More reports on: Government policies

Centre to encourage states to procure foodgrains

16 December 2015

The central government is encouraging the state government to adopt decentralised procurement system for wheat, paddy and rice, under which, food grains procured by the states are distributed by the state governments themselves. 

Under Decentralised Procurement Scheme (DCP), the designated DCP states procure, store and issue foodgrains under the Targeted Public Distribution System (TPDS) and other welfare schemes of the government of India.

The objective of procurement will also be to ensure minimum support price (MSP) for farmers, while at the same time enhancing the efficiency of procurement and encouraging procurement in non-traditional states, thereby extending the benefits of MSP to local farmers as well as save on transit losses and costs.

This also enables procurement of foodgrains more suited to local taste for distribution under the TPDS.

Food Corporation of India (FCI) will accept only the surplus foodgrains after deducting the needs of the states, from these state governments (not millers) which require to be moved to deficit states, minister of consumer affairs, food and public distribution Ram Vilas Paswan informed the Lok Sabha in a written reply today.

The minister said that with a view to encouraging adoption of DCP system, FCI has organised workshops in non DCP / partially DCP states to highlight the advantages of DCP mode.

He said that in case of DCP states, state governments procure foodgrains on behalf of the central government. The procured foodgrains are distributed by them directly under TPDS and welfare schemes to the extent of allocation approved by the central government and surplus quantity,  if any, is handed over to FCI. Any deficit is also met by FCI.

The government, meanwhile, approved the creation of a buffer stock of pulses through procurement of about 50,000 tonnes of the commodity from the kharif crop 2015-16 and one lakh tonnes out of arrivals of rabi crop of 2015-16.

The procurement will be done through Food Corporation of India (FCI), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Small Farmers' Agribusiness Consortium (SFAC) and any other agency as may be decided, Paswan informed the house.

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