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Punjab blames 'faulty' delivery system of FCI for price rise

He said that the efforts being made by the Punjab farmer for extra production are going down the drain as benefits are not being passed on to the consumers of the country.

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Punjab blames 'faulty' delivery system of FCI for price rise
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As the government debated the reasons for rise in food prices, Punjab today blamed the "faulty" delivery system of the Food Corporation of India (FCI) for the problem and demanded funds for creation of storage infrastructure for foodgrains.

"We request that funds be allocated to Punjab for creation of foodgrain management storage infrastructure as we have already approached the Planning Commission in this regard," Punjab Chief Minister Prakash Singh Badal said at the chief minister's conference on prices of essential commodities.

He said that the efforts being made by the Punjab farmer for extra production are going down the drain as benefits are not being passed on to the consumers of the country.

"Due to the faulty delivery system of the FCI, the movement of foodgrain from Punjab is inadequate and slow. In fact, there is no concrete policy for the movement of foodgrain from the state and there is no dedicated infrastructure for the same," he said.

Badal sought incentives in the form of bonus and monetary help to encourage them for sugarcane production. "As a responsible state, I do not recommend increase in the MSP of sugarcane which will ultimately have an impact on the sugar price".

The Punjab chief minister also said the mechanism for sugar distribution needs drastic changes. The sugar mills should be brought under the direct control of the state governments and they should be allowed to import sugar directly, he said.

Similarly, to augment the domestic production of pulses and edible oils, the farmers should be given some incentive in the form of subsidised electricity and fertilisers, he said. 

"Alternatively, some monetary help could be offered to the farmers for encouraging them in the production of pulses and edible oils," Badal added.

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