Extend reforms to farm sector, says BJP

By Our Special Correspondent

NEW DELHI, JAN. 4. The Bharatiya Janata Party today demanded that economic reforms be extended to the agriculture sector on an urgent basis to remedy the situation of burgeoning foodgrain stocks, falling market prices leading to distress sales, and lower offtake from the public distribution system.

Adopting a resolution on the agriculture situation, the party's national executive committee meeting which began its two-day deliberations here today, suggested scrapping of outdated legislation controlling movement of farm produce, limiting the role of the Food Corporation of India and taking the first steps towards involving the private sector in procurement of grain and distribution, and reducing customs duties on essential imports of agricultural inputs while simultaneously increasing duties on imported farm produce.

The party vice-president and spokesperson, Mr. Jana Krishnamurthi, explained to reporters that many of the policies and measures in place today may have had some use in an era of shortages. India was now changing into a country of surplus foodstocks, and therefore the restriction on movement of grain through the Essential Commodities Act of 1955 should be lifted by scrapping the Act.

After a debate during which many members spoke about the current situation, which has led to distress sales and suicides among farmers, the resolution admitted that the country was experiencing a ``paradoxical situation of surplus food stock, but at the same time millions of people were going hungry''. Hence the need for urgent reforms.

A suggestion in the draft resolution, which was dropped, said diesel prices should be brought down to give some relief to farmers. Members pointed out that crude prices had come down from over $30 a barrel to around $23; but intervening in the debate Mr. Ram Naik, Minister for Petroleum and Natural Gas, said this would not be possible until the oil-pool deficit of about Rs. 24,000 crores was wiped out. The recent decision of oil- producing countries to cut down production would once again exert upward pressure on prices.

The four-page resolution emphasised the need to implement properly the Antyodaya Anna Yojana (subsidised rice scheme for the poor) and the Sarvapriya and Gram Sadak (rural road) schemes.

The suggestions were: allow free movement of farm produce; decentralise PDS operations by involving the private sector in procurement, storage and distribution of grain; set up additional storage capacity, rationalise fertiliser subsidy, and link the crop insurance scheme to crop loans taken by farmers and remove responsibility of individual farmers in relation to crop losses and inability to pay back loans. ``This has to be done as in the case of non-banking finance companies,'' a member of the executive explained, but without adding that because of this hundreds of thousands of innocent investors have lost huge sums of money.

The resolution appreciated the ``commitment'' of the Vajpayee Government to giving special attention to the agriculture sector, but the anxiety on account of widespread farmers' distress was evident; it was felt that something needed to be done - before the March-April round of Assembly elections - otherwise, the situation could become politically explosive for the BJP.

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