The Ministry of Home Affairs on Thursday withdrew the order dated May 15 which said only Indian products will be sold through Central Armed Police Forces (CAPF) canteens from June 1, in a major relief for FMCG companies.
The mega network of central paramilitary forces that caters to about 50 lakh troops and their families had "put on hold" all fresh procurement of supplies from over 400 vendors till a clarity is obtained from the government on the term "swadeshi" products, officials had said on Tuesday.
The Union Home Ministry on May 13 had declared that these canteens will only sell indigenous or "swadeshi" products from June 1 in a bid to give fillip to domestic industries.
Union Home Minister Amit Shah, while making the announcement to go "swadeshi", had said that the decision to sell only indigenous products through the CPCs has been taken by his ministry after Prime Minister Narendra Modi's appeal for opting local products and being self-reliant.
The CAPFs canteens comprise those run by CRPF, BSF, CISF, ITBP and SSB, apart from the elite commando force NSG.
The central paramilitary forces canteens run a nationwide network of over 1,700 Central Police Canteens (CPCs) that sell products ranging from groceries, clothes, gift items and vehicles among others, except liquor which is procured through open tender or army canteens.
The CAPF canteens do an estimated business worth Rs 2,800 crore annually by selling their products to 50 lakh family members of about 10 lakh personnel of these forces tasked for a variety of internal security duties and border guarding.
This canteen network was established in 2006. There are over 119 master canteens and 1,625 subsidiary canteens at various locations where these forces are deployed, be it along borders or the interiors of Naxal violence-hit or insurgency affected states.
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