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India : 100% digitisation of ration cards done, a major step towards leak-proof PDS in the country

Publish Date : 15-Feb-2016

The Government has achieved significant mile stones in the reforms of PDS. Almost 100 % (99.9%) ration cards have been digitised across the country. Over 42 % ration cards have been even linked with Aadhaar cards and Point of Sale Devices, to keep electronic record of allocation to the beneficiaries, have been installed in over 77,000 ration shops. These measures will help making PDS more transparent and leak proof. This was stated by Union Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan while addressing media in Bhubaneswar today.

Highlighting the initiatives taken by his Ministries during last 20 months, Shri Paswan said that number of states implementing National Food Security Act has now increased to 27, benefiting over 54 crore people with Rs 2/kg wheat and Rs3/kg rice. Now all the States 36 States/UTs have and online redressal of PDS grievances and toll free number for beneficiaries. Online allocation of foodgrains is being made in 20 states.

Shri Paswan said huge paddy procurement has been made during on-going Kharif season ensuring reach of MSP operations to more farmers. 261.37 lakh tonnes paddy has been procured till February 11, 2016 while during last kharif season it was 215.49 lakh tonnes. Even in Odisha procurement till date is 16.07 Lakh tonnes while during last season it was 15.06 lakh tonnes.

Highlights of other initiatives of Union Ministry of Consumer Affairs, Food and Public Distribution are:
NFSA implementation likely in all the States/UTs by April this year. National Food Security Act (NFSA) which came into force in July, 2014, now being implementing in 27 States/UTs. By April it is likely to be implemented in all remaining States/ UTs.

In order to check leakage and diversions and to facilitate Direct Cash Transfer of food subsidy to the beneficiaries has been launched in Chandigarh and Puducherry in September, 2015, Under the scheme, in lieu of foodgrains subsidy component is credited directly into the bank accounts of beneficiaries who will be free to buy foodgrains from anywhere in the market.

The Central Government also decided to share 50% (75% in the case of Hilly and difficult areas) of the cost of handling & transportation of foodgrains incurred by the states and the dealers margin so that it is not passed on to the beneficiaries and they get coarse grains Rs1/kg, wheat at Rs2/kg and rice at Rs 3/kg.

To ensure that beneficiaries of the National Food Security Act get entitled foodgrains positively, rules for payment of food security allowance to the beneficiary in the case of non-delivery of foodgrains have been notified.

In order to provide nutritional security to the economically vulnerable sections of society and to have better targeting of other welfare schemes for poor, a Committee of Ministers set up under the chairmanship of Minister for Consumer Affairs, Food and Public Distribution has decided continuation of foodgrain allocation for Other Welfare Schemes and also has recommended for providing milk and eggs pulses etc. under the schemes.

In order to give relief to the farmers affected by the unprecedented rains & hailstorms last year, Government relaxed Quality norms for the wheat procurement and also decided to reimburse amount of value cut on such relaxation to the States so that farmers get full Minimum Support Price (MSP). Such a farmers centric step has been taken for the first time by any Central Government.

In a bid to increase reach of minimum support price (MSP) operations to more farmers and increase procurement of paddy, the procurement policy has been modified and private firms have been allowed to procure paddy from farmers in a cluster, identified by the respective state government in the states of Assam, Bihar, Eastern Uttar Pradesh, Jharkhand and West Bengal. These states lack necessary infrastructure and experience in large scale procurement operations and the Food Corporation of India (FCI), too, does not have a robust procurement mechanism which often forces farmers to go for distress sale. Private firms would deliver custom milled rice (CMR) at the FCI or state government-owned agency godowns.

For creation of 1.5 LMT Buffer Stock of Pulses, FCI started procurement pulses from farmers at market price or MSP whichever is higher. FCI has targeted the procurement of 20,000 MT of Arhar, 2,500 MT of Urad (Total 22,500 MT) during Kharif Marketing Season 2015-16. Similarly, target has been fixed for procurement of 40,000 MT Chana and 10,000 MT of Masur (Total 50,000 MT) during Rabi Marketing Season 2015-16.

The drop in international prices of imported oils was affecting the prices of domestically produced edible oils consequent upon which farmers interests were affected. Department of Food and Public Distribution had recommended an increase in the import duty. Accordingly, the import duty on Crude oils has been increased from existing 7.5% to 12.5% and the import duty on refined oils from existing 15% to 20%. on 17.09.2015.

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