MP plans to put food grain under licence system

Despite having a full-fledged dept and a corporation for PDS

The Madhya Pradesh government has planned to put trade of almost all food grain under a licence system despite having a full-fledged department and a corporation for public distribution system (PDS).

The state government has sought the Centre’s permission to bring trade of food grain under revoke licence ambit, which has been withdrawn years ago.

Sugar has already been brought under the licence system to check hoarding and black-marketing of the commodity. As many as 7,000 traders protested against the government's move.

“The state will soon bring more commodities under the licence regime. Permission for rice and pulses (prominently toor dal) has been obtained from the Centre and within a day or two the government will impose the licence system on commodities. Stock of these commodities will be limited and a licence will be mandatory for all traders,” a government spokesperson said.

The traders, however, expressed resentment and alleged that the state government was bringing ‘Inspector Raj’ and licence system back in a globally-competitive environment.

They said by bringing trade of rice and pulse under licence system, the government would indirectly affect pulse production in which Madhya Pradesh has global recognition.

“The government is discouraging the traders to shield the bureaucracy so that they can keep on harassing us as it is happening in case of sugar,” Anupam Agrawal, general secretary of State Dal Chawal Thok Vyapari Mahasangh (association of rice and pulse wholesale traders) said.

“This will have retrograde impact and we do not subscribe to the government’s plan to bring food grain under licence ambit. We have not been informed about it yet,” said Virendra Gangwal, joint secretary, Federation of Madhya Pradesh Chambers of Commerce and Industry.

“The flaring prices of various commodities are due to indecent rains and costly import and not owing to hoarding or black market,” he added.

Traders also said if it was necessary to bring the commodities under licence regime, the government must take them into confidence. The pros and cons should be discussed.

“Why the government does not inform us before taking such decisions. When they imposed licence and stock limit on sugar trade, we were informed at the eleventh hour. Those traders who had more than 2,000 quintal of stock before the notification, which came late in night, faced fine and harassment the following morning. How can a trader sale his surplus stock within few hours?” Anupam Agrawal said.

Toor dal produced in Madhya Pradesh is known for its palatability and size. Towns like Piparia, Gadarwara and Narsinghpur feed hundreds of pulse-processing small mills and indirectly exports the commodity to various nations.

According to the association data, rice and pulse trade stands at 120,000 quintal a day in the state. Prices of toor dal are hovering at Rs 65-80 per kg and rice at 12-112 per kg.