The ITC's license to purchase 500,000 metric tonnes of wheat directly from the farmers in Uttar Pradesh (UP) state was suspended till 30 June 2008 by UP state government.
Despite of a UP government's cabinet order not to purchase wheat till 30 June 2008 during the 'Rabi' crop harvesting season, and another state government's order on 25 May 2008 which fixes stock limit for traders, ITC could manage to get a license issued from Agriculture department of UP government on 30 May 2008 to purchase 500,000 metric tonnes of wheat directly from the farmers. When the leading English newspaper The Times of India exposed this on 6 June 2008, the state government was left with no choice but come out clean - and suspend the license of ITC till June 30 (in accordance with earlier government orders and cabinet decision).
"Corporations are notorious to indulge in political lobbying and all measures to safeguard their markets, with blatant disregard to public interest and welfare" said Dr Sandeep Pandey, Convener of National Alliance of People's Movements (NAPM) and Ramon Magsaysay Awardee (2002).
In present times when food crisis is looming large over India, it is particularly of critical significance that governments put a check on these corporations.