FCI ‘lags’ in procurement in Punjab

Ruchika M Khanna

Tribune News Service

Chandigarh, April 27

The Food Corporation of India (FCI) seems to be lagging in purchasing its allotted share of wheat during the ongoing procurement season. As against 20 per cent of the total wheat that the central food agency has been allotted to procure, it has so far bought just eight per cent.

Figures available with The Tribune show that of the 95.37 lakh metric tonnes (LMT) of wheat procured till Tuesday evening, the FCI has bought just 8.03 LMT, against an allotted target of 26 LMT. The state procurement agencies — PUNGRAIN, Punjab State Warehousing Corporation, Markfed and PUNSUP — have together procured 87.34 LMT of wheat.

Not shying away from purchase

The FCI is not shying away from wheat purchase. We are buying foodgrain in all 400 mandis allocated to us. Our purchase is corresponding to the wheat arrival in mandis allotted to us. — AS Thind, GM, FCI, Punjab

In the past many years now, the purchase by the FCI is less than the target set for it. Last year, against the target of 20.25 LMT, the FCI actually directly purchased 14.19 LMT in Punjab.

The reason behind the FCI’s rather slow wheat procurement this year is not just the adherence to quality checks set by the agency for buying wheat, but also that many of the mandis allotted to the FCI are the ones where wheat arrivals are traditionally less.

FCI’s General Manager, Punjab Region, AS Thind said the quality norms followed by them were the same as the state government agencies.

Officials in the state government said being an election year, the mandis that traditionally had lesser wheat arrivals were allotted to the central agency, mainly because it pays only 70 per cent of the MSP upfront and releases the remaining dues later, after deducting packing and labour charges.

Though FCI officials said they had no knowledge about this aspect, they said the reason for the less purchase so far was because of the government decision to reduce their target.