MP Asks Centre to Approve Centralized Wheat, Paddy Procurement
The state has borrowed Rs 7,217.7 crore from banks to carry on the procurement operations and it is becoming difficult for the state for repayment of these loans, the letter pointed out
Bhopal: Madhya Pradesh government has sought the Centre’s nod to move to a Centralized Procurement System (CPS) and do away with the current practice of buying wheat and paddy directly from the farmers in the state at the minimum support price (MSP).
In a letter written to the Union minister for consumer affairs, food and public distribution Prahlad Joshi on October 14, Madhya Pradesh chief minister Mohan Yadav cited financial strains on the state exchequer caused by the significant monetary losses as the reason for choosing to shift to the CPS from the existing decentralized procurement system (DCP).
The state suffered losses in the DCP due to delays in claim settlements and inadequate reimbursement from the Centre, he said.
“The actual cost incurred is not being reimbursed as per the provisional and financial cost sheets approved by the Central government”, the letter said.
In the CPS, the Food Corporation of India (FCI) or its agencies procure food grains on behalf of the Centre from the farmers.
Under the DCP, the state has procured 77.74 lakh metric tonnes of wheat and 43.49 lakh metric tonnes of paddy per annum in recent years.
The state has borrowed Rs 7,217.7 crore from banks to carry on the procurement operations and it is becoming difficult for the state for repayment of these loans, the letter pointed out.
The Congress Legislature Party (CLP) leader Umang Singhar on Tuesday slammed the state government for letting down the farmers by opting to move to the CPS.