By: Express News Service | New Delhi | January 4, 2021 6:20:27 am
The move comes after the Chhattisgarh government’s decision to halt paddy procurement, saying the Centre is not lifting stock. (Representational)
Rice procurement from Chhattisgarh has been restricted at 24 lakh metric tonnes during the kharif marketing season (KMS) 2020-21, the Centre said on Sunday.
However, the Centre has advised the state not to announce or pay bonus over and above the MSP to farmers.
In a statement, the Ministry of Consumer Affairs, Food and Public Distribution said, “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, under which the Centre is not bound to take the excess quantity 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 said.
“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 also said, “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 move comes after the Chhattisgarh government’s decision to halt paddy procurement, saying the Centre is not lifting stock.
Chhattisgarh is a DCP State. Under DCP or Decentralized (DCP) Procurement system, the state government/its agencies procure, store and distribute (against Government of India’s allocation for TPDS & OWS etc) rice /wheat/coarse grains within the state. The excess stocks (rice and wheat) procured by the state /its agencies 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 government to not announce or pay bonus over and above the MSP to farmers.