PROJECT REPORT ON

FOOD CORPORATION OF INDIA

PAPER NO. XXXVII B.Com. (Hons.) 2011-12

Submitted To Mr. Ranbir singh rana Associate Professor Teacher-in-Charge Department of Commerce

Under the guidance of Mr. S.K. Bohidar Department of Commerce Dyal Singh College

Submitted By Akash Saini Section A, III Year

Roll No. - 4099

Declaration

This is to certify that information embodied in the present report is based on my original work and has not been submitted in part or full for any other purpose.

ANJALI (Academic Mentor)

GITESH SHARMA (Students Name)

SNADYA (Head, Department of Commerce)

ACKNOWLEDGEMENT

I acknowledge with gratitude and appreciation, my indebtness to my mentor and guide, ANJALI, for allowing me to work on a very intrinsic part of FOOD SECTOR. I also thank her for the ideas she shared with me as they helped me a lot in accomplishing this project. I am thankful to may of my friends and my Sister for helping me in the preparation of this project.

GITESH SHARMA

TABLE OF CONTENTS
1. 2.

INTRODUCTION OBJECTIVES, QUALITY POLICY, QUALITY OBJECTIVES

3. 4. 5. 6. 7. 8. 9.

CORPORATE SETUP OPERATIONAL NETWORK CAPITAL STRUCTURE & SUBSIDY PROCUREMENT OF FOOD GRAINS QUALITY CONTROL TRANSPORT MANAGEMENT STOCK MANAGEMENT HUMAN RESOURCE DEVELOPMENT FINANCIAL FEATURES NEW INITIATIVES STRENGTH OF FCI 2020

10. 11. 12. 13.

14. VISION

INTRODUCTION
The Food Corporation of India was setup under the Food Corporations Act 1964, in order to fulfill following objectives of the Food policy :

Effective price support operations for safeguarding the interests of the farmers. Distribution of food grains throughout the country for Public Distribution System; and Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security. To intervene in the market for price stabilization.

Since its inception in 1965, having handled various situations of plenty and scarcity, FCI has successfully met the challenge of managing the complex task of providing food security for the nation. A strong food security system which has helped to sustain the high growth rate and maintain regular supply of wheat and rice right through the year. Food constitutes the main requirement of every human being. In a sub-continent like India where millions of mouths depend on Targeted Public Distribution System (TPDS) and other welfare schemes of Govt. of India, FCI, plays a leading role in making food grains available to the extent of 30 lakh tones during a month, to respective State Govts. for its distribution among beneficiaries. To procure, store, preserve and move such a huge quantity of stocks spreading over vast areas with its intricate network is, indeed, a nerve and back-jerking task. The efficiency with which FCI tackled one of the worst droughts of the century not only cemented its role as the premier organization in charge of food security in India, but also brought it accolades from international organizations.

Today it can take credit for having contributed a great deal in transforming India from a chronically food deficit country to one that is self-sufficient.

OBJECTIVES

To provide farmers remunerative prices To make food grains available at reasonable prices, particularly to vulnerable section of the society To maintain buffer stocks as measure of Food Security To intervene in market for price stabilization

QUALITY POLICY
FCI, as the country's nodal organization for implementing the National Food Policy, is committed to provide credible, customer focused services, for efficient and effective food security management in the country. Our focus shall be: Professional excellence in Management of food grain and other commodities Service quality and stake holder orientation Transparency and accountability in transactions Optimum utilization of resources Continual improvement of systems, processes and resources

QUALITY OBJECTIVES
Fulfillment of all the targets set as per Govt. of India Food Policy from time to time. Monitoring of Quality in all major transactions, processes leading to improved customer satisfaction level Accountability for efficiency, responsiveness, performance and minimization of all losses & Wastes Need based up gradation of infrastructure and work environment Need based enhancement of available knowledge & skills. Transparency in decision making, effective communication leading to harmonious employee relations Establishing, maintaining and improving ISO 9001:2000 based Quality Management Systems covering all areas of activity.

CORPORATE SETUP

The General Superintendence, Directions and Management of the affairs and business of the Corporation vests with the Board of Directors Board of Directors as per section 7(1) of the Food Corporation Act shall be :

CHAIRMAN MANAGING DIRECTOR MD, CENTRAL WAREHOUSING CORPORATION (EX-OFFICIO) GOVT. REPRESENTATIVES :

Three directors to represent respectively the ministries of the central govt. Dealing with : (i) (ii) (iii) FOOD FINANCE CO-OPERATION; and

SIX OTHER DIRECTORS (out of which four (4) are non-official Directors)

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ORGANIZATIONAL CHART

Corporate Office Zonal Offices [ 5 ] Regional Offices [ 23 ] District Offices [ 166 ] Depots (incl. CAP) [ 1451 ]

With 1646 offices, FCI is one of the largest networked organizations in India

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OPERATIONAL NETWORK

FCI operates through a country-wide network with its Corporate Office in New Delhi, 5 Zonal Offices, 23 Regional Offices practically in all the State capitals, 165 District Offices(as on 01.10.2008) and 1470 depots (as on 01.01.2007) Most of the Revenue Districts in the country are covered by FCI. It has a manpower of 38,645 officers and staff /employees as on 30.06.2008 and about 60,109 regular food handling workers besides approximately one lakh food handling laborers being engaged by the Handling & Transport Contractors, as on 31.03.2005 The general superintendence, direction and management of the affairs and business of the Corporation shall vest in a board of directors which exercise all such powers as may be exercised or done by the Corporation under this Act. The board of directors, in discharging its functions, act on business principles having regard to the interest of the producer and consumer and shall guided by such instructions on questions of policy as may be given to it by the Central Government.

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BOARD OF DIRECTORS
(Position As on -01-08-2008)) Sl. No. 1. Name and Address Alok Sinha,(IAS)* CMD,FCI, 16-20 Barakhamba Lane, New Delhi-1 (w.e.f. 2.1.2007 afternoon) Telephone (office) 23414074, 23413346 Telephone (Resi) Residential Address

9871173508 C-II/45, Tilak Lane, New Delhi-1

N.K.Raghupati,* 23384418 Addl.Secretary & F.A, Ministry of CAF&PD, Krishi Bhawan, New Delhi (w.e.f. 24.10.2007 afternoon) Siraj Hussain,(IAS)* Joint Secretary, Min. Of Consumer Affairs Food & Public Distribution, Krishi Bhawan, New Delhi. (w.e.f. 10.1.2007 ) 23381177 FAX23388302

95120A-70, Sector 2585408 61, NOIDA9818518384 201301(U.P)

Mukesh Khullar *Joint 23381176 Secretary,(DM)Min.of Agriculture Krishi Bhawan New Delhi(w.e.f.23.11.06) B.B.Pattanaik, Managing Director, Central Warehousing Corporation, Haus Khas, New Delhi(for a period of 5 years or till the date of superannuation)(w.e.f. 15..2008) 26852826, 26515160 FAX26967844

24106327

D-I/40, Satya Marg, Chanakya Puri, New Delhi-21 .

13

Shri R.P.S. Pawar, 2742836 2748686, Principal 01729417296661 Secretary(Food), Govt. 2742836(Fax) of Punjab,Deptt. of Food, Civil Supplies & Consumer Affairs, Mini Secretariat, Room No.410, 4th Floor,Sector-9 Chandigarh (w.e.f. 29.4.2008 to 28.4.1010) * Members of the Executive Committee also.

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CHART OF FCI OFFICES

15

CAPITAL STRUCTURE & SUBSIDY

Govt. of India provides funds to FCI to meet the cost of fixed assets like Offices, Godowns, Silos, Railway Sidings and Weighbridges.

The Authorized Capital of FCI is Rs. 2500 crores and the Paid-up Capital is Rs. 2437.47 crores as on 31.03.2005.

For financing the foodgrains and sugar operations entrusted to corporation by the Govt. of India, the working capital is provided by the consortium of 44 banks.

FCI purchases the foodgrains for the Central Pool at the procurement prices and issues the same at the Central Issue Prices fixed by the Government of India. The issue price so fixed do not cover the full cost incurred by the Corporation in the procurement, movement, storage and distribution of foodgrains. The different represents the consumer subsidy for the Public Distribution System, and is paid to the Corporation by the Government of India. The Corporation also maintains buffer stock of foodgrains on behalf of the Govt. of India and the carrying charges of the buffer stocks are also reimbursed by the Government to the Corporation.

Food Subsidy released to FCI Including sugar

(Rs. in Crores #) Year 1995-96 1996-97 6016.73 1997-98 7900.00 1998-99 9049.34 1999-2K 2000-01 9002.25 2001-02 2002-03 2003-04 2004-05 2005-06* 8852.56

Subsidy 5325.45

11652.13 16724.00 22678.72 23874.04 23327.73

* up to 14-07-2005 #1 crore= 10 million

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PROCUREMENT OF FOOD GRAINS

To nurture the Green Revolution, the Government of India introduced the scheme of minimum assured price of foodgrains which are announced well before the commencement of the crop seasons, after taking into account the cost of production \ inter-crop price parity, market prices and other relevant factors.

The Food Corporation of India along with other Government agencies provide effective price assurance for wheat, paddy and coarsegrains.

FCI and the State Govt. agencies in consultation with the concerned State Govts. establish large number of purchase centres throughout the state to facilitate purchase of foodgrains

Centres are selected in such a manner that the farmers are not required to cover more than 10 kms.to bring their produce to the nearest purchase centres of major procuring states.

Price support purchases are organized in more than 12,000 centers for wheat and also more than 12,000 centers for paddy every year in the immediate post-harvest season.

Such extensive and effective price support operations have resulted in sustaining the income of farmers over a period and in providing the required impetus for higher investment in agriculture for improved productivity.

To name a few states about Rs.41,000 millions for paddy and 43,000 millions for wheat in Punjab and Rs. 45,000 millions for levy rice in Andhra Pradesh is paid to the farmers/ millers during wheat / rice procurement season.

India today produces over 200 million tonnes of foodgrains as against a mere 50 million tonnes in 1950.

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In the last two decades, foodgrain procurement by Government agencies have witnessed a quantum jump from 4 million tonnes to over 25 million tonnes per annum.

Foodgrains are procured according to the Government - prescribed quality standards.

Each year, the Food Corporation purchases roughly 15-20% of India's wheat production and 12-15% of its rice production.

This helps to meet the commitments of the Public Distribution System and for building pipeline and buffer stock.

The Department. of Food, GOI has recently formulated aforesaid policy for involving Central Govt. Undertaking /State Govt. undertakings/for the Central Pool and expanding the scope of MSP operations in the areas where FCI/State agencies infrastructure for potential of procurement is weak and existing Govt. Agencies (FCI and State Agencies) are not able to carry out MSP operations in such areas where procurement exists to ensure that farmers are not denied the benefit of MSP. The eligibility Criteria and priority for engaging such Agencies/Private companies is mentioned n clause 2 to 2.3 of the policy guidelines. The private companies can only be engaged as last option as per the policy guideline. The engagement of agencies falling under clause2.2 and 2.3 must result in a cost saving of at least 10% of the incidentals (other than taxes, statutory charges etc.) of FCI as provided at point 3.3 of policy of guidelines of Ministry of Food. The other details are mentioned in the Policy Guidelines. The Central Govt. Undertaking/State Govt./Undertaking/Co-operatives/Private Companies fulfilling the eligibility criteria and desirous to undertake paddy procurement operations on behalf of FCI may contact concerned GMs(Region),/EDs(Zone) or Procurement Division, FCI Headquarters.

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STORAGE MANAGEMENT

Another facet of the Corporation's manifold activities is the provision of scientific storage for the millions of tonnes of foodgrains procured by it. In order to provide easy physical access in deficit, remote and inaccessible areas, the FCI has a network of storage depots strategically located all over India. These depots include silos, godowns and an indigenous method developed by FCI, called Cover and Plinth (CAP).

CAP storage is a term given to storage of foodgrains in the open with adequate precautions such as rat and damp proof plinths, use of Dunn age and covering of stacks with specially fabricated polythene covers etc.

FCI has 24.18 million tonnes (owned & hired) of storage capacity in over 1451 godowns all over India.

In order to reduce storage and transit losses of foodgrains and to bring additional resources through Private Sectors participations., Govt. of India had announced a National Policy on Handling Storage and Transportation of Foodgrains in June, 2004 for Bulk and conventional godowns. In the Ist phase,after a series of deliberations, it was approved that total capacity of lakhs MT be created at the identified based depots and field depots through private sector participation on Build-Own & Operate (BOO) Basis. RITES were appointed as consultants for the project. A letter of acceptance of proposal of the project in two circuits has been awarded to M/s. Advani Exports Ltd. , the lowest bidder to complete the Project in 3 years from the date of execution of the service agreement.

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STORAGE CAPACITY AS ON 1ST JULY 2008

In Million Tonnes

OWNED
Covered Open [CAP ]
-----

HIRED
12.96 2.30
-----

CWC SWC State Govt. Pvt. Parties Open [CAP ]

--

1.64 6.38 0.63 1.10 0.08

--

TOTAL

15.26

TOTAL

9.83

TOTAL = 25.09

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QUALITY CONTROL AND SCIENTIFIC PRESERVATION

The Food Corporation of India has an extensive and scientific stock preservation system. An on-going programme sees that both prophylactic and curative treatment is done timely and adequately. Grain in storage is continuously scientifically graded, fumigated and aerated by qualified trained and experienced personnel.

Food Corporation of India's testing laboratories spread across the country for effective monitoring of quality of foodgrains providing quality assurance as per PFA leading improved satisfaction level in producers (farmers) and customers (consumers).

The preservation of foodgrain starts, the minute it arrives in the godowns. The bags themselves are kept on wooden crates/poly pallets to avoid moisture on contact with the floor. Further till the bags are dispatched/issued, fumigation to prevent infestation etc. of stocks is done on an average every 15 days with MALATHION and once in three months with DELTAMETHRIN etc. on traces of infestation, curative treatment is done with Al. PHOSPHIDE.

FCI's testing laboratories spread across the country (188) ensure that the stored foodgrains retain their essential nutritional qualities as per FAQ.

District Labs Regional Labs Zonal Labs Central Lab

164 18 5 1

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TRANSPORT MANAGEMENT

Ensuring accessibility to food in a country of India's size is a Herculean task. The

foodgrains are transported from the surplus States to the deficit States.

The foodgrain surplus is mainly confined to the Northern States, transportation

involves long distance throughout the country. Stocks procured in the markets and purchase centers is first collected in the nearest depot and from there dispatched to the recipient States within a limited time.

FCI moves about 270 Lakh tonnes of foodgrains over an average distance of 1500

Kms.

Regularly rice and wheat procured in the Northern States is moved to far flung

corners Imphal, Manipur or Kanyakumari in Tamilnadu and to the higher reaches of the Himalayas in the North.

An average of 1,20,0000 bags (50 Kg) of foodgrains are transported every day

from the producing States to the consuming areas, by rail, road, etc.

The stocks to Kashmir valley, H.P, NE, Sikkim A&N Islands and Lakshadweep

etc., which don't have rail link are fed by road.

Thus by effective planning and Management of the transport System FCI

regularly moves foodgrain and sugar from the procuring Region to the concerning Region.

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MOVEMENT
Lakh Tonnes (Prov.) Year
1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010(Aug,09)

Foodgrain Sugar
235.5 191.1 190.8 221.9 161.6 204.5 248.8 297.0 338.7 315.5 288.7 277.92 256.65 108.00 12 11 11 7 3 3 2 0.8 1.4 1.8 2.4 1.78 1.91 1.28

Total
247.8 202.1 201.8 228.9 164.6 207.5 250.8 297.8 340.1 317.3 291.1 279.70 258.56 110.27

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DISTRIBUTION OF FOODGRAINS

The national objective of growth with social justice and progressive improvements in the living standards of the population make it imperative to ensure that foodgrain is made available at reasonable prices.

Public Distribution of foodgrains has always been an integral part of Indias overall food policy. It has been evolved to reach the urban as well as the rural population in order to protect the consumers from the fluctuating and escalating price syndrome.

Continuous availability of foodgrain is ensured through about 4.5 lakhs fair price shops spread throughout the country. A steady availability of foodgrains at fixed prices is assured which is lower than actual costs due to Govt. policy of providing subsidy that absorbs a part of the economic cost (about 45%).

The Govt. of India introduced a scheme called Targeted Public Distribution Scheme (TPDS) effective from June, 1997. The stocks are issued under this scheme in the following two categories:a) Below Poverty Line (BPL): Determination of the families under this category in various states is based on the recommendation of the Planning Commission. A fixed quantity of 35 Kg. foodgrains per family per month is issued under this category. The stocks are issued at highly subsidized Price of Rs.4.15 per Kg. of wheat and Rs. 5.65 per Kg. of rice. Antyodaya Anna Yojna - During the year 2000-2001 Govt. of India decided to release foodgrains under Antyodaya Anna Yojna. Under this scheme the poorest strata of population out of earlier identified BPL population is covered. Foodgrains are being provided to 1.5 crores poorest of the poor families out of the

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BPL families at highly subsidized rates of Rs.2/- per kg. of wheat and Rs.3/- per kg. of rice by FCI. This is the biggest food security scheme in the world. b) Above Poverty Line ( APL) Families which are not covered under BPL are placed under this category. The stocks are issued at Central Issue Price of Rs. 6.10 per Kg. of wheat and Rs. 8.30 per Kg. of rice.

Allotment/Offtake of Wheat/Rice The Central Issue Price (CIP):Commodity As on BPL Families APL Families

Wheat

01- 04- 2002 12- 07- 2001

415 415 565 565

510 610 730 830

Rice

01- 04- 2002 12- 07- 2001

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THERE ARE NUMBER OF OTHER WELFARE SCHEMES OF THE GOVT. OF INDIA:

(1) Mid-Day-Meal-Scheme (MDM)- The Govt. of India have introduced MDM National Programme of month @ 100 Grams. The Scheme is partly run by Govt./Aided Schools/Local Bodies to serve free cooked / processed hot meal. FCI is supplying foodgrains free of cost to the State/UTs. This scheme is partly financed by Ministry of HRD. (2) Wheat Based Nutrition Programme (WBNP) - A scheme run by Department of Women and Child Development, Ministry of HRD for providing nutritious food to children below 6 years of age and expectant/lactating women. Foodgrains supplied by FCI at BPL rates. (3)&(4) SC/ST/OBC Hostels & Welfare Institutions & Hostels- The Ministry of CAF&PD and the Ministry of Social justice & Empowerment coordinate to monitor of the Scheme for providing foodgrains to SC/ST/OBC Hostels. Hostels having students belonging to SC/ST/OBC categories are eligible to draw 15 Kgs. Foodgrains per resident per month. The Government of India decided that w.e.f. 2.11.2000 foodgrains (wheat/rice) will also be allotted to the state Governments at the rate of 5 Kg per head per month for indigent people living in Welfare Institutions, such as. Beggar Homes, Home for Nari Niketan etc. sponsored by the State Governments and the concerned administration. Foodgrains are supplied by FCI at BPL rates. It may be clarified that from the year 2002-03, the MOCAF&PD has been making the requirement of the State/UT under the head "Welfare Institutions & Hostels" to meet the requirement of the State/UT for providing foodgrains to different type of welfare institutions. Since April 2005, the Ministry of CAF &PD has Nutrition Support to Primary Education in Primary Schools w.e.f. 15.8.1995. Under the scheme every child is entitled for 3 Kgs. of wheat/rice per

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enhanced quota of allotment under this scheme to 5% of the monthly allotment made under BPL & AAY.

(5) Annapurna Scheme- Indigent Senior Citizens of 65 years of age or above eligible for National Old Age Pension under NOAPS, but not getting pension can get 10 Kgs of foodgrains per month. FCI is issuing foodgrains under this scheme to State/UT Govts. at BPL rates. Under This scheme of Ministry of Social Justice & Empowerment, Indigent people living in Welfare institutions like Beggar Homes, Orphanages, Nari Niketans etc. are given 15 kgs of foodgrains per person per month. Foodgrains are supplied by FCI at BPL rates. (6) Sampoorna Gramin Rozgar Yojana- A scheme financially supported by Ministry of Rural Development in which foodgrains are supplied to the States/ UTs by FCI free of cost (7) Special Component of Sampoorna Gramin Rozgar Yojna - Under the Special component of the SGRY financed by Ministry of Rural Development for augmenting food security through additional wage employment during natural calamity. FCI release foodgrains free of cost to the State/UTs. (8) Foodgrains to Adolescent Girls - Pregnant and Lactating Mothers ( AGPLM). GOI introduced this Scheme w.e.f January , 2003 Under this scheme foodgrains is being supplied by FCI at BPL prices to the State/UT Govt. for Adolescent Girls, Pregnant and Lactating Mothers ( AGPLM). The identified under nourished woman/girl is provide 6 Kg. of foodgrains (wheat/rice)/month. The scheme is partly supported by Planning Commission. (9) World Food Programme (WFP) - FCI is sparing stocks to WFP projects from the Central Pool stocks as and when required by them. FCI is working as 'FOOD BANK' for World Food Programme(WFP) projects in India. When India was deficit of foodgrains, WFP used to get stocks to meet the deficiency through import.

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(10) Emergency Feeding Programme - Under this scheme, Ministry of CAF & PD releases allocation of rice at BPL rates, for KBK Districts (Bolangir, Kalahandi, Koraput, Malakangiri, Nabarangpur, Naupada, Rayagada & Sonepur) of Orissa State on monthly basis. Under this scheme, rice @ 6 kg/beneficiary/month is issued for 2 lakh beneficiaries. This programme is mentioned by Ministry of Social, Justice and Empowerment at Central level. (11) Grain Bank - this scheme provides Grants for establishment of village Grain Bank to prevent deaths of Schedule Tribes specially children in remote and backward tribal villages facing or likely to face starvation and also to improve nutritional standards. The scheme provides funds for building storage facility, procurement of weights & measures and for the purchase of initial stock of one quintal of foodgrains of local variety for each family. The allocation of foodgrains was made by the GOI, Ministry of Tribal Affairs during the year 2002-2003. Under this scheme foodgrains are allotted to States at BPL rate. Allotment under this scheme has not been received from the year 2003-2004. (12) National Food for Work Programme - this programme has been launched by the Prime Minister during November 2004 for providing foodgrains in identified 150 most backward districts of the country. The beneficiaries of this programme are laborers engaged by the State Govt. in development work. Foodgrains is given as part of wages under the scheme to the rural poor at the rate of 5 kg. per man-day. More than 5 kg. foodgrains can be given to the laborers under this programme in exceptional cases subject to a minimum of 25% of wages to be paid in cash. Under this programme foodgrains are issued to states/UTs free of cost. This scheme is mentored by Ministry of Rural development.

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STOCK MANAGEMENT

The Central Pool stocks are maintained by FCI and State Govts. And their agencies. The total stock in Central Pool as on 31/08/2008 is 313.58(Figs. in Lakh MT) Stock in Central pool as on 31/08/2008

Foodgrains Rice* Wheat Total

With FCI 66.68 96.97 163.65

With State Govt. / Agencies 15.84 134.09 149.93

Grand Total 82.52 231.06 313.58

* Unmilled Paddy with FCI & State agencies also shown in terms of Rice Stocks of Foodgrains & sugar in Central Pool as on 31.08.2008 (Figs. in Lakh MT) In Storage Rice Wheat Wheat at Port Total Coarse Grains Sugar Grand Total 82.52 231.06 0.00 313.58 0.71 0.05 314.34 In Transit 2.20 1.76 0.0 3.73 0.02 0.03 3.78 Total 84.72 232.59 0.00 317.31 0.73 0.08 318.12

Position on 08/09/2008

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HUMAN RESOURCE DEVELOPMENT

TRAINING The Food corporation of India has two - tier training activities involving :

Training of officers at the Institute of Food Security , Gurgaon Nomination of officers in reputed technical / management institutes in India and abroad In addition the FCI is also organizing need based training programs in collaboration with reputed institutes of concerned disciplines.

The Institute of Food Security situated in the institutional area at Gurgaon is state -of- art institute having full fledged computer lab, library, hostel, conference halls, conference equipments etc. Approximately 1500 officers are trained every year in this institute. Officers from State undertakings and Central public sector undertakings are also trained in the institute

'Institute of Food Security formerly known as Central Training Institute of FCI established in 1971 provides systematic and continuous training to its executives to upgrade their knowledge and skills for new challenges of foodgrains management. From, 1st August 1997, the Institute is functioning in its own sylvan surroundings of 4.25 acres land situated at Delhi Jaipur NH-8. The Institute provides an excellent training environment with well equipped infrastructure of administrative block, class rooms, library, quality control lab, conference halls, computer lab, hostel facilities etc. Programmes are conducted by experienced faculties drawn from within and eminent experts from other institutions. Presently about 65 training programmes are being conducted yearly for about 1600 executives. Vision 2020 of the institute is to evolve it as an institute of excellence in the field of foodgrains management. Consultancy and research would be an integral part of its activities towards self reliance

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REGIONS INFORMATION
North Zone Sl.No 1. 2. 3. 4. 5. 6. 7. 8. Name of the Region Uttranchal U.P Rajasthan Punjab J&K H.P Delhi Haryana South Zone Sl.No 1. 2. 3. 4. Name of the Region A.P Kerala Karnataka Tamilnadu West Zone Sl.No 1. 2. 3. 4. Name of the Region Chhattisgarh Gujrat Maharashtra Madhya Pradesh East Zone Sl.No 1. 2. 3. 4. Name of the Region Jharkhand Bihar Orissa West Bengal NEF Zone Sl.No Name of the Region

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1. 2. 3.

NEF N&M Assam *****

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ALL INDIA PRODUCTION/PROCUREMENT OF WHEAT/RICE 2002-03 TO 2006-07

In Lakh Tonnes
WHEAT YEAR Prod./Proc. 728/190 658/158 721/168 740*/148 758/92 RICE MSP(Rs/qtl) (Paddy) 550/560 550/580 560/590 570/600 580/610+40(Bonus)

% Proc % Proc MSP(Rs/qtl) Prod./Proc. of Prod of Prod 26.10 24.00 23.30 19.99* 12.14 620 620 630 640 650 +50.00(Bonus) 718/166 882/229 871/220 918/276 933/251 23.11 25.96 25.25 30.06 26.90

2002-03 2003-04 2004-05 2005-06 2006-07

* Estimated

MODE OF PROCUREMENT
WHEAT RICE

By direct Procurement from Farmers (approx. 25% of total Proc.).

From Millers as levy (approx 25% of total Proc).

Through state Govt. & its agencies (approx. 75% of total Proc.).

Custom Milling of Paddy Procured under Price support (approx. 75% of total Proc.).

DIFFERENT SCHEMES
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Sl.No.

Schemes

Avg. Offtake of Food grains during last 3 year (In Lakh %age of MTs) total

Issue price

Ministry of CAF&PD 1 2 3 4 5 6 7 8 9 10 TDPS Welfare Institutions & SC/ST/OBC Hostels WFP Open Sale Export (up to 2003-04) Relief Measures SGRY SGRY Spl. Component Food for Work Annapurna Nutrition Programme & AGPLM Mid-Day-Meal Total 193.8 10.9 0.5 42.0 91.6 Neg 42.6 27.4 45% 0.4% 0.1% 10% 21% Neg 10% 6% APL/BPL/AAY BPL BPL Prefixed Prefixed APL/BPL Economic Cost Economic Cost BPL BPL APL BPL AAY ECO Cost Central Issue Price (RS. / QTL) Wheat Rice 610 830 415 565 200 300

Ministry of Rural Development

9.9 2% 1.1 0.2% Ministry of HRD 2.4 20.9 434.3 0.5% 5% 100%

11 12

BPL BPL

925 1263

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OFFTAKE AND MOVEMENT OF FOOD GRAINS

YEAR

OFFTAKE UNDER TPDS* & WELFARE SCHEMES (IN

OFFTAKE UNDER EXPORT & OMSS**(D) (IN LAKH MT)

NO. OF RAKES %AGE INCREASE OF MOVED RAKES MOVED OVER LAST YEAR

LAKH MT)

2000-01 2001-02 2002-03 2003-04 2004-05

136.1 210.2 315.1 376.9 386.9

34.1 102.8 181.2 116.4 15.6

6086 7722 9483 12046 13583

-27 23 27 11

* Targeted Public Distribution System ** Open Market Sales Scheme

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MINIMUM SUPPORT PRICE OF WHEAT/ PADDY FOR THE LAST FIVE YEARS(2002-03 TO 2006-07)
(FIGURES IN Rs. PER QUINTALS)

MARKETING YEAR 2002-03 2003-04

WHEAT ( RABI ) 620.00 620.00 + * 10.00

PADDY (KHARIF) Common 530.00 + * 20.00 550.00 560.00 570.00 580.00 +40.00(Bonus) Grade 'A' 560.00 + * 20.00 580.00 590.00 600.00 610.00+40(Bonus)

2004-05 2005-06 2006-07

630.00 640.00 650.00 +50.00(Bonus)

NOTE : - * Draught relief announced by the Govt. of India.

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FINANCIAL FEATURES
Average Bank Borrowing during 2007-08 (Consortium of 65 Banks as on 31.3.08) Commercial Borrowing (Bonds) Rate of Interest on Bank Borrowing w.e.f. 01.03.2008 Rate of Interest on Bonds Rs. 27327 Crores Rs. 8605 Crores 10.15 % p.a. (Monthly Compounding) 7.31%p.a.(Annually Payable)

Equity Released for Plan Schemes and Working Capital (as on 31.03.08) Rs. Cr. Year Upto 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 First Quarter Second Quarter Third Quarter Fourth Quarter Total Total paid-up Capital Authorized Capital Working Capital 1484.00 Nil Nil Nil Nil . Nil Nil Nil Nil Nil 1484.00 . . Construction of IISFM Project Other Schemes Godowns 855.11 23.96 5.87 20.78 7.50 . Nil Nil 3.18 0.82 4.00 917.22 . . Nil 15.50 39.14 15.00 Nil . Nil Nil 14.49 10.51 25.00 64.64 . . 13.89 Nil Nil Nil Nil . Nil Nil Nil Nil Nil 13.89 . . Total 2353.00 39.46 45.01 35.78 7.50 . Nil Nil 17.67 11.33 29.00 2509.75 . 3500.00

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Economic Cost of Foodgrains of FCI Crop-Year Wise Economic Cost (Provisional)

(Rs./qtl.)

Year Rabi 2008 Kharif 2007

Wheat 1515 -

Rice (Grade A) Rice (Common) 1716 1664

Accounting Year-Wise opening Stock adjusted weighted Economic Cost

(Rs./qtl.)

Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07(Prov) 2007-08(RE) 2008-09(BE)

Status Audited Audited Audited Audited Un-audited Prov. Estimates Rev. Estimates Budget Estimates

Wheat 852.94 884.00 918.69 1019.01 1041.85 1214.39 1348.69 1458.83

Rice 1097.96 1165.03 1236.09 1303.59 1339.69 1411.60 1571.36 1698.90

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Food Subsidy Released to FCI and Incurred by FCI (Rs. Cr.)

Food subsidy released to FCI Against Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 (Upto 30/04/08) 5400.04 . 5400.04 Total 16274.00 22673.72 Earlier years . . 16274.00 22673.72 18928.18 19189.61 19397.68 19375.13 22540.93 For the Year

Food Subsidy Incurred by FCI Subsidy Incurred during the year 18005.00 25322.00 21587.00 20773.00 21344.00 24858.00 31817.00 Status of Accounts Audited Audited Audited Audited Un-Audited Prov.Estimates Rev.Estimates

23474.04 4545.86 23280.00 4090.39 19871.00 473.32 20786.21 1411.08 27759.68 5218.75

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NEW INITIATIVES

Having been acknowledged a major player in foodgrain management within the Country and abroad, FCI is now endeavoring for

Resource mobilization to reduce burden on food subsidy. Better financial & Treasury Management. Improved stock inventory management real time on-line system through a recently launched IISFM ( Integrated Information System for Foodgrains Management ) in collaboration with NIC.

Creation of Profit Centres. Upgradation of technology through interface with Agriculture

Universities/Management Institutes.

Use of 'A' Twill texture gunny bags as against 'B' Twill bags as a project to reduce losses in storage and transit.

Multimodal transportation system through container. Micro level Inventory Management through focused weekly movement plans. Sustained corporate communication for improving image perceptions.

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STRENGTH OF FCI
Facilitator for food security

Provider of price & market assurance to the farmer Ensuring steady food grain supplies to 5 Lakhs Fair Price Shops for PDS to cover 141 million APL / 67 million card holders. Ensuring food for All other Welfare Schemes.

Management Capability and Experience

Large pool of talent managing world's largest food grain operation on behalf of Govt. of India

Enormity of Scale

Countrywide network of offices & strategically located Food Storage Depots. Operates in mandis/purchase centres located within 10 kms. proximity of farmers. Undertakes purchases of 30 to 40 million tonnes annually making it the largest buyer in the world.

Effective market intervention to stabilize prices State of the art experience on food grain preservation / Warehousing / Transportation Management

Maintains the health of millions of tonnes of food grain in storage. Quality acknowledge by International buyers. Excellent Storage Management. Timely movement of food grains from procuring States to consuming States.

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VISION 2020

To aggressively promote Decentralized Procurement by State Governments with special emphasis in non-traditional areas and commodities. To initiate procurement of non-MSP governed commodities on commercial principles. To ensure adequate buffer for meeting requirements under TPDS & Other Welfare Schemes. To dispose off surplus and un-storage worthy godowns and introduce concepts of mechanized handling in the conventional godowns. To undertake R&D for conversion of some of the existing capacity to bulk and cost effective utilization of existing bulk capacity. To optimize monthly movement programme with existing state of art of computerization within the country at various locations as per corporate policies and priorities.

Modernization of Quality Control equipments and systems for food preservation in order to increase the shelf life of food grain. To venture in the fields of Forward Trading and Exports of both surplus stocks of food grains in Central Pool and no-traditional commodities. To introduce state of art of financial management in order to reduce the dependency on the present banking system in the country. To initiate systems for settlement of storage loss and transit loss through insurance coverage and revised inventory mechanism. To develop efficiency in human resource management both in staff/officers and workers with changed circumstances in the work approach of P.S.U. s.

To achieve state of art in computerized communication between different offices/ depots through out the country.

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BIBLIOGRAPHY

1.

www.google.co.in www.yahoo.co.in

2. www.fciweb.net.in
3.

4. Book named Food Corporation of India

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