developing a common strategy for cautious use of groundwater and the supply of additional electricity from the Central pool to affected States. “The monsoon has been delayed and in many places it has been deficient… Agricultural operations have been adversely affected in several parts of the country causing distress… In short, the contingency plan for crops, drinking water, human and animal health, fodder, etc should be brought into operation without delay and a close watch kept on availability of food grains and prices of essential commodities,” Dr Singh said at the meeting.
The Agriculture Minister, Mr Sharad Pawar, and the Cabinet Secretary, Mr K.M. Chandrasekhar, were among those who attended the meeting. The meeting was called against the backdrop of the poor monsoon and the spectre of drought looming large over several parts of the country. The Prime Minister said that while 141 districts in the country have been declared drought affected, no State has so far sent memorandum seeking assistance. Offering all assistance to the States to deal with the situation, Dr Singh said the Government “should not hesitate to take strong measures and intervene in the market” if the need arises. He emphasised on the need to act promptly, collectively and effectively. “I assure you of our Government’s full support regarding any additional assistance that may be required in your efforts. In no case should we allow citizens to go hungry.” Dr Singh said that rice was the worst affected food crop due to the erratic monsoon. “A deficit of more than six million hectares has been reported in paddy,” he said. Dr Singh, however, reiterated that the Government was in a position to ensure adequate availability of food grains in the drought affected areas. “We are helped by the fact that we are operating today against a backdrop of record production and procurement of food grains in both 2007-08 and 2008-09. This was made possible by the substantial increase in the Minimum Support Prices and other policy initiatives. Thus, we are in a position to ensure adequate availability of food grains in the drought affected areas.” He warned that the reduced production of kharif crops in the current year may have an inflationary impact on prices of food items in the coming months and urged the states to work together with the Central Government and activate the Public Distribution System. “We will also have to ensure effective enforcement of stockholding limits and strong action against hoarders and black marketers,” he said. He also said that wherever there is the need, the States should immediately commence relief operations. “In case the Contingency Relief Fund available with the States is not sufficient, they should quickly prepare a detailed memorandum for assistance under the National Calamity Contingency Fund… In short, the contingency plan for crops, drinking water, human and animal health, fodder etc., should be brought into operation without delay and a close watch kept on availability of foodgrains and prices of essential commodities,” Dr Singh added. Huge palm oil stocks bring trade in South to a halt Strengthen PDS for ‘aam aadmi’ Notification on sugar stock limits soon More Stories on : Climate & Weather | Commodities | Economy
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