No legislation to regulate public procurements : Government

New Delhi, Dec 15 (UNI) The government does not propose to enact a legislation to regulate public procurements, the Rajya Sabha was informed today.

In a written reply, Minister of State for Consumer Affairs and Public Distribution Dr Akhilesh Prasad Singh said as per the existing policy of Foodgrains Procurement, the Central Government extends price support to paddy, coarsegrains and wheat through FCI state agencies.

All the foodgrains conforming to the prescribed specifications offered for sale at specified centres are bought by the public procurement agencies at the Minimum Support Price (MSP).

On the sugarcane prices, he said the Central Government fixes the Statutory Minimum Price (SMP) of sugarcane factory-wise linked to the sugar recovery rate. For sugar season 2005-06, the range of factory-wise SMP was fixed at Rs 79.50-112.94 per quintal.

He said only Tamil Nadu has fixed the State Advised Price (SAP) of sugarcane linked to sugar recovery rate. The range of SAP fixed was from Rs 101.40 to 115.48 per quintal. Tamil Nadu government did not declare the SAP from 2001-02 to 2004-05 sugar season.

Regarding diversions from FCI godowns, Dr Singh said no such incident has been reported by the Food Corporation of India (FCI) in this regard.

The FCI is releasing foodgrains (wheat and rice) to the state governments or their nominees as per allocations made by the Government under Targeted Public Distribution System (TPDS) and other welfare schemes including Sampoorna Gram Rozgar Yojana and the responsibility of its distribution to the end consumers rests with the respective State/UTs Governments.

On the difference between product cost and retail price of iodised salt, Minister of State for Consumer Affairs, Food and Public Distribution Taslimuddin said that the item 'Salt' is considered to be a foodstuff and as such it is an essential commodity under the Essential Commodites Act, 1955.

There is a difference between the product cost and retail price of iodised salt. The production cost of iodised salt varies from place to place depending on the production source, quality and variety of Iodized salt. Iodized salt is available in three varieties vis. non-refined varieties of crystal (loose), powdered (rushed and packeted in poly packs) and refined/vacuum evaporated iodized salt (in poly packs).

At production source the average production cost of iodized salt of Crystal (loose) is about Rs 0.75 per kg, of powdered and packeted iodized salt is Rs 1.25 per kg and of refined iodized salt is Rrs 2.50 per kg. The average retail price works out to Rs 3.50 per kg for Crystal (loose) iodized salt, Rs 4.25 per kg for powder (packeted) and Rs 7 to Rs 9 per kg for Refined/Vacuum iodized salt, Mr Taslimuddin said these prices have been worked out taking an average distance of 1600 Km from the production sources. Retail prices of iodized salt will be less in the salt production source and adjoining areas and will be higher if it is far away from the production source.

Hence, the retail prices of iodized salt is dependent upon the transportation cost (rail/road freight), handling charges at various levels, transit/storage loss, godown/storage charges and margins of wholesaler, sub-wholesaler and retailer, the Minister added.

UNI BBS LS DS1515