Lok Sabha Question No. 511 (UNSTARRED), answered on 2017-12-19
Subject: Reforms in Decentralized Procurement Scheme
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA, ALOK SANJAR

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 511

TO BE ANSWERED ON 19 TH  DECEMBER, 2017

## REFORMS IN DECENTRALIZED PROCUREMENT SCHEME

## 511. SHRI RAJESHBHAI CHUDASAMA: SHRI ALOK SANJAR:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC

DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  the  Government  is  of  the  view  that  there  is  a  need  for making reforms in Decentralised Procurement Scheme (DPS) and if so, the details thereof;
- (b) whether the Government is contemplating to implement the scheme on all India basis which is at present only implemented and followed by a few States;
- (c)
- if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government  has reviewed the current system of procurement of foodgrains, marketing, storage, preservation and distribution; and
- (e) if  so,  the  details  thereof  and  if  not,  the  reasons  therefor  and  the details of the corrective steps taken in this regard?

## A N S W E R

## MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a): NITI AAYOG has been requested to study the trends in procurement of foodgrains and assess impact of Decentralized Procurement Scheme (DCP) system  thereon  and  to  assess  the  efficiency  and  effectiveness  of  the procurement agencies under DCP System.
- (b) & (c): Yes madam. Non- DCP States are regularly encouraged to take up  Decentralized  Procurement  System  (DCP)  for  foodgrains.  However,  it  is implemented with the consent of concerned state.

As  on  date  15  States  have  adopted  DCP  mode  for  procurement  of Rice  (Out  of  which  Jharkhand  has  partially  adopted  DCP  operation  for  five revenue districts).

Further, 8 States have adopted DCP mode for procurement of Wheat (Out of which Rajasthan has partially adopted DCP operation for 9 districts. However, the State  has  been  included  in  Centralized  Procurement  only  for RMS 2017-18).

Detailed list is attached at Annexure.

- (d) & (e): A High Level Committee (HLC) under the Chairmanship of Shri Shanta Kumar was set up, to review the current system of procurement of foodgrains,  marketing,  storage,  preservation  and  distribution.  Based  on recommendation of HLC, important actions taken are as follows:-
1. Levy on rice millers has been abolished.
2. The rules for registration of Negotiable Warehouse Receipts (NWRs) has been amended to streamline its functions and to increase the use of NWRs.
3. Depot Online System is currently operational at 526 FCI depots.
4. Special  focus  on  procurement  of  paddy  in  Eastern  States  has  been given resulting in increase of procurement of rice during KMS 2016-17 upto 70.70 Lakh MT against 53.65 LMT during KMS 2015-16.
5. Private Players has been engaged by FCI to maximise the outreach of MSP operations in Eastern States,.
6. Government of India has approved Action Plan for construction of 100 LMT silos upto 2019-20.
7. A policy decision has been taken for non-acceptance of rice/wheat in Central Pool in the event of a surplus states declares a bonus over and above MSP.

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## ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PARTS (b) & (c)  OF  THE UNSTARRED QUESTION NO. 511 DUE FOR ANSWER ON 19.12.2017 IN LOK SABHA

## List of DCP States

|   S.N. | State/UT                     | DCP adopted for   |
|--------|------------------------------|-------------------|
|      1 | A&N Islands                  | Rice              |
|      2 | Bihar                        | Rice/Wheat        |
|      3 | Chhattisgarh                 | Rice/Wheat        |
|      4 | Gujarat*                     | Rice/Wheat        |
|      5 | Karnataka                    | Rice              |
|      6 | Kerala                       | Rice              |
|      7 | Madhya Pradesh               | Rice/Wheat        |
|      8 | Odisha                       | Rice              |
|      9 | Tamil Nadu                   | Rice              |
|     10 | Uttarakhand                  | Rice/Wheat        |
|     11 | West Bengal                  | Rice/Wheat        |
|     12 | Punjab                       | Wheat             |
|     13 | Rajasthan (in 9 District) ** | Wheat             |
|     14 | Andhra Pradesh               | Rice              |
|     15 | Telangana                    | Rice              |
|     16 | Maharashtra                  | Rice              |
|     17 | Jharkhand (5 District)***    | Rice              |

KMS 2017-18. ** State has been included in Centralized Procurement only for RMS 2017-18. ***Operated DCP System in one district during KMS 2016-17 and in

5 Districts from KMS 2017-18.