Lok Sabha Question No. 2528 (UNSTARRED), answered on 2019-12-03
Subject: Allocation of NFSA
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Nalin Kumar Kateel

## GOVERNMENT OF INDIA

## MtNtsTRy oF coNsuMER AFFAIRS, FOOD &  puB|.tc  DtsTRtBUTtON DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTTON

## LOK SABHA UNSTARRED QUESTION NO. 2528

## TO BE ANSWERED  Ot{ 3Ro DECEMBER,  20{9

## ALLOCATION  OF NFSA

## 2528. SHRI NALIN KUMAR KATEEL:

Will the Minister of  GONSUMER  AFFAIRS,  FOOD AND  pUBLtC

DISTRIBUTIoN 5q!{trilr arrd, uqy $k sreofro fuil{q d'+ be pteased  to state:

- (a) whether it is true that there is a significant gap between  the quantum of procurement of grains and the volume of aalocation to States under the ational Food Security Act (i{FSA);
- (b) if so, whether it is also true that it has resulted in rising food subsidy expenses in the country;
- (c) -f  so, the details of the subsidy  incurred on food grains during the last three yearc including the current yeaq
- (d)  whether the Government  has conducted any studies on the impact of huge procurement  of grains on the FGI's economic  cost; and
- (e) if so, the detaals of the findings of the study?

## ANSWER

MINISTER OF STATE FOR MINISTRY  OF CONSUMER  AFFA|RS, FOOD &

PUBLlG DISTRIBUTION (sHR! DANVE RAOSAHEB DADARAO)

(a): Under the procurement policy of Government of India (GO!), Minimum Support Price (MSP), period of procurement and quality specifications are declared  before start of each marketing season(Kharif/ Rabi). Further, procurement  policy of GOI is open ended, under which whatever  paddy and wheat is offered by farmers within the stipulated period and conforming  to the specifications prescribed in advance by GOI are purchased  at MSP by the Government Agencies including  Food Corporation of lndia (FC!) for Central Pool to avoid any distress sale by farmers. On the other hand, the allocation of foodgrain (rice and wheat) to  states is  made as per entitlements  prescribed under the Nataonal Food Securaty Act.

2l-

(b) and (c): The food subsidy released to Food Corporation  of lndia (FGl) and Decentralised Procurement  (DGP)  States during last 3 years and current year is as under!

| Year                       | Food subsid released Rs. in crore)   | Food subsid released Rs. in crore)   | Food subsid released Rs. in crore)   |
|----------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
|                            | FCI                                  | DGP State                            | Total                                |
| 2016-17                    | I 03334.61 *                         | 27338.35                             | 130672.96*                           |
| 201744                     | { ot 98t .69*                        | 38000.oo                             | 13998{.69-                           |
| 2018.t 9                   | 140098.00-                           | 31o29.485                            | 171127.485*                          |
| 2019-20 (as on 28.1{.2O19) | {o6000.00                            | 260A7.25                             | 132087.25                            |

(e): Question does not arise.