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STANDING GROUP OF UNION MINISTERS AND CHIEF MINISTERS ON FOOD MANAGEMENT MEETS TODAY
New Delhi ~ July 9, 2001
The proposal relating to decentralized procurement was aimed at providing an enlarged role for State Governments and enhancing efficiency gains. There was no intention of the Government to impose a new system on the States without their consent. This was stated by the Finance Minister Shri Yashwant Sinha while addressing the first meeting of Standing Committee of Union Ministers and Chief Ministers on Food Management and Agricultural Exports set up by the Prime Minister at the Conference of Chief Ministers on May 21 here today. He clarified that the present arrangement would
continue in States which are unable or unwilling to implement the decentralized system. The responsibility of the centre would not be diluted in these areas and the Central Government would not withdraw from procurement against the wishes of the concerned State. States of West Bengal, Uttar Pradesh and Madhya Pradesh have already implemented a decentralized system of procurement with encouraging results and a saving of Rs.141.36 crores in the year 2000-01. Those states who desire to take up procurement operations through their own machinery
the details and modalities would be worked out he added.
The Finance Minister said that in order to make the concept of Minimum Support Prices (MSP) a reality to all farmers everywhere in the country
it was necessary to encourage States to take up procurement operations. The Government wants to ensure that the farmers receive at least the MSP for their produce through an appropriate system. It was decided that the detailed scheme would be worked out in consultation with the State Government to share the efficiency gain of de-centralized procurement operations while ensuring an effective price support mechanism to all farmers.
It was decided that the food for work programme should be extended wherever needed to provide employment as well as to support asset creation in rural areas. While the Government of India would provide the foodgrains component the State would meet the cash requirement of the programme. Moreover a material component would also be provided to support creation of assets of a permanent nature. The details of the scheme particularly the price of the grain and materials to be provided by the centre will be worked out by a Committee of officials.
The proposal for establishing grain banks was supported by most of the states. It was felt that this would be particularly useful in areas with scattered population and especially in tribal areas. A detailed scheme will be prepared taking into account the experience of Madhya Pradesh and other States.
The participants of the meeting were unanimous that restrictions on movement of agricultural commodities would be removed so that a single trade zone may be created. The various controls and regulations being implemented in the States would be reviewed so that they could be progressively dismantled. Shri Nitish Kumar, Agriculture Minister said that a significant shift is needed in our food management policy in order to bring it in line with present realities. He said that existing Food Management System is primarily directed at mopping up the surpluses of the North-western region
which is the main beneficiary of the green revolution. As other regions too have begun to generate surpluses farmers in those areas should not be
denied fair and equitable remuneration for their efforts. Shri Shanta Kumar, Minister for Consumer Affairs - Food and Public Distribution informed about the sanction of assistance for increasing storage capacity to Punjab by 34 lakh tonnes to Haryana 10 lakh tonnes and to Andhra Pradesh 5 lakh tonnes.
The proposal for de-centralization of procurement operations evoked mixed reactions from the States. While States with marginal or emerging surpluses were in favour of the proposal in principle surplus States insisted that the present system of procurement through the FCI should continue. States deficient in foodgrains too expressed reservations about modifications to the present system.
The meeting was attended by Chief Ministers of Punjab, Haryana, Madhya, Pradesh, Orissa, Assam and Maharashtra States besides Food Ministers
Chief Secretaries and Secretaries of various States and Central Ministers of the concerned Departments and Deputy Chairman of Planning Commission.
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