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Food Security of India & Efforts of Food Corporation of India

Food Security of India & Efforts of Food Corporation of India. 19 th August, 2013 KOLKATA. Organizational Structure of FCI. Headquarters. Zonal Offices 5. Regional Offices 24. District Offices 168+1 Port Office. Depots (2169). Hired 1306(D)+89(CAP). Owned 535 (D)+239(CAP).

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Food Security of India & Efforts of Food Corporation of India

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  1. Food Security of India & Efforts of Food Corporation of India 19thAugust, 2013 KOLKATA

  2. Organizational Structure of FCI Headquarters Zonal Offices 5 Regional Offices 24 District Offices 168+1 Port Office Depots (2169) Hired 1306(D)+89(CAP) Owned 535 (D)+239(CAP)

  3. Stock Position of Central Pool Vis-a-VisBuffer & Strategic Reserves (As on 01.07.2013) Figures in Lakh MT (Provisional) • Revision of buffer norms is under consideration

  4. Stock Position of Central Pool from 1999 onwards(As on 1st July) With increased production and expansion of procurement, Government of India would have the largest ever inventory of foodgrains this year.

  5. Crop Year Rice Stock in Central Pool as on 01.08.2013 (Figures in LMT)

  6. Crop Year WHEAT Stock in Central Pool as on 01.08.2013 (Figures in LMT)

  7. Stock Position in Central Pool in last 10 Years (As on 1st June) Figures in Lakh MT

  8. Procurement in Mandi (Purchase Centre)

  9. System of Procurement – Paddy/Rice Paddy brought to Mandis By Farmers Unloading & Cleaning Inspection, Bidding & Purchasing Bagging, Weighment & Stitching Loading & Transportation Paddy Purchased by Millers (LevyRice) Paddy Purchased by Govt. Agencies (Custom Milled Rice) Paddy unloaded at Mill Point Paddy unloaded at FCI/St. Govt. Godown/Rice Mills Paddy Issued to Rice Miller against advance rice Loading & Transportation to Mill Point Paddy Milling Rice Delivered at procurement centres/Depots

  10. System of Procurement • The Central Government extends price support to farmers for purchase of paddy, wheat and coarse grains through FCI and State Agencies. • All the foodgrains conforming to the prescribed specifications are bought by the Government procurement agencies at the Minimum Support Price (MSP) plus incentive bonus announced, if any. • The farmers have the option to sell their produce to FCI/State Agencies at MSP or in the open market, whichever is advantageous to them. Procurement at MSP is open ended. • Rice is also procured by the Government through statutory levy on rice millers and rice dealers.

  11. Procurement Policy • In DCP (Decentralized procurement) States, the State Governments take entire responsibility of procurement, storage and distribution for PDS/other welfare schemes. GoI reimburses entire expenditure incurred by the States. • Government encourages DCP system to ensure better reach of MSP, making available local varieties to PDS beneficiaries and cost-saving on transportation and storage etc. • In non-DCP States, State Agencies handover foodgrains to FCI for issue within the State or movement to other States.

  12. Who undertakes Procurement • Major responsibility of procurement of wheat and paddy is borne by State Governments and their agencies. • State Governments provide infrastructure at purchase centres. • Working capital is taken from Banks or State Government provide the working capital. • Orissa, MP, Chhattisgarh, Kerala, Tamil Nadu have increased their procurement substantially in the last few years.

  13. Purchase Centres Operated by FCI/State & Agencies

  14. Minimum Support Price of Paddy & Wheat for Last 10 Years (Figures in Lakh MT) The MSP of paddy has doubled since 2001-02. The MSP of Wheat has increased by 2.2 times since 2001-02 *-MSP + Bonus (if any) for ‘Common’ variety of paddy

  15. Production, Procurement & MSP of Wheat The procurement as % of production has increased from 24% in 2004-05 to 41% in 2012-13

  16. State Wise Production-Procurement of Wheat during last 3 years

  17. States where Wheat Procurement has increased substantially in last 07 Years (Figures in Lakh MTs) * U.P. was in transition phase in RMS 2010-11 from DCP to Non-DCP mode. Since RMS 2006-07, the procurement in M.P., Rajasthan, Gujarat, Bihar & U.P. has increased manifold

  18. Production, Procurement & MSP of Wheat (Figures in Lakh Tonnes) * For RMS 2003-04 a special drought relief of 10 per quintal was given # 4th Advance Estimate of Department of Agriculture & Cooperation dated 22.07.2013.

  19. Share of FCI and State Agencies in Procurement of Wheat (Figures in Lakh MT)

  20. Production, Procurement & MSP of Paddy The procurement as % of production has increased from 25% in 2003-04 to 34% in 2011-12. KMS 2012-13 is still in progress. Figures as on 31.3.13

  21. Share of FCI and State Agencies in Procurement of paddy (Figures in Lakh MT) • The Procurement by FCI has come down from 11% in KMS 2007-08 to 1% during KMS 2011-12. • The procurement by FCI during KMS 2011-12 is low, primarily because of initial insistence of direct payment to farmers, which impacted FCI procurement in Punjab and Haryana.

  22. State-wise trend of Production and Procurement of rice in last 3 years (Figures in Lakh MT)

  23. Production, Procurement, of Rice (Figures in Lakh Tonnes) * Special drought relief of 20 per quintal for paddy # 4th Advanced Estimate of Department of Agriculture & Cooperation (As on 22.07.2013) *** Figure as on 02.08.2013.

  24. Share of FCI and State Agencies in Procurement of paddy (Figures in Lakh MT) KMS 2012-13 is under progress. Figures as on 2.8.13.

  25. Statutory Taxes Levied by State Governments during KMS 12-13 Figures as %age of MSP The high incidence of taxation in Punjab, A.P. & Haryana is discouraging the participation of private trade.

  26. Storage Capacity Scenario As on 01.07.2013 ( Figures in Lakh MTs)

  27. FCI Warehouse

  28. View Of Cover and Plinth (CAP) Storage

  29. Moga Silos

  30. Year-wise Capacity available with FCI ( Figures in Lakh MTs)

  31. Storage Capacity Creation under PEG (As on 01.07.2013) ( Figures in Lakh MTs) Total Capacity to be created: 203.76 LMT Earmarked for Silos: 20 LMT Capacity Sanctioned: 145.38 LMT Yet to be sanctioned: 38.39 LMT

  32. Targets and Capacity realized year-wise under PEG Fig. in lakh MT

  33. State-wise Distribution of 20 lakh MT capacities of Silos (Figures in MT)

  34. Augmentation of Storage Capacity under 12th Five Year Plan

  35. Augmentation of Storage Capacity under 12th Five Year Plan (Cont.d)

  36. Movement Ex.north and Ex.Other than North (Figures in LMT)

  37. Allotment and Offtake of Wheat & Rice during last 5 years (Figures in Lakh MTs)

  38. Open Sale of Wheat and Rice (Figures in Lakh MTs) • Note: • Average Rate Realized under Bulk Consumer Scheme during 2012-13 was Rs. 1509/ Quintal. 2)A quantity of 0.34 LMT lifted in April 2013 against tenders floated in March 13 in Bulk Scheme is included in 64.38 LMT. • In 2013-14, GOI has made allotment of 85 LMT for Bulk buyer/Trader and 10 LMT for small private traders (3-9 MT)

  39. Comparative Allotment & Offtake of Foodgrainsduring 2011-12, 2012-13 (Figures in Lakh MTs)

  40. Salient Features of National Food Security Ordinance, 2013 • Coverage 75% of rural population & 50% of urban population • Households covered under Antyodaya Anna Yojana shall be entitled to get 35 Kg of foodgrains per household per month. • Every person belonging to priority household shall be entitled to get 5 Kg of foodgrains per person per month. • The said foodgrain will be provided at the prices of Rs. 3 per Kg. for rice, Rs. 2 per Kg. for wheat and Rs. 1 per Kg. for coarse grains. • Pregnant woman and lactating mother (except those under Govt. employment, already covered) shall be entitled to meal, free of charge, during pregnancy and six months after the child birth, through the local Anganwadi. Maternity benefits of not less than Rs. 6000/-, in such installments as may be prescribed by Central Govt. • Every child up to the age of 14 years shall be entitled to have entitlements for his nutritional need

  41. Impact of Food Security Ordinance • Greater requirement of procurement of foodgrains • Greater requirement of storage capacity in States such as NE, HP etc. where avialable capacity is less than 4 months requirement • Increase in movement from surplus to deficit states • Increase in food subsidy

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