The Hindu : No consensus yet on decentralised procurement

Online edition of India's National Newspaper
Sunday, Mar 24, 2002

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No consensus yet on decentralised procurement

By Gargi Parsai

NEW DELHI MARCH 23. There was no consensus again on the Centre's proposal for States to take up decentralised procurement of foodgrains for the Targeted Public Distribution System which was discussed here today at the fourth meeting of the Standing Committee of Central Ministers/ Chief Ministers on Food Management and Agriculture Exports. After the States reiterated their reservations, the Central Ministers also reiterated their position that procurement by the Food Corporation of India would continue alongside the States, which would be encouraged to take up decentralised procurement.

The committee also reviewed restrictions on farm commodities under the Essential Commodities Act and amendments to certain Acts to enable agriculture reforms. The meeting was attended aamong others by the Union Agriculture Minister, Ajit Singh, the Food Minister, Shanta Kumar, the Finance Minister, Yashwant Sinha, the Deputy Chairman of the Planning Commission, K.C. Pant, the Minister of State for Procurement, Ashok Pradhan, and the Chief Ministers of Madhya Pradesh and Assam, Digvijay Singh and Tarun Kumar Gogoi. The other States were represented by Ministers.

While some States expressed reservations over the decentralised procurement scheme, others wanted it operated in a manner that did not impose any financial burden on the States. Uttar Pradesh, West Bengal, Madhya Pradesh which are already doing their own procurement said they faced problems in implementation, in cash credit limits, milling, transportation and handling charges. They wanted the charges to be reviewed. Besides, for disbursing welfare schemes, preference was given by the Centre to grains from FCI stocks rather than from decentralised stocks.

Under the Centre's proposal, the difference between the economic cost of procurement, storage and distribution of foodgrains on one hand, and the central issue price on the other, is paid by the Centre to the States as subsidy.

The committee decided that the Ministry of Food and Public Distribution would address the complaints of the States of credit limits, revision of storage and milling charges. It reviewed the status of free movement of foodgrains under the Essential Commodities Act and recommended that as in the case of wheat, paddy, coarse grains, sugar, edible oilseeds and edible oils, restriction on storage, movement and distribution also be removed on pulses.

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