The Hindu Business Line : Low arrival of wheat worries Pawar

CHANDIGARH: The Union Food and Agriculture Minister, Mr Sharad Pawar on Tuesday expressed serious concern over dwindling arrival of wheat in Punjab and Haryana grain markets, saying a new trend was being witnessed wherein traders were procuring directly from farmers to avoid state levies on the crop.

"We are witnessing a new tendency in contrast to what has been routine earlier with regard to wheat arrivals. Some traders are paying Rs 5-10 higher than the MSP to farmers for lifting their crop in a bid to avoid paying 12.5 per cent taxes to the state government," Mr Pawar said here.

He said there was an urgent need to pay attention to this trend for ensuring sufficient crop arrival. In normal practice, State government agencies along with Food Corporation of India and private traders procure wheat from state-run grain markets.

Mr Pawar said the taxes imposed by the state government on procurement made by private traders are among other things utilised on improving rural infrastructure.

"When these taxes are avoided, it impacts these works," he pointed out. Mr Pawar was addressing a press conference here after holding meeting with Punjab Chief Minister, Mr Parkash Singh Badal and Haryana Chief Minister Mr Bhupinder Singh Hooda to take s tock of impact caused by unseasonal rains on standing wheat in the two leading agrarian states.

According to data provided by the FCI, the arrival of wheat in both Punjab and Haryana during 2007-08 has gone down by 26.31 lakh tonnes and 27.50 lakh tonnes respectively compared to arrival in 2001-02. - PTI

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