The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday gave its approval for creation of buffer stock of pulses. The buffer stock will be created in current year itself. It has approved procurement of about 50,000 ton pulses from the kharif crop 2015-16 and one lakh ton out of arrivals of rabi crop of 2015-16.
Procurement of pulses will be done at market prices through Food Corporation of India (FCI), National Agricultural Cooperative Marketing Federation of India ltd. (NAFED), Small Farmers’ Agribusiness Consortium (SFAC) and any other agency as may be decided. SFAC will undertake procurement through Farmer Producer Organisations.
“The procurement in kharif and rabi 2015-16 will be done at market price above Minimum Support Price (MSP) out of the Price Stabilisation Fund. The CCEA also decided to import pulses, if necessity arises, through a public sector enterprise of Ministry of Commerce. In case the prices fall below MSP, pulses for buffer stock will be procured at
MSP under Price Support Scheme of Department of Agriculture, Cooperation and Farmers Welfare,” said Government in a statement.
The decision to create a buffer stock of pulses to deal with wide fluctuation in prices is an important step for checking food inflation. This will also encourage farmers to take up pulses production on a larger scale and will enable India to help achieve self-sufficiency in pulses in a few years, said the statement.
The CCEA also gave approval for mandatory use of jute in packaging for the Jute Year 2015-16 (1st July, 2015 to 30th June, 2016). The decision will provide relief to 3.7 lakh workers employed in Jute Mills and ancillary units as well as support the livelihood of around 40 lakh farm families. Besides, it will help to protect the environment because jute is natural, biodegradable and reusable fibre.
The Cabinet meeting also approved to carry out official amendments in “The National Waterways Bill, 2015”. The amendments are based on the recommendations of the Department related Parliamentary Standing Committee on Transport, Tourism and Culture and comments of State Governments. “It provides for enacting a Central legislation to declare 106 additional inland waterways, as the national waterways. After the inclusion of 106 additional inlands waterways to the existing five national waterways, the total number of national waterways goes upto 111,” said the statement.
The Union Cabinet also approved the proposal for introducing measures to encourage shipbuilding and ship repair industry in India under the ‘Make in India’ initiative. “It includes a policy for grant of financial assistance to shipyards, after delivery of ship, to counter cost disadvantages @ 20% of the contract price or the fair price, whichever is lower; such assistance is to be reduced @ 3% every three years and will be given for all types of ships. This policy will be in force for ten years. The implementation of this policy would require budgetary support of Rs4,000 crore over ten years. The proposals also include grant of a Right of First Refusal for Indian shipyards for Government purchases; tax incentives and grant of infrastructure status for shipbuilding and ship repair industry,” said the statement.