The Department of Food and Public Distribution is breaking news with its recent development of an application ecosystem designed for integration with procurement portals from all state governments. This application ecosystem forms a crucial system that will advance strategic decision-making processes.
The Application Ecosystem: Function and Design
The innovative Application Ecosystem aims to merge procurement portals of all the state governments, creating a centralised platform for monitoring and strategic decision-making. A key feature in this system is the incorporation of Minimum Threshold Parameters (MTPs). These are a necessary element in procurement operations, aimed at eliminating the presence of middlemen and securing optimal value for farmers’ produce.
The MTPs will foster uniformity and interoperability between the various states. They encompass five vital details, which states must capture in their procurement portals — these are related to online registration, farmer data, digitized mandi and procurement, and billing.
The integration of state portals with the central portal holds immense promise for improving the efficiency of reconciliation of procurement figures with states and expediting the release of funds from the Central Government to the States.
Identified Challenges in Current Procurement Systems
The present procurement systems face a host of challenges that need to be addressed. Variations in procurement systems have given rise to both systemic and implementation challenges which hinder the execution of central government schemes. Additionally, the process of reconciling procurement operations with various states can be protracted, resulting in delays in the disbursement of funds to States.
Another significant issue lies in the non-standard procurement practices, which give rise to avoidable inefficiencies, specifically the interference of middlemen in procurement operations. Currently, there is no standard procurement ecosystem throughout India that allows for effective monitoring and strategic decision-making. Therefore, standardizing operations plays a crucial role in promoting transparency and efficiency in procurement operations, thereby ensuring food security for the country’s populace.
Anticipated Benefits of the Application Ecosystem
The new Application Ecosystem is set to deliver significant benefits to various stakeholders. Firstly, farmers are expected to profit from the system through the ability to sell their produce at suitable prices, thereby avoiding distress sales.
Procuring agencies, including State agencies and the Food Corporation of India, will also reap benefits through better management of procurement operations. This will enable them to carry out procurement tasks more efficiently, given their limited resources.
Other stakeholders, such as those involved in grain storage, are also set to gain. The automation and standardization of procurement operations will offer an integrated view of foodgrains procurement processes and its subsequent storage in godowns.
The Application Ecosystem developed by the Department of Food and Public Distribution is a major milestone towards harnessing technology for improving procurement operations across all States which ultimately leads to securing the nation’s food security.