Apex court refuses stay on imports

The Supreme Court today declined to stay the Union government's move to import 1 million tonnes of wheat by July 2007 to build reserves.

A three-judge bench, headed by Chief Justice K G Balakrishnan, came to this conclusion after hearing a petition moved by farm activist Vandana Shiva seeking to quash the government decision. The State Trading Corporation has fixed May 21 as the closing date for tenders and the bids received would be valid till May 30.

According to the petition, the government policy will compromise India's food security as wheat imported last year was of sub-standard quality. Some 5.5 million tonne of wheat imported last year had been declared unfit for consumption and safety standards for import of the foodgrain had been compromised. There was was no need for further imports as 53,000 mt was still lying unutilised at various ports.

Solicitor General G E Vahanvati contested the figures produced in the petition and insisted that the Opposition was based on wrong premises.

There is a shortage of 5 mt and the government has to meet the requirements under the public distribution scheme. Counsel claimed that the government had raised the minimum support price.

The bench asked why the government was willing to pay more for imports.

It pointed out that while the Centre bought imported wheat at the rate of Rs 1,642 a quintal, it only paid Rs 850 a quintal to farmers. The Counsel replied that there was a shortage and hence imports could not be avoided.

The government also denied that it had allowed free play to MNCs and big traders to purchase unlimited quantities of wheat directly from farmers. Since there is no stay on imports, the price of wheat is not likely to change in the domestic market.