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CHENNAI, Sept. 26

FARMERS and millers feel that it is the politicians more than anybodyelse who are a major stumbling block for the Government's attempts at revamping the public distribution system.And they are the most hit by the Tamil Nadu Government's decision to increase the price of rice in the public distribution system and change in the procurement policy.

While expressing fears about the State Government's decision to radically change the procurement system and implement a hike in sale price of a part of rice sold over the public distribution system, farmers and millers acknowledged that the Government could not indefinitely bear the subsidy burden.

But, farm and trade sources pointed out that it was a load brought upon themselves by successive governments purely as a populist measure. The Tamil Nadu Government had missed an opportunity when a few years back the Centre adopted the Targeted Public Distribution System, which was aimed at limiting subsidies to those below the poverty line.

Often the intended beneficiaries had not gained from the process, plagued by deficiencies. These included diversion of rice meant for public distribution system, subsidy not reaching the beneficiaries and unrealistic prices, they said.

For instance, they said, with the State Government announcing a bonus price over the minimum support price announced by the Centre, paddy price paid by the Government agency had been consistently higher than the market price that prevailed during normal or heavy production season.

During the previous two seasons it was commonly acknowledged that private traders sold to the Government agencies paddy (purchased cheap from farmers elsewhere) at a handsome profit. The farmers, the intended beneficiaries, had been displaced and the unscrupulous traders sold several lakh tonnes of paddy.

Similarly, when the prices were unrealistically high because of `populist subsidies', the trade too was displaced as they could not procure paddy from the farmers. The mechanism resulted in a total distortion of the market in the delta areas, they said.

Farm sources were of the opinion that the rice sold through the public distribution system could be priced more pragmatically instead of at Rs 3.50 per kg. The ground realities are such that even those below the poverty line could well afford to pay a rupee or two more.

For instance, out of the 20 kg supplied, the Government plans to continue to sell 10 kg at Rs 3.50 per kg while the balance 10 kg would be sold at Rs 6. The monthly increase in expenditure to the consumer would be Rs 25, well within the means of even the daily wage earner.

The Opposition was not tolerating even the partial hike announced by the Government. It was the political parties that are objecting and not the general public, they pointed out. Political parties, irrespective of those in power or in the Opposition, had consistently militated against any attempt at revamping the system, they said.

However, millers and farmers have also expressed fears over the change. In the absence of information about the exact mechanism to be adopted, they are willing to wait before deciding.

Mr S. Ranganathan, General Secretary, Cauvery Delta Farmers Association, said the State Government should provide a safety net to the farmers in the delta areas, as paddy crop was their sole means of sustenance.

With a large mono-cropped area dependent on paddy alone, the farmers were at the mercy of the trade. Open market prices were often fixed at artificially low levels by the trade. "The State Government will have to ensure that the farmers are paid a realistic price for the produce," he said.

Support prices should be based on the cost of production and should be scientifically arrived at, he said. The Government could consider local procurement, storage and distribution as a part of a decentralised mechanism. This could save on the cost of logistics and enable cheaper cost to the consumer, while the farmers would be assured a remunerative price, he said.

The Government and the farmers should get together to decide the prices on purely economic grounds rather than on political or populist consideration. A long-term policy should be worked out to enable continuous consultation and change according to the market requirements. This would also enable fair wages to the farm labourers, remuneration to the farmers and a fair deal to the consumers, he said.

According to Mr S. Chandrasekhar, President, South Zone Rice Mill Federation, the move by the State Government to procure for the Central pool had some positive features.

While the details are yet to be made available, the Central norms were more stringent than that of the State Government's agency — the Civil Supplies Corporation. This will mean that the quality of the paddy was bound to improve. The State Government had till now been lax about the quality of paddy purchased from the farmers, but strict about the rice quality produced from the third grade paddy. Now the farmers would have to adopt stricter standards, he said.

The trade was awaiting details about the exact mechanism to be adopted and the details, he added.

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