Premium
This is an archive article published on July 1, 2009

Variable trade can ensure food security: Plan panel

Amid the debate on a proposed legislation on food security,the Planning Commission has suggested...

Amid the debate on a proposed legislation on food security,the Planning Commission has suggested the adoption of a variable trade policy wherein import and export tariffs could be imposed to ensure an adequate food stock to meet any exigency.

“I believe that there is a need for adopting a variable trade policy,which would be a part of the domestic price/stock situation in the event of imports shooting up or dipping down. In fact,import tariff could be imposed if world food prices dip or export tariff could be levied if prices surge,” commission member Abhijit Sen told The Indian Express.

Sen suggested that in the proposed legislation,there could be a possibility wherein all existing food security schemes like Antyodaya,ICDS,PDS are converged and amalgamated into the Act and include enough provisions to ensure accountability in its execution. “It could be explored if the existing food schemes could be converged into the Act to make it comprehensive. Justifying the same,Sen pointed out that the country’s food management was not good in yesteryear. He cited that in 2001-02,India had huge food stocks,which depleted in 2005 “primarily because of unrestrained exports.” Though,he disfavoured restraining exports completely,but he made out a case for a variable trade policy aligned to the domestic food situation. “I am not saying that we are uncomfortable with the present food stock position. We are comfortable currently. But unpredictable monsoons could destabilise our position,” he reasoned.

Story continues below this ad

On the possible ways to enforce accountability in implementing the said Act,Sen was of the opinion that the states would have to be bound to it on the lines of the National Rural Employment Guarantee Programme. More so since they could be mandated to contribute a stipulated amount for the food security programme.

A plan panel official said the commission is concerned that the food subsidy burden of the government would not lessen if the Below Poverty Line (BPL) population of the country continued to get 25 kg of rice at Rs 5.8 per kg and wheat at Rs 3.5 per kg rather than it being brought down to 25 kg at Rs 3 per kg.

The government is already working overtime to enumerate the number of BPL families which will be the intended beneficiaries under the Act. There seems to be a disparity in the figure as against 4.02 crore BPL households estimated by the Centre,there are about 8.13 crore BPL cardholders.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement