The Hindu Business Line : AP Govt says it can't handle procurement for PDS

The State Minister for Civil Supplies, Mr C. Mutyam Reddy, said that the Government neither had enough storage space nor the required expertise to take up these operations. Besides, "such operations will become expensive for the State Government and it will be difficult for it to serve the PDS".

The Minister was referring to the recommendation of a high-level committee on long-term foodgrain policy, appointed by the Union Government.

The committee, which submitted its report in July, this year, recommended that while the Food Corporation of India (FCI) must remain the main agency for procurement and distribution, State Government agencies, cooperatives and private trade "may also handle these operations in the future".

Addressing a seminar on "New foodgrains policy", organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with the Indian Institute of Economics (IIE) and A. P. Grain & Seeds Merchants' Association here, the Minister said that the production of foodgrains was less in West Bengal and other States which were lifting the stocks on their own. But it was not the case in Andhra Pradesh, which was a major producer of foodgrains.

The IIE Director, Mr V. K. Srinivasan, said that increasing buffer stocks of foodgrains had resulted in some claims that the country had moved from a situation of recurring shortages to permanent surpluses. This might not be fully correct as the surpluses could well be attributed to distortions in the food management system. He wanted a debate on this issue.

The FAPCCI President, Mr Omprakash Tibrewala, said that the committee had rightly recommended that the operations of the Food Corporation of India should focus more on eastern and central parts of the country and that procurement should become more dispersed.

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