NEW DELHI: Indian economic experts feel that the country’s economic liberalization program will get derailed if more than 10 lakh tons of wheat is required to be imported.
With wheat prices shooting up all over the country mainly in the vast deficit regions a central cabinet committee on prices recently decided to import 10 lakh tons of wheat. A three-member official delegation led by food secretary P.Tripathi is leaving for U.C.A. Canada and the E.E.C. to explore possibilities of wheat import.
India’s minister for food Tarun Gogoi announced that the central cabinet had authorized the food ministry to initially arrange import of 10 lakh tons. The cabinet at the same time authorized the mi to arrange more imports in view of depleted stocks with the country. India on January 1 this year had a stock of 5.27 million tons compared to last year’s 92 million tons. The Indian government procured in 1991 7.7 million tons as Compared to 11.7 million tons in 1990.
More than 80% of the wheat pro-cured indigenously came from the Sikh state of Punjab Expert feel that while so far Punjabi wheat output remains unaffected by political events the danger could arise if farmers curtailed production or withheld supplies in the procurement season beginning after a few weeks.
Experts feel India’s entire economy including its foreign exchange reserves could go hay-wire if Sikhs decided to stop wheat production. In that event even all the western countries put together would not be able to prop up India and its economy.
Article extracted from this publication >> February 14, 1992
