<b>XII LOK SABHA DEBATES, <i> Session III, (Winter) </i> </b>
XII LOK SABHA DEBATES, Session III, (Winter) Tuesday, December 8, 1998 /Agrahayana 17, 1920 (Saka)


Type of Debate: SHORT DURATION DISCUSSIONS (RULE-193)
Title: Further discussion regarding rise in prices of essential commodities raised by Shri Rajesh Pilot on 3rd December, 1998.

TEXT :
SHRI H.D. DEVEGOWDA (HASSAN): Mr. Speaker, Sir, since the last two days, the issue of price rise has been under discussion under Rule 193. I would like to congratulate Shrimati Geeta Mukherjee, Shri Rajesh Pilot and other friends for having moved the Motion under Rule 193.

Sir, I have not heard the speech of Shri Sompal, but I have heard the speeches of Shri P. Chidambaram, the former Finance Minister and of the present Finance Minister. Yes, I do not want to go into the management of the finance, the root causes for the fiscal deficit or the money supply. All these issues were debated. But, in my opinion, it is total mismanagement. It is not a question of money supply, whether it is 15 per cent or 20 per cent in the year 1998-99. Much more than that, there is no commitment, there is no coordination between the departments; there is no political will. There is no coordination among the bureaucracy. These are some of the contributing factors for this type of unexpected price rise.

Sir, I do not want to take up the issue of only onions. There are various issues. Onion is not the only issue. That was an issue only for the purpose of elections, and that one issue had been made so big.

Sir, there are various burning problems. First, I will prove how there was a total mismanagement of the situation by the Government and then switch over to other issues. I would like to state as to what happened in my home State. The reason for my referring to it is because the hon. Finance Minister was trying to shift the responsibility to the States by saying that the implementation of the Essential Commodities Act comes under the purview of the States and, if at all, there was any rise in prices, the State Government have to be blamed for their inaction.

Sir, there was a total lack of coordination. In my home State, onions were being sold at Rs.16 per kilogram by HOPCOM, which is a cooperative organisation and which deals in all vegetables. They have opened several outlets throughout the State of Karnataka. They have sold onions at Rs.16 per kilogram last month and also the month prior to that. Could it not be possible for the Government to get onions from Karnataka or from other States where the commodity was so cheap? A farmer from Shimoga District of Karnataka brought onions to the regulated market at Bangalore thinking that he would get a better price for his produce. Since there was a lot of hue and cry about the price of onions in Delhi and other places, he expected a good price for his produce, but, ultimately he had to sell his produce at a lesser rate in Bangalore. He had brought one truck load of onions all the way to Bangalore from Shimoga and he could not meet the transportation charges. So, he had committed suicide. This had appeared in newspapers and there is no need for me to elaborate on this point. I made this point only to point out out that there was a total lack of coordination.

Sir, I am not going to blame the Members of the other side for this. They are all equally interested to bring down the prices and safeguard the interests of consumers and producers. There is no question of mixing politics here, as if they are not concerned with the rise in prices. I am not going to do that. But there is a total failure on the part of the Government on this issue and they must accept this fact.

Sir, my sister Mamta Banerjee is sitting here. She forced the Government to call the Chief Ministers' Conference after seven or eight months. Was it necessary for one of the allied parties to go to the extent of coming out of the Coordination Committee of the ruling coalition and issuing a threat? A senior Member of her party mentioned here that there is lack of information to the Prime Minister's Office and the Prime Minister's Office is unable to take steps. He also said that the Prime Minister pleaded his ignorance about it when he met him. I would like to know whether the Prime Minister is going to get the feedback. Is it the responsibility of the Prime Minister? Is it not the responsibility of the Ministry of Food and Civil Supplies or whatever is its nomenclature? There are some changes made after this Government has come into power.

Sir, I have got the highest regard for Shri Barnala, because he resigned as the Governor of a State when his recommendation was not accepted.

You resigned on principle. You handled one State as Chief Minister. When he was the Chief Minister, for some disobedience or whatever it may be, the reason had been a punishment the religious heads have given some punishment which he has accepted. Shri Barnala accepted it as a disciplined soldier. I have got the highest regard for you even today. But how you have administered the Ministry of Chemicals and Fertilisers, I am unable to understand it. If your Prime Minister or the Finance Minister is not cooperating with you, you should better resign. ... (Interruptions) I will come to the point. ... (Interruptions)

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SHRI H.D. DEVEGOWDA (HASSAN): It is not a question of taking the issues lightly. I am serious about it. If your Prime Minister is not cooperating or the Minister of Finance is not cooperating, you better resign. Your image will go up. Otherwise, the people will curse you for all the mistakes that you or the Ministry of Fertilisers have committed.

I do not know why our Congressmen were so particular about onion. Onion has not yielded the result. It is only because the BJP has done the mistake about the nuclear test. They were under the impression that the euphoria that has been created is going to bring them two-thirds majority in this House. I have already said that my party has also been defeated. I am not worried about the results of the election. But I do not know why only the onion issue was there every day and every time. I was watching it. I am not going to say anything without at least studying it myself. I am not going to waste the time.

On fertiliser issue, what was the assurance given by you? When I drew the attention of this House through a Calling Attention Motion in June, that is, at the fag end of the last Budget Session, you had made a categorical assurance that you were going to take all the steps to provide the required fertilisers. I will just read your reply:

"Before I conclude, I shall like to assure the hon. Member, Shri H.D. Deve Gowda, that even though these fertilisers are decontrolled and Government has no direct intervention to make, as in the case of urea, we will take all possible steps for improved availability to farmers whose interests are uppermost in my mind."

This was on 11th June, 1998. Today morning, an MP from the Bharatiya Janata Party sat on dharna here. It is not a question of `x' party or `y' party. Almost all political parties are concerned with this. This is a burning problem. Many hon. Members have been talking about the price rise of atta or rice or vegetables. You did mention all these things. But if the production of the commodity itself is going to decline, then, the question of price rise is not only merely on money supply. That is one component. The question of fiscal deficit or the revenue deficit is not the only one issue. It is a question of demand and supply. How has your Department functioned? Is there any cooperation between your Department and the Department of Agriculture and the Department of Finance? Let us go through some of the events that took place in the last six or seven months. What has your Finance Minister declared in this House in his Budget speech? It is about new India. He said: "We have now begun to build a new India." We have now begun to build new India by allowing the price rise of the DAP at Rs. 15,000 per tonne! The people are struggling. They are going from godown to godown and from shop to shop. ... (Interruptions)

SHRI MOHAN SINGH : Jamakhor, Munafakhor, that is, hoarders and profiteers.

SHRI H.D. DEVEGOWDA (HASSAN): It was Rs. 15,000 per tonne. You are also coming from the agricultural community. Is this the way to run the administration?

"What is our requirement?" I asked this question on 11.6.1998.

Somebody was asking, `why a former Prime Minister is going to the extent of asking this question through a Calling Attention Motion?' He raised this issue. I know the importance of the issue and the importance of the Calling Attention or Motion under Rule 193 or sitting on a dharna.

One of my friends sat here. I appreciate the spirit. We cannot allow this Government to function like this.

I will give some details and let the House come to the conclusion whether this Government is functioning or whether, at least, they are going to realise anything after this punishment given by the people to them.

"The Government has today reviewed the decision taken earlier in August 1998 -- free retail prices of phosphatic and potassium fertilizer and decided that the maximum retail price, MRP, of those fertilizers would remain at the same level as in Kharif 1998."

What is the rate fixed for Kharif? They must spell out here in this House. "That decision was taken by the Government in the interest of the farming community as the prospects of foodgrain production in the current Kharif season have been seriously affected by floods..."

Then the same thing was reversed within one month.

"Yesterday, the decision is taken considering the anxiety and concern among the farmers about the possible increase in the price of fertilizer under the decision of the Maximum Retail Price, the Diamonium sulphate would continue to be Rs.8,300 per tonne. In case of potash it would be Rs.3,700 per tonne and for various grades of complexes Rs.6,280 per tonne. In the case of single super phosphate in respect of the State."

They had taken one decision in the month of August and it was reversed. Why?

view of the hardships being faced by the farming community..."

He has quoted all these things in the preamble. Within one month, what made you to take the decisions ? He should please spell out. He said, 'the question of the demand will be met out?' What is the shortage?

The total requirement of the DAP is about 60 lakh tonnes. We are able to produce indigenously DAP 24 lakh tonnes."

36 lakh tonnes is the shortage. This is the official figure. There is no exaggeration from my side. I have collected it from the Department itself. From various States I tried to collect the information. 35 lakh tonnes is the shortage. Today, the people are suffering. I do not know what these people want to do.

Why is there this type of callousness or indifference or non-cooperation between the Finance Department, the Fertilizer Department and the Agricultural Department? This is a total lack of coordination.

I do not think Shri Barnala has no interest. Why I have come to this conclusion? Because the hon. Minister has made certain principles in public life. If he cannot carryout, then my sincere request to you at this age that you should not be subjected to humiliation by your own other colleagues... (Interruptions)

I do not know whether the proposal sent by you four days or five days back has been cleared by the Finance Minister till today or not. The Finance Minister says in his Budget speech: "We have now begun to build new India under the leadership of Shri Atal Bihari Vajpayee."

I would like to quote two more sentences from his Budget speech and it is very interesting. He says:

"I stand here and address this august House. My thoughts wander naturally to the remote village of India and to the millions of our toiling farmers."

Allowing DAP at the rate of Rs.15,000 per tonne, your Government says that its thoughts go to the millions of our toiling farmers. Have you got the moral courage to say this on behalf of the farmers? Has the Prime Minister got the moral courage? I am not going to ask my friend but I will ask the Prime Minister whether he has got the moral courage.

I am sorry to say that in the next ten years, take it from me, that if this type of situation is going to continue, the people will definitely die out of hunger. The farmers are divided on the basis of religion and caste; you have divided them and you want to reap the fruit by dividing them. It is an unorganised sector. Nobody can save this situation. Please remember these words.

I may also draw your attention to the promise which you have given on the floor of this House and also through a letter, `the balance supply to the State shall be fully arranged before the requirement of top pressing in the first week of July'. Where is the first week of July? Where are we today? What happened to that? The Deputy Secretary in my home district had sent me a fax saying that there is so much of shortage and asking me to do something. ... (Interruptions)

SHRI KALPNATH RAI (GHOSI): Please read that. ... (Interruptions)

SHRI H.D. DEVEGOWDA : There is no need to read that. I am not representing only one constituency but I am representing the farmers of this country. ... (Interruptions)

SHRI KALPNATH RAI : Karnataka is the South India. ... (Interruptions)

SHRI H.D. DEVEGOWDA : A South Indian as Prime Minister has given Rs.25,00 crore through fertilizer subsidy, which was removed by my friends. When I came to power, within fifteen days I restored it. ... (Interruptions)

SHRI AJIT JOGI (RAIGARH): You bothered about the farmers.

SHRI H.D. DEVEGOWDA : Let them assure today one thing. I want a categorical reply from the hon. Minister for Fertilizers to my questions. What is the rate fixed for the kharif crop? What is rate fixed for the rabi crop? What is the quantum of the subsidy released for the kharif crop? What is the quantum of the subsidy released for the rabi crop?

Sir, after taking this decision, within one month they changed that decision. If I am correct, they have allowed free trade under OGL. Some of the traders, who tried to bring the fertilizer, DAP or phosphatic fertilizers, they diverted it to other countries as soon as this decision was announced. Diverting in high seas to other countries by the importers in India became a laughing stock in the international trading community. The results are therefore for us to see that the farmers have been deprived of precious DAP at the time of its need more in rabi season.

Fifty-five thousand tonnes is loaded in Jordan. It is not enough to know that. Four lakh tonnes is lying at the port and 55,000 tonnes is being loaded in Jordan. We have to know what is the long term policy of this Government because there is a shortage of thirty-five lakh tonnes. They have just now loaded 55,000 tonnes in a vessel. When is it going to come? You have said that one vessel is now coming to Mangalore and your problem is going to be solved. Your experts have said about Virginia tobacco. When I raised the issue of shortage of nop for virginia Tobacco the technical opinion,suggested that basal the dress is not required. An agronomist gave an

opinion that even the top pressing is going to give a better yield. You have said all these things in this House.

I do not want to go back to all these things. What happened afterwards? The quality of the tobacco which we have got is fourth grade. There is no market today. The farmers have been dying today both in Andhra Pradesh and in any home State. In my State the farmers are dying. I am going to quote one by one how the rates have been fluctuated because of the decision made by this Government.

Sir, with your kind permission, I would like to take a few more declaration that the quantity restriction is removed. Any amount of produce, either agricultural or other industrial products, will have free movement. The quantity restriction is unilaterally removed. He made an announcement in Sri Lanka as the Prime Minister of this country. What the alternative arrangement have you made? Pakistan's import duty is 36 per cent, European Union's import duty is hundred (3.00%), Brazil's import duty is 50 per cent whereas India's import duty is five per cent. So, they started moving.

Shri Madan Lal Khurana was telling me that "you have exported". `Yes', we had exported 50,000 tonnes. I took the decision. Today, they are importing because there is no ban. After removing the restriction, as the Prime Minister, you want to take credit. You have done something by having the test and within one-week all your euphoria has started dying down. You want to get to our country. Their import duty is 36 per cent in Pakistan. How are our farmers going to affect? I would like to know whether any prior decision was made. What will be the effect, if this decision is going to be unilaterally you have discussed this matter in the Ministry of Commerce, in the Ministry of Agriculture or in the Ministry of Finance. Was there any discussion on what should be our stand on commodity-wise tariff?

I do not think there is any coordination between one department and the other department; forget what Mamataji or Dr. Jayalalitha says. That is not the issue before us. You have no capacity to take decisions. You have no coordination. I want to say that this Government is totally unfit and misfit to rule the country. I must compliment Mamataji. She has at least forced to call the Chief Ministers' Conference. I called four times the Chief Ministers' Conference in eleven months. We took several decisions. Whether they belong to BJP or Congress or regional parties, they fully cooperated with us. Why is there total mess? Do you want to build new India with these types of decisions? I do not know what you want to build. You want to destroy this country, nothing beyond that.

If you go through the print media or the electronic media, everyday there is no debate on agriculture or social welfare. (Interruptions). I am not watching T.V. but some people told me that there was one programme relating to C.T.B.T. which was shown on T.V. in which our new External Affairs Minister -who took charge three days back -- was discussing about Mr. Strobe Talbott. (Interruptions). The panel of discussion comprised economists in this country who have discussed only on, what we call, the money supply or the so-called fiscal deficit.


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