‘States Must Encourage Farmers to Increase Sowing to Boost Exports,’ says Piyush Goyal

Union Food and Consumer Affairs Minister Piyush Goyal asked states on Tuesday to encourage farmers to increase paddy and wheat sowing area because increased domestic production will boost India's exports. In an address to a conference of state food ministers on food and nutrition security in India, the minister urged state governments to submit pending food subsidy claims for the 2019-20 fiscal years as soon as possible in order to expedite the settlement of old accounts.

Goyal told state governments that there is no shortage of funds at the Centre to settle old food subsidy claims, but the delay is due to states failing to file their claims with proper documentation. The Union Minister urged all states to submit their claims with all supporting documents and audit reports by August 15.

States that file claims by August 15 will receive their payments by October 15. If the papers are filed by September 30, the settlement will be made without interest in January 2023.

"States frequently come to us with old pending subsidy claims." "Subsidy claims are frequently pending not because funds are not available, but because you are not providing the data and are not fulfilling the audit requirements, as has been very well articulated to all of you," Goyal said.

"We are ready to clear everyone's dues up to the year 2019-20...if you do not submit your claims with supporting documentation, we will consider your claims null and void and close all files until 2019-20," he added.

He stated that the Centre has issued a new subsidy claim settlement policy and has requested that states provide feedback on it. State governments should file claims online beginning in 2020-21, according to Goyal.

As many participating states/UTs expressed concern about the CAG audit delay, he directed food ministry officials to contact CAG to expedite the audits. During the meeting, the union minister also urged all states to increase rice and wheat planting.

"This will help us increase exports and farmers as international demand grows," he added. Paddy is sown in both the Kharif (summer) and Rabi (winter) seasons, whereas wheat is a Rabi crop.

India has currently prohibited wheat exports because the country's production and government procurement were hampered by a heat wave in March. The minister emphasized that the "One Nation, One Ration Card" (ONORC) scheme has already been implemented across the country, with 45 crore transactions occurring as a result of this initiative.

Goyal has asked states to use the ONORC in the future to issue Ayushman Bharat cards and for immunization. Uttar Pradesh has already begun to use this system to provide free healthcare. During the meeting, the Union Minister expressed disappointment that several state food ministers did not attend.