MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(PROF. K.V. THOMAS)
(a): The Scheme of Decentralised Procurement (DCP) of food grains was introduced
in 1997-98 with a view to enhance the efficiency of procurement & PDS and to
encourage local procurement and to reduce the out go of food subsidy. Under
the scheme, the states undertake the responsibility of procurement of food grains,
its scientific storage and distribution through Targeted Public Distribution
System (TPDS). The surplus food grains procured by DCP states, in excess of
their TPDS requirement, is handed over to FCI for the Central Pool stocks and
deficit, if any, is met by FCI.
(b): For wheat, 5 states (Madhya Pradesh, Uttrakhand, Chhattisgarh, Gujarat
and West Bengal) and for rice, 9 states (Uttrakhand, Chhattisgarh, Orissa,
Tamil Nadu, West Bengal, Kerala, Karnataka, Madhya Pradesh and A&N Islands)
have adopted the DCP system of procurement.
(c): Based on the estimates given by concerned DCP States, an advance subsidy
covering 90% of the likely requirement is released during every quarter and
another 5% is released at the end of the quarter based on provisional estimates
given by the State Governments. The remaining actual subsidy is released based
on the final audited statements furnished by DCP States.