Question : PROVISION OF FUNDS TO STATES FOR PROCUREMENT



(a) the amont of subsidy provided to the States for procurement of foodgrains during the last three years and in current year, State-wise details thereof;

(b) whether the Union Government have made payment of the amount to Maharashtra State for 2000-2001 to be given under the support price for procurement of paddy;

(c) if so, the details thereof;

(d) if not, the reasons therefor; and

(e) the criteria for providing subsidy to the States for procurement of paddy under the minimum support price?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ( SHRI ASHOK PRADHAN)

(a): For States which have adopted the scheme of decentralised procurement and distribution of foodgrains, subsidy (representing the difference between the economic costs and the Central Issue Prices) asre directly released by the Union Government. So far, Uttar Pradesh, Madhya Pradesh and West Bengal have adopted the scheme. For other States no subsidy is directly released by the Government of India for procurement of foodgrains.

The amount of food subsidy released to the FCI and the States which have adopted decentralised procurement and distribution of foodgrains during the last three years and in the current year is at the Annexure.

(b),(c),(d)&(e): Subsidy is not provided to the States (including Maharashtra) for the procurement of paddy at the Minimum Support Price by the Union Govt./FCI. However, for the quantities of rice delivered to FCI, payments are released to the States/agencies based on the rates of Customs Milled Rice (CMR) as fixed by the Government from season to season.

ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO. 4058 DUE FOR ANSWER ON 14-12-2001 IN THE LOK SABHA.

SUBSIDY RELEASED TO FCI AND STATE GOVERNMENTS FROM 1998-99 ONWARDS.

(Rs. Crores)
Year FCI Madhya Pradesh Uttar Pradesh West Bengal Total
1998-99 8,46.000 - - 54.00 8,700.000 1999-00 8,856.360 93.00 194.00 56.64 9,200.000 2000-01 11,462.000 85.000 398.00 65.00 12,010.000 2001-02

(as on 10,278.658 64.32 180.13 32.16 10,555.268

712.2001