Govt asks FCI to withdraw procurement in Haryana & Punjab

The government has asked state- run FCI not to purchase foodgrains in states like Punjab and Haryana as the procurement system is fully developed there, Food Secretary Sudhir Kumar said today.
Haryana has already agreed to the Centre's direction, while Punjab has asked withdrawal of procurement by Food Corporation of India (FCI) in a phased manner, he added.
When asked about the progress made in implementing recommendations of the Shanta Kumar-led FCI Restructuring panel, Kumar said: "We are examining the recommendations. Some can be implemented immediately. For some, we have to prepare a time schedule and some recommendations we cannot implement."

Listing out suggestions that have been already implemented, he said the government has taken a decision on the bonus and asked states not to announce it over and above the minimum support price. The government has also scrapped levy rice from the next season starting October.
The levy rice is a mandatory system under which rice millers also undertake rice procurement for the public distribution system by buying paddy directly from the farmers.
"We have also asked FCI to withdraw procurement in states where it is fully developed. Haryana has informed us to withdraw procurement, Punjab has said not to withdraw fully and do it in phased manner," Kumar told PTI in an interview.

The procurement will be withdrawn in consultation with the state governments, he added.

FCI procures less than 50 per cent from Punjab, 25 per cent from Haryana out of total procurement in both the state. Both states contribute 3/4th of the total procurement.
On shifting procurement in eastern states like Bihar, the Secretary said: "The dialogue is on. I cannot say we can start immediately. We accept this recommendation and intend to work on it. It may take time for full implementation."
While the panel has also suggested outsourcing procurement and storage of foodgrains, the FCI is holding consultations in this regard with stakeholders, he added.

The eight-member panel -- which was set up in August 2014 under the chairmanship of BJP MP Shanta Kumar to recommend a complete overhaul of FCI -- had submitted its report last month. The Prime Minister had asked the Food Ministry to give its views on the report at the earliest.