Kirit Somiaya demands CBI inquiry into wheat scam

Mumbai, Aug 7 (UNI) BJP leader Dr Kirit Somaiya has demanded a a CBI inquiry into the 'wheat scam' and sought an explanation and action against the agriculture ministry.

Talking to reporters, Dr Somaiya said it is a proven fact that it is one of the biggest food scams of India. The Food Ministry cancelled the order/contract of importing wheat at the rate of 263 dollar per metric tonne (MT) in June 2007. The same Ministry floated fresh tender in June 2007 (same month) and entered into agreement to import wheat at 325 dollars/MT. He said he had obtained this information from the Ministry of Food and Public Distribution.

Dr Somaiya has further stated the Food Ministry has informed him that the State Trading Corporation initiated action for importing one million tonne of wheat in May 2007. Tenders were floated, purchase was finalized at the rate of 263 dollars/MT. The government, in its reply and explanation to Dr Somaiya said the decision to import wheat in May 2007 was taken to augment the domestic availability of wheat and to check open market prices.

The scam of finalising the order at 263 dollars/MT with a reason to develop buffer stock, then cancel the same with an excuse that ''the Ministry intimated STC to cancel the order in view of news item floated in media about the bumber crop of wheat in Australia and chances of fall in prices in the International Market.'' The same Ministry informed Dr Somaiya that a couple of days later, the government re-informed STC to develop buffer stock.

The Ministry, in its clarification, informed the BJP leader that the previous tender of 263 dollars/MT ie Rs 1,063/MT was cancelled keeping in mind the fact that purchasing at such a higher price against domestic price of Rs 7.50/kg shall induce discontentment among domestic farmers. The same Food Ministry asked STC to import wheat at Rs 1,317/MT.

''Will there not be any discontentment among Indian farmers? Is the policy of scrapping the tender of Rs 1,063 and purchase at Rs 1,317 protecting the farmers?'' he asked.

Dr Somaiya said ''This is a broad daylight white-collar robbery by the Food Ministry.'' Cancelling the import order of Rs 10.63/kg wheat and re-tendering it in just a few days to purchase the same/similar type of wheat at Rs 13.17/kg is one of the biggest wheat import scams of the country, he alleged.

Dr Somaiya charged the government of robbing the Indian farmer, Government Treasury and the small consumer. As per Consumer Ministry's reply to Dr Somaiya, the retail price of wheat during June 2007 was at Rs 10-12/kg in the Indian market. Now the government is importing at Mundra Port inferior quality wheat at Rs 13.17/kg. The cost of wheat at the retail shop shall not be less than Rs 15/kg.

UNI