FOOD CORPORATION OF INDIA

1. FOOD CORPORATION OF INDIA KEEPING PACE WITH CHANGE

2. FCI’s Mandate • The Food Corporation of India was set up on 14th Jan. 1965 by an Act of Parliament. Its Primary Objectives are as follows : • To provide the farmers remunerative prices. • To make foodgrains available at reasonable prices, particularly to the vulnerable section of the society and • To maintain buffer stocks as a measure of Food Security • To intervene in the market for price stabilisation.

3. Growth of Operations 2003-2004 37.3 Million Tonnes 29.95 Million tonnes 44.5 Million tonnes 27.1 Million tonnes 43 times 5.5 times 45 times 14 times Procurement Movement Distribution Storage Capacity 2.6 Million tonnes 8.2 Million tonnes 0.7 Million tonnes 0.6 Million tonnes (Including Imports) 1965-66

4. ISSUES RELATED TO PROCUREMENT

5. % SHARE OF FCI & STATE AGENCIES IN PROCUREMENT

6. 5 MAJOR WHEAT PROCURING STATES PUNJAB-55%, HARYANA-30%, UTTAR PRADESH-10%, MADHYA PRADESH-2% & RAJASTHAN-2% WHEAT DEFICIT STATES- 23

7. 7 MAJOR RICE PROCURING STATES PUNJAB-40%, HARYANA-7%, UP-10%, WB-3%,CHHATTISGARH-9%, AP-22%, ORISSA-7% RICE DEFICIT STATES- 18 RICE POTENTIAL STATES – 3 BIHAR, TAMILNADU AND KARNATAKA

8. STATUS OF PRODUCTION, PROCUREMENT AND OFFTAKE • PUNJAB, HARYANA ARE SURPLUS STATES. • SEVEN STATES NAMELY UP, UTTRANCHAL, ORISSA, WB, MP, AP AND CHATTISGARH REQUIRE SOME EFFORTS IN PROCUREMENT TO MEET SUBSTANTIAL PART OF THEIR ANNUAL REQUIREMENTS.

9. STATUS OF PRODUCTION, PROCUREMENT AND OFFTAKE • FIVE STATES NAMELY BIHAR, JHARKHAND, RAJASTHAN, KARNATKA AND MAHARASHTRA REQUIRE SERIOUS EFFORTS TO MEET PART OF THEIR REQUIREMENTS. • SEVEN STATES NAMELY ASSAM, NAGALAND, KERALA, TRIPURA, GUJRAT, J&K AND HP REQUIRE EXTRAORDINARY EFFORTS TO MEET PART OF THEIR REQUIREMENTS.

10. STATUS OF PRODUCTION, PROCUREMENT AND OFFTAKE • SEVEN STATES NAMELY GOA, SIKKIM, DELHI, ARUNACHAL, MIZORAM, MANIPUR, MEGHALAYA PRODUCE NEGLIGIBLE QTY. OF FOODGRAINS.

11. ASSUMPTIONS IN THE FOLLOWING SLIDES FIGs. OF POSSIBLE PROC. , BENEFIT TO STATES ARE BASED ON ASSUMPTIONS GIVEN BELOW:

12. ASSUMPTIONS • PROCUREMENT IS ASSUMED TO BE 20% (NATIONAL AVERAGE) OF THE TOTAL PRODUCTION OF THE STATE . • THE PRODUCTION IS AVERAGE OF LAST TWO YEARS. • THE TAXES LIKELY TO BE EARNED BY STATE GOVTs. @ 10% OF THE ADDITIONAL PROCUREMENT DONE.

13. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 1. UTTAR PRADESH

14. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 2. UTTARANCHAL

15. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 3. ANDHRA PRADESH

16. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 4. CHHATTISGARH

17. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 5. ORISSA

18. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 6. WEST BENGAL

19. EIGHT STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS 7. MADHYA PRADESH

20. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS

21. SEVEN STATES WHERE SOME EFFORTS ARE REQUIRED TO MEET THEIR ANNUAL REQUIREMENTS SUMMARY FOR STATES OF SOME EFFORTS UTTAR PRADESH, UTTARANCHAL, A.P, CHG. ORISSA, WEST BENGAL, MADHYA PRADESH

22. FIVE STATES WHERE SERIOUS EFFORTS ARE REQUIRED TO MEET THEIR PART ANNUAL REQUIREMENTS 1. BIHAR

23. FIVE STATES WHERE SERIOUS EFFORTS ARE REQUIRED TO MEET THEIR PART ANNUAL REQUIREMENTS 2. JHARKHAND

24. FIVE STATES WHERE SERIOUS EFFORTS ARE REQUIRED TO MEET THEIR PART ANNUAL REQUIREMENTS 3. KARNATAKA

25. FIVE STATES WHERE SERIOUS EFFORTS ARE REQUIRED TO MEET THEIR PART ANNUAL REQUIREMENTS 4. MAHARASHTRA

26. FIVE STATES WHERE SERIOUS EFFORTS ARE REQUIRED TO MEET THEIR PART ANNUAL REQUIREMENTS 5. RAJASTHAN

27. TOTAL FOR FIVE STATES OF SERIOUS EFFORTSBIHAR, JHARKHAND, RAJASTHAN KARNATKA, MAHARASHTRA

28. FIVE STATES WHERE SERIOUS EFFORTS AREREQUIRED TO MEET THEIR ANNUAL PART REQUIREMENTS

29. SEVEN STATES WHERE EXTRAORDINARY EFFORTS ARE REQUIRED TO MEET THEIR PART REQUIREMENTS 1-3. ASSAM, NAGALAND & TRIPURA

30. SEVEN STATES WHERE EXTRAORDINARY EFFORTS ARE REQUIRED TO MEET THEIR PART REQUIREMENTS 4. KERALA

31. SEVEN STATES WHERE EXTRAORDINARY EFFORTS ARE REQUIRED TO MEET THEIR PART REQUIREMENTS 5. GUJARAT

32. SEVEN STATES WHERE EXTRAORDINARY EFFORTS ARE REQUIRED TO MEET THEIR PART REQUIREMENTS 6. JAMMU & KASHMIR

33. SEVEN STATES WHERE EXTRAORDINARY EFFORTS ARE REQUIRED TO MEET THEIR PART REQUIREMENTS 7. HIMACHAL PRADESH

34. SUMMARY FOR SEVEN STATES OF EXTRA ORDINARYEFFORTSASSAM, NAGALAND, TRIPURA , KERALA, GUJARAT, JAMMU & KASHMIR, HIMACHAL PRADESH

35. SEVEN STATES WHERE EXTRAORDINARY EFFORTS ARE REQUIRED TO MEET THEIR PART REQUIREMENTS

36. GRAND TOTAL OF ALL STATES

37. REASONS FOR LOW PROCUREMENT • LACK OF AWARENESS OF BENEFITS ACCRUING TO THE FARMER AND STATE EXCHEQUER. • LACK OF MANDIS & OTHER INFRASTRUCTURE. • PROCUREMENT INCENTIVES CONSIDERED UNATTRACTIVE.

38. ACTION PLAN • STRENGTHEN POLITICAL/ ADMINISTRATIVE INTERACTION. • STATES MUST CONSIDER THE FACT THAT THEY ARE INDEED LOSING 710 CR. BY WAY OF INCOME FROM TAXES ON PROCUREMENT OF GRAIN. • IN ADDITION THE STATES ARE LOSING ADVANTAGE ON SECONDARY ACTIVITY GENERATED BY PROCUREMENT OPERATIONS.

39. ACTION PLAN • CONCERNED STATES MUST BUILD UP INFRASTRUCTURE SUCH AS MANDIS, PROCUREMENT CENTRES ETC WITH THE HELP OF NGOs, COOPERATIVES AND SCHEMES AVAILABLE FROM CENTRAL GOVERNMENT. • REFORMS IN AGRICULTURE SECTOR SHOULD BE UNDERTAKEN ON PRIORITY. • INCREASE THE SHARE OF PROCUREMENT IN THE CENTRAL POOL.

40. THANKS 21.12.2004

41. Organisational Chart CORPORATE OFFICE ZONAL OFFICES (5) REGIONAL OFFICE (23) DEPOTS (Incl.CAP) – 1559 With over 2200 offices, it makes FCI one of the largest networked company in India.