Increase wheat grain prices: Pawar

New Delhi: The Government has indicated that it would increase the issue price of rice and wheat under the Public Distribution System.

It might also simultaneously reduce the foodgrain allocation, in an effort to contain the spiralling trend in food subsidy bill.

"It is our responsibility to reduce subsidy," Agriculture Minister Sharad Pawar said in an interview to CNN-IBN in its programme 'Devil's Advocate' to be broadcast on Sunday.

This is the reason why we want to take a decision on the food subsidy issue, he said.

Asked whether he would rule out raising prices and cut in foodgrain allocation under PDS in next 10 days, he replied, "Why should I rule it out?"

For last six years, Pawar said, there has been a steady rise in the procurement price and storage charges.

"But if there is no rise in PDS prices, how can you continue like this?" said Pawar.

"This decision has to be taken, today or tomorrow. In fact, the decision has already been delayed by two years." he added.

The minister, however, delinked the issue of subsidy cut from failure to meet this year's wheat procurement target of 16.2 million tonne.

On wheat allocation under PDS, he said the previous governments had in stages increased it to 35 from 20 kg as excess stocks were lying at the warehouses.

"Such expenditure has to be brought down," he said.

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Denying reports on ban on wheat export, the minister said the Government favours a liberal export import food grain policy.

"No ban on exports. In fact, we are seriously thinking that imports should be liberalised and exports should also be liberalised," said Pawar.

On the status of wheat procurement, he admitted that this year's 9.5 million tonne procurement happened to be the lowest in recent years.

Pawar denied the Government had set a target of 16.2 million tonne for wheat procurement.

"There is no target. Who says the target was this?" he exclaimed.

Pawar attributed the low procurement level of this year to the amendments in Agriculture Produce Marketing Committee (APMC) Act by major wheat producing states.

The act had paved direct procurement by private traders from the farmers.

On farmer’s suicides, he said, "these were a normal thing".

Pawar said he had studied the total number of suicides in the country for the last 10-20 years and found that percentage wise there was practically no change.

The Government has taken "maximum decisions" to stop such deaths, he added.