Lok Sabha Question No. 140 (STARRED), answered on 2019-02-12
Subject: Procurement of Foodgrains
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SANTOKH SINGH CHAUDHARY

## GOVERNMENT OF INDIA

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

## LOK SABHA STARRED QUESTION NO. 140 TO BE ANSWERED ON 12 FEBRUARY, 2019

## PROCUREMENT OF FOODGRAINS

- *140.   SHRI SANTOKH SINGH CHAUDHARY:

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  it  is  a  fact  that  the  share  of  Punjab  in  procurement  of foodgrains by the Food Corporation of India (FCI) has declined over the years and if so, the details thereof;
- (b) whether FCI is not even procuring the quota decided at the start of the season and if so, the details thereof and the reasons therefor;
- (c) whether  the  decrease  in  Punjab's  share  of  procurement  has  led  to adverse financial impact on farmers and if so, the details thereof; and
- (d) whether any steps have been taken by the Government to increase the share of procurement from farmers of Punjab and make the procurement process smooth and easier, if so, the details thereof and if not, the reasons therefor?

A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAMVILAS PASWAN)

- (a) to (d): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d)  OF THE STARRED QUESTION NO. *140 DUE FOR ANSWER ON 12.02.2019 IN THE LOK SABHA

(a) to (d): Based on the recommendations of High Level Committee (HLC) on  restructuring  of  Food  Corporation  of  India  (FCI)  headed  by  Shri  Shanta Kumar, Hon'ble Member of Parliament, at present, FCI is gradually limiting its role in procurement operations of wheat, paddy/rice in the States which have gained  sufficient  experience  in  this  regard  and  have  created  reasonable infrastructure  and  it  is  focusing  more  on  the  procurement  operations  in remote  and inaccessible parts of the country. However,  FCI is also participating  in  procurement  operations  in  Punjab  on  the  request  of  State Government of Punjab. Details of the procurement of wheat and paddy done by FCI /State Agencies for Central Pool in Punjab during last three year and current year are as under:

| Marketing Year   | Procurement of wheat (in LMT)   | Procurement of wheat (in LMT)   | Procurement of wheat (in LMT)   | Procurement of paddy (in LMT)   | Procurement of paddy (in LMT)   | Procurement of paddy (in LMT)   |
|------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|
|                  | FCI                             | State Agencies                  | Total                           | FCI                             | State Agencies                  | Total                           |
| 2015-16          | 18.47                           | 84.97                           | 103.44                          | 6.54                            | 133.02                          | 139.56                          |
| 2016-17          | 17.48                           | 89.01                           | 106.49                          | 7.66                            | 157.30                          | 164.96                          |
| 2017-18          | 14.53                           | 102.53                          | 117.06                          | 3.81                            | 172.80                          | 176.61                          |
| 2018-19          | 15.31                           | 111.61                          | 126.92                          | 2.51*                           | 166.60*                         | 169.11*                         |

*As on 04.02.2019

FCI also takes direct delivery of wheat and Custom Milled Rice (CMR) in its godowns and Railheads from State Procuring Agencies.

As is evident from the details given above, the procurement of wheat and paddy has been increasing in Punjab and hence, the question of adverse financial impact on the farmers does not arise. However, the following steps are taken to make the procurement process smooth and easier:

- 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) and State Governments  to  make  an  assessment  of  availability  of  wheat  and paddy 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)  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.

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