FCI slackens in its procurement operations: Par committee

Share of FCI in procurement of foodgrains has been gradually coming down and the corporation has "slackened" in its procurement operations with the introduction of decentralised procurement, a Parliamentary committee said in its report.
With a view to increase the participation of states in procurement and public distribution, government has introduced decentralised procurement (DCP) scheme to reduce food subsidy outgo, enhance efficiency of procurement and PDS by encouraging local procurement.
"The committee's examination of the FCI reveals that FCI has slackened its procurement activity considerably, with the introduction of DCP scheme," the report said.
According to the report findings, wheat procurement has come down by 33 per cent to 39.74 lakh tonnes in 2011-12 from 52.88 lakh tonnes in 2008-09. Similarly procurement of paddy also come fell 85 per cent to 2.84 lakh tonnes in 2011-12 from 18.55 lakh tonnes in 2008-09.

The committee also emphasised that after the passage of food security act, FCI's procurement operations of foodgarins should not take back seat.
"With the enactment of Food Security Act, there is need to augment procurement of foodgrains and the committee urge FCI to play due role effectively and expand its procurement activity, maintaining its percentage of share in procurement as obtained prior to introduction of DCP scheme," the report added.
FCI was established in 1985, with the primary task of undertaking the purchase and ensure effective price to the farmers on the sale of their foodgrains and ensuring required supply of food grains at cheaper rates throughout the country.