India on August 29 signed an agreement with the US for the purchase of American surplus agricultural and dairy products. The deal was concluded under the American Agricultural Trade Development and Assistance Act. The agreement provides for a sum of 360 million dollars, equal to approximately Rs.172 crores, for the supply of agricultural commodities during the next three years. It is proposed to buy rice, cotton, tobacco and dairy products. The bulk of the dairy products will be in the shape of skim milk powder. The import of agricultural commodities under this agreement will enable India not only to make available increased quantities of foodgrains for domestic consumption, but also to build up reserve stocks against temporary shortages on account of famine or floods. With the availability of such large stocks at its disposal, which could be released at strategic points, the Government's ability to control foodgrain prices over the entire range and generally to counter all anti-social activities, will be greatly increased. The agreement was signed by Mr. C.V. Narasimhan, Joint Secretary in the Finance Ministry, for India and Mr. Bartlett, the U.S. Charge d'Affaires, for his Government.