Question : PROCUREMENT BY STATE AGENCIES



(a) whether the Government is encouraging the States to increase their grain procurement by creating State agencies and financing them through bank credit; and

(b) if so, the details thereof and the response of the States including Andhra Pradesh and Telangana thereto indicating the number of agencies created and foodgrains procured by them during the last three years, State-wise?

Answer given by the minister



MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAMVILAS PASWAN)

(a) & (b): Yes, Madam. Government of India is encou- raging the States to increase their grain procurement by strengthening their State Agencies, roping in new agencies to improve the outreach of procurement ma- chinery and involving cooperative societies / self help groups etc. Government of India has also encou- raged States to adopt decentralized mode of procure- ment (DCP), where entire responsibility of procuring foodgrains at Minimum Support Price (MSP) from the farmers is vested with the State Agencies only. The State Governments are provided with cash credit faci- lity by the Reserve Bank of India (RBI) for procu- rement of foodgrains for central pool. State Gover- nment/ Agencies of DCP States are provided with advance subsidy on quarterly basis by the Central Government on the basis of their claims in respect of foodgrains to be procured and distributed under Targeted Public Distribution (TPDS) and Other Welfare Schemes

Number of State Agencies involved by the State Government in procurement of wheat and rice in a particular State varies from commodity to commo- dity and year to year. State wise, total quantity of wheat and rice procured by the State Agencies including Andhra Pradesh and Telangana during the last three years and current year are at Annex-I & II respectively.