Operations -- Procurement
  FCI procures wheat, Paddy and rice for which the minimum support price(MSP) is announced by the Govt. of India well before commencement of Rabi and Kharif marketing seasons alongwith specifications. Only fair average quality (FAQ) foodgrains of laid down specifications by Govt. of India are purchased.

The purchase centres during procurement are operated to facilitate the purpose of foodgrains from farmers in such a manner that farmers need not to cover more than 10 K.Ms. Purchase centres are allotted by state govt. among the procuring agencies i.e. FCI and state govt. Agencies. The allocation of purchase centres is decided by concerned state govt. along with the share of procurement of procurement of wheat and paddy. If the farmers able to get a higher price, they are free to sell their produce to the traders/food grains dealers. Levy rice is collected from of levy share from the rice millers. Percentage of levy to be collected in various states & levy price is decided by the concerned state govt. in consultation with the ministry of CA, F&D before the start of marketing season. In main procuring states of Punjab and Haryana, the levy percentage is 7.5%.

In utter pradesh and uttaranchal, the procurement has been decentralized procurement system the respective state govt. purchae, store & distribute to level of their TPDS requirement & only the surplus is taken over by FCI under central pool.

The decentralized procurement scheme has been adopted to have the following advantages:

The over dependence on FCI for PDS supplies of foodgrains will be eliminated.
FCI will be freed from the task of procurement operations under price support scheme in deficit and marginally surplus states.
Since the consuming state themselves will be the custodians of the procured foodgrains, there will be fewer complaints as quality and availability will be ensured.
Higher local procurement is expected to reduce pressure on freight movement by rail.
Overall increase in the procurement of foodgrains under DPS as local procurement is likely to get a fill up.

FCI is functioning in Rajasthan since 1.1.66 and activities of procurement, storage, preservation of stocks and distribution have been undertaken successfully. The agricultural production in the state mainly depends on monsoon/irrigation potential which is very low in comparison with the vast land of the state. The area of sri Ganganagar, Hanumangarh, Kota and Banswara districts is having canal facility. Other districts mainly depends on the wells and minor irrigation projects. In Rajasthan the levy percentage is 50%. The main crop is wheat, Paddy and cereals i.e. Bajra, Maize and Jowar which are not procured by FCI. These are procured by the state govt.

In delhi, HP & J&K Regions which are non-procuring states. These states are deficit states. The levy rice fixed by Govt. Of India in delhi 75%, HP 50% in J&K where is no levy. Though all surplus stocks i.e. wheat & rice is procured for central pool in Punjab & Haryana, procurement of paddy is also very important operation which is undertaken on very large scale. In order to extend support price to the farmers, paddy procured by FCI as well as state Govt. agencies on behalf of FCI is milled which is itself is a very important process. The paddy procurement so, in north Zone is milled at the milling rates prescribed by Govt. of India. Procurement of wheat & rice during the last 5 years is enclosed at Annex.I.

STORAGE ::::

Though stocks are generally stored in covered godowns but whenever there is a shortage of space and in item of urgency, stocks of wheat and paddy have to stored in open and such is known as CAP (Covered & Plinth). In addition of FCI owned godowns, storage capacity is also hired from CWC/SWC and private parties to meet the requirement.

MOVEMENT ::::

In order to meet requirement of PDS & other schemes, reasonable level of stock of strategic locations is maintained all over the country. The FCI, therefore moves foodgrains mainly from the surplus state of Punjab, Haryana & UP to different deficit states. A monthly movement plan is prepared in the last week of preceding month and this movement plan is then finalized at FCI headquarters in consultation with Railways.

SALES ::::

1. T.P.D.S.(Targetted public Distribution system):
Before advent of TPDS foodgrains were issued at C.I.P After introduction of TPDS two categories have been identified i.e. APL & BPL.
Normally common rice is issued for BPL families and Gr.?A? Rice is issued for APL families. In case of non availability of ?rice common? then Gr.?A? rice could be issued to BPL families the same price(price of common Rice)
2. C.I.P(Central Issue Price):
CIP is fixed on the recommendations of commission on agriculture cost of price ?CACP and are highly subsidized for making available foodgrains for the families under BPL. The CIP for TPDS came into effect from 01.06.1997 and are revised from time to time. The latest CIP for BPL is effective from 12.07.2001 and APL(only for APC w.e.f. 01.04.2002 ?no change indicated for BPL).

The allocation of BPL families increased from 20 Kg. to 25 Kg. per family, per month , with additional Qty. to be supplied at BPL rates.

The allocation of foodgrains against the Antodaya, BPL and APL families, under TPDS, increased to 35 Kg. per family per month w.e.f. 01.04.2002.
3. A.A.Y.(Antyodaya Anna Yogana):
The scheme was conceived for the poorest of poor-lunched by Hon?ble PM on 25.12.2000 (To ensure security for all, create a hunger free India ?to reform and improve the public distributions so as to serve the poorest of poor in rural & urban areas. After identification of Antyodaya families by state Govt. distinctive Ration cards are issued known as Antyodaya Ration card. Wheat/Rice=25 Kg. per family per month @ Rs. 2/- per Kg. wheat & Rs. 3 per Kg. Rice. .
4. FFW (Food For Work):
In the year 2001-02, due to deficient rainfall of south-west monsoon there was draught like situation in the states of Gujrat, MP, Chattisgarh, Orissa, HP & Rajasthan. Due to this to ensure food security to the needy rural poor, GOI introduced the FFW scheme.

Procurement of Wheat During Last Five Year:

Year / State 2000-01 2001-02 2002-03 2003-04 2004-05(*)
Punjab 94.24 105.60 98.79 89.38 92.40
Haryana 44.98 64.07 58.88 51.06 51.06
U.P 15.45 24.46 21.11 12.13 16.40
Raj. 5.38 6.76 4.61 2.73 2.79
UCL. 0.00 1.40 1.83 0.66 0.54
Delhi 0.00 0.50 0.35 0.24 0.02
H.P 0.00 0.02 0.02 0.01 0.00
Total (NZ) 160.05 202.81 185.59 158.37 163.21
All India 163.56 206.30 190.25 161.81 166.82
% NZ To AI 98 98 98 97 98
(*) as on 30.06.2004

Procurement of Rice (Including Paddy in Terms of Rice) During Last Five Year:

Year / State 1999-00 2000-01 2001-02 2002-03 2003-04(*) 2004-05(*)
Punjab 67.87 69.35 78.82 79.39 86.57 66.78
Haryana 9.86 14.76 14.84 13.25 13.34 9.73
U.P 14.38 11.13 19.36 13.60 24.88 0.03
UCL. 0.00 0.42 2.35 2.32 3.20 2.63
Total (NZ) 92.11 95.66 115.37 108.56 127.99 76.54
All India 182.38 212.68 221.28 164.05 219.55 76.69
% NZ To AI 51 45 52 66 58 99
Operational Figures  (*) as on 30.10.2004

Levy Percentage in respect of North Zone for KMS :

Year / State 2003-04
Punjab

75%

Haryana 75%
U.P 60% (Western UP) & 40% (Eastern UP)
Rajasthan 50%
Delhi 75%
Chandigarh 75%
H.P. 50%
UCL. 60%

 

 
About FCI  |  Organisation Structure  |   Financials  |  FCI Directory  |  Downloads  |  Locations
[Contact Us]  [Feedback]  [Latest NEWS]  [Home]

Copyright © Food Corporations of India All rights reserved