Experts For Liberalisation, Futures Trade In Wheat

Liberalisation of wheat trade and the introduction of futures trading in wheat are among the measures suggested by experts to ensure a steady development of wheat and wheat-based industry in the next decade.

They have also suggested the removal of the non-poor from the public distribution system (PDS) to increase the subsidised supply for the poor families from the present 10 kg to at least 20 kg a month. These suggestions form part of the recommendations of the national seminar on "Wheat and wheat products development strategies for the decade" held recently in Chennai. It was organised jointly by the Wheat Products Promotion Societies, the Roller Flour Millers' Federation of India, the Tamil Nadu Flour Mills Association and the US Wheat Associates.

 

The participants in the seminar felt that wheat product exports should be allowed freely to improve export credibility and develop markets for these items abroad. The domestic demand-supply balance and price line could be maintained by permitting wheat imports under the open general licence. It recommended launching of futures trading in wheat to avoid market volatility and aberrations.

The curbs on the storage of wheat and its products under the Essential Commodities Act should also be abolished. Besides, the wheat-based industry should be allowed to have backward linkages with farmers to buy wheat directly from them.

This would help reduce intermediaries between farm and factories.

The seminar suggested that wheat procurement standards should be brought on par with international norms. Segregation of grains on the basis of crop variety should be attempted at the procurement stage.

The private sector and financial institutions should be involved in creating infrastructure for storage of wheat which requires massive investment.

In the field of plant breeding and research, the seminar called for development of new varieties with better yield potential and higher protein content. Speciality wheats, such as Durum, hard and soft wheat, should be promoted for different end-uses.

It has suggested that a bakery research institute should be set up to develop new technology and impart training to personnel engaged in this industry. Technology upgradation was also badly needed for the flour milling and biscuit manufacturing industries. The import duty on plant and machinery for research and industry modernisation purpose should be abolished to provide the much needed impetus to this task.

It said the PDS should be targeted for people in the poverty bracket alone. The grain saved by excluding non-poor from this system should be used for raising the poor households' quota of monthly concession wheat from the present 10 kg to at least 20 kg.