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National Food Security Act: No plan to hike NFSA grain prices, says food minister Piyush Goyal

The Commission for Agricultural Costs and Prices (CACP), in its rabi 2020 report, had recommended that the open-ended procurement system be reviewed.The Commission for Agricultural Costs and Prices (CACP), in its rabi 2020 report, had beneficial that the open-ended procurement system be reviewed.

Food minister Piyush Goyal stated on Thursday that there was no proposal earlier than his ministry to improve the speed of foodgrain bought by way of ration retailers beneath the National Food Security Act (NFSA).

The current Economic Survey has beneficial a rise in promoting costs of wheat and rice beneath the NFSA. It stated that the food subsidy invoice is “becoming unmanageably large” and whereas it’s tough to scale back the financial value of food administration in view of rising dedication in the direction of food safety, there’s a want to think about the revision of central situation worth (CIP).

The CIP is the worth at which wheat and rice are bought at ration retailers. There has been no change in these costs since 2013: wheat at Rs 2/kg and rice at Rs 3/kg. Though the NFSA prescribes revision of the CIP each three years, this hasn’t been carried out. The Centre’s procurement expenditure routed by way of the FCI has ballooned over time and is estimated to be Rs 1.73 lakh crore in FY20.

Asked whether or not there was any plan to scale back foodgrain procurement or to develop storage services, Goyal stated the food ministry is intently working with Railways and state governments to develop capacities with silos close to rail infrastructure.

The Commission for Agricultural Costs and Prices (CACP), in its rabi 2020 report, had beneficial that the open-ended procurement system be reviewed. The CACP had previously, too, pitched for direct procurement by non-public gamers, beneath the Private Procurement Stockist Scheme.

“Due to increased procurement of wheat and rice in recent years, the government has emerged as the single-largest buyer of foodgrain. In major wheat producing states like Madhya Pradesh, Punjab and Haryana, the government procures more than three-fourth of marketed surplus due to the open-ended procurement policy. This policy is driving out private sector from the market and has adversely affected crop diversification,” the CACP stated.

Goyal additionally stated that the federal government has ready a roadmap for the Food Corporation of India to enhance the standard of grain. The roadmap, as reported by FE on January 25, contains conducting third-party audits, junking archaic commonplace specs for bought items, implementing end-to-end digitisation and searching for suggestions from ration store beneficiaries.

Earlier, food ministry officers stated in a presentation that throughout the present procurement season in Uttar Pradesh, biometric verification of farmers is being carried out to guarantee they obtain cost of their financial institution accounts inside 72 hours. Odisha, Chhattisgarh and Madhya Pradesh have confirmed curiosity to implement it from subsequent season, officers stated. Goyal, nevertheless, shunned commenting if biometric verification has been made necessary in Uttar Pradesh.

On complaints by farmer leaders of the federal government not facilitating cost of sugarcane dues in Uttar Pradesh, estimated at about Rs 10,000 crore, the minister stated that final 12 months’s arrears have nearly been cleared and mills pays this 12 months’s dues quickly.

Goyal, who can be accountable for the division of shopper affairs, stated the federal government has been strictly implementing guidelines relating to show of ‘country of origin’ on all merchandise on e-commerce corporations. “So far, 77 notices have been issued for violation of Packaged Commodity Rules. Out of that, five companies have compounded the offence. Action will be taken against remaining companies as per the law,” he stated.

He additionally stated that Bureau of Indian Standard has been profitable in harmonising 84% of its requirements with world requirements to be sure that solely good merchandise are imported.

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