JD-U for legislation to check hoarding

New Delhi: Janata Dal (United) on Saturday demanded enforcement of a law to control hoarding of foodgrains by traders to check price rise.

JD(U) also accuses the Government for compromising on food security by leaving it to market forces.

"Unless this hoarding is controlled by the Government, the prices are not likely to come down in the near future," JD(U) President Sharad Yadav said at a press conference in New Delhi.

Noting that the availability of wheat worldwide was not encouraging, the former Food and Consumer Affairs Minister apprehended that import of wheat would put heavy burden on the exchequer.

Charging the Government with protecting hoarders, he said the Centre should immediately acquire the stocks hoarded by traders and bring an ordinance so that the common man gets some relief from surging prices.

Another option, he said, was raising the Minimum Support Price (MSP) of wheat so that farmers can contribute to the central pool.

Yadav said the system of procurement of foodgrains for Public Distribution System (PDS) has been disturbed by not increasing the MSP at the right time and allowing private traders to purchase foodgrains at low MSP from farmers.

Describing as "very unfortunate" the import of wheat, Yadav said it could have been avoided had the present Government awakened at the right time and remained cautious by means of effective monitoring.

"It is a total failure due to laziness of the Government that inspite of good monsoon in the last two seasons, the procurement of wheat has been below the target," he said.

Pointing out that the Government was alerted well before onset of the season that the procurement would be less than the required target, the JD(U) leader said it appears that the Government is taking such an important assignment of good security very lightly.

He said the Government should have raised the MSP in favour of the farmers at the right time during 2004-05 Rabi season and also in 2005-06 Rabi season so that private traders did not enter the market.

Yadav said procurement of wheat from private traders in the open market was an indirect attempt by the Government to "shut down and finish" FCI.