Centre asks state govts to open more procurement centers

The Centre today asked state governments to open more purchasing centres for higher procurement of foodgrains required for smooth implementation of the ambitious food law.
It has also called a meeting of state food secretaries in the second week of February to review the arrangement and other infrastructure for wheat procurement during 2014-15 marketing year commencing from April.
"State governments have been urged to open more purchasing centres and assess all necessary infrastructure requirements for increased foodgrains procurement for implementation of Food Act. It should include storage space, credit and staff requirement," an official release said.
Foodgrains' procurement is undertaken by the central nodal agency FCI as also state procurement agencies. Wheat and rice is procured at the minimum support price.

The Centre said 61.43 million tons of foodgrains are required for implementing the food law, against the average foodgrains procurement of 51.4 million tonnes in five years.
In the meeting, estimated marketable surplus ratio of wheat for each state and estimated procurement of wheat for rabi marketing season will also be discussed, it added.
Under the food law, the Centre will now provide assistance to states in meeting the expenditure incurred by them on transportation of foodgrains within the state, its handling and FPS dealers' margin as per norms to be devised for this purpose.
The landmark food law aims to give a legal right over highly subsidised foodgrains to 67 per cent of the country's population. The law is being implemented in seven states.