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Distribution and Disposal of Coarsegrains Overview

 As per the instructions of Government of India in vogue, coarsegrains may be procured by the States for Central Pool under MSP operations after obtaining prior approval of the Procurement Plan from the Government of India. Such a plan should invariably give the details of concerned commodity in the areas proposed for procurement, the market situation, proposed quantity of expected procurement, etc. The State has also to keep in mind that procured quantity is to be used for distribution under TPDS in the State. Therefore, the State has also to spell out the plan to utilise the procured quantity. The quantity of coarsegrains allotted by the State for distribution under TPDS or OWS has to be distributed on priority and combined allocation of wheat and rice to the equivalent extent shall stand automatically reduced. 

The State may also provide the stock of coarsegrains to the FCI for making supply to other State(s) at the provisional acquisition cost approved by DFPD, in case FCI makes a demand. 

The balance quantity of coarsegrains is disposed off by the State concerned in the open market through tenders before beginning of the next marketing season after joint checking of quality of stocks by a team of FCI and State Government. For disposal of issuable stocks of coarsegrains in the open market through tender, the State has to constitute a committee having one representative of QC and one from Accounts wing of FCI. The committee is responsible for quality check, fixing the reserve price based on the prevailing market rates, approving the terms and conditions for tender etc. The sale has to be approved by a competent authority as per DOP of the State Government.

Any stock procured by the State Government without approval of the Government of India is treated outside the Central Pool operations. Any stock procured by the State Agencies which does not meet the Fair Average Quality (FAQ) norms will also not be considered in the Central Pool and such stock is to be disposed off by the State Government at its level and any losses incurred on that account are to be borne by the State Government itself.