EGoM to decide on grain export, food bill on Monday

The empowered group of ministers (EGoM) expected to meet on Monday is expected to take a view on an agriculture ministry proposal to export wheat and rice.

The proposal is not backed by the food ministry, which wants to take into consideration the interest of consumers, and its own compulsions under the proposed food security bill, before moving on exports under an open general licence. Officials said the food ministry is believed to have cited the experience with onions, when sudden exports led to a shortage in the domestic markets, leading to rise in retail prices, as an example for not allowing export of grain.

India’s wheat production in 2010-2011 is expected at 84.3 million tonnes, by the third advanced estimate released earlier this month, 4.3 per cent more than last year. That of rice is estimated at 94.1 mt, 5.6 per cent more than last year.

As on April 1, the country had wheat stocks of 15.4 mt, as against a buffer and strategic reserve of seven mt. Rice stocks were estimated at 29 mt, well above the buffer and strategic reserve requirement of 14.2 mt. The government has banned wheat and rice export since 2007.

FOOD BILL
It is also expected to take up various proposals put forward by the Planning Commission, National Advisory Council (NAC) and an expert group headed by the chairman of the Prime Minister’s Economic Advisory Council, C Rangarajan, on the proposed Food Security Bill. Officials said the food ministry, nodal agency for implementing the Bill, is keen to consider all views before proceeding.

The issue of categorising the country’s population into ‘priority’ and ‘general’ as suggested by the NAC and the Planning Commission to raise the number of below poverty line (BPL) families from the current 65.2 million to 80-90 million will also be discussed.

However, officials said there is very little possibility of the matter coming up for discussion because of paucity of time; it is listed as the last item in the agenda.