(a) whether the Government has withdrawn the powers given to the State Governments for taking action against hoarders and speculators under the provisions of the Essential Commodities Act, 1955 through its orders in 2002;
(b) if so, the details and the reasons therefor;
(c) whether some States have requested the Union Government
to review its decision in view of the rising prices; and
(d) if so, the reaction of the Union Government thereto?
MINISTER OF AGRICULTURE AND MINISTER OF CONSUMER AFFAIRS,
FOOD AND PUBLIC DISTRIBUTION (SHRI SHARAD PAWAR)
(a) to (d): A statement is laid on the table of the
house.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK
SABHA STARRED QUESTION NO. 205 FOR 07/08/2006 REGARDING
ACTION AGAINST HOARDERS
(a) & (b): The Central Government issued Notifications
on 15.02.2002 and 16.6.2003 under the Essential Commodities
Act, 1955 removing the licensing requirement, stock limits
and movement restrictions on specified foodstuffs namely
wheat, paddy/rice, coarsegrains, sugar, edible oilseeds,
edible oils, pulses, gur, wheat products (namely maida,
rava, suzi, atta, resultant atta and bran) and hydrogenated
vegetable oil or vanaspati. With the issue of these orders,
any dealer may freely buy, stock, sell, transport,
distribute, dispose, acquire, use or consume any quantity of
these commodities.
This decision was taken on the basis of recommendations
of the Standing Committee of Ministers incharge of five
Central Ministries and Chief Ministers of eleven States
which was constituted pursuant to the Conference of the
Chief Ministers on “WTO and Agriculture†held on 21/05/2001,
and in conformity with the policy of the Government towards
economic liberalization.
These Notifications, however, do not restrict the
Central Government or the State Governments from operating
the Public Distribution System (Control) Order, 2001 in
respect of Public Distribution System (PDS) items, operation
of the rice/paddy levy orders issued by the State
Governments for the purpose of procurement of rice and
regulating procurement and distribution of sugar.
(c) & (d): Some State Governments have raised concern
over the rise in prices of essential commodities,
particularly pulses, and also requested to review the
notification dated 15.2.2002. Restoration of restrictions
on stock limits and movement of foodgrains is not considered
desirable as this would impede smooth distribution and
retailing of agricultural commodities and recreate internal
barriers to trade that will adversely impact farmers and
agricultural production. It will also lead to a reversion
to a regime of raids and inspector raj that would impede the
process of agricultural reforms. Since price levels are
determined by fundamental factors related to demand and
supply of any item, restoration of these restrictions is not
likely to bring down prices unless the supply position
improves.