Food Minister Paswan says no plans to create sugar buffer

The Centre had no plans to create a buffer stock of sugar to help mills clear cane dues accruing to farmers, Food Minister Ramvilas Paswan said on Monday.

It would be a big challenge to keep prices of pulses and oilseeds under check as domestic production does not meet demand, he said. Until a permanent solution was found to boost domestic output, prices would tend to push up.

"A decision on creation of a buffer stock for surplus sugar was referred to the Prime Minister's Office, which felt that it could be a temporary solution and not a permanent one. Therefore, there is no immediate plan to create a buffer stock of sugar," Paswan said, while addressing a conference on completion of one-year of the government.

The food ministry, he said, had taken a number of steps to ensure that sugar mills cleared their cane dues. The ministry had limited role in the issue as the matter largely concerned the state governments, he said.

Last month, Nationalist Congress Party chief Pawar had met the Prime Minister to discuss the problems faced by the sugar industry. He had also demanded the creation of buffer stock to bail out millers.

India's sugar production was estimated to touch 28 million tonnes in the 2014-15 marketing year (October-September), against 24.3 million tonnes in the previous year. Annual demand was pegged at 24.5 million tonnes, while exports were projected at 0.7 million tonnes. This meant, the country would have an opening stock of 10.3 million tonnes when mills start the new marketing year in October.

On vegetable prices, Paswan said: "During July to September, prices of onion, potatoes and tomatoes show a rising trend and the solution to this lies in the creation of a national common market for agriculture products, for which states have to take an initiative."

As for direct transfer of cash subsidy in place of foodgrain under the public distribution system (PDS), he said it would start on a pilot basis in Puducherry, Chandigarh and Daman and Diu, as the literacy levels in these places were high. However, for a nationwide rollout, issues related to godowns and storage have to be sorted out, said the minister.

The department would soon amend the Essential Commodities Act and the states have been communicated. "Till now, 11 states have replied to the amendments and their participation is essential as they are one who implement the Act," Paswan said.

On the National Food Security Act (NFSA), the minister said the Centre had extended the deadline for implementation of the programme till September 2015. But implementing would be a challenge. "Some states have raised a problem regarding lowering of the entitlement under NFSA to 5kg per individual against the current practice of 35kg per household, but we will provide the grains as mandated by the law," Paswan said.

He said his ministry had ensured that foodgrain that are not older than one-and-a-half years are stored in state warehouses so that PDS consumers would get quality goods.

The ministry would expand the scope of the Other Welfare Scheme programme, where the food ministry distributes grains to hostels, jails and colleges, to include eggs and milk