Cong defends check on private traders

The Congress today defended the restrictions imposed by the Union Government on wheat procurement by private traders. According to party sources, with private companies offering prices higher than the minimum support price being offered by the government for procurement through Food Corporation of India, the state-run public distribution system is under threat. Subsequently, the Union Government has imposed restrictions on the operation of private traders and is putting pressure on the state governments to meet procurement targets or face action.

Though the Centre is now accused of preventing farmers from selling their produce at remunerative prices, the Congress says the party supports 8220;reasonable restrictions8221; on private operators. 8220;We are not in favour of too much control on market operations, but some restrictions are necessary for price stability,8221; party spokesperson Abhishek Manu Singhvi said. 8220;The details of the procurement policy are for the government to work out. But the party will support and demand broadly three things 8212; fair price for farmers, fair mechanism for food distribution and minimum interference in the market,8221; Singhvi said. He added that the country had an Essential Commodities Act, and therefore government intervention in market for food security was nothing new.