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Procurement of Food Grains

Fixation of procurement and distribution incidentals

Several State Governments are involved in the procurement operations of foodgrains (rice and wheat) either through their Departments or through their Agencies on behalf of the FCI for delivery to the Central Pool or for their own requirement under the Decentralised Procurement Scheme. Before commencement of the marketing season for the procurement of foodgrains, the State Governments forward their proposals to the Government of India (GOI) for fixation of provisional acquisition/economic cost of the foodgrains, as the case may be. These provisional costs are finalized after submission of audited accounts of agencies by the concerned State Govt. In order to introduce an element of transparency in the methodology of fixing of these costs, the Department had issued the ‘principles’ for fixing these costs. These principles have been revised from time to time by the Deptt. The State Governments are advised to base their proposals for arriving at the acquisition cost/economic cost on these "principles”. The GOI scrutinizes the proposals based on these "principles” and concurrence to the same is conveyed accordingly.

Finalization of incidentals/economic cost of foodgrains

Provisional incidentals/ economic cost of foodgrains are finalized on receipt of proposals of the State Govts. along with audited accounts for each crop of Kharif Marketing Season (KMS) and Rabi Marketing Season (RMS) in consultation with Food Corporation of India (FCI). Before finalizing the cost, States are given opportunity to give their comments on the proposed final rates and if desired by the States a meeting with States is also held to sort out the disputes.

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