Wheat import puts UPA in a spot

The agriculture ministry's proposal to import wheat is raising farmers' hackles all over Punjab, Uttar Pradesh and Madhya Pradesh. The Centre anticipates political mobilisation in north India, which may affect the UPA's prospects in two crucial states, Punjab and UP, which go to polls next year.

As buying begins, farmers are angry over the import of wheat at Rs 950 per quintal when the minimum support price given to them is Rs 650 per quintal. The Bhartiya Kisan Union (BKU) today announced in Moga that it would blockade southern ports to prevent import of wheat.

BKU President Mahinder Singh Tikait would convene a meeting of the BKU executive in Bangalore on April 22 to finalise the blockade strategy, a BKU leader said.

All the BKU factions in Punjab would unite to enforce a boycott of the grain markets by farmers on April 17 and 18, the BKU leaders said, adding the union would also protest the "inadequate" MSP of Rs 650 per quintal.

The politics of wheat import is a direct fallout of its economics. During the days of the BJP government, because of excess wheat stocks, the quantity of wheat offered through the public distribution system was doubled in 2000, from 10 kg to 35 kg. When the United Progressive Alliance (UPA) government came to power, it realised this was not sustainable because of the rising food subsidy bill or when the stocks dwindled.

Agriculture Minister Sharad Pawar announced in February that the government would import five lakh tonnes of wheat, leading to threat of protests by the farmers.

Last week, he said raised the figure to 15 lakh to 20 lakh tonnes, to prevent shortage, especially for distribution among below poverty line households, setting off institutional stirs.

Meanwhile, private sector firms have been buying wheat in the open market, reducing the Food Corporation of India's (FCI) role. The net result is that wheat stocks have fallen below the "safe" limit of 40 lakh tonne.