Lok Sabha Question No. 753 (UNSTARRED), answered on 2017-02-07
Subject: Private Agencies for Procurement of Crops
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: GOWDAR MALLIKARJUNAPPA SIDDESHWARA

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 753

TO BE ANSWERED ON 07 th  FEBRUARY, 2017

## PRIVATE AGENCIES FOR PROCUREMENT OF CROPS

## 753.  SHRI G.M. SIDDESHWARA:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the names of private agencies which are proposed to be included for procurement of crops like rice and wheat;
- (b) whether any arrangement has been made for monitoring the work of private agencies and if so, the details thereof; and
- (c) whether  involvement  of  private  agencies  will  create/resolve  the various irregularities/problems concerning foodgrain procurement at MSP and if so, the details thereof?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI C. R. CHAUDHARY)

- (a): As per the policy introduced by Government of India (GOI), engagement of private players for procurement of Paddy/Rice was attempted from KMS 2015-16. Statement showing details of private players engaged for paddy/rice procurement is at Annexure-I.

No private player is presently engaged for wheat procurement.

- (b): Yes, Madam. Engagement of private players to enhance outreach of MSP to large number of farmers especially small and marginal ones has been ensured through tender process; the private players are bound by elaborate terms and conditions stipulated  in the contracted agreement. These terms and conditions are designed to protect the interest of farmers. For monitoring the  private  players,  adequate  arrangements  have  been  prescribed  in  the Model Tender Form and contract agreement, which are available at AnnexureII.
- (c): No  irregularities/  problems  have  been  occurred  in  KMS  2015-16 pertains to involvement of private agencies in procurement of paddy.

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| Cluster   | Revenue Distt      | Name of private party engaged   |
|-----------|--------------------|---------------------------------|
| Cluster 1 | South Chottanagpur | M/S NCMSL                       |
| Cluster 2 | Kolhan             | M/S NCMSL                       |

## (III) West Bengal:

| Cluster   | Revenue Distt   | Name of private party engaged    |
|-----------|-----------------|----------------------------------|
| Cluster 1 | Bankura         | M/S Veerprabhu Marketing Limited |
| Cluster 2 | Burdwan         | M/S Veerprabhu Marketing Limited |
| Cluster 3 | Dinajpur        | M/S Veerprabhu Marketing Limited |
| Cluster 4 | Siliguri        | M/S Veerprabhu Marketing Limited |

## ANNEXURE-I

## ANNEX REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO  753  TO BE ANSWERED ON 7 th  FEBRUARY, 2017 IN LOK SABHA.

Details of private players engaged for paddy/rice procurement

## (I) Uttar Pradesh:

| Cluster   | Revenue Distt                                         | Name of private party engaged               |
|-----------|-------------------------------------------------------|---------------------------------------------|
| Cluster 1 | Ballia, Mau, Ghazipur, Chandauli                      | M/S NCML                                    |
| Cluster 2 | Allahabad, Kausambhi, Pratapgarh, Sultanpur           | M/S Veerprabhu                              |
| Cluster 3 | Ambedkarnagar, Basti, Sant Kabirnagar, Siddharthnagar | M/s Farmers fortune (India) Private Limited |

## (II) Jharkhand:

## ANNEXURE-II

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  UNSTARRED QUESTION NO.  753  TO BE ANSWERED ON 7 th  FEBRUARY, 2017 IN LOK SABHA.

1. Private Player to check documents prescribed by FCI for verification of identity of farmers.
2. FCI to verify that the payment of MSP has been made by the private parties  within  two  working  days  by  RTGS/NEFT/Electronic  Mode  before reimbursement of the MSP to private parties besides ensuring that all the statuary liabilities have been discharged by the private parties within the prescribed time limit.
3. The private players are bound to furnish daily procurement reports to FCI.
4. FCI has right to inspect the purchase centers/storage points of the private parties/millers premises.
5. FCI to monitor that private parties are in possession of the required licence/permissions from the concerned Central/State Government Local authorities  for  carrying  the  procurement  operations,  maintain  proper records of all the procurement activities like rejections, payment made to the farmers, transportations, quality checks, weighment, storage etc.
6. Quality  checking  of  rice  is  carried  out  by  FCI  at  the  time  of acceptance at its Depot.
7. FCI  to  evaluate  the  performance  of  private  parties  and  impose commensurate penalty on private players for their acts of omissions and commissions. In case, the performance private parties is found wanting at any point of time, in addition to payment of penalties, their engagement shall also be liable to be terminated at their risk and cost in which case Security deposit furnished by them shall be forfeited and they shall be blacklisted for a period which may extend up to 5 years.

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