- YS Sujana Chowdary - Member Of Parliament

Monday, August 29, 2011

Increasing Procurement Targets

GOVERNMENT OF INDIA

MINISTRY OF  CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

QUESTION NO  2824

ANSWERED ON  29.08.2011


Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to satate :-


(a) whether it is a fact that Government is considering to increase procurement of grains from 10 million tonnes to 70 million tonnes;

(b) if so, the details thereof;

(c) whether present storage capacity is adequate, considering the increase in procurement; and

(d) if not, the steps taken by Government to increase the storage capacity?
   
ANSWER
     
MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(PROF. K.V. THOMAS)

(a)& (b): The procurement of foodgrains is open-ended and no targets are fixed for procurement. As per existing policy of Government of India, all quantities of wheat, rice and coarse grains conforming to the FAQ specifications brought by the farmers are purchased by FCI and state agencies at Minimum Support Price (MSP).

(c ) & (d): The Food Corporation of India has a total of 333.63 lakh MTs of storage capacity including Covered and Cover and Plinth (CAP) both owned and hired with a capacity utilization of 90% as on 15.7.2011. The state agencies also store foodgrains. Due to the increased procurement of foodgrains and to reduce the storage in Cover and Plinth (CAP), the Government formulated a Scheme for construction of storage godowns through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs).
Based on this analysis and criteria laid down in the scheme, State wise capacity requirement and locations were identified. Under the scheme, the Food Corporation of India would now give a guarantee of ten years for assured hiring to the private entrepreneurs. A capacity of 152.97 lakh tonnes is to be created in 19 states under the scheme through private entrepreneurs and Central and State Warehousing Corporations. Out of this sanctioned capacity tenders have been finalized for creation of storage capacity of 52.32 lakh tonnes by the private entrepreneurs. CWC and SWCs are constructing 5.31 and 15.49 lakh tonnes respectively under the Scheme, out of which a capacity of about 3.5 lakh tonnes has already been completed by CWC/SWCs.



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Monday, August 29, 2011

Increasing Procurement Targets

GOVERNMENT OF INDIA

MINISTRY OF  CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

QUESTION NO  2824

ANSWERED ON  29.08.2011


Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to satate :-


(a) whether it is a fact that Government is considering to increase procurement of grains from 10 million tonnes to 70 million tonnes;

(b) if so, the details thereof;

(c) whether present storage capacity is adequate, considering the increase in procurement; and

(d) if not, the steps taken by Government to increase the storage capacity?
   
ANSWER
     
MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(PROF. K.V. THOMAS)

(a)& (b): The procurement of foodgrains is open-ended and no targets are fixed for procurement. As per existing policy of Government of India, all quantities of wheat, rice and coarse grains conforming to the FAQ specifications brought by the farmers are purchased by FCI and state agencies at Minimum Support Price (MSP).

(c ) & (d): The Food Corporation of India has a total of 333.63 lakh MTs of storage capacity including Covered and Cover and Plinth (CAP) both owned and hired with a capacity utilization of 90% as on 15.7.2011. The state agencies also store foodgrains. Due to the increased procurement of foodgrains and to reduce the storage in Cover and Plinth (CAP), the Government formulated a Scheme for construction of storage godowns through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs).
Based on this analysis and criteria laid down in the scheme, State wise capacity requirement and locations were identified. Under the scheme, the Food Corporation of India would now give a guarantee of ten years for assured hiring to the private entrepreneurs. A capacity of 152.97 lakh tonnes is to be created in 19 states under the scheme through private entrepreneurs and Central and State Warehousing Corporations. Out of this sanctioned capacity tenders have been finalized for creation of storage capacity of 52.32 lakh tonnes by the private entrepreneurs. CWC and SWCs are constructing 5.31 and 15.49 lakh tonnes respectively under the Scheme, out of which a capacity of about 3.5 lakh tonnes has already been completed by CWC/SWCs.



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YS Chowdary Member of Parliament