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CACP’s recommendation to review procurement policy has state up in arms

The recommendation, out of purview of the CACP, is set to evoke protests from Punjab, a state that depends largely on agriculture.

CACP’s recommendation to review procurement policy has state up in arms Two months ago, the Centre had written to the state for restricting procurement. (File Photo)

Two months after the Union government wrote to Punjab to consider restricting procurement in the central pool towards the requirement of Public Distribution System (PDS) and buffer stocks, the Commission for Agricultural Costs and Prices (CACP) has also recommended a review of the open-ended procurement policy.

As per the latest recommendations of the CACP for Rabi 2020, one of the recommendations reads: “The open ended procurement policy for rice and wheat has led to mounting food stocks and adversely affected crop diversification. These excess stocks create storage problems and also high storage and financing costs leading to high food subsidy burden. The commission recommends that open ended procurement policy should be reviewed.”

The recommendation, out of purview of the CACP, is set to evoke protests from Punjab, a state that depends largely on agriculture. Balbir Singh Rajewal, president of Bharti Kisan Union (BKU), who met government officials on the issue on Monday, said, “I have asked the government if they will procure wheat this season or not. The Punjab government should protest against the move strongly. The CACP’s mandate is to fix the MSP and not give recommendations about the procurement policy,” said Rajewal.

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After his meeting, it is learnt that the matter is being brought to the notice of Chief Minister Capt Amarinder Singh.

Two months ago, the Centre had written to the state for restricting procurement. Punjab had reacted strongly against the proposal. After that, it is the CACP that has come up with the recommendation now. Punjab gets about Rs 70,000 crore annually for procurement of paddy and wheat and the state’s economy depends largely on agriculture.

Festive offer

The Centre’s buffer stocks of foodgrains are more than doubling than the capacity of 307.70 Lakh Metric Tons (LMT). As granaries are overflowing and buffer stocks of foodgrains and pulses touching 642.32 LMT, thereby recording a surplus of 334.62 LMT, the Centre had written to Punjab offering various solutions for it to contribute lesser towards the central pool.

For any government in the state, procurement of grains is a sensitive issue. Any delay makes it a political issue.

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The state government has earlier rejected the Centre’s proposal on the plea that any tinkering with the procurement process currently could lead to a law and order situation. The state had, during the recently commenced paddy procurement season, produced 105 LMT rice for the central pool. Not a single grain of rice is used for Punjab’s Decentralised Procurement Scheme (DCP). Only 8.7 per cent wheat produced is procured for DCP.

First uploaded on: 28-01-2020 at 14:06 IST
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