Central government to finalise dual pricing for grains
New Delhi: The Union Government is planning fto implement a dual pricing policy for public procurement of foodgrains. This follows a 38 per cent dip in wheat purchases by the Food Corporation of India (FCI) and State agencies this year on account of the private trade offering better rates to farmers.

Under dual pricing, the Government would, apart from announcing a fixed minimum support price (MSP) based on cost of cultivation, also offer a variable rate linked to open market price movements which will give farmers an effective procurement price that corresponds to ruling market rates, while simultaneously ensuring they receive the MSP covering basic costs.

Currently, the Government pays farmers a price bonus over and above its MSP. In the current 2006-07 rabi marketing season (April-June), for instance, the final procurement price of wheat, at Rs700 per quintal, included an MSP of Rs650 plus a bonus of Rs50. But this bonus is a fixed rate for the whole season and uniformly applicable to all wheat-growing States.

Under the dual pricing scheme, is only the MSP would be fixed and would be the same across the country. The variable component could change during the season and also differ from region to region. The Government would as such be obliged to pay only the MSP, while retaining the flexibility to pay more wherever it is feasible.

In the long-run, this would also bring in greater transparency, with the MSP becoming a `genuine cost-based support price' and the variable component being totally market-driven, linked to the Government's buffer stocking requirements.
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Maharashtra govt stops development of mill land
Mumbai: The Maharashtra government has issued an order stalling the development of mill land in the city, pending the resettlement of chawls on premises. The government has said that the Municipal Corporation of Greater Mumbai would not grant permission to development plans of mill land unless it includes the rehabilitation of chawls adjacent to the mill lands. The development of the chawls will be over and above the provision for one-third of the mill land being given to the Maharashtra Housing and Area Development Authority for low-cost housing.

According to the order, which comes into effect from June 14, the developer is bound to give a 225 sq ft flat to each tenement holder as of January 1, 2000.

The state government's order is likely to stall 30 million sq ft of development across both NTC and privately owned mill land that is currently coming up in the mill area, valued at Rs15,000 crore.

These developments include the five mills NTC sold to private developers including India Bulls (Elphinstone and Jupiter Mills) and DLF (Mumbai Mills).
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Governor approves Maharashtra ordinance on quota
Mumbai: The Maharashtra Governor S M Krishna has given his assent to the ordinance issued by the state government to reserve 25 per cent seats for Scheduled Castes, Scheduled Tribes and Other Backward Class in private unaided colleges which run professional courses in engineering, medicine, architecture and management.

Earlier in June 2005, the Supreme Court struck down the provision of reservations in private unaided colleges which was in place in various states like Maharashtra, Tamil Nadu and Karnataka. After political parties raised a hue and cry, the Constitution was amended to allow reservations in private unaided colleges.
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