About DCP scheme
- Under the scheme, introduced in 1997-98, food grains are procured and distributed by state governments. The states procure, store and issue foodgrains under targeted public distribution system (TPDS) and other welfare schemes of the Government of India.
- The amount spent by state governments on the purchase, collection and distribution of food grains is reimbursed by the Indian government under this scheme. The value of the surplus stock that is given to FCI is adjusted in the states’ accounts.
- The scheme is not yet mandatory for states.
- Rice is purchased and distributed in Uttarakhand, Chhattisgarh, Odisha, Tamil Nadu, West Bengal, Kerala, Karnataka, Madhya Pradesh, Andhra Pradesh, Bihar, Telangana, Maharashtra, Gujarat, Andaman and Nicobar and Tripura as part of the scheme.
- Wheat is purchased and distributed in Punjab, Madhya Pradesh, Uttarakhand, Chhattisgarh, Gujarat, West Bengal, Bihar and Maharashtra.
- A majority of states exclusively buy wheat and paddy through the DCP system. Punjab is the only state that pays for the grains through arhtiyas (middlemen). The rest make payments electronically.
Advantages
- The scheme can help strengthen the public distribution system (PDS) by allowing states to distribute their produce to locals. This allows people to buy food grains according to their preferences.
- The scheme also reduces the PDS transportation costs. The food grains that remain unutilised with the state governments are procured by the Food Corporation of India (FCI) for its central pool.
