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Allies want foodgrain, fertiliser price increase rolled back

The Bharatiya Janata Party finds itself isolated on the increase in prices of foodgrains and fertilisers. All its allies in the National Democratic Alliance have urged a rollback, saying the increases will hurt the poor.

The allies, including the Shiv Sena, Telugu Desam Party, Samata Party and Indian National Lok Dal, voiced their views in a memorandum presented to Prime Minister Atal Bihari Vajpayee on Monday morning.

They said the increase in issue price of foodgrains distributed through the targeted public distribution system and fertiliser prices by 15 per cent would hit the poor and farmers.

The memorandum pointed out that the Budget for 2000-01 has proposed a substantial reduction of about 12 per cent in the food subsidy and 4.5 per cent in the fertiliser subsidy.

"Providing relief to the poor through TPDS and for farmers through fertiliser subsidy is one aspect on which there is wider political consensus," the memorandum said. It said the cut in fertiliser subsidy would adversely affect farmers throughout the country. "The hike in issue prices of foodgrains will particularly place an unbearable burden on the states with extensive TPDS commitments," it added.

The government has proposed a 15 per cent increase in the urea price in the Budget. It has also proposed to increase prices of foodgrains issued under the PDS, including for the BPL [below poverty line] category, in an effort to reduce the food subsidy. But the allocation of foodgrains to the BPL category has been doubled from 10 to 20 kilogrammes per family.

The allies' memorandum said the increase in fertiliser prices would also push up prices of foodgrains, causing a further burden on the states on account of their commitment to the TPDS.

"In view of the consequences of proposals, we urge upon your good self to reconsider the proposals for increasing the issue prices of foodgrains for TPDS and fertiliser price hike so as not to effect any increase in their prices (sic)," the memorandum said.

It was signed by TDP leader K Yerran Naidu, JD-U leader D P Yadav, Raghunath Jha (Samata Party), V Gopalasamy (Marumalarchi Dravida Munnetra Kazhagam), M P D Elangovan (Pattali Makkal Katchi), C Kuppusami (DMK), Sushil Indora (INLD), Trilochan Singh (Shiromani Akali Dal), S Thirunavukkarasu (MGR-ADMK) and Anant Gite (Shiv Sena).

ALSO SEE:
THE BUDGET SPECIAL

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