Pulses and edible oils production may fall this year

Though rice, wheat and sugar production is expected to be at comfortable levels, production of pulses and edible oils may fall short of requirement this year, said K.V. Thomas, Union Minister of State for Consumer Affairs, Food and Public Distribution.

Talking to a group of journalists after inaugurating the Centenary Building of National Test House (Southern Region) yesterday, he said according to the assessment of the Meteorology Department and the Ministry of Agriculture, this year production of rice and wheat will be as good as last year.

Last year, production of paddy was to the tune of about 103 million tonnes and wheat was to the tune of 94 mt. More or less, the same quantity of rice and wheat is expected this year as well.

He said his department has discussed with various State Government officials for the procurement of rice and wheat. All arrangements have been made, including jute bags.

His Ministry has called for a meeting of the Food and Public Distribution Ministry officials of all states on October 29 and 30 in Delhi. All other procurement details will be worked out that time.

On storage capacities, he said five years ago there was a capacity to store 55 mt of foodgrains. Now, it has been expanded to 75 mt. By the end of this year, another 45 lakh tonne capacity will be added.

About 151 lakh tonnes of new capacity will be added by the end of 2013. Besides, two million tonnes of silos will also be constructed. “Hence, I don’t see any problem as far as the storage issue is concerned.”

Regarding sugar, he said last year the production was projected at 240 lakh tonnes. However, finally it ended up with 262 lakh tonnes, while the domestic need was only 220 lakh tonnes.

This year, the projection is at 230 lakh tonnes, which is quite sufficient. “We think, even this year, sugar production will surpass the projection and go up to 240-245 lakh tonnes,” he said.

But, he said his Ministry is “slightly worried” about the pulses and edible oils situation. Chances are that the production of pulses and edible oil come down this year. Even internationally, availability is slightly low.

With this in mind, he said, the Government has decided to continue with the supply of pulses and edible oils at subsidised price. This year, the subsidy on pulses will be Rs 20 a kg and on edible oils Rs 15 a litre. States are also allowed to import pulses and edible oil for distribution and it will be subsidised by the Central Government, he said.

Besides, the Central Government has decided to computerise the Public Distribution System end-to-end — from the Food Corporation of India godowns to state-run ration shops, every movement will be computerised. It is a 50:50 project, funded by the Central and respective State Governments.

Earlier there were 20 crore ration cards in the country. After the computerisation process began in some states, two crore cards were found to be bogus and eliminated from the system, he said. “PDS system has to be modernised. All the loopholes are to be plugged to strengthen the system, and make it more efficient,” he said.

Talking about the Food Security Bill, he said the Bill is being considered by the Parliament Standing Committee, and is likely to be passed. And, the Standing Committee is expected to submit its opinion in a month. “The Bill may be passed in the coming Winter Session,” he said.

Answering a question on wheat exports to Iran, he said the exports are going on under Open General Licence scheme. The central pool has 80.5 mt of wheat, while what is required for public distribution is only 55 mt. So, exports will continue till the need to stop it arises.

On food subsidy bill and whether the government plans any cut, he said the government is bound to give food items on subsidised rates. At present, he said, food subsidy alone accounts for Rs 88,000 crore, and it will continue. “There is nothing to be worried,” he said.