FOOD CORPORATION OF INDIA

1
FOOD CORPORATION OF INDIA
2
THE CHALLENGE

• SUPPORTING GOVT. OF INDIAS GOAL
• To provide farmers remunerative prices.
• To make foodgrains available at reasonable
  prices, particularly to vulnerable section of the
  society and
• To maintain buffer stocks as a measure of Food
  Security
• To intervene in market for price stabilisation.

3
All India Production/Procurement of Wheat/Rice
2000-01 to 2004-05
(In Lakh tonnes)
Year WHEAT WHEAT WHEAT RICE RICE RICE
Year Prod./ Proc. Proc of Prod MSP (Rs/qtl) Prod./ Proc. Proc of Prod MSP (Rs/qtl) (Paddy)
2000-01 764/164 21.5 580 850/213 25.1 540
2001-02 697/206 29.6 610 933/222 23.8 560
2002-03 728/190 26.1 620 727/166 22.8 560
2003-04 651/158 26.3 620 870/229 26.3 580
2004-05 721/168 23.3 630 850/220 25.9 590

• -SO FAR MORE THAN 3 CRORES FARMERS ARE BENEFITTED
  BY PROVIDING MSP ( 7 STATES ).
• DROUGHT YEARS.
• APPROX. 8000 PROCUREMENT CENTRES ARE OPENED
  EACH YEAR BY FCI STATE AGENCIES DURING RABI
  KHARIF SEASONS.

4
SALIENT FEATURES OF PROCUREMENT

1. THE PROCUREMENT IS APPROX. 40 MILLION MT I.E. 20
   OF THE TOTAL FOODGRAIN PRODUCTION WHICH IS 50 OF
   THE AVERAGE MARKET ARRIVALS.
2. APPROX. 80 OF WHEAT IS PROCURED IN HARYANA
   PUNJAB, WHILE 80 OF RICE IS PROCURED IN PUNJAB,
   HARYANA, UP AP.
3. APPROX. 78 OF WHEAT AND 47 OF RICE PROCUREMENT
   STORAGE IS DONE BY THE STATE AGENCIES ON BEHALF
   OF THE CENTRAL GOVT. I.E. CENTRAL POOL.
4. BY WAY OF PRESENT PROCUREMENT LEVELS FCI IS
   GIVING A TOTAL OF Rs. 31,000 Cr TO THE FARMERS AS
   MSP.

5
5 MAJOR WHEAT PROCURING STATES
PUNJAB-55, HARYANA-30, UTTAR PRADESH-10, MADHYA
PRADESH-2 RAJASTHAN-2
WHEAT DEFICIT STATES- 23
6
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
7
OPERATIONAL HIGHLIGHTS

1. AS ON DATE APPROX 90 OF THE STOCK OF FOODGRAIN
   WITH FCI IS ONLY TWO YEARS OLD.
2. AS ON DATE FOODGRAIN STOCK IS APPROX 21 M. MT
   (BUFFER NORM - 17 M.MT) EQUAL TO APPROX. 8
   MONTHS AVERAGE LIFTING.

8
TREND OF SUBSIDY
24876
21570
19662(RE)
17961
10334
In Rs. Crores
Wheat 2783 5541 8726 8329 7017
Rice 4265 7415 11015 10724 11285
Buffer 3286 5005 5135 2517 1360
Total 10334 17961 24876 21570 19662
9
COMPONENTS OF SUBSIDY
Cost Component in (Rate Rs./QTL) 2004-05 2004-05
Cost Component in (Rate Rs./QTL) Wheat Rice
1.MSP 627.78 993.23
2.Cost of Proc. 156.76 76.37
3.Cost of Distribution 140.28 192.91
4.Economic Cost (123) 924.82 1262.51
5.Sales Realisation  617.83 790.53
6.Subsidy (4-5) 306.99 471.98
10
COMPONENTS OF PROCUREMENT DISTRIBUTION COST
S.No Item (Procurement) Wheat Rs./Qtl
1 Mandi Charges 38.58
2 Purchase Tax 24.76
3 Handling cost 39.28
4 Mandi Labour 9.92
5 Admn. Charges of agencies 19.76
6 Storage Charges 2.88
Total 135.18
7 Internal Movt. 11.74
8 Interest 9.26
9 Others 0.58
Grand Total 156.76
S.No Item (Distribution) Wheat (Rs./Qtl)
1 Freight 30.57
2 Handling Charges 31.43
3 Storage Charges 20.33
Total 82.33
4 Interest 38.52
5 Driage/Shortages 2.00
6 Admn. Charges 17.43
Grand Total 140.28
11
Storage Capacity Used by FCI as on 1ST November
2004
In MillionTonnes
GRAND TOTAL 25.43
12
STATUS OF PRODUCTION, PROCUREMENT AND OFFTAKE

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

13
STATUS OF PRODUCTION, PROCUREMENT AND OFFTAKE

1. FIVE STATES NAMELY BIHAR, JHARKHAND, RAJASTHAN,
   KARNATKA AND MAHARASHTRA REQUIRE SERIOUS EFFORTS
   TO MEET PART OF THEIR REQUIREMENTS.
2. SEVEN STATES NAMELY ASSAM, NAGALAND, KERALA,
   TRIPURA, GUJRAT, JK AND HP REQUIRE EXTRAORDINARY
   EFFORTS TO MEET PART OF THEIR REQUIREMENTS.

14
STATUS OF PRODUCTION, PROCUREMENT AND OFFTAKE

1. SEVEN STATES NAMELY GOA, SIKKIM, DELHI,
   ARUNACHAL, MIZORAM, MANIPUR, MEGHALAYA PRODUCE
   NEGLIGIBLE QTY. OF FOODGRAINS.