Banning wheat export an anti-farmer measure, Chidambaram flays Center

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The Congress on Saturday hit out on the central authorities over its resolution to ban the export of all wheat from the nation, calling it an anti-farmer measure. Former Union finance minister P Chidambaram stated insufficient procurement of wheat could have pushed the federal government to take such a choice.

Chidambaram, who’s the convenor of the Congress panel deliberating on financial points on the Chintan Shivir Here, additionally made it clear that if the federal government discontinues the cost of GST compensation to states, the social gathering will strongly oppose it. The authorities is more likely to inform states about its resolution on the subsequent assembly of the Goods and Services Tax (GST) Council.

Sources stated the declaration on the finish of the Udaipur Nav Sankalp Shivir will formally announce the social gathering’s opposition to the discontinuation of GST compensation to states.

On wheat exports, he stated “I presume that it is because the central government has failed to procure enough wheat. It is not that wheat production has come down. It is more or less the same. In fact, it may be marginally more. Yesterday, I was told by the Chhattisgarh minister that they have been able to procure 97 lakh tonnes of paddy. So if procurement had taken place… there would not be any need to ban the export of wheat,” he stated.

“Let me add. Banning the export of wheat is an anti-farmer measure. It deprives the farmer of reaping the advantages of upper export costs. It is an anti-farmer measure. And I’m not stunned. This authorities has by no means been very pleasant to the farmer,” he added.

“On the GST, we imagine that the compensation interval of 5 years that may expire on June 30, 2022 should… be prolonged at the least by one other three years. We would disapprove if any try is made by the central authorities or the Union Finance Minister to railroad the GST Council and stop it from recommending an extension of the GST compensation interval by one other three years. We will strongly oppose that. And we are going to insist that or not it’s prolonged,” Chidambaram stated.

He stated the Center is but to pay Rs 78,704 crore as compensation to states until March 31. “We are already in the midst of May and this quantity has not been paid. And the compensation interval will come to an finish on June 30. I imagine it’s the unanimous demand of all of the state governments that the compensation interval have to be prolonged and arrears of GST have to be paid forthwith.”

Chidambaram stated the “time is ripe for a comprehensive review of Centre-states fiscal relations.”

“The consequences of the poorly drafted and unfairly implemented GST laws brought in by the Modi government in 2017 are there for everyone to see. The states’ fiscal position is fragile as never before and needs urgent remedial measures,” he added.

Chidambaram stated there’s a “complete breakdown of trust” between the central authorities and the state governments. “If you think that only the non-BJP state governments have expressed this breakdown of trust, you are wrong. Privately, we know that even BJP finance ministers who attend the GST council have expressed their dismay and concern about the complete breakdown of trust.”

Asked about bringing petrol and diesel beneath the ambit of GST, he referred to the “complete breakdown of trust” and stated “there is no way, no chance at all of the present government making any headway in trying to persuade states to bring petrol and diesel under GST. There is no chance of that happening under this government.”

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With inputs from TheIndianEXPRESS

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