Pawar hints at hike in PDS prices

NEW DELHI: The Government has indicated that it would increase the issue price of rice and wheat under the Public Distribution System, while simultaneously reducing the foodgrain allocation, in an effort to contain the spiralling trend in food subsidy bill.

"It is our responsibility to reduce susbidy," Agriculture Minister Sharad Pawar said in an interview to CNN-IBN in its programme 'Devil's Advocate' to be broadcast on Sunday.

This is the reason why we want to take a decision on the food subsidy issue, he said.

Asked whether he would rule out raising prices and cut in foodgrain allocation under PDS in next 10 days, he replied "why should I rule it out?"

For last six years, Pawar said, there is a rise in the procurement price and storage charges, "but if there is no rise in PDS prices, how can you continue like this?

"This decision has to be taken, today or tomorrow", he said adding, "in fact, it is already late by two years,"

The minister, however, delinked the issue of subsidy cut from failure to meet this year's wheat procurement target of 16.2 million tonnes.

 On wheat allocation under PDS, he said the previous governments had in stages increased it to 35 from 20 kg as excess stocks were lying at the godowns.

 "But it has to be brought down". he said.