 "Monsoon to pick up in July: IMD")
Rising food inflation is already a major challenge for the Modi government and the government is believed to have taken up the matter on a war footing. The food security Act was also discussed. The deadline to implement it was extended three months from July 4.
After the meeting that lasted close to three hours, a government statement quoted officials from the IMD saying rainfall is likely to improve substantially in July and August, though the monsoon has been delayed. While stating the monsoon was expected to improve after July 7, Agriculture Minister Radha Mohan Singh told reporters the government was fully prepared to handle the situation in case of poor rainfall.
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Later, addressing a news conference, Food Minister Ram Vilas Paswan said a meeting has been called of all state food and consumer affairs minister on July 4 to discuss the food price situation and also deliberate on changes that can be incorporated in the food law. He said distribution of food won’t be stopped in the interim period and state governments will continue to receive their share of foodgrain at old prices.
“The recent spurt in price of essential commodities is mainly due to speculation, hoarding and creation of a fear psychosis due to low rains and rates will come down in the next one to two days as there is sufficient supplies available,” Paswan said on rising food prices.
He said government is keeping a close eye on speculative trading including that in commodities exchanges, but decisive action on hoarding needs to taken by the state governments. He said the decision to provide a relief package to sugar mills was not to bail them out but to help the farmers as strict conditions have been imposed on them for availing the benefits.
Meanwhile, in another move that could boost sentiments in certain quarters, Modi sent out a message that Mahatma Gandhi National Rural Employment Scheme (MGNREGS), a flagship scheme of the United Progressive Alliance, be used to generate rural employment, if necessary. Financial package to deal with a drought situation is under discussion, too, and the Cabinet would have to take a call on it.
The monsoon review meeting, chaired by the PM, was attended by, besides the agriculture minister, Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Water Resources Minister Uma Bharti. Also present were Cabinet Secretary Ajit Seth, and top officials from the Prime Minister’s Office — Principal Secretary to PM Nripendra Misra and Additional Principal Secretary to PM P K Mishra. IMD officials explained the monsoon situation at the meeting.
On containing inflation, the PM has asked states to set up special courts for speedy trial of hoarders and black marketeers. As for shortage of rice and onion stocks, the ministers indicated the situation had improved following the measures announced, only a few days ago, to check inflation. The statement issued by the Press Information Bureau said, “It was observed the measures are having a positive effect, with adequate rice stocks reaching markets. There is now no shortage of onion stocks in Delhi.”
The agriculture ministry has already prepared a contingency plan for more than 500 districts, and the PM wanted the Centre and states to together implement the advance action plan for the monsoon. Districts, rather than states, should be the unit of planning, Modi has stressed.
The other issues that came up for discussion included the position of water reservoirs and fodder stock. Directions have been issued on good use of existing water resources, best practices in rainwater harvesting, and ensuring adequate power and seed availability for the agriculture sector.
India has received 45 per cent less rainfall till June 17. According to the Met department forecast earlier, monsoon would be below normal at 93 per cent of the long period average.
- PM Modi sends out message that MGNREGS be used to generate rural employment, if necessary
- Financial package to deal with a drought situation discussed
- Directions issued on optimal use of existing water resources and best practices in rainwater harvesting