Union Cabinet approves reimbursement to 4 government agencies for import of pulses
The Union Cabinet has approved reimbursement of 113 crore rupees for incurring losses on pulses imported by four government agencies between 2006- 2011 period.
These four government agencies are National Agricultural Cooperative Marketing Federation of India (NAFED), Metals and Minerals Trading Corporation of India (MMTC), State Trading Corporation of India (STC) and PEC.
This decision will enable these 4 PSUs to be financially sound in order to intensify trading activities to cool down prices of essential commodities.
This decision was taken at Union Cabinet meeting chaired by Prime Minister Narendra Modi proposal of Union Ministry of Food and Consumer Affairs.
Background
- During the period from 2006-11, Union Government had introduced two schemes in order to bridge the demand-supply gap in pulses.
- In first scheme, Government had asked these four PSUs to import and sell pulses in the open market with subject to reimbursement of 15 per cent losses.
- The other scheme government was to distribute these imported pulses via ration shops i.e. Public distribution System (PDS) to poor people at a fixed subsidy of 10 rupees per kg.
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Month: Current Affairs - September, 2015