68 ENVIRONMENTAL SCIENCE
the Public Distribution System, the Food Corporation of India was permitted to sell 15 lakh
tones of Wheat to roller flour mills, traders, Government Agencies and other users at the
rate of Rs 320 per quintal in Northern and Rs 330 per quintal in the Southern Parts of the
country. The procurement price of Paddy (common variety) rose from Rs 185 per quintal in
1989-90 Rs 205 per quintal in 1990-91 and of Wheat from Rs 183 quintal for 1989-90 to Rs
215 quintal in 1990-91.
(ii) Pulses
In the wake of decline in the Production of Pulses in 1989-90 to 126. 1 lakh tones from
138.5 tonnes in 1988-89, the prince of Pulses during 1990-91 period increased by 14.5 per
cent. In order to bridge the gap between demand-supply equilibrium, NAFED has been
authorized to import pulses under OGL Scheme. Under this scheme, NAFED registered
contracts for a total quantity of 97.7 lakh during 1990-91. As an incentive to production, the
Minimum Support Prices of Pulses have been increased substantially i.e. Rs. 325 per quintal
for 1989-90 to Rs 421 per quintal for 1990-91 in case of Gram and Rs. 425 per quintal for
1989-90 to Rs. 180 per quintal for 1990-91 in the case of Arhar, Moong and Urad.
(iii) Edible Oils
Production of Oilseeds suffered a set-back during 1989-90.During this period the production
declined to 167.3 lakh tones from 178.9 lakh tones in 1988-90. As a result of this decline,
coupled with increased demand, the prices of Edible Oils rose by 30.1 per cent during 1990-
- The Government has taken a number of steps to check the run-away increase in the prices
of Edible Oils. This includes exemption of Excise Duty on Refined Rapeseed/Mustard seed Oil,
reduction in the stock limits of Edible Oils with wholesalers and retailers and withdrawal of
permission for use of 20 per cent Expellor Mustard/Rapeseed Oil in the manufacture of
Vanaspati for ensuring increased availability of these oils during the lean period/festival
season. To increase the available position of Edible Oils in the open market, the imports have
been stepped-up from 3.73 lakh tones in the oil-years 1988-89 lakh tones in oil year 1989-90.
The Minimum Support Prices of Oilseeds were stepped-up as an incentive to Oilseed Gravers.
In the Case of Groundnut, the Minimum Support Price was increased from Rs. 500 per
quintal for 1989-90 to Rs. per quintal for 1990-91 and for Mustard Seed from Rs. 460 per
quintal to Rs. 575 per quintal.
(iv) Cement
During the financial year 1990-91, the Wholesale Prince Index of Cement showed and
increase to sharp increase in demand, lower growth rate of production, inadequate supply
of Coal, hike in railway freight charges, etc. The government took proper remedial steps.
Several factors contribution to the increase in prices. These included Budgetary Levies,
Hike in Petroleum cumulative effect of high liquidity, High Budgetary deficit, fall in the
production of some key commodities like Pulses, Oilseeds, etc substantial hike in minimum
procurement/support prices of important agriculture commodities, etc., and the situation
being further aggravated by the Gulf Crisis.
The Government took several steps to contain the rising price spiral of essential
commodities. Allocation of foodgrains (Rice and Wheat) through the Public Distribution
System was increased from 1.55 lakh tones in January 1991 to 1.81 lakh tones in March
1990.