Lok Sabha Question No. 6184 (UNSTARRED), answered on 2017-04-11
Subject: Procurement of Foodgrains
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SRIRAM MALYADRI, Dr. BHOLA SINGH

## GOVERNMENT OF INDIA

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

LOK SABHA UNSTARRED QUESTION NO. 6184

TO BE ANSWERED ON 11 TH  APRIL, 2017

## PROCUREMENT OF FOODGRAINS

## 6184.   SHRI MALYADRI SRIRAM: DR. BHOLA SINGH:

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 has taken adequate measures or implemented  schemes  for  decentralized  procurement  in  the  country,  the details thereof;
- (b) whether the Government has taken adequate measures or implemented schemes for doorstep delivery of foodgrains to the TDPS outlets for ensuring supply to entitled persons, the details thereof;
- (c) the number of digitized ration cards registered in the last three years for  the  purpose  of  online  foodgrains  allocation  and  the  status  of  online grievance redressal committee the details thereof;
- (d) the details of the measures taken for providing relief to the farmers for their crops affected with the unprecedented rains and hailstroms;
- (e) the  funds  allocated/utilised  for  centralized  procurement  during  the last three years, State/UT-wise; and
- (f) the  manner  of  utilization  of  procured  foodgrains  along  with  the proportion utilized for public distribution system?

## A N S W E R

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

(a): Decentralized Procurement Scheme (DCP) was introduced by Government of India (GOI) in 1997-98 to increase participation of states in procurement and distribution. Under DCP system, the State Government/its agencies  procure,  store  and  distribute  rice/wheat  within  the  state  under Targeted  Public  Distribution  System  (TPDS)/  National  Food  Security  Act (NFSA) and Other Welfare Scheme (OWS). The excess stocks (Rice & wheat) procured by the State /its agencies are handed over to FCI in Central Pool. The expenditure incurred by the State Government on procurement, storage and  distribution  of  DCP  stocks  are  reimbursed  by  GOI  on  the  laid  down principles.

- 13  States  have  adopted  DCP  mode  of  procurement  for  Rice  and  8 States  adopted  DCP  mode  for  Wheat.  Jharkhand  (One  district  only)  and Maharashtra have adopted DCP for rice from Kharif Marketing Season (KMS) 2016-17.
- (b):  Under  the  National  Food  Security  Act,  responsibility  of  the  Central Government  is  to  allocate  foodgrains  under  Targeted  Public  Distribution System to States/UTs as per their entitlements and provide for its transportation to the depots designated by the Central Government in each State/UT. Thereafter, operational responsibilities for its Distribution to eligible  households  including  delivery  of  foodgrains  upto  door-steps  of  fair price shops rest with the concerned State/UT Government. All the States/UTs had conformed arrangement for door-step delivery before starting implementation of NFSA.
- (c): A  total  number  of  23,19,99,907  digitized  Ration  cards  have  been issued in 36 States/UTs.

Online Allocation has been implemented in 30 States/UTs.

Online grievance redressal facility  and/or  Toll-free  helpline  numbers have been implemented in all States/UTs.

- (d): Government  of  India  follows  a  uniform  policy  for  procurement  of foodgrains under  central pool. All the foodgrains conforming  to  the prescribed  uniform  specifications  offered  for  sale  by  farmers  at  specified centers  are  bought  by  the  public  procurement  agencies  at  the  Minimum Support Price (MSP).

Sometimes due to natural calamity viz. unprecedented rains, erratic rain fall, cyclone, hailstorms and adverse climatic conditions etc., the crop is affected,  thereby  affecting  the  quality  of  foodgrains  and  thus,  foodgrains brought by farmers for sale may not be conforming to the laid down norms of

FAQ specifications.

As a result, relaxations in some refractions of Uniform Specifications are  considered  by  the  Government  of  India  to  mitigate  the  hardship  of farmers and to avoid distress sale at the request of State Government/ UT

administrations.

## (e): Funds allocated/ utilised to FCI for Centralized Procurement including the excess take over stock of DCP states during the last three years is as under:-

(Rupees in Crores )

| YEAR    |   Fund allocated by GOI to FCI |
|---------|--------------------------------|
| 2013-14 |                        75500   |
| 2014-15 |                        91995.4 |
| 2015-16 |                       112000   |
| 2016-17 |                       103335   |

- (f): The procured foodgrains are distributed under Targeted Public Distribution  System  (TPDS)/  National  Food  Security  Act  (NFSA)  and  Other Welfare Scheme (OWS).

The  surplus  stock  of  wheat  is  also  sold  out  of  Central  Pool  in  the open market through Open Market Sale Scheme (OMSS) (Domestic) from time to time to enhance supply and thereby moderate the open market prices.

Total distribution of wheat under TPDS/NFSA for last three years is as follows:-

(Figures in LMT)

| Year    |   Procurement |   Distribution |   Percentage Distributed |
|---------|---------------|----------------|--------------------------|
| 2014-15 |        280.23 |         189.94 |                    67.78 |
| 2015-16 |        280.88 |         222.53 |                    79.23 |
| 2016-17 |        229.62 |         228.71 |                    99.6  |

Total distribution of rice under TPDS/NFSA for last three years is as follows:-

(Figures in LMT as on 05/04/2017)

| Year*   |   Procurement | Distribution   | Percentage Distributed   |
|---------|---------------|----------------|--------------------------|
| 2014-15 |        320.4  | 255.92 79.88   |                          |
| 2015-16 |        342.18 | 273.41         | 79.90                    |
| 2016-17 |        326.82 | 292.95         | 89.64                    |

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