Centre against higher wheat support price

Finance Minister P Chidambaram faced Congressmen's ire at the two-day conclave of chief ministers of Congress-ruled states at Nainital last week as he tried to defend the government's decision to import wheat.

During discussion on agriculture at the conclave last Saturday, Chidambaram was learnt to have expressed concern over the 'wheat crisis' this year and said it could become a real problem next year if things did not improve on the procurement front.

He was interrupted by AICC General Secretary Digvijay Singh who said it was the government which was in fault as it had allowed MNCs to buy directly "� and freely "� from farmers.

According to sources, the former Madhya Pradesh chief minister argued that had the government offered the same price to farmers as was being offered by private companies, there would have been no problem in wheat procurement as there was no fall in production.

The senior Congress leader questioned the government's decision to import wheat at Rs 1,100 a quintal, while minimum support price (MSP) offered to farmers was much less.

The finance minister countered it saying if the government had procured wheat in Punjab and transported it to Chennai, the cost would have been more than this (Rs 1,100). Singh, however, argued that there was no need to transport wheat from Punjab.

Procuring and transporting it from other states such as Maharashtra and Madhya Pradesh would have cost much cheaper. Other Congress leaders also urged the government to announce MSP for all crops before the sowing season and even be ready to offer market price to farmers.

According to sources, Prime Minister Manmohan Singh assured the Congress leaders, at the conclave, that the government would take note of their suggestions.

Meanwhile, the CPI(M) has questioned the government's agriculture policies. At the end of a three-day Central Committee meeting today, the party said the country's entry into the wheat market had led to global prices shooting up.

"The latest round of wheat imports has taken place at Rs 1,300 a quintal. The overall policies in agriculture and food will endanger food security, bring about dependence on food imports and increase prices of foodgrains for the citizens," the party today said in a statement.