Economic Survey calls for urgent need to manage food stocks

Says the management should primarily involve timely offloading of stocks in the market

As the country faces the prospect of being saddled with almost 100 million tonnes of foodgrains in the next few months, the government’s annual Economic Survey released today said that urgent attention needs to be accorded to efficient food stocks management, which should primarily involve timely offloading of stocks in the market.

The Survey also said that considering the fact that import duties on edible oils is zero leading to large imports in detriment of the domestic producers, there is a need  to frame a price band for edible oils in a manner that harmonises the interests of domestic farmers, processors and consumers through imposition of import duty at an appropriate rate.

Meanwhile, the Survey noted that the policy of substantial price increase in many crops especially at a time when global food prices were also rising has put a substantial fiscal stress on the government

According to the Food Corporation of India (FCI), India’s foodgrains stocks as on February 2, 2013 is estimated to be over 65 million tonnes. But, it could climb to over 95 million tonnes by June 1, 2013 as procurement of wheat, is once again expected to be a record almost 44 million tonnes.

On sugar, the survey said that the recommendations of the C Rangarajan Committee on decontrolling the sugar sector should be brought about in a  fiscally neutral manner and issues considered for implementation in a phased manner.

The panel headed by chairman of Prime Minister’s Economic Advisory Council (PMEAC), C Rangarajan has recently recommended that the sugar sector should be brought out government control through abolishing of levy sugar and release order mechanism.