Lok Sabha Question No. 1994 (UNSTARRED), answered on 2017-03-14
Subject: Procurement Policy for Wheat and Rice
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SHARAD TRIPATHI, P. KUMAR

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1994

TO BE ANSWERED ON 14 TH  MARCH, 2017

## PROCUREMENT POLICY FOR WHEAT AND RICE

1994.

SHRI SHARAD TRIPATHI:

SHRI P. KUMAR:

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 total quantum of foodgrains, grain-wise and other items procured  by    the  Government  during  each  of  the  last  three  years  and  the manner in which  it has been utilised;
- (b) the  details  of  the  complaints  received  about  the  irregularities  in procurement of paddy and wheat from various States along with the reasons therefor and the steps taken by the Government in this regard;
- (c) whether  despite  the  announcement  of  minimum  support  price  for more  than two dozens of items including oilseeds and pulses, the current procurement  policy  is  mainly  focused  on  buying  wheat  and  rice  from  the farmers and if so, the details thereof and the reasons therefor; and
- (d) whether the foodgrain procurement pattern adopted by the Government promote the production of these items only for which there is enough  buffer    stock  in  the  country  and  the  oilseeds,  pulses  and  other commodities  are  being  imported  in  large  quantity  the  country  inspite  of adequate stock if so, the details thereof and the response of the Government thereto?

A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI C. R. CHAUDHARY)

(a): The procurement of Rice and Wheat during last three years and current year is as under:

(As on 07.03.2017 )(Fig. in LMT)

| Marketing Year   |   Rice |   Wheat |
|------------------|--------|---------|
| 2013-14          | 318.45 |  250.92 |
| 2014-15          | 320.4  |  280.23 |
| 2015-16          | 342.18 |  280.88 |
| 2016-17          | 307.44 |  229.61 |

The  procurement  of  coarsegrain  during  the  last  three  years  and current year is at Annexure.

The total quantum of pulses procured during KMS 2015-16, RMS 2016-17 and KMS 2016-17 are as under:

Pulses procured during KMS 2015-16

(Fig. In MT)

| Pulses   | FCI       | NAFED     |    SFAC | TOTAL     |
|----------|-----------|-----------|---------|-----------|
| Tur      | 20,272.01 | 20,000.79 | 5258.05 | 45,530.85 |
| Urad     | 4.72      | 1764.03   | 3122.9  | 4891.65   |
| Total    | 20,276.73 | 21,764.82 | 8380.95 | 50,422.5  |

Pulses procured during RMS 2016-17

(Fig. In MT)

| Pulses   | FCI       | NAFED     |    SFAC | TOTAL     |
|----------|-----------|-----------|---------|-----------|
| Chana    | 15,200.74 | 20,266.16 | 25026.4 | 60,493.33 |
| Masur    | 4335.57   | 2987.68   |  1232.5 | 8555.75   |
| Total    | 19,536.31 | 23,253.84 | 26258.9 | 69,049.08 |

Pulses procured during KMS 2016-17

(As on 07.03.2017 )(Fig. in LMT)

| Pulses   | FCI         | NAFED      | SFAC      | TOTAL     |
|----------|-------------|------------|-----------|-----------|
| Moong    | 61790.54    | 128,953.33 | 26,226.88 | 216970.75 |
| Urad     | 18,172.73   | 59,393.54  | 9627.77   | 87,194.05 |
| Tur      | 1,22,752.06 | 429486.56  | 58564.68  | 610803.30 |
| Total    | 2,02,715.33 | 617833.44  | 94419.33  | 914968.09 |

Wheat and rice are distributed under Targeted Public Distribution System (TPDS),  National  Food  Security  Act  (NFSA)  and  Other  Welfare  Scheme (OWS) and sold in open market through e-auction under Open Market Sale Scheme  (OMSS).  Coarse  grains  are  distributed  under  TPDS.  Pulses  are offered to States/Agencies for direct distribution to public/consumers at a reasonable rate. The quantities not lifted by agencies are auctioned in the market depending upon price situation and storability.

(b): No such complaints received about the irregularities in procurement of paddy and wheat from any state in recent past. ...3/-

(c)  &  (d):  Minimum  support  prices  (MSP)  is  announced  by  the  GOI  for twenty three (23) crops including oilseeds and pulses. In addition, MSP for Toria  and  De-Husked  coconut  is  also  fixed  on  the  basis  of  MSPs  of Rapeseed/Mustardseed and Copra respectively.

In addition to the procurement of wheat and paddy/rice, under Price Support  Scheme  (PSS),  the  procurement  of  oil  seeds,  pulses  and  cotton through  Central  Nodal  Agencies  at  the  Minimum  Support  Price  (MSP)  is also  undertaken.  This  scheme  is  implemented  at  the  request  of  the concerned  State  Government  which  agrees  to  exempt  the  procured commodities from levy of mandi tax and assist central nodal agencies in logistic  arrangements  including  gunny  bags,  provide  working  capital  for state  agencies,  creation  of  revolving  fund  for  PSS  operations  etc.  as required under the Scheme guidelines. The basic objectives of PSS are to provide remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of consumers by making available supplies at reasonable prices with low cost of intermediation.

Further,  Government  of  India  also  implements  Market  Intervention Scheme (MIS) for procurement of agricultural and horticultural commodities which are perishable in nature and are not covered under the Price Support Scheme (PSS). The objective of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop  during  the  peak  arrival  period  when  the  prices  tend  to  fall below economic levels and cost of production. The condition is that there should  be  either  at  least  a  10  percent  increase  in  production  or  a  10 percent  decrease  in  the  ruling  market  prices  over  the  previous  normal year. The scheme is implemented at the request of a State/UT government which is ready to bear 50 percent of the loss (25 percent in case of NorthEastern States), if any, incurred on its implementation. The extent of total amount  of  loss  to  be  shared  on  a  50:50  basis  between  the  Central Government and the State Government is restricted to 25 percent of the total  procurement  value  which  includes  cost  of  the  commodity  procured plus permitted overhead expenses.

****

## ANNEX REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO 1994 TO BE ANSWERED ON 14 TH  MARCH, 2017 IN LOK SABHA.

## STATEMENT SHOWING PROCUREMENT OF COARSEGRAINS

|             |           |       |           |       |         |         | As on     | As on           | As on   | As on                    | As on   |
|-------------|-----------|-------|-----------|-------|---------|---------|-----------|-----------------|---------|--------------------------|---------|
|             | COMMODITY | A.P.  | TELANGANA | BIHAR | C. GARH | HARYANA | KARNATAKA | 09.03.2017 M.P. | MAH.    | (Figures in Tonnes) RAJ. | TOTAL   |
|             | JOWAR     |       |           |       |         |         | 4         | 2               | 85      |                          | 91      |
|             | BAJRA     |       |           |       |         |         |           |                 |         |                          | 0       |
|             | MAIZE     | 27918 | 288904    | 722   | 2587    |         | 713807    | 86573           | 95555   |                          | 1216066 |
|             | RAGI      |       |           |       |         |         | 14788     |                 |         |                          | 14788   |
| 2014 - 2015 | JOWAR     |       |           |       |         |         | 6839      | 1643            | 5867    |                          | 14349   |
| 2014 - 2015 | BAJRA     |       |           |       |         |         |           |                 |         |                          | 0       |
| 2014 - 2015 | MAIZE     | 4945  | 6438      |       |         |         |           | 301842          | 1619    |                          | 314844  |
| 2014 - 2015 | RAGI      |       |           |       |         |         | 135955    |                 |         |                          | 135955  |
| 2015 -16    | JOWAR     |       |           |       |         |         | 7129      | 4947            | 16569   |                          | 28645   |
| 2015 -16    | BAJRA     |       |           |       |         | 5053    |           |                 |         |                          | 5053    |
| 2015 -16    | MAIZE     |       |           |       |         |         |           | 22962           | 11      |                          | 22973   |
| 2015 -16    | RAGI      |       |           |       |         |         | 203769    |                 |         |                          | 203769  |