Lok Sabha Question No. 1297 (UNSTARRED), answered on 2022-12-14
Subject: Direct Procurement Agents
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Annasaheb Shankar Jolle

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO.1297

## To BE ANSWERED ON 14TH DECEMBER, 2022

## DIRECT PROCUREMENT AGENTS

1297. SHRI ANNASAHEB SHANKAR JOLLE:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC be pleased to state:

- (a) the policy of the Union Government for appointing direct procurement agents for Paddy and wheat;
- (b) the present rates of commission granted to the direct procurement agents; being
- (c) whether the Union Government contemplates to appoint the fair price shop dealers in rural areas as direct procurement agents;
- (d) if so, the details thereof;
- (e) whether the Union Government does not feel inclined to agree with the fact that appointing the fair price shop dealers as direct procurement agents will, on the one hand facilitate the procurement and on the other, help the farmers for the sake of the proximity and at the same time enhance the viability of the fair price shop dealers; and
- (f) if so, the facts thereof?

## ANSWER

MINISTER OF STATE FOR MINISTRY OF RURAL DEVELOPMENT AND CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SADHVI NIRANJAN JYOTI)

- (a): Procurement of wheat and paddy for central pool is carried out under Decentralized Procurement  (DCP) system and Centralized procurement (Non-DCP) system:

Under DCP system, the State Governments lits   agencies procure, store and distribute {against Government of India's allocation for Targeted Public Distribution System (TPDS) & Other Welfare Scheme (OWS)} paddylricelwheat within the State. The excess stocks (Rice & wheat) procured by the State lits Agencies are handed over to Food Corporation of India (FCI) in Central Pool:

Under Non-DCP system, the procurement of foodgrains in Central Pool is undertaken either by FCI directly or by State Government Agencies (SGA): Procurement carried out by SGA is handed over to FCI for storage and subsequent issue against Government of India allocations in the same State or movement of surplus stocks to other States:

In major wheat and paddy procuring States like Punjab, Haryana & some parts of Rajasthan, procurement from farmers is undertaken by the FCIIState Agencies through Arthiyas as per Agriculture Produce Marketing Committee (APMC) Acts of the concerned State for which commission is paid as fixed by Government of India. In some States like Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Uttarakhand, Andhra Pradesh, Tamilnadu, made through societies and are paid commissions as fixed by Government of India. they

- (b): For RMS 2022-23, arhatia commission at the rate of Rs.46 per quintal and Commission to societies at the rate of Rs.27 has been allowed in the provisional cost sheet issued by Government of India:

For KMS 2021-22, arhatia commission at the rate of Rs.45.38 per quintal for Paddy (Common) and Rs.45.88 per quintal for Paddy (Grade has been allowed: Commission to societies has been allowed at the rate of Rs.31.25 per quintal for Paddy (Common) and Rs.32 per quintal for Paddy (Grade 'A') in cost sheet issued by Government of India subject to condition that societies are actually engaged in procurement operations.

- (c): Sir. No,
- (d): Does not arise in view of (c) above:
- (e) and (f): Sufficient numbers of procurement centres are opened by State procuring agencies and keeping in view the procurement potential and geographical spread of the State concerned. Large number of temporary purchase centres in addition to the existing Mandis and depotslgodowns are also established at key points for the convenience of the farmers. FCI,