03-27-2007, 03:51 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>After dal, it's chana scandal </b>
Pioneer.com
Yoga Rangatia | New Delhi
Farmers lost Rs 400-600 a quintal due to policy flip-flop
Already facing charges that the Commerce Ministry looked the other way when traders clandestinely shipped out several tonnes of pulses despite a ban, it is facing fresh allegations that the Ministry manipulated the export of dollar chana. After a blanket ban, which brought down prices of the commodity, export restrictions were lifted for a few "favoured" companies.
The Commerce Ministry invoked the licence-permit regime for a commodity that falls under the open trade category. The decision swung trade in favour of a few select companies, which were able to avail of licence from the Directorate General of Foreign Trade. Farmers lost income due to price fluctuation brought about by uncertainties in the item's export.
Kabuli chana, or dollar chana as it is known among farmers, is widely cultivated for its export potential. This commodity has limited consumption in the domestic market. But this was not a consideration when the Government banned export of all pulses, after rising food prices created panic among the top decision-makers.
After the June 2006 ban on export of pulses, prices of Kabuli chana crashed from about Rs 2,700 per quintal to Rs 2,400 per quintal. Distressed farmers, who feared further fall in prices, sold their commodities rather cheaply to traders and middlemen.
Ending half a year of uncertainty, the Commerce Ministry on February 20, 2007, lifted the ban on export of dollar chana. Curiously, the Ministry said the trade will be "executed under specific permission granted by DGFT." chana export falls under open general licence and does not require a licence. Those following the trade allege that a few traders were favoured.
"The announcement that export ban was lifted had already seen prices rising. But then it became known that only a few traders could avail of the DGFT licence. According to my information, a handful of traders benefited from this export exemption. There was no need for DGFT licence since the Finance Minister has himself said that chana is under open general licence. The Commerce Minister should explain why such a decision was taken which caused losses for farmers," said Sumitra Mahajan, BJP member of Parliament from Indore, who raised the issue.
Continuing with its manipulation of export market, the Commerce Ministry did away with licence requirement for pulses trade within three weeks of putting it in place. The Directorate General of Foreign Trade on March 7, 2007 issued a notification, which said the export "prohibition shall not apply to export of Kabuli chana." This helped those who held on to their stocks while prices were fluctuating. "Some 30,000 tonnes of Kabuli chana was traded in this fashion, of which 20,000 tonnes were from Madhya Pradesh alone," Mahajan added. She questions the logic of quota-permit raj for a commodity that is allowed to be freely traded.
The policy flip-flop cost farmers their income. Trade body estimated that chana that was procured for Rs 2,400 per quintal from farmers, was sold at Rs 3,100 per quintal by traders when export ban was lifted. Farmers' losses are estimated to be between Rs 400 and Rs 600 per quintal due to the policy flip-flop.
The Pioneer correspondent's efforts to elicit response from both the Commerce Ministry and the DGFT failed. Scarcity, it seems, was an opportunity for the privileged few who have their ears plugged to the goings-on in Udyog Bhawan.
<b>Chana mein bhi kala
Govt created uncertainties on export of chana
First went in for blanket ban on chana export
This resulted in crashing of commodity prices
Suddenly lifted export restrictions
A few favoured companies made a killing
Item fell under open trade category
Commerce Ministry invoked licence-permit regime
Farmers lost income due to price fluctuation
This was brought about by uncertainties in export</b>Â
<!--QuoteEnd--><!--QuoteEEnd-->
I can recall, during Indira days, day before govt announced hike in oil price, Sanjay Gandhi and his friend filled their planes oil tanks and same was done by Babus from connected departments.
Pioneer.com
Yoga Rangatia | New Delhi
Farmers lost Rs 400-600 a quintal due to policy flip-flop
Already facing charges that the Commerce Ministry looked the other way when traders clandestinely shipped out several tonnes of pulses despite a ban, it is facing fresh allegations that the Ministry manipulated the export of dollar chana. After a blanket ban, which brought down prices of the commodity, export restrictions were lifted for a few "favoured" companies.
The Commerce Ministry invoked the licence-permit regime for a commodity that falls under the open trade category. The decision swung trade in favour of a few select companies, which were able to avail of licence from the Directorate General of Foreign Trade. Farmers lost income due to price fluctuation brought about by uncertainties in the item's export.
Kabuli chana, or dollar chana as it is known among farmers, is widely cultivated for its export potential. This commodity has limited consumption in the domestic market. But this was not a consideration when the Government banned export of all pulses, after rising food prices created panic among the top decision-makers.
After the June 2006 ban on export of pulses, prices of Kabuli chana crashed from about Rs 2,700 per quintal to Rs 2,400 per quintal. Distressed farmers, who feared further fall in prices, sold their commodities rather cheaply to traders and middlemen.
Ending half a year of uncertainty, the Commerce Ministry on February 20, 2007, lifted the ban on export of dollar chana. Curiously, the Ministry said the trade will be "executed under specific permission granted by DGFT." chana export falls under open general licence and does not require a licence. Those following the trade allege that a few traders were favoured.
"The announcement that export ban was lifted had already seen prices rising. But then it became known that only a few traders could avail of the DGFT licence. According to my information, a handful of traders benefited from this export exemption. There was no need for DGFT licence since the Finance Minister has himself said that chana is under open general licence. The Commerce Minister should explain why such a decision was taken which caused losses for farmers," said Sumitra Mahajan, BJP member of Parliament from Indore, who raised the issue.
Continuing with its manipulation of export market, the Commerce Ministry did away with licence requirement for pulses trade within three weeks of putting it in place. The Directorate General of Foreign Trade on March 7, 2007 issued a notification, which said the export "prohibition shall not apply to export of Kabuli chana." This helped those who held on to their stocks while prices were fluctuating. "Some 30,000 tonnes of Kabuli chana was traded in this fashion, of which 20,000 tonnes were from Madhya Pradesh alone," Mahajan added. She questions the logic of quota-permit raj for a commodity that is allowed to be freely traded.
The policy flip-flop cost farmers their income. Trade body estimated that chana that was procured for Rs 2,400 per quintal from farmers, was sold at Rs 3,100 per quintal by traders when export ban was lifted. Farmers' losses are estimated to be between Rs 400 and Rs 600 per quintal due to the policy flip-flop.
The Pioneer correspondent's efforts to elicit response from both the Commerce Ministry and the DGFT failed. Scarcity, it seems, was an opportunity for the privileged few who have their ears plugged to the goings-on in Udyog Bhawan.
<b>Chana mein bhi kala
Govt created uncertainties on export of chana
First went in for blanket ban on chana export
This resulted in crashing of commodity prices
Suddenly lifted export restrictions
A few favoured companies made a killing
Item fell under open trade category
Commerce Ministry invoked licence-permit regime
Farmers lost income due to price fluctuation
This was brought about by uncertainties in export</b>Â
<!--QuoteEnd--><!--QuoteEEnd-->
I can recall, during Indira days, day before govt announced hike in oil price, Sanjay Gandhi and his friend filled their planes oil tanks and same was done by Babus from connected departments.