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The Department of Food and Public Distribution is implementing a project “The Integrated Information System for Foodgrain Management” (IISFM) as a plan scheme for a period of 3 years. The project launched in 2003-04 is being implemented through Food Corporation of India as a three-year project at an estimated cost of Rs. 97.66 crore. The project will provide reliable data on foodgrain stocks in the central pool through an online computerized network. The project is expected to be completed by December this year and would be operational from April 2006. This will be particularly helpful in accessing timely and reliable information about stock of foodgrains procured, stored and distributed by states that have adopted decentralized procurement and distribution scheme.
The Government of India has been encouraging State Governments to adopt decentralized procurement scheme for meeting requirements of PDS in their area and for reducing carrying cost of foodgrains. So far, 11 States and Union Territories have adopted decentralized procurement scheme namely, Adaman and Nicobar Islands, Chhattisgarh, Karnataka, Kerala, Gujarat, Orissa, Madhya Pradesh, Uttar Pradesh, Uttaranchal, Tamil Nadu and West Bengal.
The decentralized procurement system has led to increased procurement of foodgrains from non-traditional states like Chhattisgarh, Orissa and Tamil Nadu. The estimated increase in the procurement of rice through those States which have adopted decentralized procurement is 10 lakh tonnes during the Kharif Marketing Season 2004-05 over the procurement in these states last year. Procurement of coarse grains under price support operations is being undertaken by State Governments and their agencies. The FCI takes over the quantity of procured coarse grains required for distribution under PDS. The remaining quantity of coarse grains is distributed through tender immediately after the closure of the procurement period.
The Government of India assists the State Governments in availing of timely and adequate credit from Banks to enable the procuring agencies to make payments to farmers on time. Advance funds are also being released to State Government by the FCI for undertaking coarsegrains procurement, wherever necessary. The Government of India reimburses all expenditure incurred by the State Governments in the procurement of coarsegrains.
SBK:CP:food(backgrounder8.9)
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