Decentralisation Of Grains Procurement Yet To Take Off

The budget announcement for decentralisation of foodgrain procurement to allow states to undertake foodgrain operations, and simultaneously ask Food Corporation of India (FCI) to procure for only buffer stock requirement of 10 million tonne has not made any headway so far.

While the Centre is hopeful that the proposal will sail through and cut into its subsidy bill, the states are not in agreement.

The budget says states should procure foodgrains on their own and supply to the public distribution system (PDS). The Centre, in turn, will bear the difference in the margin between the issue price and the economic cost for the states. Any surplus foodstocks after catering to the PDS will be picked up by the central pool.

In order to convince the states to accept the plan, the inter-state committee set up by the Prime Minister and comprising of 11 state Chief Ministers and Union ministers of agriculture, commerce, finance, food and rural development and deputy chairman of the Planning Commission will meet on July 6.

But given the opposition expressed by the states in their earlier meeting to finalise India