Lok Sabha Question No. 2595 (UNSTARRED), answered on 2015-12-15
Subject: Procurement Process
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: DUSHYANT CHAUTALA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2595 TO BE ANSWERED ON 15 TH   DECEMBER, 2015

## PROCUREMENT PROCESS

2595. SHRI DUSHYANT CHAUTALA:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- whether  the  Government  proposes  to  hand  over  all  the  procurement
- (a) operations of wheat, paddy and rice to the States;
- (b)
- if so, the details thereof and the reasons therefor; and
- (c) the  manner  in  which  the  Government  proposes  to  meet  its  commitment towards food based welfare scheme?

## A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## (SHRI RAM  VILAS PASWAN)

(a)  &  (b):      Government  is  encouraging  the  State  Government  to  adopt decentralised procurement system for wheat, paddy and rice. Under Decentralized Procurement Scheme (DCP), food grains is procured and distributed  by  the  State  Governments  themselves.  Under  this  scheme,  the designated  DCP  States  procure,  store  and  issue  foodgrains  under  Targeted Public Distribution System (TPDS) and other welfare schemes of the Government of India. The decentralized system of procurement has the objectives to ensure that Minimum Support Price(MSP) is passed on to the farmers, to enhance the efficiency  of  procurement  and  to  encourage  procurement  in  non-traditional States, thereby extending the benefits of MSP to local farmers as well as to save on transit losses and costs. This also enables procurement of foodgrains more suited to local taste for distribution under the TPDS. Food Corporation of India (FCI)  will  accept  only  the  surplus  foodgrains  after  deducting  the  needs  of  the states, from these State Governments (not millers) which require to be moved to deficit states.

With  a  view  to  encouraging  adoption  of  DCP  system,  FCI  has  organized workshops in non DCP/partially DCP states to highlight the advantages of DCP mode.

## Detail list of DCP states is given in Annexure.

- (c)  In  case  of  DCP  states,  State  Governments  procure  foodgrains  on  behalf  of Central Government.  The procured foodgrains are distributed by them directly under  TPDS and Welfare Schemes to the extent of allocation approved by the Central  Government  and  surplus  quantity,    if  any,  is  handed  over  to  FCI.  Any deficit is also met by FCI. Thus Government meets its commitment towards food based Welfare Scheme under DCP System.

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ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE UNSTARRED QUESTION NO 2595 DUE FOR ANSWER ON 15.12.2015

IN THE LOK SABHA

## List of DCP States

|   S.No. | State/UT                       | DCP adopted for   |
|---------|--------------------------------|-------------------|
|       1 | A&N Islands                    | Rice              |
|       2 | Bihar                          | Rice/Wheat        |
|       3 | Chhattisgarh                   | Rice/Wheat        |
|       4 | Gujarat                        | Wheat             |
|       5 | Karnataka                      | Rice              |
|       6 | Kerala                         | Rice              |
|       7 | Madhya Pradesh                 | Rice/Wheat        |
|       8 | Odisha                         | Rice              |
|       9 | Tamil Nadu                     | Rice              |
|      10 | Uttarakhand                    | Rice/Wheat        |
|      11 | West Bengal                    | Rice/Wheat        |
|      12 | Punjab (for NFSA obligations)  | Wheat             |
|      13 | Rajasthan ( in Alwar District) | Wheat             |
|      14 | Andhra Pradesh                 | Rice              |
|      15 | Telengana                      | Rice              |

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