Buffer stock of pulses to contain price rise



Buffer stock of pulses to contain price rise 
The Government has approved creation of a buffer stock through procurement of about 50,000 ton pulses from the kharif crop 2015-16 and one lakh ton out of arrivals of rabi crop of 2015-16. The procurement will be done through Food Corporation of India (FCI), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Small Farmers’ Agribusiness Consortium (SFAC) and any other agency as may be decided. This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Lok Sabha today. 


The Minister said that for enhancing domestic production of pulses, Government is implementing a number of plan schemes/programmes like National Food Security Mission-Pulses (NFSM-Pulses), Rashtriya Krishi Vikas Yojana (RKVY), Macro Management of Agriculture (MMA) and Integrated Scheme of Oilseeds, Pulses, Oil Palm & Maize (ISOPOM). In addition, Government is also regularly enhancing the Minimum Support Price (MSP) for pulses. 
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Central pool has 504.99 lakh tons foodgrains 
The stock of foodgrains in the Central Pool as on 1.12.2015 was 504.99 lakh tons comprising of 236.20 lakh tons of rice (including paddy in terms of rice) and 268.79 lakh tons of wheat as against the foodgrains stocking norms for Central Pool of 307.70 lakh tons comprising of 102.50 lakh tons of rice and 205.20 lakh tons of wheat which is adequate to meet the requirement under Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS) as per the existing level of allocation as well as to contain market price. Based on the current allocation norms, the estimated allocation of wheat and rice under TPDS for the ensuing year is likely to be 298.35 lakh tons of rice and 250.16 lakh tons of wheat.

This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Lok Sabha today. 
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Incentives to sugar industry to facilitate clearance of cane arrears 
During 2014 and 2015, the Central Government, with a view to facilitate clearance of cane price arrears of sugarcane farmers, has given several incentives to sugar industry to help it resolve liquidity problems and expeditiously clear cane price dues of farmers. The incentives extended by the Government are as under:-

Ø Provided working capital loans with interest subvention to sugar mills to facilitate clearance of cane price dues of farmers under Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU-2014) and Soft Loan scheme.

Ø Incentive for exporting raw sugar in sugar seasons 2013-14 and 2014-15.

Ø Fixed remunerative prices for supplies of ethanol to OMCs for blending with petrol; waiver of excise duty on ethanol supplies to OMCs during 2015-16.

Ø Notified a scheme on 2.12.2015 to extend production subsidy @ Rs. 4.50 per quintal to sugar mills to offset the cost of cane and facilitate timely payment of cane price dues of farmers.

This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Lok Sabha today.

The Minister said that besides extending the incentives referred in reply to part c) above, the Government has taken following additional measures for the welfare of sugarcane farmers and sugar industry:

Ø Enhanced import duty to 40% to discourage imports.

Ø The “Duty Free Import Authorization” scheme (DFIA), for sugar withdrawn.

Ø The period for discharging Export Obligations under the Advanced Authorization Scheme for sugar reduced to 6 months to prevent leakage into the domestic economy.

Ø Scaled up blending targets under Ethanol Blending Programme from 5% to 10%. 
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Sugarcane subsidy direct to farmers 
The Central government has notified a scheme on 2.12.2015 to extend production subsidy @ Rs. 4.50 per quintal to sugar mills to offset the cost of cane and facilitate timely payment of cane price dues of farmers for sugar season 2015-16. Funds released under the scheme shall be directly credited into farmers’ accounts. The scheme is likely to improve the liquidity position of sugar mills enabling them to make timely payment of cane price dues of farmers. This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Lok Sabha today.

The Minister said that export of sugar is likely to increase as benefit of the production subsidy scheme is contingent on the mills achieving at least 80% of their export targets notified under mill-wise Minimum Indicative Export Quota (MIEQ) scheme by the Government.

Evacuation of surplus stocks of sugar through export is likely to improve the price sentiments in the domestic market.

He said that with an opening stock of 90 LMT and the estimated sugar production of 260 LMT, the availability of sugar during the current sugar season 2015-16 would be sufficient to meet the estimated domestic consumption of 260 LMT. Due to sufficient availability of sugar, prices of sugar in domestic market are likely to remain at reasonable level.

He added that the Government has provided incentive for marketing and promotion services of raw sugar production targeted for export during sugar season 2013-14 at an average incentive rate of about Rs. 3100 per MT. The incentive scheme was continued for sugar season 2014-15 at uniform incentive rate of Rs. 4000 per MT. Incentive amounting to Rs. 280 crore has been disbursed under the scheme and as per provisions of the scheme it has been used for payment of cane price dues of farmers. 
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Decentralised procurement to be encouraged to enhance the efficiency 

Government is encouraging the State Government to adopt decentralised procurement system for wheat, paddy and rice.  Under Decentralized Procurement Scheme (DCP), food grains is procured and distributed by the State Governments themselves. Under this scheme, the designated DCP States procure, store and issue foodgrains under Targeted Public Distribution System (TPDS) and other welfare schemes of the Government of India. The decentralized system of procurement has the objectives to ensure that Minimum Support Price(MSP) is passed on to the farmers, to enhance the efficiency of procurement and to encourage procurement in non-traditional States, thereby extending the benefits of MSP to local farmers as well as to save on transit losses and costs. This also enables procurement of foodgrains more suited to local taste for distribution under the TPDS. Food Corporation of India (FCI) will accept only the surplus foodgrains after deducting the needs of the states, from these State Governments (not millers) which require to be moved to deficit states. This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Lok Sabha today.

The Minister said that with a view to encouraging adoption of DCP system, FCI has organized workshops in non DCP/partially DCP states to highlight the advantages of DCP mode.

He said that in case of DCP states, State Governments procure foodgrains on behalf of Central Government.  The procured foodgrains are distributed by them directly under TPDS and Welfare Schemes to the extent of allocation approved by the Central Government and surplus quantity,  if any, is handed over to FCI. Any deficit is also met by FCI. Thus Government meets its commitment towards food based Welfare Scheme under DCP System.

List of DCP States
S.No.
State/UT
DCP adopted for
1.
A&N Islands
Rice
2.
Bihar
Rice/Wheat
3.
Chhattisgarh
Rice/Wheat
4.
Gujarat
Wheat
5.
Karnataka
Rice
6.
Kerala
Rice
7.
Madhya Pradesh
Rice/Wheat
8.
Odisha
Rice
9.
Tamil Nadu
Rice
10.
Uttarakhand
Rice/Wheat
11.
West Bengal
Rice/Wheat
12.
Punjab (for NFSA obligations)
Wheat
13.
Rajasthan ( in Alwar District)
Wheat
14.
Andhra Pradesh
Rice
15.
Telengana
Rice




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