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India : GOVT. considers engaging private warehouses for foodgrains procurement in north-east

Publish Date : 26-Feb-2015

Inadequate storage facility has led the government to consider involving private warehouses for foodgrains procurement in the north-eastern states either independently or on behalf of government agencies. Implementing the proposals of the high level committee (HLC) of the Food Corporation of India (FCI), its chairman C Viswanath called a meeting of state secretaries of the north-eastern states and a few private players in warehousing sector on February 17 and asked them to create a detailed strategy on the way to reach out to farmers for foodgrains procurement to prevent them from distress sale. Respective state governments are set to present their proposals to FCI by Wednesday.

But, during the meeting, state secretaries understandably were convinced to involve private warehouses to start minimum support price (MSP) operations (to procure foodgrains at MSP) due to insufficient storage facility of FCI or the state governments in this region which produces more than 40 per cent of foodgrains in the country. Private players also presented their strategies. State Principal Secretary (Food) Anil Verma, said : "West Bengal would welcome private players to increase the reach of benefits of MSP to the small and marginal farmers."

An FCI official added : "We have some instances of distress sell in this region. But, agriculture being the state subject, the onus lies with the state governments to engage private sector warehouses to start MSP operations on their behalf. We do not have any problem if state governments engage private players. In case private players are engaged, they will be allowed only for procurement. Transportation and distribution to the public distribution system (PDS) will be controlled by respective states."

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