Ensure online payment of MSP: Centre to states
Plans to monetise assets of FCI, CWC
Amid farmers’ protest, the Centre on Thursday said it had directed states, including Punjab and Haryana, to ensure online payment from the coming procurement season.
In a presentation, the ministry of food and public distribution and consumer affairs also said it was looking to monetise the assets of the Food Corporation of India (FCI) and the Central Warehousing Crop (CWC) to mobilise private investment in storage.
“We have engaged the Centre for Good Governance to look at the entire structure of the FCI and give suggestions to improve its working. The report is expected soon,” Union Food Ministry Piyush Goyal said.
The Government said the Warehousing Development and Regulatory Authority would be strengthened.
The wheat procurement season for FY22 will start in the next few weeks. The procurement is done at the Centre-fixed Minimum Support Price (MSP).
The government said the process of bio-authentication of farmers bringing their produce for procurement by state and central agencies had been started in Uttar Pradesh. States such as Odisha, Chhattisgarh, and Madhya Pradesh have shown interest in replicating the model, it said.
Both the measures are meant to minimise the role of middlemen in procurement of cereals and food grains by state and central agencies, though none of officials and Goyal said so during their address.
Goyal was highlighting the achievements of department of food, civil supplies, and consumer affairs in the past one year and was explaining the provisions related to FY22 Union Budget for them.
He said the government currently did not have any proposal to raise the Central Issue Price (CIP) of wheat and rice sold through ration shops under the National Food Security Act (NFSA). CIP is the rate at which the grains are sold through the ration shops and under the Act has been fixed at ~3 per kg for rice, ~2 per kg for wheat, and ~1 per kg for coarse cereals.
The Economic Survey recently tabled in Parliament had advocated for raising the CIP of wheat and rice to lower the food subsidy burden, which has risen sharply over the past few years.
Goyal said the Centre was committed to strengthening mandis, for which the Budget expanded the electronic-national agriculture market (e-nam) scheme and included mandi storages under the ambitious Agriculture Infrastructure Fund of ~100,000 crore.
On food prices, the minister said prices of most commodities had come under control. Despite allowing for larger import of potatoes to cool down rates, the prices have come down despite not much imports being taken.
On mounting sugarcane dues, the minister said much of last year’s dues had been settled. This year too, the dues are getting regularly cleared and this will be fasttracked once mills start exporting sugar with a subsidy which will get transferred into the bank account of farmers.
He said the Budget made a provision of ~4,150 crore for various sugarcane schemes, which is more than three times the ~1,270 crore made in Budget Estimates of FY21.