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LATEST NEWS UPDATES | Steady rise in TPDS allocation because of higher production: FCI

Steady rise in TPDS allocation because of higher production: FCI

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published Published on Oct 25, 2010   modified Modified on Oct 25, 2010

While the National Advisory Council (NAC), Planning Commission and the Prime Minister Office are grappling over the proposed National Food Security Bill, the government has been steadily increasing allocation under the Targetted Public Distribution System (TPDS) during last many years.

According to Siraj Hussain, chairman and managing director, Food Corporation of India (FCI), with the rise in procurement of wheat and rice by the corporation during last few years, more and more food grains are pushed through the PDS, benefitting the poorest of the poor.

The government data indicated that during 2004-2010, the minimum support price (MSP) of wheat and paddy have been increased by approximately 75%, resulting in wheat production of 80.7 million tonne in 2009-10 from 69.4 million tonne during 2005-06.

The wheat procurement by FCI and state government owned agencies during the same period increased from 9.2 million tonne to 22.5 million tonne. The trend is more or less same for the paddy.

“Because of remunerative MSP, farmers are ploughing back the returns into farming and producing more and more foodgrain. The farmers of this country deserve great appreciation for increasing the production of wheat and paddy over the years,” Hussain has said.

Due to rise in procurement of food grains, which resulted in comfortable stocks of key food grains, the government has been meeting TPDS target and ensuring strategic reserve and buffer stocks norms. During the last six months the government has allotted additional quantity of approximately 4.5 million tonne of wheat and 4.6 million tonne of rice to states beyond TPDS share.

“However, the overall lifting has only been to the tune of 20%, which is extremely low,” Hussain said. Therefore, the state government must initiate immediate measures for lifting of this allocated quantity so that foodgrain can be distributed to the targeted beneficiaries and space is created for storage of fresh crop.

In order to control foodgrain prices in the market, 4.85 million tonne of wheat and 1.49 million tonne of rice has been allocated under Open Market Sale Scheme.

Meanwhile, a food ministry official said 82 to 83 million tonne of foodgrain is expected to arrive at central and state godowns over the next five months. India’s rabi wheat harvest is expected to be over 82 million tonne. The Centre plans to procure 32.7 million tonne of kharif paddy. Last year, FCI and other agencies procured 33.68 million tonne of foodgrain.

For creating additional storage space of food grain, the agriculture ministry has also started financing the establishment of village grain banks, through which foodgrain are allocated free of cost to states. States loan these grains to families especially in remote and inaccessible areas during lean seasons.

The Financial Express, 25 October, 2010, http://www.financialexpress.com/news/Steady-rise-in-TPDS-allocation-because-of-higher-production--FCI/701879/


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