NEW DELHI: Government will launch direct cash transfer of food subsidy to beneficiaries in Chandigarh and Puducherry on pilot basis. While stating that the ministry is keen to do this to stop leakage of PDS grain, food minister Ram Vilas Paswan reiterated they have “outrightly” rejected the PM-appointed committee’s recommendation to reduce food security coverage from 67% to 40%.The panel on restructuring of Food Corporation of India (FCI) in its report submitted to PM had recommended these measures besides others. The ministry has proposed the two Union Territories for direct cash transfer since these are urban areas and the will be better monitoring.Though Paswan said this is a better mechanism, there are problems as well. “If we transfer cash, beneficiary can buy food grains from open market. Then what will happen to our procurement operation and what will we do with procured food grains and our storage facilities. We need to seriously think about this before implementing it on larger scale,” he said.The panel has also suggested the government should ensure that farmers get minimum support price (MSP), meaning state-owned agencies must procure grains from farmers.Playing safe the ministry in its submission to PMO has also steered clear of the panel’s sensitive recommendation to have uniform mandi taxes of 3-4% on wheat and rice and the same to be included in the MSP. Since only West Bengal and Uttar Pradesh have agreed to this proposal, Paswan said they would push this only when all states are on board.The minister also said that FCI has agreed to procure pulses and oilseeds from farmers at MSP besides rice and wheat, as recommended by the panel. On the issue of FCI’s withdrawal from buying grains in states including Punjab, Haryana, Chhattisgarh and Odisha where government procurement system has been strengthened, Paswan said the agency won’t procure any grain from Haryana from this season starting April. FCI will also stop any procurement from the next season starting April 2016.The ministry has also favoured outsourcing the testing of FCI foodgrains to private sector and is ready to try it on a pilot basis in 25 depots in Chhattisgarh.