Lok Sabha Question No. 574 (UNSTARRED), answered on 2019-06-25
Subject: Procurement of Foodgrains
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: D.K. Suresh

## GOVERNMENT OF INDIA

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

## LOK SABHA

## UNSTARRED QUESTION NO. 574

TO BE ANSWERED ON 25 th  JUNE, 2019

## PROCUREMENT OF FOODGRAINS

## 574. SHRI D.K. SURESH:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION उपभोक्ता त मल , ाखतद्ा औा तावर्ज�ाका्औता  मं be pleased to state:

- (a) the details of the targets fixed and achieved for procurement of foodgrains during each of the last three years and the current year along with the quantum of foodgrains procured by the private traders during the said period, State-wise;
- (b) whether  the  Government  has  decided  to  procure  foodgrains  at market rates for the Public Distribution System (PDS); (c) if so, the details thereof and the reasons therefor;
- (d) whether  the  Government  had  prepared  any  policy  for  buying foodgrains for the PDS at market rates in order to meet the shortfall; and
- (e) if so, the details thereof and the steps taken to ensure remunerative price to the farmers for their products?

## A N S W E R

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAMVILAS PASWAN)

- (a): The  Department  of  Food  &  Public  Distribution  is  responsible  for extending price support to paddy and wheat through the Food Corporation of  India  (FCI)  and  State  Agencies  across  the  country.  The  procurement policy is open ended. Under this policy, wheat and paddy offered by farmers, within the stipulated period & conforming to the specifications prescribed by Government of India, are purchased at Minimum Support Price (MSP) by the State Government agencies including Food Corporation of India (FCI) for Central Pool. However, if producer/farmer gets better price in comparison to MSP, they are free to sell their produce in open market i.e. to private trader/ anyone. The objective of foodgrains procurement by Government agencies is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale. It aims to service the NFSA and other welfare  schemes  of  the  Government  so  that  subsidised  foodgrains  are supplied to the poor and needy, and to build up buffer stocks of foodgrains to  ensure  foodgrain  security.  There  is  sufficient  stock  of  Central  Pool  to meet the requirement of PDS.

.............2/-

State-wise, estimate and procurement of Rice and Wheat during each of the last three years and the current year is enclosed as Annexure-I & II respectively.

- (b): No.
- (c): Does not arise in view of (b) above.
- (d): No.
- (e): The  following steps are taken to ensure  that farmers get remunerative price for wheat and paddy:
- i) Before  the  onset  of  each  marketing  season,  Department  of  Food and Public Distribution, Government of India (GOI) holds a consultative meeting  with  the  officials  of  Food  Corporation  of  India  (FCI),  State Governments and others to make an assessment of availability of wheat and  paddy/rice  for  procurement  at  MSP  based  on  the  prospects  of production and market situation.
- ii) Minimum Support Price (MSP) operations are given wide publicity through pamphlets, banners, sign boards radio, TV and advertisements through print & electronic media.
- iii) Farmers are made aware of the quality specifications and purchase system, etc. to facilitate the farmers to bring their produce conforming to the specifications.
- iv) Payment for the wheat and paddy procured from farmers is either made directly to the farmers or through arthias/co-operative societies as per  prevailing  system  of  the  State.  Payment  to  farmers  are  also  made through A/c payee cheque/electronic mode.
- v) Procurement centres are opened by respective State Government Agencies/    Food  Corporation  of  India  (FCI),  taking  into  account  the production, marketable surplus, convenience of farmers and availability of other logistics / infrastructure such as storage and transportation, etc. Large number of temporary purchase centres, in addition to the existing Mandis and depots/godowns are also established at key points for the convenience of the farmers.
- vi) FCI  and  many  of  the  States  have  developed  online  procurement systems. Through online systems, farmers get latest/updated information  regarding  MSP  declared,  nearest  purchase  centre,  date  on which the farmer has to bring his produce to the purchase centre etc.

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## ANNEXURE-I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  UNSTARRED QUESTION NO.574 DUE FOR ANSWERED ON 25 th  JUNE, 2019 IN THE LOK SABHA.

## Estimate and Procurement of Rice

Figures in LMT

(As on 19.06.2019)

| S. No.   | STATES/ UTs   | KMS 2015-16   | KMS 2015-16   | KMS 2016-17   | KMS 2016-17   | KMS 2017-18   | KMS 2017-18   | KMS 2018-19   | KMS 2018-19    |
|----------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|----------------|
|          |               | Esti- mate    | Procure- ment | Estimate      | Procure- ment | Estimate      | Procure- ment | Esti- mate    | Procure- ment# |
| 1        | A.P.          | 36.70         | 43.36         | 42.00         | 37.24         | 43.00         | 40.00         | 52.54         | 43.66          |
| 2        | Telangana     | 24.30         | 15.79         | 30.00         | 35.96         | 34.00         | 36.18         | 45.00         | 51.84          |
| 3        | Assam         | 0.50          | 0.42          | 1.00          | 0.46          | 1.09          | 0.35          | 1.00          | 0.72           |
| 4        | Bihar         | 20.00         | 12.25         | 20.00         | 12.34         | 12.00         | 7.93          | 8.00          | 9.49           |
| 5        | Chattisgarh   | 36.00         | 34.42         | 35.00         | 40.22         | 48.00         | 32.55         | 40.00         | 40.80          |
| 6        | Gujarat       | -             | 0.01          | 0.00          | 0.01          | 0.00          | 0.00          | 0.00          | 0.09           |
| 7        | H.P.          | -             | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 8        | Haryana       | 23.45         | 28.61         | 29.00         | 35.83         | 30.00         | 39.92         | 39.75         | 39.41          |
| 9        | Jharkhand     | 3.00          | 2.06          | 2.72          | 1.39          | 2.50          | 1.43          | 2.50          | 1.53           |
| 10       | J&K           | -             | 0.07          | 0.00          | 0.08          | 0.00          | 0.13          | 0.00          | 0.09           |
| 11       | Karnataka     | 0.95          | 0.55          | 0.50          | 0.00          | 1.00          | 0.00          | 2.00          | 0.00           |
| 12       | Kerala        | 3.70          | 3.82          | 2.22          | 3.08          | 2.32          | 3.29          | 3.70          | 4.63           |
| 13       | M.P.          | 10.50         | 8.49          | 9.00          | 13.14         | 13.00         | 10.96         | 13.00         | 13.95          |
| 14       | Maharashtra   | 2.10          | 2.30          | 3.25          | 3.09          | 4.34          | 1.79          | 5.50          | 5.01           |
| 15       | Odisha        | 36.00         | 33.69         | 31.00         | 36.30         | 37.00         | 32.87         | 37.00         | 41.58          |
| 16       | Punjab        | 82.00         | 93.50         | 94.50         | 110.52        | 115.00        | 118.33        | 114.00        | 113.34         |
| 17       | Rajasthan     | -             | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 18       | NEF (Tripura) | -             | -             | -             | -             | -             | -             | -             | 0.07           |
| 19       | Tamilnadu     | 13.50         | 11.92         | 15.00         | 1.44          | 15.00         | 10.11         | 14.80         | 11.85          |
| 20       | U.P.          | 27.50         | 29.10         | 33.50         | 23.54         | 37.00         | 28.75         | 33.00         | 32.33          |
| 21       | Uttrakhand    | 4.70          | 5.98          | 6.00          | 7.06          | 7.00          | 0.38          | 5.00          | 4.62           |
| 22       | WB            | 24.80         | 15.68         | 25.00         | 19.23         | 27.00         | 16.73         | 31.00*        | 17.13          |
| 23       | Others        | 0.30          | 0.16          | 0.31          | 0.13          | 0.75          | 0.14          | 0.25          | 0.13           |
|          | Total         | 350.00        | 342.18        | 380.00        | 381.06        | 430.00        | 381.84        | 448.04        | 432.27         |

#KMS 2018-19 is in progress.

* Govt. of India has fixed a target of 23 LMT Rice for Kharif Crop and 8 LMT Rice for Rabi Crop. Out of 8 LMT target for Rabi Crop, 3 LMT is for Central Pool and 5 LMT for State Pool.

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ANNEXURE-II

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  UNSTARRED QUESTION NO.574 DUE FOR ANSWERED ON 25 th  JUNE, 2019 IN THE LOK SABHA.

Estimate and procurement of Wheat

Figures in LMT                 (As on 19.06.2019)

| S. N.   | STATES/ UTs   | RMS 2016-17   | RMS 2016-17   | RMS 2017-18   | RMS 2017-18   | RMS 2018-19   | RMS 2018-19   | RMS 2019-20   | RMS 2019-20    |
|---------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|----------------|
|         |               | Esti- mate    | Procure- ment | Esti- mate    | Procure- ment | Esti- mate    | Procure- ment | Esti- mate    | Procure- ment# |
| 1       | AP            | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 2       | Assam         | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 3       | Bihar         | 7.00          | 0.00          | 5.00          | 0.00          | 2.00          | 0.18          | 2.00          | 0.03           |
| 4       | Chhattisgarh  | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 5       | Gujarat       | 0.85          | 0.00          | 0.50          | 0.07          | 0.50          | 0.37          | 0.50          | 0.05           |
| 6       | Haryana       | 65.00         | 67.52         | 75.00         | 74.32         | 74.00         | 87.84         | 85.00         | 93.20          |
| 7       | H.P.          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.01          | 0.00          | 0.01           |
| 8       | J&K           | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 9       | Jharkhand     | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 10      | Karnataka     | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 11      | M.P.          | 68.00         | 39.92         | 85.00         | 67.25         | 67.00         | 73.13         | 75.00         | 67.25          |
| 12      | Maharashtra   | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 13      | Orissa        | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 14      | Punjab        | 110.00        | 106.49        | 115.00        | 117.06        | 119.00        | 126.92        | 125.00        | 129.12         |
| 15      | Rajasthan     | 18.00         | 7.62          | 17.50         | 12.45         | 16.00         | 15.32         | 17.00         | 14.02          |
| 16      | UP            | 35.00         | 7.97          | 30.00         | 36.99         | 40.00         | 52.94         | 50.00         | 36.39          |
| 17      | Uttrakhand    | 1.00          | 0.02          | 1.50          | 0.02          | 1.00          | 1.10          | 2.00          | 0.42           |
| 18      | West Bengal   | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00           |
| 19      | Others        | 0.15          | 0.07          | 0.50          | 0.08          | 0.50          | 0.14          | 0.50          | 0.13           |
|         | TOTAL         | 305.00        | 229.61        | 330.00        | 308.24        | 320.00        | 357.95        | 357.00        | 340.62         |

# Procurement during RMS 2019-20 is under progress. ****