Telangana reaps benefit of paddy procured from Food Corporation of India under Centre move

The state exchequer saves over Rs 330 crore due to the Open Market Sale Scheme (Domestic) policy.
Paddy procurement
Paddy procurement

HYDERABAD:  The Central government’s move allowing all state governments and union territories to procure paddy or rice from the Food Corporation of India (FCI), following a demand for the same from the Telangana Civil Supplies Department, has allowed the State government exchequer to save over Rs 330 crore.

The Telangana State Civil Supplies Department (TSCSD) took the initiative of getting the Open Market Sale Scheme (Domestic) policy amended by the Department of Food and Public Distribution under the Ministry of Consumer Affairs.

According to officials from the TSCSD, the public distribution scheme falls short of around 52,000 tonnes every month. In case of additional requirements, the TSCSD was not allowed to procure rice for the purpose of public distribution from the FCI.

Left without any option, the TSCSD used to procure rice from millers at a price of Rs 28/kg. Recently, the State authorities had procured average quality rice at Rs 22/kg. The annual additional requirement of rice is estimated at over six lakh tonnes.

The latest amendment has enabled the Civil Supplies Department to draw rice locally from the FCI godowns. As and when they wish to procure the rice/paddy, the TSCSD has to file a requisition through e-auction to get it sanctioned.

Speaking to Express, Nagender Reddy, General Manager (Marketing), said, "Because of the TSCSD, other states in the country are now reaping benefits. It is all thanks to the efforts of Civil Supplies Department Chairman Mareddy Srinivas Reddy and Commissioner P Satyanarayana Reddy." 

Pointing out that it was a benefit for the FCI as well, he said, “Earlier, the FCI had to pay the godowns for maintaining the stock. There was also a chance that the rice quality would go down over a period of time. Now, it has become a benefit to both departments as it can save public money. The move also cuts short the transport expenditure as we procure rice from the closest godowns.”

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