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BANKING TRADE AND COMMERCE
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CONTROLs AND FAIRS PRICE SHOPS
The history of controls and rationing in the Walwa, Khanapur and Tasgaon talukas [Information on this subject, regarding the then Princely States merged in the present Sangli district is not available.] dates back to 1942. Due to the general shortage of consumer goods caused by the World War II, the Government of India introduced countrywide rationing. Rice, Wheat, Jowar, bajra, sugar, gul, kerosene and cloth
were distributed through ration shops. Sale and purchase of these articles in the open market and their movement were prohibited by law. The Government had introduced the 'compulsory levy system'. Under this system a certain proportion of the grains produced was procured from the producer. This system continued in its original form till 1948 when the first step towards decontrol was taken. The levy system was discontinued from 1948. The food situation improved to some extent after 1950. The Government of India therefore decided to relax the extent of controls in 1950. This was followed by complete decontrol in 1954.
Limited controls were imposed again in 1956 due to the adverse food situation. This measure was accompanied by the starting of fair price shops and restrictions on the movement of certain foodgrains. The years 1959, 1962, 1963 and 1964 witnessed steep rise in the prices of rice, wheat, jowar and many other foodgrains. This prompted the Government to establish more fair price shops and import of foodgrains. The food situation further worsened in 1964 and 1965.
The Government of Maharashtra therefore introduced informal rationing and monopoly procurement of rice, jowar and wheat by the Government agencies. Under the procurement system the Government purchases these articles from the agriculturists at the stipulated prices. Though these prices are higher than those prevailing during the previous seasons, they are much lower than those prevailing in the open market. Sale of these foodgrains by the agriculturist to the private trader is banned under Government orders. The Government thus became the monopoly purchaser.
The grains thus procured are distributed through fair price shops at stipulated prices. A part of the grain store is kept as buffer stocks to meet any adverse situation arising from shortages. Besides the indigenous stock of grains, wheat and rice are imported from foreign countries to meet the demand.
The fair-price shops are recognised by the Government. For the purpose of recognition of fair-price shops co-operative societies and village panchayats are given a preference over private shopkeepers. These shops are controlled and inspected by the Government officials. They are required to maintain (i) a stock register, (ii) a visit book and (iii) daily sale register. The issue of cash memo in respect of each sale is compulsory. The consumers are issued household ration cards which are renewed periodically.
At present there is complete rationing in respect of sugar, and informal rationing in respect of rice, wheat and jowar.
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