Q&A: K V Thomas, Union Minister

'Blackmarketing, hoarding are matters of serious concern'

The Centre is seriously concerned over rising cases of blackmarketing and hoarding and increasing prices of essential commodities. In an interview to Sanjay Jog, Food, Public Distribution and Consumer Affairs Minister K V Thomas explains the government’s stand. Excerpts:

How is the government tackling the issue of blackmarketing and hoarding of essential commodities?
The rising incidents of black marketing, speculation and hoarding of supplies of essential commodities are a matter of serious concern. The UPA government is determined to take all possible steps with the active involvement of states to prevent unethical trade practices like hoarding and black marketing. States and union territories have been requested from time to time to make the full use of powers vested with them under the Prevention of Black Marketing & Maintenance of Supplies Act, 1980.

We are very clear that farmers should get reasonable price for agricultural produce and consumers must get agricultural and other commodities at an affordable price. Intermediaries make a lot of money during adverse times, so also speculators and hoarders. The central government and states are unanimous on firmly tackling this issue. In all, 205 detention cases were reported from all over the country during 2010 under the provisions of Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980. Out of these 205 cases, Gujarat carried out 79 detentions, Maharashtra two and Chhattisgarh one.

The present public distribution scheme (PDS) is hit by leakages. How is government addressing this issue?
The time has come to have a re-look at the functioning of PDS and to introduce reforms to make it more efficient and responsive to the changing socio economic milieu. The central government lays stress on implementation of PDS reforms .The central government is responsible for procurement, allocation and transportation of foodgrains up to the designated depots of the Food Corporation of India. However, the operational responsibilities for lifting and distribution of the allocated foodgrains lie with state governments and union territories. PDS (Control) Order, 2001 mandates the states and UTs to carry out all required action to ensure smooth functioning of the PDS. The central government will provide all possible assistance to states and UTs for computerisation, digitisation of beneficiaries and smart card-based delivery of essential commodities.

What are the powers enjoyed by states to plug pilferage and ensure adequate availability?
The state governments have powers to fix stock limits for pulses, edible oils, edible oilseeds, rice, paddy and for retail trade in sugar. However, in case of wholesalers of sugar, state governments can fix limits higher than those fixed by the Centre. These limits should be strictly enforced to ensure adequate availability in the open market.

Can you provide details on production and procurement of foodgrains?
The wheat procurement during 2004 and 2010 increased to 22.5 million tonnes from 9.2 million tonnes. The trend is more or less the same for paddy. The position of foodgrain stocks in the central pool as a result of good procurement is very comfortable for meeting PDS and other requirements. In order to control foodgrain prices in the market, 4.8 million tonnes of wheat and 1.4 million tonnes of rice was allocated under the Open Market Sales scheme (Direct) earlier, which had a salutary effect in controlling inflation of wheat and rice prices. From January 1, a million tonnes of rice and 2.5 million tonnes of wheat have been allocated for the next six months under the scheme.

Despite this, the common man is worried about food inflation. What's your take?
One thing is clear. The central government and states will have to take strict measures to control food inflation, which has been a matter of concern. Even though it came down in the last couple of weeks, it still remains high. We all have to be vigilant to ensure this comes down. In the recent past, it is essentially vegetables and fruits that have caused increase in the rate of food inflation. We are proposing to have a scheme for market intervention.