Rice procurement from Chhattisgarh has been restricted at 24 lakh metric tonnes through the kharif advertising and marketing season (KMS) 2020-21, the Centre mentioned on Sunday.
However, the Centre has suggested the state to not announce or pay bonus over and above the MSP to farmers.
In a press release, the Ministry of Consumer Affairs, Food and Public Distribution mentioned, “Central Government is following a uniform policy and supporting farmers across the country. Same is followed in Chhattisgarh procurement.”
The ministry cited provisions of a memorandum of understanding signed between the Centre, states and Food Corporation of India, underneath which the Centre shouldn’t be sure to take the surplus amount procured by such state to the central pool.
“As per Clause No.3 of MoU of DCP State, in the situation of State giving any bonus/ financial incentive in direct or indirect form, over and above MSP, if the overall procurement of the State is in excess of the total allocation of the State made by the Government of India under TPDS/ OWS, such excess quantity shall be treated to be outside the Central Pool,” it mentioned.
“Initial targets are only estimates settled with States and States are asked if they are giving incentive or not. Some states including Madhya Pradesh and Chhattisgarh were found to be giving incentive so Central Government procurement is restricted to quantity which was procured in past without bonus/incentive.”
It additionally mentioned, “During KMS 2020-21, the Government of Chhattisgarh had also published an advertisement/press release on 17.12.2020 detailing the Rajiv Gandhi Kisan Nyay Yojana that they will procure paddy from the farmers @ Rs.2500/- per quintal during KMS 2020-21 by paying Rs.10,000/- per acre which is a form of indirect incentive over and above the MSP which is as good as bonus on procurement of paddy. Accordingly, it has been decided to allow 24 lakh MT of rice to be delivered to FCI under central pool during KMS 2020-21 which is equivalent to the quantity as allowed in previous years.”
The transfer comes after the Chhattisgarh authorities’s determination to halt paddy procurement, saying the Centre shouldn’t be lifting inventory.
Chhattisgarh is a DCP State. Under DCP or Decentralized (DCP) Procurement system, the state authorities/its companies procure, retailer and distribute (in opposition to Government of India’s allocation for TPDS & OWS and many others) rice /wheat/coarse grains throughout the state. The extra shares (rice and wheat) procured by the state /its companies are handed over to FCI in central pool.
According to FCI, “The expenditure incurred by the State Government on procurement, storage and distribution of DCP stocks are reimbursed by Government of India on the laid down principles…The cost of excess stocks handed over to FCI is reimbursed by FCI to the State Government/agencies as per Government of India costs sheet.”
Meanwhile, a Food Ministry official on Sunday wrote a letter to the Secretary, Department of Food, Civil Supplies & Consumer Protection, Government of Chhattisgarh, advising the state authorities to not announce or pay bonus over and above the MSP to farmers.
