Import of wheat - 09/10/2007
Ref No. QRLD/2007-07:
Mrs. Bindra Karat
Member of Parliament
AKG Bhawan
27-29 Bhai Veer Singh Marg
New Delhi-110001
09 October 2007
Dear Mrs. Karat,
Import of wheat
Noting your recent comments on the subject matter, in which you stated that the proposal to import wheat was initiated prior to an accurate assessment of this year’s projected yield and in which you implied that the process might have been inefficient to satisfy special interests, I would like to bring the following to your attention:
- There are historical precedents for wheat imports. With wealth percolating across all sections of society demand will increase further.
- Prior to the procurement season there was widespread apprehension that farmers would hoard wheat this year in anticipation of substantially higher values later in the year.
- Statements by the then-just-appointed Chairman of the Punjab Mandi Marketing Board, Sardar Ajmer Singh Lakhowal, that wheat would fetch Rs. 1300/- per kwt from private players did not help matters as this confused the farmers further.
- The major private procurers of wheat were actively discouraged by central government from procurement early in the season.
It is easily to be critical at a later date, but in the run-up to the last wheat procurement season the above-mentioned concerns could have only lead to a decision favoring wheat imports.
It is important to accept the necessity of recurring wheat imports, probably annually in ever increasing quantities, and to develop tender procedures that deliver best value.
It is also important to ban wheat exports, which are invariably followed by imports sometimes, as in 1996, in the same year.
As a country we need to urgently address the very significant issue of the nation’s food security, especially as Punjab, which contributes the major portion of the wheat procured for the public distribution system (PDS), is facing major issues with diversification and ecological damage.
We must correct urgently decades of underinvestment in agriculture, irrigation and agricultural R&D if we are to avoid undue reliance on food imports.
With a rapidly developing economy and the fastest rate of urbanization since independence, we have a record proportion of our population that needs to procure food.
It is an unfortunate truth that if we enjoyed today per capita incomes equivalent to Egypt or Indonesia (both approximately double that of India without PPP adjustment), we simply would not be able to feed our population without massive food imports.
We must also increase farmers’ income to reduce indebtedness, whilst keeping food inflation low.
I urge the left parties to avoid their criticism of wheat imports and to campaign for the wider objective of increased investment in agriculture.
Kind regards,
Yours sincerely,
Jassi Khangura MLA
Halqa Qila Raipur, Punjab
Cc. Concerned person & officials
