CPI (M) opposes open market auction of surplus food stock

Opposing the government’s decision to sell 10 million tonnes of “surplus” food stock to bulk consumers, the Communist Party of India (Marxist) has asked the Centre to review the decision.

The government intends to sell surplus food stock to bulk consumers like flour millers and biscuit makers through auction under the open market sale scheme as a part of its supposed plan to tackle inflation and dispose of the accumulating food stocks. As much as 2.5 million tonnes of grain will be allocated monthly through auction for the next four months on a “no profit, no loss basis.” The government, through this decision, intends to transfer food subsidy as largesse and to benefit traders and manufacturers, including big companies, and not to those in hunger. It is totally irrational to claim that this will control prices, a statement issued by the CPI (M) Polit Bureau said here on Monday.

The utter failure of the United Progressive Alliance government to control food inflation is shown by the August figures, according to which food prices have gone up by 12.03 per cent. The recent hike in diesel prices will lead to a further rise in prices. The Consumer Price Inflation was 10.03 per cent in August, and the Wholesale Price Index was 7.55 per cent, mainly due to a rise in food prices. India has the dubious distinction of having the highest retail inflation among emerging BRICS nations, the statement said.

“If the government is interested in controlling prices, the most obvious step would be to increase supplies through the public distribution system. At present the government is holding around 5 crore tonnes of surplus stocks of food grains. Instead of “liquidating the stocks” by auction or exports, the grains should be distributed universally, scrapping the discriminatory Above Poverty Line/Below Poverty Line divisions with a minimum allocation of 35 kg of good quality food grains per family at the maximum price of two rupees a kilo. This should become a legally enforceable right in the next Parliament session,” the Polit Bureau statement said.