Jaitley banks on surplus stock to tackle crop loss

Jaitley added that the government has taken a number of measures to curb inflation, particularly food inflation.

Finance Minister Arun Jaitley on Friday said surplus foodgrain stocks would help in dealing with any crop losses due to recent unseasonal rains and hailstorm that have affected 18.23 million hectares.

“As on May 5, 2015, an estimated 18.23 million hectares under crops were affected in the country due to unseasonal rains and hailstorms. However, surplus stocks of foodgrain would help the country deal with the situation appropriately,” Mr. Jaitley said in a written reply to the Lok Sabha.

The Minister said state-owned Food Corporation of India (FCI) sells surplus wheat and rice stock in the open market under open market sale scheme (OMSS) in order to moderate retail prices in deficit states.

“Approximately, 4.2 million tonnes of wheat have been sold in the open market under this scheme during 2014-15 and sale of wheat has also been continued beyond April 1, 2015,” he said.

Mr. Jaitley added that the government has taken a number of measures to curb inflation, particularly food inflation.

The Centre has allocated more rice to below poverty line (BPL) and Above Poverty Line (APL) families in states, and higher allocation of wheat was made under the OMSS programme, he added.

Moreover, Mr. Jaitley said there has been a “moderation in increases in minimum support prices (MSPs) during the last and the current season”.

An advisory has been issued to states to allow free movement of fruits and vegetables by delisting them from the APMC Act, Mr. Jaitley said.

The government had foodgrain stock of 34.3 million tonnes as on April 1, as against the buffer norm of 21 million tonnes.

Unseasonal rains and hailstorms from February 28 till March 31 have affected crops in over 10 states, including Uttar Pradesh, Punjab and Haryana.