Rediff Logo News The Rediff Chat Find/Feedback/Site Index
HOME | NEWS | REPORT
May 13, 1998

ELECTIONS '98
COMMENTARY
SPECIALS
INTERVIEWS
CAPITAL BUZZ
REDIFF POLL
DEAR REDIFF
THE STATES
YEH HAI INDIA!
ARCHIVES

Congress wants to know why UF bought wheat from Australia

The Congress has demanded a Central Bureau of Investigation probe into the Rs 10 billion deal wherein the United Front government purchased wheat from Australia.

Party spokesman Ajit Jogi said the purchase, made in February when the country was actively engaged in the general election, appeared to be 'shady' -- a CBI probe could reveal if anyone had received kickbacks.

He said the commerce ministry, headed by Telugu Desam minister B B Ramaiah, had purchased 1.5 million tonnes of wheat from Australia at $ 145 per tonne when the country had adequate stocks. The Food Corporation of India and the ministries of food and agriculture had opposed the purchase.

The wheat arrived in the country in April, during India's peak procurement season. What was astonishing was the price paid for the imported wheat was Rs 850 a quintal when Indian farmers were offered a support price of Rs 510.

The Congress alleged that the BJP-led government was purposely dragging its foot on the issue. Party MP S S Surjewala had raised the matter in Parliament, but with no result. The government owed an explanation whether this was the price the BJP was paying for its support from the TDP, the spokesman said.

Giving more details, Jogi alleged that the State Trading Corporation floated the tenders on a holiday and finalised it on another holiday. The Australian wheat, which had a low shelf life, was preferred to wheat from the United States and Canada, which had longer shelf life and would have cost the exchequer less. The US, in fact, had even lodged its protest against the deal, he said.

The BJP-led government, Jogi continued, which talked of transparency and morality in politics had taken no action to unravel the UF misdeeds. The Congress would follow up on the issue, he promised.

UNI

Tell us what you think of this report

HOME | NEWS | BUSINESS | CRICKET | MOVIES | CHAT
INFOTECH | TRAVEL | LIFE/STYLE | FREEDOM | FEEDBACK