f'
. f.,
GOVERNMENT OF INDIA
OUTCOME BUDGET
2016-17
MINISTRY OF CONSUMER l\.FFAIRS, FO'JD & PUBLIC DISTRIBUTION
Department of Food & Public Distribution
CONTENTS
Page No.
EXECUTIVE SUMMARY
( i) to (iv)
.
1-9
CHAPTER-I
INTRODUCTION
CHAPTER-II
FINANCIAL OUTLAYS 2016-17,
pItOJECTED PHYSICAL OUTPUTS
AND OUTCOMES
CHAPTER - III
REFORM MEASURES AND POLICY
INITIATIVES
38 -77
CHAPTER-IV
REVIEW OF PAST PERFORMANCE
78 -107
CHAPTER- V
FINANCIAL REVIEW
108 -117
CHAPTER- VI
REVIEW OF PERFORMANCE OF
PUBLIC SECTOR UNDERTAKINGS
118 -179
10 - 37
(i)
Outcome Budget 2016-17, Department of Food & Public Distribution
EXECUTIVE
SUMMARY
In the long process of conversion of outlays into outcomes there are several intermediate stages and complementary resources are also
required for achieving intended outcomes. The "cause and effect" change is not always direct and several factors come into play - not
just the earmarked outlays influencing the actual outcomes.
Outcomes are the end products and results of various Government initiatives and interventions, including those involving partnership
with the State Governments, Public Sector Undertakings, Autonomous Bodies and the Community. The Ministry of Finance
(Department of Expenditure) issued instructions that from 2007-08 onwards there would be a single document titled Outcome Budget,
a tool to track not just the intermediate physical 'outputs' that are more readily measurable but also the 'outcomes', which are the end
objectives of State interventions.
This document broadly indicates physical dimensions of the Financial Budget indicating the actual performance in 2014-15,
performance in the year of 2015-16 and targeted performance during 2016-17, in physical terms. An attempt has been made to
enumerate the activities and schemes of the Department, their financial outlays, projected physical 'outputs' and 'outcomes'. To link
financial outlays with the physical outputs and outcomes of various schemes require a rigorous exercise. An attempt has been made to
do so in this document.
The Department of Food and Public Distribution has been entrusted with the responsibilities of formulation and implementation of
national policies of foodgrains (wheat, rice and coarse grains) management, particularly ensuring food security to the vulnerable
sections of the society, especially people living below the poverty line. The Department implements Targeted Public Distribution
System (TPDS) in partnership with State & Union Territory Governments to ensure supply of food grains to the poor and needy at
subsidized prices. Sugar management and edible oils management are two other important activities of the Department.
This document broadly consists of the following chapters:
Chapter I _ Introduction: - The chapter gives a brief introduction of the functions, organizational set up, list of major programmes /
schemes implemented by the Department, its mandate, goals and policy frame work.
The mandate of the Department is broadly: •
•
•
Management of Foodgrains (Wheat, Rice and Coarse grains)
Management of Sugar
Management of Edible Oils
(ii)
Outcome Budget 2016-17, Department of Food & Public Distribution
The Department strives to realize the goal of food security to the common man by ensuring supply of foodgrains through Public
Distribution System (PDS) for the following categories of households: •
•
•
•
Antyodaya Anna Yojna (AAY) for the poorest of the poor,
Below Poverty Line (BPL) and
Above Poverty Line (APL) ration cardholders
National Food Security Act, 2013 has further expended beneficiary coverage of very subsidized rates of foodgrains to about
67% of population of the country.
In addition, Department also caters to the foodgrain requirements at subsidized rates for the various welfare schemes, with food
component, of various Ministries of Government of India.
The Department ensures development of sugar and sugarcane by advancing loans to the sugar industry from Sugar Development Fund
(SDF) for several schemes aimed at increasing productivity, sugar cane development, production of anhydrous alcohol or ethanol, and
subsidy for payment of cane dues.
The Department is also having an effective edible oil management plan for quality control and ensuring availability of edible oil at
reasonable prices.
Chapter 11- Financial Outlays 2016-17, projected Physical Outputs and Projected Outcomes:- This Chapter gives the scheme
wise details of financial outlays for 2016-17 and projected Physical outcomes. The objective is to establish a correspondence between
the Financial Budget 2015-16 and Outcome Budget 2016-17. The importance of this Chapter lies in enumerating the physical outputs
and projected outcomes vis-a-vis financial allocations.
The Department has been allocated net outlay of ~ 140000.00 crores in 2016-17 for Non-Plan expenditure. Out of this outlay, an
amount of ~ 103334.61 crores has been earmarked under subsidy for foodgrains to Food Corporation of India (FCI) and for
implementation of National Food Security Act (NFSA), 2013, a sum of ~ 27000 crores has been provided for subsidy to State
Governments for decentralized procurement (DCP) and distribution of foodgrains for implementation of National Food Security Act,
2013. The food subsidy routed through FCI and DCP modes constitute the major non-plan expenditure of the Department in its efforts
to run the Targeted Public Distribution System and have been mainly provided with the physical target of 694.26 lakh tonnes (549.26
lakh tonnes through FCI and 145.00 lakh tonnes through DCP States) offoodgrain allocation.
For the purpose of storage, the Department has taken up construction of godowns by FCI and State Governments in the states of North
East Region at a cost of ~ 52.00 crores. This includes ~ 2.00 crores to the State Governments ofNE Region which will be released
'to,
I
(iii) .
Outcome Budget 2016-17, Department of Food & Public Distribution
as 'Grants for creation of capital assets' to the States. Construction of godowns in the North Eastern States and Sikkim will improve
the availability of food grains in these states for the Public Distribution System.
Under the PEG scheme, FCI gives a guarantee of 10 years to private investors and 9 years to CWC/SWCs/State Agencies. A capacity
of 202.22 Lakh MTs as on 31.12.2015 has been approved for construction of godowns in 20 states, out of which a capacity of 151.20
Lakh MTs has been sanctioned for construction. A capacity of 131.66 lakh MT has been completed and a capacity of 14.96 lakh MT is
under construction.
Chapter 111-Reform Measures and Policy Initiatives: This Chapter discusses the reform measures and policy initiatives taken by
the Department to achieve the objectives of the Department. This chapter reflects the mission of the Department and the action plan to
translate these into achievable goals. The Department is contemplating to introduce some innovative schemes to improve Public
Distribution System, for improved delivery of foodgrains and making people aware of their entitlements.
Chapter IV-Review of Past Performance: This Chapter explains the scope and objectives of individual programmes and schemes. It
also contains review of the past performance of the existing schemes in terms of financial outlays, physical targets and their
achievements. The Department of Food & Public Distribution has been brought under modified cash management system. Consistent
with this system, in 2014-15 the Department had incurred plan expenditure of ~ 146.05 crores i.e. 97.37 % of Revised Estimates of
~ 150.00 crores; and non-plan expenditure of ~ 129303.00 crores i.e. 96.26 % of the Revised Estimates of~ 134326.54 crores.
Chapter V-Financial Review: - This Chapter covers overall trends in expenditure vis-a-vis Budget Estimates/Revised Estimates in
the years 2013-14, 2014-15 and 2015-16. It provides the financial outlays vis-a-vis performance up to the Object Heads. It also
contains'a table on the status of Utilization Certificates and unspent balances, if any, with the implementing agencies. It may be seen
from this Chapter that the expenditure budget has five major components: (i) Subsidy on foodgrains; (ii) Loans and subsidies to sugar
industry; (iii) Construction of storage godowns; (iv) Computerization of the PDS operations and (v) Other schemes under Plan for
ensuring food security. For 2016-17 an amount of ~ 52.00 crores has been allocated to this Department under the Plan Scheme for the
construction of storage godowns and ~75.00 crores have been earmarked for Computerization ofPDS operations.
/
..
Plan Budget for 2014-15 was ~ 330.00 crores which was reduced to ~ 1.)0.00 crores in the Revised Estimates for 2014-15, against
which ~ 146.05 crores was spent. Plan Budget for 2015-16 is ~ 212.00 crores which has been reduced to ~ 165.00 crores in
Revised Estimates for 2015-16. For 2016-17 an amount of ~ 150.00 crores has been allocated to this Department. The plan scheme
for strengthening of Targeted Public Distribution System (TPDS), which commenced in 2007-08, will continue during 2016-17. This
scheme will provide Grants-in-aid to States and Union Territories. Government plans to continue awareness generation campaign
among beneficiaries of the TPDS about their entitlements and mechanism for redressing grievances. The Department is also
implementing a scheme on computerization ofTPDS.
(iv)
Outcome Budget 2016-17, Department of Food & Public Distribution
The Budget Estimate and Revised Estimate for the Non-Plan Expenditure for financial year 2014-15 was ~ 125954.34 crores (Gross)
and ~ 134326.54 crores (Gross), and the money finally spent was ~ 129303.00 crores. For 2015-16, the initial budgetary allotment
for Non-Plan Expenditure was ~ 136325.55 crores, which has been subsequently enhanced to ~ 162084.41 crores in Revised
Estimates 2015- i6.
For financial year 2016-17, the Non-Plan ceiling fixed by the Ministry of Finance is ~ 140000.00 crores on net basis (gross Budget
Estimate of ~ 152554.11 crores and Estimated Recoveries of ~ 12554.11 crores).
Chapter VI- Review of Performance of Public Sector Undertakings: This Chapter contains review of performance of public sector
undertakings under the administrative control of the Department, namely:
(i)
(ii)
(iii)
Food Corporation of India;
Central Warehousing Corporation, and
Hindustan Vegetable Oils Corporation.
Monitoring Mechanism and Public Information System: Another important feature of the Outcome Budget 2015-16 is the highlight of
the mechanism put in place to monitor the implementation of various schemes and also a Public Information System to make
information available on the performance of the Department to the public. Information in this regard has been given under respective
schemes. Besides, the Department related information like Detailed Demands for Grants (DDG), Outcome Budget and other major
activities of the Department are available on the Department Website http://www.fcamin.nic.in. The monthly flow of expenditure and
other accounting information are also made available on the website on a regular basis. Department has set up a "Facilitation Centre"
in Krishi Bhawan where public can obtain any information or approach the Central Public Information Officers, as envisaged under
Right to Information Act. Department has appointed 40 Central Public Information Officers (CPIOs) under the Right to Information
Act to provide information to the public. Department has also set up a 'Public Grievance Cell' which looks into the grievances of
general public in respect of various activities undertaken by this Department.
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Outcome Budget 2016-17, Department of Food & PublicDistribution
CHAPTER-I
INTRODUCTION:
1.1 This chapter gives a brief introductory note on the functions of Department of Food and Public Distribution, its
organizational set up, list of major programmes/schemes implemented by the Department, its mandate and goals.
1.2
The Department comes under the Ministry of Consumer Affairs, Food and Public Distribution.
1.3
MANDATE:
The mandate of the Department of Food & Public Distribution is primarily for: (i) management of foodgrains
(wheat, rice and coarsegrains) (ii) Management of sugar and (iii) management of edible oils.
1.4
FUNCTIONS:
The mandate of the Department of Food & Public Distribution is carried out through the following main
functions:
(i)
Formulation and implementation of national policies relating to procurement, movement, storage and
distribution of foodgrains;
{ii)
Implementation of the Public Distribution System with special focus on the poor;
(iii) Provision of storage facilities for the maintenance of central reserves of foodgrains and promotion of
. scientific storage;
(iv) Formulation of national policies relating to export and import, buffer stocking, quality control and
specifications of foodgrains;
(v) Administration of food subsidies relating to rice, wheat and coarse grains;
2-379 Deptt.of F & PD/2015
2
Outcome Budget 2016-17, Department of Food & Public Distribution
(vi) Fixation of statutory minimum prices of sugarcane payable by sugar factories, development and regulation
of sugar industry (including training in the field of sugar technology), fixation of price of levy sugar and
its supply for PDS, administration of sugar subsidy and regulation of supply of free sale sugar;
(vii) Supporting industries, the control of which by the Union is declared by Parliament to be expedient in
public interest, as far as these relate to Vanaspati, oilseeds, vegetable oils, cakes and fats; and
(viii) Price control of, inter-state trade and commerce in, and supply and distribution of Vanaspati, oilseeds,
vegetable oils, cakes and fats.
1.5
ORGANIZATION:
i)
The Department of Food and Public Distribution of the Ministry work under the overall guidance ofHon'ble
Minister of Consumer Affairs, Food and Public Distribution. The Secretary (Food & Public Distribution) is
the Head of the Department and the principal adviser to the Ministers on all matters of policy and
administration within the Department of Food and Public Distribution. The Secretary is assisted by an
Special Secretary & Financial Adviser, six Joint Secretaries, one Chief Controller of Accounts, one Principal
Adviser (Cost), one Adviser (Cost), one Economic Adviser, Directors, Deputy Secretaries, one Joint Director
(Movement), one Joint Commissioner (Storage and Research), Chief Director, Directorate of Sugar &
Vegetable Oils, and a number of other officers and supporting staff.
ii)
CMT Section nominates officers of all categories of the Department for training courses, workshop, seminars,
conferences organized by various agencies viz., Institute of Secretariat Training and Management, Indian
Institute of Public Administration, National Productivity Council etc. in India. These training programmes
are instrumental towards improving the efficiency of the officials and also strengthen and upgrade the skills
of the personnel. Training of officers depend on various factors like availability of slots, response from the
officers, acceptance of nominations by the concerned training institutes, exigencies of official work etc.
iii)
The Department is organized into 15 Divisions and has one attached offices, namely (i) Directorate of Sugar
& Vegetable Oils headed by Chief Director. There is one subordinate office under Sugar Division namely
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Outcome Budget 2016-17, Department of Food & Public Distribution
National Sugar Institute, Kanpur and one autonomous body under storage Division namely Warehousing
Development Regulatory Authority (WDRA).
The other subordinate offices of the Department are the following:
iv)
('"
J
(a)
(b)
(c)
Indian Grain Storage Management and Research Institute (IGMRI), Hapur and its two field stations located at
Hyderabad and Ludhiana.
Eleven Quality Control Cells (QCCs) located at New Delhi (Hqr.), Kolkata, Hyderabad, Bangalore, Bhopal,
Bhubaneswar, Lucknow, Pune, Chennai, Guwahati and Patna.
Central Grain Analysis Laboratory (CGAL) at Headquarters, Krishi Bhawan, New Delhi.
In addition, there are three Public Sector Undertakings under the administrative control of the Department,
v)
namely:
a)
b)
c)
Food Corporation of India (FCI)
Central Warehousing Corporation (CWC) and
Hindustan Vegetable Oils Corporation Ltd. (HVOC)
vi) Department has a regulatory authority namely Warehouse Development and Regulatory Authority.
1.6
r"
LIST OF MAJOR PROGRAMMES/SCHEMES:
Plan Schemes
(i)
Construction of Food Storage Godown by FCI/State Government
(ii)
Strengthening ofPDS operations*
1. End to end Computerization of TPDS operations
2. Strengthening ofPDS and Capacity Building
3. Consultancies, Training & Research
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Outcome Budget 2016-17, Department of Food & Public Distribution
4. Strengthening of Quality Control
5. Financial Assistance to State slUTs Food Commission for non building assets
(iii)
Assistance to Warehousing Development & Regulatory Authority
* After
rationalization of Plan schemes "End to end Computerization of TPDS operations" and umbrella
scheme "Strengthening ofPDS and Capacity Building, Quality Control, Consultancy and research".
Non-Plan Schemes
1.7
(i)
Subsidy on foodgrains transactions
(decentralized procurements).
through
Food Corporation
of India and State Governments
(ii)
Sugar subsidy through State Governments.
(iii)
Central assistance to States/UTs for meeting expenditure on intra-state movement, handling of foodgrains
and FPS dealers' margin under NFSA.
(iv)
Scheme for Extending Financial Assistance to Sugar Undertakings 2014.
(v)
(vi)
Incentives on marketing and promotion seryices of raw sugar production.
Interest subvention on scheme for extending soft loan to sugar mills, 2015.
(vii)
Production subsidy to sugar mills to offset cost of cane and facilitate timely payment of cane price dues of
farmers.
(viii)
Loans for modernization of sugar mills, cane development, bagasse based co-generation power projects
and projects for the production of anhydrous alcohol/ethanol.
NATIONAL FOOD SECURITY ACT, 2013:
Government of India enacted the National Food Security Act, 2013 on io" September, 2013 with the objective
to provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of
5
Outcome Budget 2016-17, Department of Food & Public Distribution
quality food at affordable prices to people to live a life with dignity. The Act provides for coverage of upto 75% of the
rural population and upto 50% of the urban population for receiving subsidized foodgrains under Targeted Public
Distribution System (TPDS), thus covering about two-thirds of the population. The eligible persons will be entitled to
receive 5 Kg of foodgrains per person per month at subsidised prices of ~ 3/211 per Kg for rice/wheat/coarse grains.
The existing Antyodaya Anna Yojana (AA Y) households, which constitute the poorest of the poor, will continue to
.rJ
receive 35 Kg of foodgrains per household per month .
The Act also has a special focus on the nutritional support to women and children. Besides meal to pregnant
women and lactating mothers during pregnancy and six months after the child birth, such women will also be entitled to
receive maternity benefit of not less than ~ 6,000. Children upto 14 years of age will be entitled to nutritious meals as
per the prescribed nutritional standards. In case of non-supply of entitled foodgrains or meals, the beneficiaries will
receive food security allowance.
The Act also contains provisions for setting up of grievance redressal mechanism at the District and State levels.
Separate provisions have also been made in the Act for ensuring transparency and accountability. The Act also contains
measures for reforms in TPDS, to be undertaken progressively by Central and State Governments. These reforms inter
alia include doorstep delivery of foodgrains to the TPDS outlets, application of information and communication
technology tools, diversification of commodities distributed under the Public Distribution System over a period of time
etc.
1.8
COMPUTERIZATION OF TPDS OPERATIONS:
A Plan scheme on 'End-to-end Computerization of TPDS Operations' in all State s/UTs had been formulated on
50:50 cost sharing basis with States/UTs except for the North Eastern States, where cost is to shared on 90:10 basis. In
October, 2012, Government approved Component-I of the scheme with an outlay of ~ 884.07 crore during the Ith Five
Year Plan. Component-I of the Scheme comprises activities, namely, digitization of ration cards/beneficiary and other
databases, computerization of supply-chain management, setting up of transparency portal and grievance redressal
mechanisms. The pilot non-plan scheme for 'Smart Card based delivery of Essential Commodities' (approved in 200809 to be implemented in UT of Chandigarh and Haryana) and the pilot plan scheme on Computerization of TPDS
6
OutcomeBudget2016-17,Departmentof Food & PublicDistribution
operations.(to be implemented in three districts each of four pilot States, namely, Andhra Pradesh, Assam, Chhattisgarh
and Delhi) have been subsumed in the above referred scheme. Under the above-referred scheme, the Central share of
funds is ~ 489.37 crore whereas States/UTs will provide funds of ~ 394.70 crore. An amount of ~ 41.69 crore had
been released by the Government during 2012-13, ~ 184.20 crore in 2013-14 and ~ 33.81 crore in 2014-15. Allocation
for the financial year 2015-16 (R.E.) is ~ 60 crore. To eliminate leakages, 2 models have been suggested to states/UTs
under Direct Benefit Transfer i.e. Direct Cash Transfer and Automation of Fair Price Shops (FPSs). UTs ofChandigarh
and Puducherry have started direct cash transfer to beneficiaries w.e.f. September, 2015. Fair Price Shop (FPS)
automation involves issuance of foodgrains to beneficiary after his/her successful authentication using Aadhaar at the
FPS using Point of Sale (PoS) device/mobile terminal. DoF&PD had issued guidelines on FPS automation (including
technical specifications for PoS device) in November, 2014 to all States/UTs which were updated in May 2015.
Government has approved ~ 17/-qtl. towards purchase and operations of the PoS device at FPS for automation under
National Food Security Act (NFSA), 2013. Relevant Rules (Assistance to State Governments) under NFSA Act have
been notified on 17-08-2015 and conveyed to the States/UTs. So far, more than 79000 FPSs are automated across the
country.
1.9
CAPACITY BUILDING:
(i)
TPDS - Training - The scheme aims at strengthening and upgrading the skills of personnel engaged in
the functioning and implementation of Targeted Public Distribution System. Under the scheme, training programmes
and seminar/workshops are conducted by the States/UTs for functionaries of State Food & Civil Supplies Department
and State agencies like State Civil Supplies Corporation, Consumer Cooperatives, the district and block level officers
engaged in the public distribution of essential commodities, members of Vigilance Committees at various level,
members ofPanchayti Raj Institutions (PRIs) and Urban Local Bodies and Fair Price Shop owners. As per the existing
guidelines, financial assistance is provided to States/UTs for conducting training programmes @ ~ 500/- per person per
day. The maximum duration of the training programme may be of five working days and the maximum assistance per
training programme would be ~ 50,000/-. In the case of seminars/workshops, the duration is two days. The financial
assistance for conducting seminars/workshops is also ~ 500/- per person per day and the maximum assistance per
Seminar/Workshop would be ~ 50,000/-. In order to successfully implement NFSA, 2013, training programmes are
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7
Outcome Budget 2016-17, Department of Food & Public Distribution
also organised to sensitize and train key officials of the State/UT Governments, Master T,rainers nominated by
States/UTs, etc through FCI's Institute of Food Security, Gurgaon.
(ii)
PDS - Evaluation, Monitoring and Research - Under the scheme, Evaluation Studies are got conducted
from time to time by the Department through various agencies to assess the impact of TPDS on the target beneficiaries,
to plug loopholes in implementation of TPDS and improve upon its functioning in the States/U'Ts. Currently, an
evaluation study on functioning of TPDS in six select States i.e. Assam, Bihar, Chhattisgarh, Karnataka, Uttar Pradesh
and West Bengal has been got conducted through National Council of Applied Economic Research (NCAER). NCAER
had submitted its report in September, 2015 which has been accepted by theDepartment and has been sent to the States
concerned for taking necessary remedial measures to remove deficiencies noticed in the functioning ofTPDS.
1.10
WAREHOUSE
THE WAREHOUSING
DEVELOPMENT
(DEVELOPMENT
AND REGULATORY
& REGULATION)
AUTHORITY:
ACT, 2007
For the growth and development of the warehousing sector, to bring reforms in the agricultural marketing and to
increase credit flow in the farm sector, the Government of India has introduced a negotiable warehouse receipt system
in the country, The Parliament has enacted the Warehousing (Development and Regulation) Act, 2007 (37 of 2007)
which has come into force from the zs" October, 2010, The Warehousing Development and Regulatory Authority
(WDRA) consisting of the Chairman and two members has been constituted by the Central Government on the 26th
October, 2010,
The main objectives of the Warehousing (Development and Regulation) Act, 2007 are to make provisions for the
development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing
Development and Regulatory Authority (WDRA) and related matters, to make NWRs prime tool of trade and to
facilitate finance against it throughout the country. The Negotiable Warehouse Receipts (NWRs) issued by the
warehouses registered under this Act would help farmers to seek loan from banks against NWRs to avoid distress sale
I
I
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OutcomeBudget2016-17,Departmentof Food & PublicDistribution
of agricultural produce. It will also be beneficial for a number of other stakeholders such as banks, financial institutions,
insurance companies, trade, commodities exchanges as well as consumers.
1.11
MANAGEMENT OF SUGAR
Management of the sugar industry and management of s~gar for public distribution is done by the Department of
Food and Public Distribution. Sugar Development Fund is the main instrument through which financial assistance is
provided to the sugar industry for modernization and expansion of the existing mills, for bringing about varietal
improvement and development in the cane grown in the area of the sugar factories, for projects of bagasse based
cogeneration of power and for production of ethanol. The activities in relation to sugar broadly cover:
'
•
•
•
•
•
•
Regulation of the industry through the Directorate of Sugar & Vegetable Oils;
Fixation of statutory minimum/fair and remunerative prices of sugarcane payable by sugar factories;
Development and regulation of sugar industry (including training in the field of sugar technology);
Administration of subsidy on sugar;
Administration of Sugar Development Fund; and
Training and Research.
1.12 LEVY SUGAR PRICE EQUALIZATION FUND:
The Levy Sugar Price Equalization Fund Act, 1976 (as amended in 1984) has been enforced from 0l.04.l976
to recover the excess realization (ER) on account of sale of levy sugar price at higher prices than notified, as per orders
of the High Court/Supreme Court to various litigant sugar mills. Whenever the Judgment is in favor of D.O.I., the
recovery of the Government dues is affected under the provisions of the LSPEF Act.
1.13 MANAGEMENT OF EDIBLE OILS:
The Directorate of Sugar and Vegetable Oils under the Department of Food & Public Distribution seeks to
coordinate management of edible oils in the country through a multi-pronged strategy, namely, (i) assessment of the
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9
OutcomeBudget2016-17,Departmentof Food & PublicDistribution
domestic demand for edible oils and its availability from domestic sources. Mismatch of demand and supply is met
through import of edible oils so as to maintain their prices at reasonable level; (ii) It also closely monitors prices of
edible oils both in the domestic and in the international market and initiate necessary policy measures whenever
necessary. The DSVO is staffed with qualified technical people who assist the Ministry in the coordinated
management of Vegetable Oils particularly relating to production / availability and monitoring of prices.
1.14 FUNCTIONS:
The Directorate of Sugar and Vegetable Oils carries out the mandate of the Department through the following:(I)
Monitoring of domestic and international prices of edible oils on a day-to- day basis, preparing periodic
estimates of domestic production, imports and availability of edible oils, and recommending corrective
measures.
(2)
Implementing Regulatory Order "Vegetable Oil Products Production and Availability (Regulation)
Order'2011" issued under the Essential Commodities Act, 1955.
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Outcome Budget 2016-17, Department of Food & Public Distribution
t
Chapter- II
FINANCIAL OUTLAYS 2016-2017, PROJECTED
PHYSICAL
OUTPUTS AND PROJECTED
OUTCOMES
This chapter gives the details of the financial outlays, plan and non-plan, for 2016-17, projected physical outputs
and projected/budgeted outcomes for non-plan and plan schemes of the Department of Food & Public Distribution. Its
main objective is to establish a correspondence between financial outlays and projected outcomes.
(~ in crores)
NON-PLAN
Name of
SI.
Scheme!
No
Programme
[Major Head]
1
1
2.
\
Objective!
Outcome
Summary
"'I
2
Secretariat
Economic
Services
[MH 3451]
National Sugar
Institute,
Kanpur
(including
Departmental
Canteen)
(MH 2408 and
4408)
.)
General
Administration
General
Administration
&
Modernization
and technology
upgradation of the
laboratory and
office.
Outlay 2016-17
ComplePlan
NonBudget . mentary
Plan
ExtraBudget
Budgetary
Resources
4(iii)
4(ii)
4(i)
51.85
23.99
Quantifiable!
Deliverable!
Physical
Outputs
Projected
Outcomes
Processes!
Timeliness
Remarks
5
6
7
8
-
-
-
-
Continuous
-
-
Civil and
electrical
works
relating to
the development of
infrastructure
capacities
and
-
Continuous
for general
administrati
ve
expenditure.
However,
funds will
be released
on request
fromCPWD
Major
expenditure is
on construction
works to be
executed
through CPWD
who have to
follow their
prescribed
procedure such
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Outcome Budget 2016-17, Department of Food & Public Distribution
augmenting
for
as tendering of
R&D
modernizati
financial bids
facilities.
on work.
for
construction
works etc.
3. Food Subsidy
(i)
"
Subsidy payable
to
Food
Corporation of
India (FeI) and
others
on
foodgrains
transactions
[MH 2408]
To
meet
the 103334.61
difference
between
the
economic cost of
foodgrains
and
their
sales
realization
at
subsidized prices
i.e. Central Issue
Price (CIP) for
Targeted
Public
Distribution
System
(TPDS)
and other welfare
schemes,
including
provisions
for
implementation
of National Food
Security
Act,
2013.
549.26 lakh
tonnes
of
food grains
IS
to
be
distributed
during
2016-17 for
which total
estimated
subsidy
requirement
is ~ 129943
crores.
To ensure food Food
IS
security for the subsidy
released
to
poorer sections
of the society FCI in every
In
by
sale
of quarter
advance to
subsidized
the extent of
foodgrains.
95%
of
subsidy due.
Offtake
of
foodgrains may
vary based on
consumer
and
demand
Issue
Central
The
Price.
econormc cost
also
may
change
on
depending
MSP,
procurement
incidentals and
other elements
of cost.
12
(ii) Subsidy payable
to
State
Governments
on decentralized
procurement of
foodgrains
[MH 2408J
(iii) Sugar subsidy
payable to FCI
and others on
account of levy
sugar, import of
sugar etc.
[MH 2408J
To
meet
the 27000
difference
between
the
economic cost of
foodgrains
and
their
sales
realization
at
subsidized prices
(CIP) for TPDS
and other welfare
schemes,
including
provisions
for
implementation
of National Food
Security
Act,
2013.
The objective IS 4500
to
reimburse
subsidy to the
StateslUTs @ ~
18.50 per Kg,
limited to the
quantity based on
their
existing
allocations, which
is require
to
procure
sugar
from the open
market through a
transparent
system and to
make
sugar
available In the
Outcome Budget 2016-17, Department of Food & Public Distribution
-
145
lakh
tonnes
of
foodgrains
is to be
distributed
during
2016-17 for
which total
estimated
subsidy
requirement
is ~ 33000
crores.
To ensure food
security for the
poorer sections
of the society
by sale of
subsidized
foodgrains.
Food
subsidy IS
released to
DCP States
In
every
quarter and
advance to
the extent of
90%
of
subsidy due.
Offtake
of
foodgrains may
vary based on
consumer
demand
and
Central Issue
Price.
The
economic cost
may
also
change
depending on
MSP,
procurement
incidentals and
other elements
of cost.
2659016
MT sugar is
total annual
quota of all
States / UTs
in
the
Country.
However, at
present only
30 States /
UTs
are
participating
in
the
scheme
Availability of
sugar for the
poorer sections
of the society
at the existing
retail
issue
pnce through
Public
Distribution
System.
The Central The
Central
Government Government in
IS
April, 2013 has
reimbursing decontrolled
subsidy to the
sugar
States/U'Ts, sector partially
limited to by removing
the quantity the
levy
based
on obligation on
their
sugar mills and
existing
doing
away
allocations. with
the
With a view regulated
to ease out release
the financial mechanism on
burden of open market
the States, it sale of sugar.
..
'
13
Outcome Bu dIget 2016 -17, Department 0fF 00d&P u suIC D'istnibution
has
been Prior
to
it,
decided
to sugar
mills
release
were mandated
':'"-,
advance
to supply 10%
subsidy
to of
their
States who production
to
approach for meet the Public
the same. -c- Distribution
System (PDS)
demand. Sugar
mills are now
free
to
sell
their
entire
production
as
per
their
commercial
prudence.
Continuous
This IS being
provided
at
average
interest rate for
364 days TBills
from
2010-11.
at
the
PDS
existing
retail
issue price i.e. ~
13.50 per Kg
.
(iv)
4.
Ways
and
Means Advance
payable to FCI
[MH 6408]
Assistance
State/VIs
meeting
expenditure
intra-state
to
for
on
Ways and Means 10000.00
Advance
would
be provided to
FCI
for
the
additional
requirement
and
be adjusted
In
future installment
of Food Subsidy
to FCI during the
same
financial
year.
In compliance to 2500.00
Section 22(4)(d)
of National Food
Security
Act
(NFSA),
2013,
-
.
-
-
Delivery
and
distribution
of
foodgrains
To
ensure
delivery
of
foodgrains
upto door step
of Fair Price
75%
of
Central
assistance in
advance in a
year
and
Only
those
States/
VTs
will be eligible
for
financial
assistance
movement,
of
handling
foodgrains and
Fair Price Shop
(FPS) dealers'
margin under
.National Food
Act
Security
2013 (NFSA)
2408,
(MH
3601,3602)
5.
for
Subsidy
imported edible
for
oils
distribution
through States /
UTs
Governments
(MH 2408)
(past liabilities)
to
central
provide
to
assistance
State and UTs for
meeting
on
expenditure
intra-state
movement,
of
handling
and
foodgrains
margms paid to
fair price shop
for
dealers,
of
distribution
foodgrains.
Stabilization of
the Edible oil
by
prices
providing
a
subsidy of ~ 15/per kg. to Central
(CPSUs)
PSUs
importing edible
oils which were
handed over to
States / UTs for
to
distribution
card
ration
holders.
Central
14
Outcome Budget 2016-17, Department of Food & Public Distribution
which
have
Shops (FPSs) balance
under
25%
next
implemented
and
viability
of
NFSA.
year on the the
National
FPSs.
basis
of Food Security
receipt
of Act, 2013.
requisite
information
from
State
Government
IS
567.01
-
-
The scheme,
concurred
the
by
Ministry of
Finance,
envisaged
an import up
to 10 lakh
of
tons
edible oils.
Pending claims
CPSUs
of
amounting to
~567.01 crores
account
on
imported
edible oils will
settled
-be
which will be
remain unpaid
as on the close
ofFY 2015-16.
Subsidy will (The Scheme
on
be released ceased
to 3 CPSUs 30/09/2013).
for
final
settlement
of
their
claims.
2000.00
-
-
-
-
The
Cess The Sugar Cess
1982
collected IS Act,
gets empowers the
first
6. Development of Sugar Industry
6.01
Transfer
to To provide funds
for payment from
Sugar
SDF to sugar
Development
Fund (SDF)
(Inter Account
Transfer)
(MH 2408)
..
15
Bunge
d t 2016 - 17 , D ep;art mento fF 00d & P u bf lC D·IStnibufIon
oucome
t
credited In Central
Government to
Consolidate
d Fund of collect Cess for
India (CFI) the purpose of
Sugar
IS the
and
Development
transferred
SDF Fund Act by
to
of
way
account as the
the excise duty on
per
sugar
all
requirement
under
factories
sugar
various
subsidy
sector
schemes / loan
schemes,
on
expenditure
which are finally
from
out
met
SDF.
the products.
of
Department
of Food &
PD with the
pnor
approval of
Parliament.
6.02
"',
(i)
.
Scheme financed from SDF
Sugar
to
assistance
Financial
of
expenditure
Undertakings/other
SDF (MH 2408)
Administration
Sugar
of
Development
Fund (SDF).
To administer the
Sugar
Development
Fund,
of
disbursement
funds to sugar
and
factories
recovery of SDF
loans.
20.60
-
-
-
provide
To
assistance/
concessional
loans for the
development
Sugar
of
and
industry
incidental
and
matters
Continuous
monitoring
Sugar
of
Developme
Fund,
nt
submission
half
of
yearly
on
report
of
Recovery
Sugar
Development
dues will also
on
depend
performance of
the loanee mill
and generation
sufficient
of
16
Outcome Budget 2016-17, Department of Food & Public Distribution
monitoring
the loans
recovery.
.
(ii)
6.03
Grant-in-aid for To
promote
development of research
&
Sugar Industry
development of
any aspect of
sugar
industry
aimmg
at
increasing sugar
cane production.
Loan
for
Modernization /
Rehabilitation
of Sugar Mills.
[MH 6860]
For
facilitating
the rehabilitation,
modernization
and expansion of
crushing capacity
of sugar industry.
1.00
150.00
Grants
are
given
to
Department
of
Scientific
&
Industrial
Research,
Research
Institutions
/University
/Indian
Council of
agricultural
Research.
Increase In
crushing
capacity by
18337.50
tonnes
crushed per
day (TCD)
of performance surplus
for
& of
the payment of the
loanee mills dues.
Qualifying
Continuous
physical
output
of
Research
IS
not feasible
Increase
In
sugar
production,
improvement
In
sugar
recovery and
reduction
In
cost
of
production.
Receipt of
applications
and sanction
of loan is a
continuous
process
throughout
the
year.
The
applications
are
first
scrutinized
by the Sub
Committee
Utilization of
budget
depends upon
research
proposal
received,
approval
of
Expert
committees/
Government
& submission
of
required
documents by
concerned
institutions.
Achievement
of targets is
dependent on
receipt of valid
and complete
applications
from
sugar
factories
for
modernization,
rehabilitation
and expansion,
which
may
vary from year
to year.
t..
,
r.
17
Outcome Budget 2016-17, Department of Food & Public Distribution
6.04 Loan to sugar Development of
75.00
Increase In Increase
in and
Achievement
mills for cane sugarcane in the
production
production of thereafter by of targets IS
development
area where sugar
by
63.66 sugarcane and the Standing dependent on
[MH 6860].
factory
IS
lakh tonnes. productivity as Committee. receipt of valid
situated.
well
as Recommend and complete
decrease
In ations of the applications
cost
of Standing
from
sugar
production of Committee
factories and
cane.
are placed concerned
before the State
Government Government
and on its for
cane
acceptance; development,
the approval which
may
of the SDF vary from year
loan
is ~~~~
to year.
~---+-------------+--------------+-------1-------+---------1-----------~----------~
~
6.05 Loan to Sugar To improve the 200.00
Improvement
issued. The Achievement
Mills
for econormc
In
econorruc loan
IS of
targets IS
bagasse based viability of sugar
viability
of disbursed
dependent on
cogeneration
mill
and
sugar mills and (1)
on receipt of valid
power projects efficiently utilize
utilization of signing of and complete
[MH 6860].
bagasse produced
by-product
Tripartite
applications
by the
sugar
generated
Agreement
from
sugar
mills.
while
between
factories
for
producing
sugar
agasse based
sugar.
factory,
cogeneration
IFCIINCDC power projects,
and
which
may
Government vary from year
I--:--:---+-:::--------=--+=-----:-----::--+
-:--:~-+----+----+----_::__l_:____---____!
of India, (2) I-t:....::.o_,y~e..:..:ar:...:..
__ ----1
6.06 Loan
for To improve the 125.00
Increase In Improvement
On
Achievement
production of economic
capacity for In economic furnishing
of targets IS
Anhydrous
viability of sugar
production
viability
of of adequate dependent on
Alcohol/mills.
is
373.03 sugar mills and security on receipt of valid
4-379
Oeptt. of F & PO/2015
18
o
utcome B u d ge t 2016 - 17, D epartmen t 0fF 00d&P u
Kilo
liters
day
per
(KLPD)
Ethanol
from
alcohol
[MH 6860]
6.07
for
Scheme
Extending
Financial
Assistance
to
sugar
undertakings
(SEFASU),
2014
-----
providing
For
financial
assistance in the
form of interest
free loans worth
~ 6600 crore for
additional
working capital to
sugar mills for
clearance of cane
price arrears.
800.00
-
-
-
utilization
by-product
generated
while
producing
sugar.
of
It would help
sugar mills to
pay cane pnce
arrears to sugar
cane farmers.
snIC D·istn·bution
SDF loan by
sugar
the
factory.
The process
time,
therefore,
cannot
be
envisaged.
As provided
III clause-4
of
the
notification
dated
03.01.14 of
SEFASU,
2014,
the
Department
will release
the interest
subvention
amount on
quarterly
basis
III
advance to
nodal
the
bank
as
appointed
by
DFS.
The amount
from
3rd
quarter
onwards
and complete
applications
from
sugar
factories
for
production
of
Anhydrous
Alcohol
/
Ethanol which
may vary from
year to year.
Processing
of
claims depends
on furnishing
of
completes
documents by
the
nodal
Bank.
/
on
6.08 Incentive
Marketing and
Promotion
Services of Raw
Sugar
to
order
In
sugar
encourage
to
factories
their
diversify
of
produce
30.00
-
19
istn
ution
fF
d&
P
br
D'
'b
IC
u
00
outcome Bud[get 2016- 17, Department 0
be
shall
released as
advance
subject to
furnishing
of disbursement
particulars
as well as
interest
earned by
the bank for
the quarter
proceeding
last
the
quarter to
DFPD. The
interest
earned on
the interest
subvention
advance
be
shall
adjusted In
the quarterly
installment
3rd
from
quarter
onwards.
Processing of
the It would help The
For
claims depends
sugar season sugar mills to settlement
on furnishing
claims
2014-15 the pay cane pnce of
complete
including cane for the said of
incentive
be price arrears to season shall documents by
shall
Production.
traditional white
sugar into raw
sugar for export,
the Government
notified
another
scheme allowing
incentives
for
marketing
and
promotion
services for raw
sugar production
targeted
for
export
market
during the sugar
20
Outcome Budget 2016-17, Department of Food & Public Distribution
available for sugarcane
be
the nodal bank.
a
fixed farmers.
prioritized
quantity of
on the basis
14
lakh
of the date
metric
of export in
tones.
case
of
direct raw
sugar export
and in case
of raw sugar
supply
refineries
against
invalidation
of
their
advance
authorizatio
n, it shall be
from
the
date
of
deemed
export.
I
seasons 2013-14
~nd 2?14-15. The I
mcentrve
6.09
Interest
Subvention
on
Scheme
for
extending
soft
loan to sugar
mills, 2015
available under
the Scheme shall
be utilized by the
sugar mills for
making payment
to the farmers.
The loan is to be
used for payment
of
cane
pnce
arrears of farmers
for
the
sugar
season
2014-15
relating to the
Fair
and
Remunerative
Price (FRP) of
sugarcane
fixed
202.50
As provided
in clause 4
of
the
Gazette
notification
no.
1(5)
12015-S.P.-I
dated
23.06.2015.
It would help
sugar mills to
pay cane pnce
arrears
to
sugarcane
farmers for the
sugar season
2014-15.
The
Department
has
to
release the
interest
subvention
amount on
quarterly
basis
In
advance to
the
nodal
Processing of
claims depends
on furnishing
of
complete
documents by
the nodal bank.
21
fF
d
&
P
bI"
D·
·b
istn
ution
u
IC
00
epartment
0
B
d
2016
17
D
utcome u iget
- ,
bank
as
appointed
DFS.
by
first
The
of
tranche
interest
subvention
to
was
m
release
October,
2015
followed by
3rd,
2nd,
4th
and
tranches
respectively I
I in January, I
I 20.16, April,
2016
and
July, 2016 .
of
per Processing
would As
It
The
bills
subsidy
about scheme
benefit
production
on
depends
lakh
subsidy @ 40
furnishing the
~4.50
per farmers
complete
associated
with
of
quintal
documents by
more than 500
cane
the sugar mills.
mills
crushed will sugar
in
be provided operating
the country.
for
estimated
255 million
MT of cane.
will
This
help
sugar
o
by the Central
for
Government
that sugar season.
.
.
6.10
Production
subsidy
to
Sugar Mills to
offset cost of
and
cane
facilitate timely
payment
of
cane price dues
of farmers
950.01
22
Outcome Budget 2016-17 , Department of Food & Public Distribution
to
mills
the
reduce
financial
burden and
help farmers
to clear the
cane dues in
time.
7.
(i)
(ii)
Establishment! Other expenditure of
Food, Storage and Warehousing
(MH 2408)
Directorate
of General
Sugar
& Administration
Vegetable Oils
Grain General
Indian
Administration
Storage
Management &
Research
Institute
.
8.04
-
-
-
-
5.07
-
-
Long
1.
Term
Training
/
Courses
Short Term
Training
Courses
of
(No.
courses - 15
and No. of
Trainees360
2. Analysis
of foodgrain
samples
for
(500)
physical
quality
parameters.
Applied
and
research
development
on
activities
and
storage
preservation of
foodgrains
besides
developing
of
code
for
practices
foodgrains
storage,
monitoring of
foodgrains
for
samples
physical
quality
parameters,
23
t ibultiIon
outcome Budlget 2016- 17, Department 0fF 00d & PubfICD·ISn
pesticide
residue,
mycotoxin
contamination
and conducting
training
on
courses
scientific
storage,
preservation
and inspection
of foodgrains
to the pest
control
operators and
officials of the
State
Governments
their
&
agencies
in
engaged
procurement,
and
storage
distribution of
foodgrains.
Monitoring of Continuous
Inspection
960 the quality of
of
Central Pool
Food
foodgrains.
Storage
Investigation
Depot
the
of
complaints
received from
Govts,
State
3.
Monitoring
food
of
grams
samples
for
(150)
pesticide
residue.
4.
Monitoring
food
of
grams
samples
for
(75)
mycotoxin
contaminati
on.
•
(iii)
Quality Control General
Administration
Cells
8.74
-
-
outcome
(iv)
Central
Grain
Analysis
Laboratory
(CGAL)
1. Laying down
quality standards
for procurement
of Kharif
and
Rabi foodgrains
for Central Pool
before
commencement
of the respective
season.
2. Classification
of
rice/paddy
varieties received
from
State
Government
to
Grade 'A' and
Common
for
fixation
of
procurement and
.
.
Issue pnces.
3. Assessment of
the
quality
of
foodgrains
that
-
0.05
.
24
& P u bI"IC O·istnib ution
MPs,
VIPs,
Media
and
Consumers etc
about
quality
of Central Pool
foodgrains
being
procured,
stored
and
distributed by
the Govt.
Continuous
Budtget 20 16-17, Department
-
1700
samples to
be analyzed.
0fF 00d
-
I
25
oucome
t
..,
~-
are imported or
exported
on
Central
Pool
account
III
relation to the
contractual
specifications.
4. Analysis of
foodgrain
samples received
from
vanous
sources.
Contribution to Contribution
International
towards India's
Sugar Council
membership
of
International
Sugar Council
(vi) Contribution to Contribution
International
towards India's
Grain Council
membership
of
International
Grain Council
r
5-379 Deptt.of F & PD/2015
BuLge
d t 2016- 17, Department 0fF
00d
& P ubliIC D·IS tnibufIOn
0.34
-
-
-
-
Continuous
0.30
-
-
-
-
Continuous
26
Outcome Budget 2016-17, Department of Food & Public Distribution
PLAN
(~ in crores)
,.
SI.
No.
Name of
Schemel
Programme
Objectivel
Outcome
Outlay 2016-17
ComplePlan
Nonmentary
IPlan
Budget
ExtraBudget
Budgetary
.
8.
Warehousing
Development
and
Regulatory
Authority
[MH 2408]
1. Increasing credit
flow In the farm
sector.
2.
Enhancing
fiduciary trust of
Banks and trade in
warehouse receipts
and make them
negotiable
instruments
(NWR).
3. Easy financing
by Banks against
NWRs.
4. Increasing rural
liquidity
by
popularizing
the
use ofNWRs.
5.
Encouraging
scientific
warehousing
of
goods.
6. Facilitating the
development of the
-
Quantifiable
IDeliverables
IPhysical
Outputs
Projected
Outcomes
Processes I
Timeliness
Resources
18.00
-
Continues
1. New rules and 1. Establishing
standards,
regulations,
replacing
the provide
existing ones, for assurance
to
of market
discharge
participants and
different
facilitate
quick
functions
to registration
of
entrusted
to large number of
WDRA
warehouses
enhance
fiduciary trust of while
Banks and trade simultaneously
protecting
in NWRs.
interest
of
depositors
I
farmers.
2. Organization
Design
and
Human
for
Resources
WDRA.
2'. Providing an
efficient human
resource base to
man WDRA and
discharge
functions under
the Act.
Remarks I
Risk Factor
27
fF
d&P
sn
D·
·b
istn
ution
IC
u
epartment
0
00
,
B
d
2016
17
D
utcome u get
-
o
-
.,
.
warehousing sector.
Promoting
7.
shorter and more
efficient supply of
goods.
Enhancing
8.
rewards for grading
quality
of
and
deposited
commodities.
Financial
3.
Business Model
forWDRA.
3. Charging userfor
fees
its
providing
eNWR
repository
and
services,
provide a portion
of the revenues
to WDRA to be
self-sufficient in
long run.
4. Establishment 4. Electronificaof Online Portal tion of NWRs to
e-NWR reduce chances
and
and
repository(ies) to of fraud
of
create
an duplication
of receipts, multiple
ecosystem
electronic NWRs finances against
to cover entire same receipt and
.
.
the
from mcreasmg
life-cycle
of
the issue to the credibility
NWRs so as to
discharge
the
including pledge enhance
fiduciary trust of
by Banks.
and
Lenders
and
Depositors
to promote the
use of NWRs n
trade and other
related
transactions.
28
Outcome Budget 2016-17, Department of Food & Public Distribution
Providing
National 5.
5.
on better
Survey
Warehousing m information
India.
about
warehouses and
warehouse
service prodders
(WSPs).
Awareness
6.
programmes for
farmers
and
others users of
NWRs; training
warehouse
of
manager;
National
and
Regional
conference for
stakeholders.
Popularisa6.
tion of NWRs,
Capacity
building
of
wareshouseman.
.
7. Inspection of 7. To ensure
underlying goods
Warehouses.
are secure.
9. Strengthening of PDS Operations
9.01 Strengthening of PDS and Capacity
building
(i)
Financial
assistance to
StateslNER
for
The objective of the
Scheme is to create
awareness amongst
TPDS
the
0.50
An assessment Ongoing
of the publicity
cum awareness
campaign
in
Based on
the
proposals
received
The
utilization of
funds under
this Scheme is
Generating
awareness
amongst
TPDS
beneficiaries
about their
entitlement
and redressal
mechanism
(M.H. 2552,
3456,
&
3601
(ii)
..
'
29
Outcome Budget 2016-17, Department of Food & Public Distribution
tangible terms is
from
the dependent on
not possible as
States,
submission of
this
Scheme
Funds/Gran proposal by
component
is
ts
are the
States
intended as an
released by (including NE
effective, subtle,
the
Region).
sustained
and
Department
intensive
As per
awareness
revised
campaign,
guidelines,
impact of which
Department
could result in
itself can
those
utilized up
beneficiaries
to 20 %
claiming
their
funds
due from the
earmarked
ration shops.
for the said
purpose.
beneficiaries
and
general Public on
TPDS so that there
is a public pressure
on the machinery
for accountability
In their working.
This
cannot,
however,
be
assessed in tangible
terms.
Evaluating
theEvaluation,
impact of the TPDS
Monitoring
the
target
& Research on
beneficiaries and to
In
plug loopholes In
Foodgrains
Management its implementation.
and
Strengthenin
g of PDS
(Professional
Services).
(M. H. 3456)
0.85
Concurrent
Evaluation study
on
Targeted
Public
Distribution
System and the
National
Food
Security
Act,
2013.
It will enable the
Department and
StateslUTs
to
assess the areas
where
further.
streamlining and
strengthening of
TPDS may be
necessary.
The
amount
will
be
used
for
conducting
the
evaluation
studies
under the
scheme
within the
prescribed
time
schedule as
per terms
The releases
to
agencies
will be subject
to finalization
of selection of
agencies for
conducting
evaluation
study.
30
Outcome Budget 2016-17, Department of Food & Public Distribution
&
conditions.
(iii)
Evaluation,
Monitoring
& Research
in
Foodgrains
Management
and
Strengthenin
g of PDSTraining.
(M.H. 3601
& 3602)
The
scheme
component aims at
strengthening and
upgrading the skills
personnel
of
engaged m the
functioning
and
implementation of
Public
Targeted
Distribution System
and National Food
Security Act, 2013.
-
0.25
-
A number of
persons/ officials
are to be trained;
seminars/
conferences to
be organized.
Financial
assistance
IS
released to the
StatelUT
Governments to
conduct training
programmes/
workshops
/seminars/confer
ences
for
functionaries of
the State Food &
Civil
Supplies
Department and
State agencies
like State Civil
Supplies
Corporations,
Consumer
Cooperatives,
the District and
Block
level
officers engaged
m the Public
Distribution of
essential
commodities,
members
of
Vigilance
Committees at
various levels,
One week
for training
and
1-2
days
for
semmar, as
per
guidelines
of
the
scheme.
Besides,
three days
training
programme
IS
being
conducted
for officials
and Master
Trainers
nominated
by
the
StateslUTs
etc.
through
IFS,
Gurgaon.
The releases
to StatelUT
Govts
and
FCI will be
subject
to
appropriate
proposals
received from
StatelUT
Govts.
and
FCI
and
timely
submission of
utilization
certificates for
past releases.
31
Outcome Budget 2016-17, Department of Food & Public Distribution
of
members
Raj
Panchayati
Institutions
(PRIs) and urban
local bodies, Fair
Shop
Price
Owners etc. To
successfully
the
implement
2013,
NFSA,
training
programmes are
also conducted
Master
for
I
9.02
.
Computerizat
ion of TPDS
Operations
(M.H.2552,
3456, 3601
and 3602)
Scheme aims at end end
to
computerization of
Public
Targeted
Distribution System
(TPDS) operations
in all StateslUTs.
75.00
-
Component-I, of
scheme
the
compnses
activities namely
of
digitization
ration
cardslbeneficiary
other
and
databases,
computerization
of supply-chain
and
Trainers
other officials of
the States/UTs
Food
through
Corporation of
(FCI)'s
India
Institute of Food
Security,
Gurgaon.
Digitization of
beneficiary and
other databases
will ensure deof
duplication
ration
bogus
and
cards
cleaning up of
databases which
enable
will
correct
The work
of
digitization
ration
of
cards/benef
iciary
database
been
has
completed
35
III
StateslUTs.
Funds of ~
305.74 crore
have already
been released
the
to
StateslUTs as
first/second
installments
of the Central
share to meet
the
outcome
.
9.03
StrengthenThe objective of the
ing
of Scheme
IS
to
Quality
strengthen
quality
Control
control
network
Mechanism
independent of FCI,
(MH-2408)
to monitor quality
aspects
of
foodgrains
during
-
2.00
-
32
B u diget 2016 - 17, D epartmen t 0fF 00d&P u bI"IC D'istnib ution
management,
identification of Online
expenditure
setting
up of beneficiaries and allocation
on
transparency
better targeting IS
being implementatio
portal
and of food subsidy; done in 21 n
of
grievance
computerization
statesIUTs .. Component -I
redressal
of supply-chain Computeriz of the scheme
mechanisms.
management
ation
of during 2012would
ensure supply13, 2013-14,
timely
chain has 2014-15 and
availability
of been
2015-16.
foodgrains to the completed
beneficiaries
at In
12
FPS level, check State s/U'Ts
leakages/diversio
and
ns, etc; setting gnevance
up
of redressal
transparency
mechanism
portal, grievance has
been
redressal
established
mechanisms, etc. III
36
will
introduce States/U'Ts.
transparency and
public
accountability in
implementation
ofTPDS.
a) Opening
of Once the labs
new
QCCs;
are upgraded
Three offices at
Ideveloped
Chennai,
foodgrain
Guwahati
and
samples
at
Patna have been 180
Yearly
IGMRI Hapur
operationalised
will
be
during 2015-16.
analyzed
as
33
procurement,
storage
and
distribution
throughout
the
Country
beside,
upgradation of lab
&
training
infrastructure
at
IGMRI, Hapur as
also
capacity
building for skill
upgradation
of
State Government
officials engaged in
foodgrain
management.
6-379 Deptt.of F & PD/2015
Outcome Budget 2016-17, Department of Food & Public Distribution
Inspection
of
per national &
food
storage
international
depots nos.
standards.
b) Upgradation
of laboratories
at
IGMRI
Hapur-The
infrastructure of
physicochemical lab has
been
upgraded
by
renovating
the building and
procedure
for
purchase
of
physic- chemical
equipments
through e-tender
has
been
completed,
besides,
a
consultant from
National Institute
of Plant Health
Management,
(NIPHM),
Hyderabad
has
been engaged for
developing
pesticide
and
mycotoxin
analysis lab at
IGMRI, Hapur.
c)
Capacity
34
Outcome Budget 2016-17, Department of Food & Public Distribution
building
programmei)
Training
infrastructure has
been developed
ii) Two days
training
programme for
State
Govt.
officials
by
QCCs
Yearly
No. of training 38
program
Yearly
1330
No. of trainees
9.04
(i)
(ii)
9.05
Consultancy, Training & Research
Consultancy To provide regular for research/ alerts and early
monitoring in warning on possible
domestic/glo increase in prices of
bal markets essential
commodities
for
foodgrains
and e-govemance Transparency
'efficiency III the
working of the
Department
Assistance to Constitution
ofStateslUTs
State
Food
for
non- Commissions in all
0.12
0.28
1.00
Provision
of
regular market
alerts and early
warmng
on
likely increase of
pnces
of
foodgrains
(i) Upgradation
of LAN System.
(ii)
Implementation
of e-office and
development of
infrastructure for
implementation
of e-office.
Acquisition of
non-building
assets such as
Formulation of Continues
policy measures
and intervention
for management
of food policy.
More
efficientworking of the
Department
To
ensure Release of Only
those
monitoring and funds on States/U'Ts
evaluation
of the basis of will
be
building
for
assets
Food
State
Commissions
[M.H.3601]
10.
StateslUTs,
as
provided
III
the
National
Food
Security Act, 2013,
monitor
and
to
evaluate
the
implementation
of
the Act.
Assistance
to
State/UT for nonbuilding assets for
State
Food
Commission
& Construction
ofStorage
GodownsI storage
godowns
particularly
III
Construction
Eastern
of Godowns North
including
by FCI/State States
Sikkim
Govts.
(M.H. 2552,
4552)
52.00
35
Outcome Budget 2016-17, Department of Food & Public Distribution
furniture, office implementation
submission
eligible
for
equipment,
of National Food of
financial
computers etc.
Security
Act, proposals
assistance
2013 by State by
the which
have
Food
States/UTs.
constituted
Commissions.
the State Food
Commission,
as
per
provistons of
the National
Food Security
Act. 2013 on
an exclusive
basis.
Central
assistance
would
be
released based
on
cost
estimates/
proposals
received from
States/UTs.
of Acquisition
The physical
The
physical Creation
of
land
and financial
targets
to be additional
targets can be
achieved by FCI storage capacity through
during the year is of 242730 MTs State Govt. achieved
provided
the
estimated to be III the country Construcsuitable land
III tion
242730 MTs III particularly
made
Region agencies of IS
the
country NE
available
by
particularly
NE including Sikkim Centre/
the respective
and
new State
Region.
State Govts.
(PSUs)1
to procurement
However,
timely,
through
achieve
this States
36
Outcome Budget 2016-17 , Department of Food & Public Distribution
Public
finalization of
target
total
Tender
executing/
estimated
March
constructing
of
requirement
and
2017
fund for the year
Finalization
~250.09
IS
of
Railway
Crores.
siding
by
Railways
agency
37
Outcome Budget 2016-17, Department of Food & Public Distribution
IEBR SCHEMES
S.
No
1
1
Name of
Scheme
/Programme
Outlays 2016-17
(~ in crore)
Objective/
Outcome
2
3
Construction
Augmentation
of
warehousing
warehouses/
capacity.
Godowns by
4 (i)
4 (ii)
4 (iii)
Non
Plan ComplePlan Budget mentary
Budget
Budget
4
5
6
of
153.82
-
cwe
including cost
of land
2
Integrated
Business
Management
Solution
(lBMS)
TOTAL
Enhancing
efficiency of CWC
-
-
36.22
-•
-
190.04
******
Quantifiable/
Deliverables/
Physical Outputs
Projected
Outcomes
Processes/
Timeline
Remarks
/Risk Factor
7
of
Creation
storage capacity
of 1.42 Lakh MT
in the States of
Odisha,
Chhattisgarh,
Rajasthan, UP,
Bengal,
West
Pd.,
Andhra
Kerala, Punjab,
Gujarat and Goa.
8
Increased
Scientific
Warehousing
Capacity
9
31.03.2017
10
31.03.2017
-
-
-
-
38
Outcome Budget 2016-17, Department of Food & Public Distribution
CHAPTER-III
REFORM MEASURES AND POLICY INITIATIVES:
3.1
This chapter deals with the reform measures and policy initiatives taken by the Department and how they relate
to the intermediate outputs and final outcomes. The Department regularly monitors implementation of its policies and
introduces necessary reform measures towards achievement of its objectives. Some major recent initiatives are given
below:
FOOD MANAGEMENT:
3.2
National Food Security Act, 2013
Government of India enacted the National Food Security Act, 2013 on 10th September, 2013 with the objective
to provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of
quality food at affordable prices to people to live a life with dignity. The Act provides for coverage of upto 75% of the
rural population and upto 50% of the urban population for receiving subsidized foodgrains under Targeted Public
Distribution System (TPDS), thus covering about two-thirds of the population. The eligible persons will be entitled to
receive 5 Kg of foodgrains per person per month at subsidized prices of ~ 3/211 per Kg for rice/wheat/coarse grains.
The existing Antyodaya Anna Yojana (AA Y) households, which constitute the poorest of the poor, will continue to
receive 35 Kg of foodgrains per household per month.
The Act also has a special focus on the nutritional support to women and children. Besides meal to pregnant
women and lactating mothers during pregnancy and six months after the child birth, such women will also be entitled to
receive maternity benefit of not less than ~ 6,000. Children upto 14 years of age will be entitled to nutritious meals as
per the prescribed nutritional standards. In case of non-supply of entitled foodgrains or meals, the beneficiaries will
receive food security allowance.
39
Outcome Budget 2016-17, Department of Food & Public Distribution
The Act also contains provisions for setting up of grievance redressal mechanism at the District and State levels.
Separate provisions have also been made in the Act for ensuring transparency and accountability. The Act also contains
measures for reforms in TPDS, to be undertaken progressively by Central and State Governments. These reforms inter
alia include doorstep delivery of foodgrains to the TPDS outlets, application of information and communication
technology tools, diversification of commodities distributed under the Public Distribution System over a period of time
etc.
3.3
In order to ensure adequate availability of wheat and rice in central pool, to keep a check on the open market
prices, to augment the domestic availability of wheat and rice and to ensure food security, the Central Government has
taken following steps for prudent management of foodgrains stocks:(a)
Steps have been taken to maximize procurement of wheat and rice and MSP of wheat and paddy has been
increased successively. The MSP of wheat for RMS 2015-16 was fixed at ~ 1450/- per quintal and for KMS 2015-16,
MSP of Common paddy has been fixed at ~ 1410/- per quintal & MSP of Grade 'A' paddy has been fixed at ~ 1450/per quintal.
(b)
State Governments, particularly of Decentralized Procurement (DCP) States are encouraged to maximize
procurement of wheat and rice by taking up procurement of wheat and paddy from fanners by State Agencies.
(c)
Strategic reserves of 5 million tons of foodgrains (rice-2 million tons and wheat-3 million tons) over the
existing buffer norms has been maintain to be used in extreme situations.
(d) Sale of wheat and rice was undertaken through open market sales scheme (OMSS)(Domestic) so as to check
inflationary trend in food security.
(e)
Central Issue Prises (CIPs) of rice and wheat have not been revised since July, 2002.
40
Outcome Budget 2016-17, Department of Food & Public Distribution
3.4 CONSTRUCTION OF SILOS PRIVATE ENTREPRENEURS
CREATION OF ADDITIONAL STORAGE CAPACITY:
GUARANTEE (PEG) SCHEME FOR
Private Entrepreneurs Guarantee (PEG) Scheme
Higher MSP coupled with better outreach led to higher procurement in the past few years. Procurement, in the
•
last few years, has touched new heights given the remunerative MSPs coupled with better operational outreach. As a
result, central pool stock had increased from 196.38 lakh MTs as on 0l.04.2008 to a peak level of 823.17 lakh MTs as
on 01.06.2012. The position of stocks in the central pool as on 0l.06.2015 was 568.34 lakh MT. To meet the shortterm peak requirements of storage capacity, FCI resorts to short-term hiring of covered godowns as well as storage of
foodgrains under Cover & Plinth (CAP). CAP is also a scientific method for storage of foodgrains. Hence, necessity
was felt to augment the storage capacity for foodgrains.
Storage capacity, Covered and Covered and Plinth (CAP) available with Food Corporation of India is 359.25
lakh MTs as on 31.12.2015. Storage capacities, both Covered and CAP, available with State agencies for Central Pool
stock of foodgrains is 452.84 Lakh MTs. As a result, total of about 812.09 Lakh tonnes of storage capacity is available
for storage of Central Pool stock of foodgrains which stood at 364.77 Lakh MTs as on 31.12.2015
The Department is implementing a scheme, namely Private Entrepreneurs Guarantee (PEG) Scheme, for
augmenting the storage capacity in the form of covered godowns and to reduce the dependence on CAP storage.
Under the PEG Scheme, which was launched in 2008, godowns are constructed in PPP mode through private
parties, as well as various agencies in Public Sector for guaranteed hiring by FCI.
Storage capacity available with FCI is concentrated mainly in the procuring hub located in the Northern
Zone. The Northern Zone has about 67% of the total available storage capacity, the Southern Zone has about 14%,
Western Zone has about 11%, Eastern Zone has only about 7% and North-Eastern Zone has less than 1% of the
41
Outcome Budget 2016-17, Department of Food & Public Distribution
total available storage capacity. As stated above, around 69% of the storage capacity is concentrated in 7 major
procuring States i.e. Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, Telangana, Madhya Pradesh and
Chhattisgarh, while about 7% storage capacity is available in the four newly emerging procuring States of Bihar,
Odisha, Jharkhand and West Bengal. As Government of India has initiated an ambitious programme of extension of
green revolution to Eastern States, this has assumed greater importance.
With a view to overcome storage crunch and ensure safe storage of foodgrains across the country Government is
implementing the Private Entrepreneurs Guarantee (PEG) Scheme for construction of storage godowns through private
entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Assessment
of additional storage space needs under the scheme is based on the overall procurement/consumption and the storage
space already available. Capacity augmentation through PEG and Plan scheme is given utmost importance by Ministry
of Consumer Affairs, Food & Public Distribution.
Locations for construction of godowns was identified by the FCI on the basis of recommendations of State Level
Committees (SLCs) to meet the storage gaps. For consuming areas, the storage gap is assessed on the basis of 4
months requirement of PDS and OWS while for procuring states the storage gap has been assessed based on the highest
stock levels in the last three years, and keeping in view the potential of procurement.
Under the PEG scheme, FCI gives a guarantee of 10 years to private investors and 9 years to CWC/SWCs/State
Agencies. A capacity of 202.22 Lakh MTs as on 31.12.2015 has been approved for construction of godowns in 20
states, out of which a capacity of 151.20 Lakh MTs has been sanctioned for construction. A capacity of 131.66 lakh MT
has been completed and a capacity of 14.96 lakh MT is under construction.
..
..
3.5
SILOS
FCI has plans to modernize its storage facilities by construction of modern steel Silos on a PPP mode. Steel
Silo storage with bulk handling facility is highly mechanized and modernized way of storing of foodgrains in
.
7-379 Deptt.of F & PD/2015
42
Outcome Budget 2016-17, Department of Food & Public Distribution
bulk. It ensures better preservation of foodgrains and enhances its shelf life. If foodgrains are stored in Silos and
transported in bulk, losses due to theft, pilferage and transportation would be negligible compared to foodgrains
storage in bags in conventional warehouses. Further since land availability in existing FCI godowns is scarce, it
would be prudent to shift to storage of foodgrains in Silos as it requires approximately 1I3rd land as compared to
conventional storage warehouses. Moreover, Silos can be operated round the clock which would bring in
flexibility and would improve overall efficiency. As such, construction of Silos and utilization of Silos for storing
and transportation of foodgrains in bulk would be beneficial to the nation as a whole besides also creating an
efficient
RFQ was floated for construction of silo at 6 locations VIZ. Narela, Changsari, Sahnewal, Kotkapura,
Whitefield and Katihar. 21 applications have been received and evaluation has been completed. FCI has identified
6 locations viz. Changsari(Assam), Narela (Delhi), Sahnewal (Punjab), Kotkapura (Punjab), Katihar (Bihar) and
Whitefield (Karnataka) where land is available with rail siding in existing premises. Department of Economic Affairs
(DEA) has conveyed in-principle approval of Empowered Institution for 3 projects at Katihar, Whitefield & Kotkapura.
RFP has been floated for Whitefield, Kotkapura & Katihar. Proposal for 3 more projects at Changsari (Assam), Narela
(Delhi) and Sahnewal (Punjab) have also been approved for VGF and RFP is to be floated shortly.
3.6
AUGMENTATION OF STORAGE CAPACITY UNDER PLAN SCHEME:
The Department is implementing projects under Plan Schemes for construction of storage godowns.
In
addition, DFPD has been requesting the state governments to create intermediate storage capacities at BlocklTaluka
level to store foodgrains collected from FCI depots, for further distribution to fair price shops. This is necessary to
improve the supply chain logistics for TPDS. While construction of intermediate god owns is the responsibility of the
state governments, plan funds are provided as Grant-in-Aid also to governments of the NE states and J&K for this
purpose, considering their difficult geographical conditions.
43
Outcome Budget 2016-17, Department of Food & Public Distribution
Under the Plan Scheme, funds are released to the FCI in the form of equity for land acquisition and for
construction of storage godowns, and related infrastructure like railway sidings, electrification, installation of
weighbridge, etc.
The following is the Plan outlay for XII Five Year Plan.
(.
Estimated
Cost
(Rs crore)
Sl
Head
1
.)
'"
Construction of godowns by FCI at 37 locations in the NE 509.76
(2,92,730 MT).
Construction of godowns by FCI at 9 locations in 4 other states 72.14
(76,220 MT).
Grant-in-Aid to NE states for intermediate storage at 74 locations. 14.36
4
Grant-in-Aid to J&K for intermediate storage at 1 location.
2
Total
2012-13
2013-14
2014-15
2015-16
Total
North East Region
Financial
Physical
(Rs in crore)
(In MT)
27.72
2,910
30.94
2,500
76.48
43,480
43.00
19,170
178.14
68,060
51.20
458.56
16.06
56.08
0.00
15.36
0.00
1.00
67.26
597.26
Table 3.01
1
Physical and Financial Achievements by FCr during 2012-13,2013-14,2014-15
Year
Unspent balance Outlay in 12th
Plan
of 11th Plan
(Rs crore)
(Rs crore)
530.00
and 2015-16 are as below:-
Total (NE+Other States)
Other States
Financial
Physical
Financial
Physical
In Rs Crore
(In MT)
(Rs in crore)
(In MT)
30.36
4,070
2.64
1,160
41.96
22,500
11.02
20,000
77.47
43,480
0.99
43.00
19,170
0.00
192.79
89,220
14.65
21,160
Table 3.02
44
Outcome Budget 2016-17, Department of Food & Public Distribution
The detailed budgetary status under RE 2015-16 and BE 2016-17 for requirement of funds under Plan schemes is as per
the following:-
Head and Scheme
BE 2015-16
4408.02.190.04.01.54
(Rs in Crore)
RE 2015-16
BE 2016-17
10.00
-
-
75.00
68.39
50.00
5.00
11.61
2.00
90.00
80.00
52.00
- Release of Equity to FCI for construction of storage
godowns by FeI (areas other than NE Region)
4552.00.126.01.01.54
- Release of Equity to FeI for Projects/Schemes for North
Eastern States including Sikkim
2552.00.308.02.00.35
- Grants in Aid to State Governments of North East Region
including Sikkim
Grand Total
Table 3.03
45
Outcome Budget 2016-17, Department of Food & Public Distribution
..
The details of quarter-wise targets for various projects of FCI in NE Region under
2015-16 is as follows:(Figures in Crore)
Estimated
Actual Expenditure
expenditure
during 2015-16
for 2015-16
(As on date)
iz" Five Year Plan during
Estimated
expenditure
for 2016-17
Noof
Projects
Capacity to be
created
(In MT)
Assam
9
177000
10.33
32.40
86.00
Arunachal Pradesh
10
17230
2.50
13.49
5.10
Manipur
8
30410
-
14.80
33.75
Meghalaya
3
10000
-
6.30
3.50
Mizoram
1
15000
-
-
32.75
, Nagaland
2
14590
3.04
10.04
4.00
Sikkim
1
3500
-
5.00
Tripura
2
25000
-
5.15
32.5
36
292730
15.87(*)
82.18 (*)
202.60 (#)
State
Total
.
Table 3.04
(*)N.B.: For the year 2015-16, an allocation of ~ 68.39 crore in RE 2015-16 has since been made by the Ministry out of
which, an equity of ~43.00 crore as on 31112/2015 has been released by the Ministry. The expenditure incurred upto 2nd Quarter
was ~ 15.87 Crore.
(#) Only ~ 50.00 crore has been allocated by the Ministry in BE 2016-17 as per ceiling provided by the Ministry of
Finance.
46
Outcome Budget 2016-17, Department of Food & Public Distribution
3.7
USE OF INNOVATIONS/NEW TECHNOLOGIES FOR CURBING LEAKAGES/DIVERSION OF
FOODGRAINS MEANT FOR TPDS:
The following Scheme components are proposed to be continued during the IthFive Year Plan.
i)
TPDS- Training
In order to successfully implement the National Food Security Act, 2013 and the TPDS, training programmes are
being conducted for officials and Master Trainers of the States/UTs through Food Corporation of India (FCI)'s
Institution of Food Security, Gurgaon.
ii)
Concurrent Evaluation Study on TPDS
To evaluate the impact of the TPDS on the target beneficiaries and to plug loopholes in implementation of
TPDS, an evaluation study on functioning of TPDS in six select States i.e. Assam, Bihar, Chhattisgarh, Karnataka,
Uttar Pradesh and West Bengal has been got conducted through National Council of Applied Economic Research
(NCAER). NCAER had submitted its report in September, 2015 which has been sent to the States concerned for taking
necessary remedial measures to remove deficiencies noticed in the functioning ofTPDS.
3.8
COMPUTERIZATION OF TPDS OPERATIONS:
With a view to address certain shortcomings in functioning of TPDS and bring transparency in the TPDS, the
Government has approved Component-I of Plan Scheme on End-to-end Computerization of TPDS Operations for
implementation during 12th Five Year Plan period. Component-I of the Scheme comprises activities, namely,
digitization of ration cards/beneficiary and other databases, computerization of supply-chain management, setting up of
transparency portal and grievance redressal mechanism. Besides bringing transparency in the TPDS, the scheme is
expected to curb leakages and diversion of foodgrains. ~ 305.74 crore have already been released to 30 States/UTs as
first/second installment of the Central share to meet the expenditure on implementation of Component-I of the scheme
during 2012-13,2013-14,2014-15
and 2015-16 (31.12.2015). The work of digitization of ration cards/beneficiary
database has been completed in 35 States/UTs. Computerization of supply-chain has been completed in 12 states/UTs
Andhra Pradesh, Bihar, Chhattisgarh, Delhi, Goa, Gujarat, Karnataka, Madhya Pradesh, Odisha, Tamil Nadu,
..
..
47
Outcome Budget 2016-17, Department of Food & Public Distribution
Telengana & Tripura. Online allocation is being done by 21 States/UTs. Grievance redressal mechanism has been
established in all States/UTs. To eliminate leakages, 2 models have been suggested to states/UTs under Direct Benefit
Transfer i.e. Direct Cash Transfer and Automation of Fair Price Shops (FPSs). UTs of Chandigarh and Puducherry
have started direct cash transfer to beneficiaries w.e.f. September, 2015. Fair Price Shop (FPS) automation involves
issuance of foodgrains to beneficiary after his/her successful authentication using Aadhaar at the FPS using Point of
Sale (PoS) device/mobile terminal.
DoF&PD had issued guidelines on FPS automation (including technical
specifications for PoS device) in November, 2014 to all States/UTs which were updated in May 2015. Government has
approved ~ 17/-qtl. Towards purchase and operations of the PoS device at FPS for automation under National Food
Security Act (NFSA), 2013. Relevant Rules (Assistance to State Governments) under NFS Act have been notified on
17-08-2015 and conveyed to the States/UTs. So far, more than 79000 FPSs are automated across the country.
3.9
REVISION OF BUFFER NORMS:
Government of India has revised the buffer norms of foodgrains for the central pool (now food grains stocking
norms in central pool) from January, 2015.
The objectives of the Buffer Stocking Policy are:(i)
(ii)
(iii)
(iv)
To meet the prescribed Minimum Buffer Stock norms for food security,
For monthly releases of foodgrains for supply through the PDS/Welfare Schemes,
To meet emergency situations arising out of unexpected crop failure, natural disasters etc. and
For market intervention to augment supply so as to help moderate the open market prices .
.3.10 ACQUISITION AND DISTRIBUTION COST OF FOOD GRAINS:
A study for recommending the principles for fixation of procurement incidentals/economic cost of foodgrains
was entrusted to % Chief Adviser (Cost), M/o Finance which is the specialized body for conducting these types of
studies. Recommendations of the CAC have been received. CAC has been given another study to recommend state wise
)
48
Outcome Budget 2016-17, Department of Food & Public Distribution
normative cost of procurement incidentals in respect of each State which will be treated as final. CAC has still not been
able to complete the study owing to non-receipt of required data/information from State Governments.
3.11
REQUIREMENT FOR REGISTRATION OF WAREHOUSES:
The WDRA is registering the warehouses that wish to issue NWR. Some of the important requirements for
registrations of warehouses are:
Vll.
The warehouses should be constructed as per Bureau of Indian Standards (BIS). Accreditation agencies have
some discretion in relaxing the specifications without compromising storage worthiness of warehouses.
The warehouses should be storage worthy for different goods to be stored.
The warehouses should be equipped with all necessary equipment/instruments for weighing, handling, sampling,
grading, fire fighting and insect-pest management.
The warehouses should have positive networth certified by a Chartered Accountant or credit worthiness
certificate from a scheduled bank for individual warehouse or for its organization.
The warehouses should have adequate trained staff with expertise and knowledge for the scientific storage of
goods to be stored in the warehouses.
The warehouses should have adequate security arrangements.
Any other requirement prescribed by the Authority.
3.12
ADVANTAGES OF REGISTERED WAREHOUSES WITH THE AUTHORITY:
1.
11.
111.
IV.
v.
VI.
(a)
(b)
(c)
(d)
Advantage of the registered warehouses with the authority are:
Can issue negotiable warehouse receipts on which farmers / depositors may be able to seek loan more easily
from banks on better terms.
Will follow norms / requirements prescribed by the WDRA, which would encourage scientific storage.
Will have only trained warehousemen.
Will mention quality standards/grades of the commodities stored in their warehouses on the Negotiable
Warehouse Receipt.
."
...
49
Outcome Budget 2016-17, Department of Food & Public Distribution
3.13 ACTIVITIES INITIATED
AUTHORITY (WDRA):
BY THE WAREHOUSING
DEVELOPMENT
AND REGULATORY
1.
Appointment of Accreditation Agencies: The warehouses are accredited by the approved accreditation
agencies prior to their registration with the WDRA to ensure that basic requirements of scientific storage of agricultural
and other commodities are fully met by these warehouses. The WDRA has engaged 14 accreditation agencies.
2.
Notification of Agricultural Commodities: The Authority has notified 123 agricultural commodities including
cereals, pulses, oilseeds, vegetable oils, spices, edible nuts and miscellaneous items like rubber, tobacco, tea coffee and
makhana for issuing NWRs. 26 horticultural commodities have also been approved for issuance of NWRs by cold
storages.
3.
Registration of Warehouses: 1072 warehouses of CWC, SWCs, PACSs and private organizations have been
registered with the Authority till 24.02.2014.
4.
Integration of PACs with NWR: The WDRA has taken initiative to integrate the Primary Agricultural
Cooperative Societies (PACs) warehouses under the negotiable warehouse receipt system so that small and marginal
farmers may get benefited from this scheme. Beginning has been made from Nizamabad district of Andhra Pradesh and
about 253 warehouses of PACs in Andhra Pradesh, Tamilnadu and Karnataka have been registered. NABARD and its
consultancy organization NABCONS are playing very important role in this field.
5.
Introduction of NWR System in cold storages: The WDRA in consultation with the National Horticulture
Mission (NHM) and National Horticulture Board (NHB) has introduced negotiable warehouse receipt system in cold
storages so that the growers/fanners producing horticultural produce may store these commodities in cold storages and
may avail the benefits of loan on NWRs issued by the registered cold storages. 26 horticulture commodities such as
Potato, Dehydrated Onion, Garlic, Ginger, Turmeric, Apple and Resins etc. have also been notified for issuing NWRs.
Basic requirements for accreditation of cold storages have been finalized by a Committee appointed by Govt. of India
under the chairmanship of MD, National Horticulture Board.
. 8-379 Deptt.of F & PD/2015
50
OutcomeBudget 2016-17, Departmentof Food & PublicDistribution
6. Transformation Plan of the WDRA
The WDRA, in association with the Department of Food & Public Distribution, the Department of Economic
Affairs and the National Institute of Public Finance & Policy (NIPFP), has undertaken a transformational plan to
invigorate the warehousing sector and significantly improve post-harvest lending to farmers against negotiable
warehouse receipts. The budget speech 2014-15 of the Finance Minister contains a para on the transformation plan of
the WDRA, which is reproduced below:
'Para 127.As part of strengthening the regulatory framework for commodity markets, the Warehouse
Development and Regulatory Authority (WD&RA) has begun a transformation plan to invigorate the warehousing
sector and significantly improve post-harvest lending to farmers against negotiable warehouse receipts. This plan will
be implemented with vigor.'
7. Based on the features of the market, some of the problems observed in the present regime are:
•
•
•
Inadequate regulation of quality of warehousing: There are no legally mandated requirements regarding
performance standards, minimum networth, etc.
Lack of risk absorption capacity: Market entities transacting in warehouse receipts are not certain of the
"ability of the warehousing service provider to indemnify against losses.
Low deterrence for offences: Warehousing service providers do not face strict and credible enforcement
action.
8. Building a large, high-quality, liquid market for NWRs will benefit all those directly involved in the agricultural
sector. However, the role of an agency like WDRA that is working close to the ground must have a narrowly defined
focus.
9. The transformation plan envisages a complete revamp of the WDRA' s functioning. Key points of focus include the
following:
1.
11.
111.
IV.
51
Outcome Budget 2016-17, Department of Food & Public Distribution
Re-writing the existing rules and regulations with a focus towards building NWRs as credible instruments
of trade. This will require a shift towards risk-based regulation, lowering compliance costs, creation of a
rating system for warehouses, the creation of information repositories and the electronification/
dematerialisation ofNWRs under the present Warehousing Development Regulatory Authority Act 2007;
Licensing! engaging repository(ies) for issuance of eNWR. This will ensure the real time issuance of
NWRs and regulating and monitoring the warehousing market, thereby enhancing the credibility ofNWR.
Building organisational capability within WDRA to effectively regulate the NWR market. This will
require strengthening the WDRA, creating IT-based internal processes and systems, creating monitoring
and surveillance tools, and staff capacity building; and
Conducting market surveys and studies to generate information about the warehousing sector. These
surveys and studies are proposed to be conducted annually by WDRA to enable evidence-based
regulation, and to disseminate greater information relating to the warehousing sector.
10.
The Government of India have approved a budget outlay of \ 44.90 crore for implementation
transformation plan over the years 2014-15. 2015-16 and 2016-17.
3.14
CURRENT STATUS OF IMPLEMENTATION
OF THE TRANSFORMATION
of the
PLAN
I. Concept note for framing of new regulations for registration of warehouses drafted. To be implemented by March,
2016
•
The concept Note for framing of new regulations for registration of warehouses was placed on the WDRAs
website on 22.06.2015, for inviting the comments of all stakeholders viz. depositors, warehouse owners like
CWC/ SWC/ PACS, WSPS, commodity exchange and the lenders.
•
Consultation workshops were held with all the stakeholders on 02.09.2015,08.09.2015
comments received.
•
Based on the inputs, draft of new rules and regulations for the registration of warehouses is under preparation.
& 14.09.2015 and their
52
Outcome Budget 2016-17,Department of Food & Public Distribution
• The draft regulations will be submitted to the Ministry for approval after due consultation with advisory
committee as required under the Act.
II. WDRA plans to shift to e-NWR by engaging repository (ies) by the end of2016-17.
• An agency has been selected and action is being taken to award the contract to the successful bidder
•
The primary consultant is expected to be in position by early April, 2016.
).
• The primary consultant will design the RFP for engaging the IT consultant and further engaging Repository (ies)
for e-NWR issuance, IT platform for online warehouse registration, monitoring platform, etc.
III. Concept paper on Electronic NWR regulations has been drafted and under examination.
• The draft EWR regulations are under discussions with NIPFP.
• The consultation with the stakeholders will be done before finalization for the electronic issuance ofNWRs.
• The final draft of e-NWR regulations will be submitted to the Ministry for approval.
IV. Qualitative survey on warehousing completed. To be utilized for drafting regulations.
• The NIPFP has completed the qualitative survey on warehousing and after series of discussions, the final report
has been submitted. The WDRA has accepted the report and published on the WDRAs website. The finding of
the qualitative survey are being used for framing the rules and regulations of the registration of warehouse, eNWRs, inspections, grading and audit of warehouses etc.
V. Quantitative survey on warehousing is underway. The draft first report has been submitted by TNS in February,
2016.
3.15 TRAINING AND AWARENESS PROGRAMME:
(a)
Regional conferences: Regional Conferences in association with FICCI, ASSOCHAM, PHD Chamber, CAIT
and IFC have been organised by the WDRA at New Delhi, Bangalore, Thiruvananthapuram, Chandigarh, Mumbai,
..,
53
Outcome Budget 2016-17, Department of Food & PublicDistribution
Bhopal, Kolkata, Nagpur, Gandhinagar, Lucknow and Chennai to create awareness about the negotiable warehouse
receipt system in the country.
Training and awareness programme for farmers: Awareness programmes for fanners are being organized by the
WDRA.
(b)
(c)
Training for warehouse managers: Ten training programmes during 2014-15 for warehouse managers of
CWC, SWCs, PACs and private warehouses have been organized at Rajasthan, Tamilnade and Andhra Pradesh.
3.16
PLAN COMPONENT "STRENGTHENING OF QUALITY CONTROL MECHANISM" UNDER S&R
DIVISION DURING 12TH FIVE YEAR PLAN.
A plan component "Strengthening of Quality Control Mechanism" has been included with two ongoing Plan
Schemes (Strengthening of PDS & Capacity Building and Quality Control Consultancies and Research) which were
merged on the advice of planning commission. An amount of ~ 23.30 Crore was approved for this plan component
during the lih Five Year Plan. An amount of ~ 5.00 crore in BE and ~ 3.50 crore in RE has been earmarked for
financial year 2015-16. An amount of ~ 2.00 crores has been projected for 2016-17.
!,
There are three sub-components; (a) opening up of 7 new Quality Control Cells to augment the quality control
mechanism, (b) upgradation ofIGMRI Laboratories, and (c) capacity building for skill up gradation.
(A) Opening up of 7 new Quality Control Cells: 7 new Quality Control Cells were proposed at Guwahati, Patna,
Chandigarh, Jammu, Jaipur, Chennai and Ahmedabad. QCC offices at Patna, Chennai and Guwahati have been
operationalised in 2015-16, Feasibility for opening of other four QCCs is being explored. New QCCs to augment
quality control activities with creation of 15 posts of Assistant Director and revival of 14 posts of Technical Officer
were approved. However, in view of ban on creation of new posts, one Assistant Director and one Technical Officer
from existing non-plan strength have been posted at each new Cell opened and targeted work has already been started
from 15t April, 2015.
54
Outcome Budget 2016-17, Department of Food & Public Distribution
(B) Upgradation of Laboratory at IGMRI, Hapur: To ensure that the Central Pool foodgrains meet the quality
specifications, it is imperative to regularly analyse the Central Pool stocks for prescribed uniform specifications and for
the presence of pesticide residues, mycotoxin contamination, uric acid, etc. In order to strengthen the Laboratories at
IGMRI Hapur, the infrastructure of physico- chemical lab has been upgraded by renovating the building and procuring
of physico chemical equipments, A consultant from National Institute of Plant Health Management, (NIPHM),
Hyderabad has been engaged for developing pesticide and mycotoxin analysis lab at IGMRI, Hapur for which e-tender
procedure has been completed and supply order has been issued.
(C) Capacity Building: In view of the shortage of technically qualified staff with the State Government agencies
engaged in procurement, storage and distribution of foodgrains and Government encouraging the decentralized
procurement scheme under which State Governments and their agencies procure, store and distribute the foodgrains
directly without involvement ofFCI, the training requirements for the staff of the State Governments and their agencies
is need of the hour. Further, IGMRI Hapur with apex level training facilities is envisaged to be a Centre of Excellence
for training on post harvest management of foodgrains under this sub plan component.
Quality Control Cells, existing as well as newly opened impart short term trainings to the State Government
officers / officials on scientific storage, inspection and quality control of foodgrains. Quality control cell conducted 14
training programmes for490 State Government officials and 32 training programmes for 1120 State Government
officials during 2013-14 and 2014-15 respectively. 38 trainings for 1330 persons are proposed to be conducted during
2015-16 and 24 trainings for 840 officials have been conducted upto December, 2015. Training infrastructure ofIGMRI
Hapur has been upgraded to make it a centre of excellence for capacity building in post harvest management of food
grains with the help of Central Warehousing Corporation (CWC).
Out of ~ 5.00 crores budgetary allocation for 2015-16, an amount of ~ 2.25 crores has been incurred up to
December, 2015. The supply orders of ~ l.16 crore have been issued on 24.1l.2015 with the concurrence oflFD to the
firms for procurement of laboratory equipments for pesticide residue and mycotoxin contamination analysis of
foodgrains. E-tender for small equipments worth of about ~ 92.00 lakhs has also been completed. An amount of
~ 2.00 crores has been projected as budgetary outlay for 2016-17.
55
OutcomeBudget2016-17,Departmentof Food & PublicDistribution
SUGAR MANAGEMENT:
...
3.17
GENERAL:
Sugar is an essential commodity under the Essential Commodities Act, 1955 (herein referred to as the EC Act,
1955).The EC Act, 1955, as amended from time to time, has been enacted to provide for, in the interest of general public
for the control of production, supply and distribution of and trade and commerce of essential commodities. Thus, being a
controlled commodity, sugar sector activities including establishment of sugar mills as well as the procurement of basic
raw material i.e. sugarcane are regulated, in one form or the other, through various control orders issued under the
Essential Commodities Act, 1955.
India is the second largest producer of sugar even though sugar production in India has been cyclic in nature.
Every 2-3 years of high sugar production are followed by 2-3 years of low sugar production. From the sugar season 2010l l onwards the country could consistently achieve sugar production more than the domestic requirements and could also
generate surpluses for export, earning valuable foreign exchange in the process. Industry has also been encouraged to
diversify its activity towards production of raw sugar targeted for export market. As such, it appears that the amplitude of
year to year fluctuations in sugar production has diminished.
3.18 PRODUCTION OF SUGAR:
The sugar accounting is reckoned on the sugar season basis, which is in the time frame of October to September.
Season- wise production of sugar, since 2010-11 is given below:(Qt . in lakh tons)
•
Sugar Season
Production of Sugar
2010-11
243.50
263.43
2011-12
251.83*
2012-13
245.54
2013-14(P)
284.63
2014-15(P)
260.00
2015-16(Estimated)
Table 3.05
(P) - Provisional
* - Excludes 6.76 lakh tons of sugar produced from imported raw sugar.
3.19
56
Outcome Budget 2016-17, Department of Food & Public Distribution
CONSUMPTION OF SUGAR:
As per various estimates, the share of bulk consumers in the sugar consumption basket ranges from 60-65%. The
rest of the consumption is by individual households. The per-capita consumption is estimated at 20.3 Kg./annum for
2014-15 last sugar season.
The basic parameter for estimating the domestic consumption was the quantum of levy and non-levy sugar
released by the Government, periodically on a quota based system upto 2012-13 sugar season. Thereafter, on the
recommendations of Dr. C. Rangarajan Committee, the sugar industry has been partially decontrolled and the levy
obligation on sugar mills has been done away with for sugar produced after September, 2012 and the regulatory release
mechanism on open market sale of sugar has also been dispensed with. As such, estimated consumption would now be
arrived on the basis of actual dispatches of sugar reported by the mills through on-line module. The details are as
under:(Qty in Lakh Tons)
Sugar Season
2012-13
2013-14
2014-15(p)
Consumption
230.00
243.00
256.00
Table 3.06
(P) Provisional
3.20 CLOSING STOCK OF SUGAR:
The estimated closing stocks at the end of each sugar season from 2010-11 to 2014-15 are as under:(Qty. in lakh tons)
Sugar Season
2010-11
2011-12
Closing Stock at the end
of the season
58.19
66.96
outcome
2012-13
2013-14(P)
2014-15(P)
57
B u d1get 2016 - 17 D epar tment of Food & Public Distribution
91.09
72.13*
90.00
Table 3.07
(P) - Provisional
(*) - Excludes 0.60 Lac tons unmarketable BISS IBrown sugar
3.21
SUGARCANE PRICING POLICY:
With the amendment of the Sugarcane (Control) Order, 1966 on 22. 10.2009 and the concept of Statutory
Minimum Price (SMP) of sugarcane was replaced with the 'Fair and Remunerative Price (FRP)' of sugarcane for 200910 and subsequent sugar seasons. The cane price announced by the Central Government is decided on the basis of the
recommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting the State Governments
and associations of sugar industry. The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation
of fair and remunerative price of sugarcane having regard to the following factors:a)
cost of production of sugarcane;
b)
return to the growers from alternative crops and the general trend of prices of agricultural
commodities;
availability of sugar to consumers at a fair price;
price at which sugar produced from sugarcane is sold by sugar producers;
recovery of sugar from sugarcane;
c)
d)
e)
f)
!
g)
9-379 Dept!.of F & PD/2015
*the realization made from sale of by-products viz. molasses, bagasse and press mud or their
imputed value;
(* inserted vide notification dated 29.12. 2008)
**reasonable margins for the growers of sugarcane on account of risk and profits
(**inserted vide notification dated 22.10.2009)
58
Outcome Budget 2016-17, Department of Food & Public Distribution
3.22
EXPORT OF SUGAR:
Till 15.1.1997, the export of sugar were being carried out under the provisions of the Sugar Export Promotion
Act, 1958, through the notified export agencies, viz. Indian Sugar & General Industry Export Import Corporation Ltd.
(ISGIEIC) and State Trading Corporation ofIndia Ltd. (STC).
Through an Ordinance, the Sugar Export Promotion Act, 1958, was repealed w.e.f. 15th January, 1997 and thus
the export of sugar was de-canalized. Under decimalized regime, the export of sugar was being carried out through the
agricultural and Processed Food Products Export Development Authority (APEDA), under Ministry of Commerce.
Thereafter, the sugar export was undertaken by the various sugar mills/merchant exporters, after obtaining the export
release orders from the Directorate of Sugar & Vegetable Oils.
During the surplus phase of 2006-07 and 2007-08 sugar seasons, the sugar exports were permitted without
release orders vide notification dated 31.07.2007. Subsequently, the necessity of obtaining release orders were
reintroduced from 01.01.2009, as country entered the down swing phase of sugar production.
During 2010-11 & 2011-12 sugar seasons (till May, 2012), in view of the surpluses over domestic consumption,
exports of sugar were permitted under OGL at the strength of release orders.
Thereafter, the Government vide Notification No. 1059(E) dated 11.05.2012 has again dispensed with the
requirement of export release orders. The export of sugar is now free without any restriction.
As per information published by DGCIS, Kolkata, the export/import of sugar from sugar season 2005-06 to
2014-15 given below:
Export of Sugar
Sugar Season (Oct-S(~et)
Quantity (In lakh MTs)
2005-06
2006-07
2007-08
2008-09
15.039
24.90
58.23
2.165
59
Outcome Budget 2016-17, Department of Food & Public Distribution
2.371
28.14
36.735
12.02
26.85
24.32
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15 (P)
Table 3.08
(P)- Provisional
3.23
EXPORT ASSISTANCE SCHEME
A. Scheme for export of sugar made between 21-06-2002 and 18-08-2004.
The Central Government vide its Notifications dated 2l.6.2002 and 19.1l.2003 decided to defray the expenditure
on internal transport and freight charges and payment of neutralization of ocean freight charges and handling and
marketing charges respectively to the sugar factories on export shipment of domestically manufactured sugar with a view
to promoting sugar export and liquidating surplus sugar stocks available with the sugar factories. Defraying of
expenditure on export shipment of the sugar was made effective for exports made with effect from 21.6.2002 up to
exports made till 18.8.2004 in pursuance of release orders issued up to 20.6.2004 with validity of two months, and ocean
freight and handling and marketing charges being given as below:(i) Ocean freight Charges @ ~ 350 per MT is admissible to those sugar factories who exported their sugar by sea
on or after 14-02-2003 and up to 18-08-2004.
(ii) Handling & Marketing charges @ ~ 500 per MT is admissible to those sugar factories who exported their
sugar by sea on or after 03-10-2003 and up to 18-08-2004.
B. Scheme for export of sugar made between 19-04-2007 and 30-09-2008.
In order to enable sugar mills to pay cane price to sugarcane farmers, the Government announced on 19-04-2007 a
scheme for giving financial assistance to sugar factories for export of sugar made between 19-4-2007 to 18-04-2008,
which was later extended to 30-09-2008 under Govt. Order dated 28-03-2008.
60
Outcome Budget 2016-17, Department of Food & Public Distribution
The new export assistance scheme covers payment of internal transport and freight charges including ocean freight
and handling and marketing charges at a flat rate of ~ 1350 per tonne for sugar mills located in coastal states and ~ 1450
per tonne for sugar mills located in non-coastal states. Number of claims settled and assistance paid to the sugar mill
under the above schemes of the Central Government since 2003-04 is given as under:-.
The allocation and utilization of funds and number of claims settled under (i) re-imbursement of internal transport
and freight charges; (ii) payment of ocean freight charges; and (iii) handling and marketing charges under old scheme
during and under new scheme for the relevant period from 2003-04 to 2015-16 (upto 31.12.2015) are given below:-
Year
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
(l!Qto31.12.15)
Total
Sanctioned
Budget (BE)
(~ in Crore)
50.00
125.00
90.00
50.00
150.00
285.00
285.00
200.00
(RE 150 Crore)
50 Crore
(RE 15Crore)
25 Crore
(RE 5 Crore)
0.01 Crore
0.01 Crore
0.01 Crore
Internal Transport
freight charges
(Old Scheme)
No.
claims
settled
418
392
44
38
26
-------
of
and
Ocean
freight
and
handling & marketing
charges(Old Scheme)
Internal
Transport
&
freight charges under
Rule 20 A (New Scheme)
Actual Exp, No. of claims Actual Exp, No.
(~ in Crore) settled
(~ in Crore) claims
settled
31.86
--I
I
----46.09
------5.88
270
31.56
--7.94
94
13.02
--3.40
60
7.00
124
--3
0.74
459
--2
0.60
441
------268
of
Total
(In Crore)
Actual
Exp. No.
(~ in Crore) claims
settled
--1 418
--392
i
--314
--132
69.92
210
284.26
462
284.40
443
146.81
268
of
Expenditure
Actual
Exp
(~ in Crore)
31.86
46.09
37.44
20.96
80.32
285.00
285.00
146.81
---
---
---
---
41
15
41
15
---
---
I
0.57
10
4.21
11
4.78
-------
-------
---
-------
---
-----
---
-------
-------
-------
918
95.17
430
53.49
1343
804.6
2691
953.26
---
Table 3.09
!
..,
..
61
Outcome Budget 2016-17, Department of Food & Public Distribution
C.
The Government on 28.02.2014 has notified a scheme allowing incentive for marketing and promotion
services for raw sugar production targeted for export market for a quantity of 40 lakh MT during 2013-14 and 2014-15
sugar seasons. The incentive amount was increased to ~ 4000 per MT for export of raw sugar during 2014-15 sugar
season subject to ceiling of 14 lakh MT. The incentive available under the scheme is to be utilized by the sugar mills for
making payment to the farmers. About 7.69 lakh MT of raw sugar has been covered under the scheme during 2013-14
sugar season and about 5.30 lakh MT of raw sugar export is estimated to be covered under scheme during 2014-15
sugar season. Availability and utilization of funds is given as under: Financial
Year
Qty
of
raw
sugar
exported (in Lakh MT)
B.E.
(~ In Cr.)
R.E
(~ In Cr.)
Actual
Expenditure
(~in Cr.)
Remarks
2014-15
7.68
-
183.87
Unutilized fund returned
2015-16
5.30 (Estimated)
-
200
I OO( 1stBatch)
99.67
The funds will be utilized by end
of the current financial year.
100 (2IldBatch)
Total
400
283.54
Table 3.10
3.24
LEVY SUGAR PRICE EQULIZATION
FUND:
The Levy Sugar Price Equalization Fund Act, 1976 (as amended in 1984) has been enforced from 1.4.1976 to
recover the excess realization (ER) on account of sale of levy sugar price at higher prices than notified, as per orders of
the High Court/Supreme Court to various litigant sugar mills. Whenever the Judgment is in favor of U.O.!, the recovery
of the Government dues is effected under the provision of the LSPEF Act.
oj
During the current financial year 2015-2016 (upto 31.12.2015) no recovery has been made. This is against the
revised budgeted target of ~2 Crore. In the year 2014-2015, an amount of ~3.52 Crore was recovered and remitted to the
said Fund.
62
Outcome Budget 2016-17, Department of Food & PublicDistribution
3.25 IMPORT OF SUGAR:
Import if sugar which was placed under Open General License (OGL) with zero duty in March,1994, continued
with zero duty upto 27.04.1998. The Government imposed basic customs duty of 5% and a countervailing duty of
~ 850.00 per tone on imported sugar with effect from 28.4.1998. The basic custom duty was increased from 5% to 20%
w.e.f. 14.1.1999 in addition to the countervailing duty. In the Union Budget for the year1999-2000, duty on imported
sugar was further increased from 20% to 25% with surcharge of 10%. The customs duty on imports of sugar was again
increased to 40% on 30.12.1999 and 60% on 09.02.2000 along with continuance of countervailing duty ifRs, 950/- per
ton (w.e.f.01.03.2008) plus 3% education cess.
Sugar production in the sugar season 2008-09 has been declined and in order to augment the domestic stock of
sugar, the Central Government has allowed import of raw sugar under advance Authorization Scheme by sugar mills at
zero duty from 17.02.2009 up to 30.09.2009 and import of raw sugar at zero duty under Open General Licence (OGL)
w.e.f. 17.04.2009 which was continued till 30.06.20012 thereafter, a moderate duty of 10% re-imposed w.e.f.
13.07.2012 which was subsequently increased to 15% w.e.f. 08.07.2013 and thereafter from 15% to 25% with effect
from 20.08.2014. Further, the 'import duty increased from 25% to 40% w.e.f. 30.04.2015. Thereafter, there had been
hardly any import of sugar under OGL.
IMPORT OF SUGAR
(in MT)
Sugar Season
Qty. imported **
2005-06
0.07
2006-07
0.005
2007-08
0.004
2008-09
24.47***
2009-10
41.80***
to
<It,
2010-11
63
Outcome Budget 2016-17. Department of Food & Public Distribution
3.65
2011-12
1.886
2012-13
17.12
2013-14
10.788
2014-15(P)
12.814
Table 3.11
** As per Data furnished by DoeIS Kolkata.
*** As reported by Department of Revenue.
(P) - provisional
3.26 DE-REGULATION OF SUGAR SECTOR:
The Central Government considered the recommendations of the Dr. C. Rangarajan committee on de-regulation of
sugar sector and decided to do away with levy obligation on sugar mills for sugar produced after September, 2012 and
dispense with the regulated release mechanism on open market sale of sugar. The recommendations of the Committee
relating to cane Area Reservation, Minimum Distance Criteria and adoption of the cane Price Formula have been left to
the State Governments for adoption and implementation, as considered appropriate by them.
3.27
SUGAR SUBSIDY:
Under existing system, to make sugar available in the PDS at the existing retail issue price, the State
GovernmentiUT administrations are required to procure it from the open market through a transparent system. The
Central Government is reimbursing subsidy to the States/UT's @ ~ 18.50 per kg, limited to the quantity based on their
existing allocations. Further, with a view to ease out the financial burden of the State Governments, the Government
has decided to release advance subsidy to all State Governments who approach the Central Government for the same.
64
Outcome Budget 2016-17, Department of Food & Public Distribution
The Central Govt. vide order date ih Feb,2015 has given liberty to the State Governmentsl UT Administrations
to either absorb the additional cost, if any, on account of handling transportation and dealer's commission or pass it on
the consumers by including it in the Retail Issue Price (RIP).
The new system of open market procurement by States/UTs and seeking reimbursement from the Department
has been adopted by 30 States/UTs. During the financial year 2015-16, an amount of ~ 3488.48 crores (including
~ 677.49 Crores to FCI) has been released to States/UTs upto 31.12.2015 against BE of ~ 4500 Crore.
3.28 BUDGET ESTIMATES FOR FY 2016-17:
Under the existing scheme, the Statesl UTs are entitled for a fixed subsidy of ~ 18.50 per kg limited to the
quantity based on their existing allocation. The total annual quota of the States IUTs including festival quota in the
country is 2659016 MT. At present, six states are not participating in the sugar subsidy scheme. Therefore, the annual
requirement of sugar subsidy @ Rs 18.50 per kg in respect of 30 participating States/UTs in the scheme works out to
~ 4000 crores. Further, funds are also required by FCl on account of deficit in the SPEF AIC as the States/U'Ts may
claim the differential levy amount. The funds requirement by FCI for payments to State Govt. has be taken as Rs 500
crores. The total requirement of funds under BE for FY. 2015-16 is ~ 4500 crores.
3.29
PROFILE OF THE SUGAR INDUSTRY:
Sugar industry is an agro-based industry that impacts rural livelihoods of about 60 million sugarcane fanner and
about 6 lakh workers directly employed in sugar mills,. Employment is also generated in various ancillary activities
relating to transport, trade servicing of machinery and supply of agriculture inputs. India is the second largest producer
of sugar in the world after Brazil and is also the largest consumer. Today Indian sugar industry's annual output is worth
approximately ~ 90,000 crores.
There are 715 installed sugar factories in the country as on 31.12.2015, with sufficient crushing capacity to
produce around 330 lakh MT of sugar. The capacity of sugar mills is, by and large, in the range of 2500 TCD5000TCD, increasingly expending and going even beyond 10000 TCD.
65
Outcome Budget 2016-17,Department of Food & Public Distribution
..
Two standalone refineries have also been established in the country in the coastal belt of Gujarat and West
Bengal which produce refined sugar mainly from imported raw sugar as also from indigenously produced raw sugar.
The sector wise break-up of sugar mills in the country is as given below:S.No.
Sector
Co-operative
Private
Public
Total
1.
2.
3.
Number of factories
326
346
43
715*
Table 3.12
"Includes each of one refinery in West Bengal & Gujarat.
3.30
INSTALLED SUGAR MILLS IN THE COUNTRY:
There are 715 installed sugar factories in the country as on 31.12.2015, with sufficient crushing capacity to
produce around 330 lakh MT of sugar. The capacity of sugar mills is, by and large, in the range of 2500 TCD5000TCD, increasingly expendjng and going even beyond IOOOOTCD.Two standalone refineries have also been
established in the country in the coastal belt of Gujarat and West Bengal which produce refined sugar mainly from
imported raw sugar as also from indigenously produced raw sugar. The sector wise break-up of sugar mills in the
country is as given below:S.No.
1.
2.
,.,
.).
Sector
Co-operative
Private
Public
Total
Number of factories
326
346
43
715*
Table 3.13
"Includes each refinery in West Bengal & Gujarat.
10-379 Deptt, of F & PD/2015
66
Outcome Budget 2016-17, Department of Food & Public Distribution
3.31
ETHANOL BLENDED PETROL PROGRAMME (EBP PROGRAMME):
•
Ethanol is an agro-based product, basically produced from the by-product of the sugar industry, viz. Molasses. In
the years of surplus production of sugarcane, when the sugar prices are depressed, the sugar industry is unable to pay
cane price to the farmers. This is mainly due to surplus production of sugar. The ethanol blended petrol programme,
besides lowering pollution levels, is expected to provide another outlet for ethanol use, thus insuring utilization of
molasses produced as a by- product during manufacture of sugar. This would improve the reserve stream of the sugar
mills.
It has been decided by the Government that 5% mandatory ethanol blending with petrol should be implemented
across the country and procurement price of ethanol will be decided between Oil Marketing Companies and suppliers of
ethanol. This is expected to generate revenue for sugar mills enabling them to avoid building up of cane price arrears. A
few policy for supply of ethanol for EBP has been introduced which offers a remunerative price and 6 months the entire
ethanol supply chain.
3.32
SUGAR DEVELOPMENT FUND:
Under the Sugar Cess Act, 1982, a cess @ ~14.00 per quintal upto 31.12.2007, @ ~15.00 per quintal from
01.01.2008 and @~ 24.00 per quintal w.e.f from 01.03.2008 is being collected on all sugar produced and sold by any
sugar factory within India,
The Sugar Development Fund Act, 1982, provides that an amount equivalent to the proceeds of the duty of excise
levied and cotlected under the Sugar Cess Act, 1982 reduced by the cost of collection as determined by the Central
Government, together with any money received, by the Central Government for purpose of this Act, shall after due
appropriation made by Parliament by law, be credited to the Sugar Development Fund (SDF).
During the period from 1982-83 to 2015-16. (upto 30.11.2015) Net Cess amount of ~8785.75 crore have been
collected. Out of this, upto 30.11.2015, ~7606 crore have been transferred to the Sugar Development Fund and as per
67
Outcome Budget 2016-17, Department of Food & Public Distribution
approved appropriations ~ 12453 Al crore were disbursed for the development of sugar industry upto 31.12.2015 as per
provisions contained in Sugar Development Fund Act, 1982 as amended from time to time.
Under the Sugar Development Fund Act 1982, the Fund can be utilized by the Government ofIndia for the following:
a) Making loans for facilitating the rehabilitation and modernization of any sugar factory.
b) Making loans for the undertaking of any scheme for development of sugarcane in the area in which any
sugar factory is situated.
c) Making loans to any sugar factory to implement a project of bagasse-based co-generation of power.
d) Making loans to a sugar factory for production of anhydrous alcohol or ethanol.
e) Making grants for the purpose of carrying out any research project aimed at the promotion and
development of any aspect of sugar industry.
f) Defraying expenditure on internal transport and freight charges on export shipment of sugar.
g) Defraying expenditure for the purpose of building up and maintenance of buffer stock with a view to
stabilizing price of sugar.
h) Defraying expenditure for the purpose of financial assistance to sugar factories towards interest on loans
given in terms of any scheme approved by the Central Government from time to time.
i) Defraying expenditure on marketing and promotion service for raw sugar production.
j) Defraying expenditure on Interest subvention on scheme for extending soft loan to sugar mills.
k) Defraying any other expenditure for the purpose of the Act.
68
Outcome Budget 2016-17, Department of Food & Public Distribution
Sugar Development Fund is an important source of funds for providing loans at concessional rate to sugar
factories to modernize and expand their capacity and utilize the by-products like bagasse and molasses to improve
revenue generation and their viability.
Upto 3l.12.20 15, the amount disbursed to various sugar mills for various schemes during financial year 201520 16(upto 31.12.2015) is as follows:(~ in Crores)
Sl.
No.
Name of Scheme
1.
Admn. of Sugar Development Fund
2.
50.08
.).
"
Loan to sugar factories for modernization! rehabilitation of plant and machinery, including expansion of
crushing capacity
Loans to sugar factories for sugar cane development
4.
Loans to sugar factories for bagasse based cogeneration power projects
29.71
5.
Loans to sugar factories for production of ethanol from anhydrous alcohol/alcohol from molasses
16.89
6.
0.00
7.
Reimbursement of Internal Transport & freight to sugar factory on export shipment and payment of other
permissible claim
Subsidy maintenance of Buffer Stock of Sugar
8.
Scheme for Extending Financial Assistance to Sugar undertaking 2007
0.00
9.
Scheme for Extending Financial Assistance to Sugar undertaking 2014
600.60
10.
Grant-in-Aid for development of sugar industries
0.08
11.
Incentive on marketing and promotion of raw sugar production
99.67
12.
Interest on subvention on scheme for extending soft loan to sugar mill, 2015
100.00
Amount
disbursed
13.75
Total
12.73
1.04
924.55
Table 3.14
During the financial year 2015-2016 (upto 30.11.2015) an
outstanding recoverable dues ofSDF loans.
amount of ~ 378.81 crore has been recovered from various sugar mills from the
"',
69
Outcome Budget 2016-17, Department of Food & Public Distribution
3.33
E-GOVERNANCE
INITIATIVES:
The Directorate of Sugar, Department of Food and Public Distribution in order to improve and systemize the data
management system in sugar sector, has developed a web based platform (esugar.nic.in/sugar pll) for online
submission of inputs by sugar mills on monthly basis. This has helped the Government to take prompt and informed
policy decisions for better management of sugar sector. The new system also provides transparency in the data
management of the sugar mills as well as Government's working. The portal also provides window for online
connectivity with the State Governments for getting inputs regarding production, stocks, utilization of levy sugar for
PDS, Cane price arrears of sugar mills on fortnightly basis etc.
3.34
NATIONAL SUGAR INSTITUTE,
KANPUR:
National Sugar Institute, Kanpur is the premier Institute,
Technology. Sugar Engineering. Alcohol Technology & other
students were admitted in various courses conducted by the
Industrial Instrumentation & Process Automation" is proposed
providing technical training in the disciplines of Sugar
allied branches. During Academic Session 2015-16, 211
Institute. A new course namely "Certificate Course in
to be introduced w.e.f. Academic Session 2016-17.
The Institute undertakes research on problems of Sugar industry, Alcohol & Allied industry, By-product utilization
etc. On the basis of findings; research work carried out by different divisions of the Institute, Twenty two nos. research
papers were presented I published I sent for publication by the faculty members of Institute in Indian & International
Sugar Journals on various topic which includes energy conservation, bagasse gasification, by-products utilisation for
value addition, enhancement of productivity of sugar & ethanol units during the year 2015-16 (for the period April
2015 to December 2015).
The Institute's team of experts visited factories to investigate the problems referred & rendered for technical advi~e
on payment of prescribed fees. Side by side, technical assistance was also provided to the sugar factory, distilleries &
other sugar related organisation on different technical matters against payment of schedule charges. Institute also
rendered technical assistance to the Central & various State Governments on various matters concerning sugar & allied
70
Outcome Budget 2016-17, Department of Food & Public Distribution
industry. During the period April 2015 to December 2015, the technical consultancy was provided to Thirty nine Sugar
& Allied units.
3.35 THE NEW SYSTEM FOR DISTRIBUTION
(PDS):
OF SUGAR IN THE PUBLIC DISTRIBUTION
SYSTEM
The Central Government has decontrolled the sugar sector partially by removing the levy obligation on sugar mills
and doing away with the regulated release mechanism on open market sale of sugar. Prior to it, sugar mills were
mandated to supply 10% of their production to meet the Public Distribution System (PDS) demand. Sugar mills are now
free to sell their entire production as per their commercial prudence. However, under the new dispensation, to make sugar
available in the PDS at the existing retail issue price of ~ 13.50 per kg, the State Governments/UT administrations have
been asked to procure it from the open market through a transparent system. The Central Government would reimburse
the States/U'I''s @ ~ 18.50 per kg, limited to the quantity based on their existing allocations. Further, with a view to ease
out the financial burden of the State Governments. the Government has decided to release advance subsidy for the first
quarter to all State Governments who approach the Central Government for the same.
3.36
"
EXCISE DUTY LOAN
The Government on 03.01.2014 has notified a Scheme viz. Scheme for Extending Financial Assistance to Sugar
Undertakings (SEFASU-14) for providing financial assistance in the form of interest free loans worth ~ 6600 crores for
additional workingcapital to sugar mills for clearance of cane price arrears. Interest burden estimated at ~ 2303.77 crores
over next five years would be borne by the Central Government through Sugar Development Fund. The loan will be
utilized by the sugar mills for clearance of cane price arrears of previous sugar seasons and timely settlement of cane price
of current sugar season relating to the Fair and Remunerative Price (FRP) fixed by the Central Government to the
sugarcane farmers.
....'
71
Outcome Budget 2016-17, Department of Food & Public Distribution
MANAGMENET OF EDIBLE OILS
3.37
IMPORT POLICY ON EDIBLE OILS:
In order to harmonise the interest of farmers, processors and consumers, and at the same time regulate the import
of edible oils to the extent possible, Government reviews the duty structure on edible oils from time to time. The
customs duty on import of crude edible oils was revised from 7.5% to 12.5% and import duty on refined edible oils was
revised from 15% to 20% w.e.f.l7.09.2015
Export of edible oils had been banned w.e.f. l7.03.2008. However, w.e.f. 05.02.2013, castor oil, coconut oil from
Electronic Data Interchange (EDI) ports and through notified Land Custom Stations, edible oils produced from minor
forest produce and organic edible oils have been exempted from the prohibition on export of edible oils. Export of
edible oils has been permitted in branded consumer packs of upto 5 kg, subject to a minimum Export Price of USD 900
per MT w.e.f. 06.02.2015. Export of Rice Bran Oil in bulk has been exempted from the ban w.e.f. 06.08.2015.
3.38 PRICES OF EDIBLE OILS:
There is an ever-increasing gap between demand and supply of edible oils in the country. Imports of edible oils
have been allowed/ facilitated to make this item of mass consumption easily available to consumers at reasonable
prices. Import duty on edible oils is revised from time to time to ensure un-interrupted supply of this commodity to the
consumer.
Wholesale prices of major edible oils during the last Financial Year (2014·15) have been under control. Due to
insufficient and untimely rains there had been a decrease in the production of oilseeds, especially mustard seed,
resulting in an increase in the prices of mustard oil during the festival season in the months of November- December
2015.
3.39 INTERNATIONAL COOPERATION:
India is associated with a number of international agencies working in the field of food related matters. These
include World Food Programme (WFP), SAARC Food,Bank, Food and Agriculture Organisation (FA0), International'
72
Outcome Budget 2016-17, Department of Food & Public Distribution
Grains Council (IGC) and International Sugar Organisation (ISO) etc. Interface of Department of Food & Public
Distribution with these organizations is handled in International Cooperation(IC) Section of the Department.
3.40 WORLD FOOD PROGRAMME:
Allocation of food grains(Rice & Wheat) under the Country Programme Action Plan(CPAP) 2008-2012 signed
between the Government of India and the United Nations World Food Programme(WFP) was made have been made by
Department of Food & Public Distribution at BPL issue prices for the development schemes to be utilized in various
WFP assisted projects in India during 2008-2011.
A total quantity of 1,65,065 tonnes of foodgrains have been
allocated during these periods.
3.41 WFP'S COUNTRY STRATEGIC PLAN (CSP) 2015-18
The new Country Strategic Plan (CSP) 2015-2018 has been signed between the UN World Food Programme
(UNWFP) and Government of India under Department of Agriculture & Cooperation. Department of Food & P.O. has
been made the nodal department for the strategic priority area under Component: I: Support state Governments to
build a scalable implementation approach that enhances the effectiveness and efficiency of the National Food
Security Act for its implementation.
Under this plan, WFP is now focused around providing technical assistance in a new role than the earlier
Country Programme Action Plan(CPAP) 2008-2012.
The main focus of WFP is on supporting the Govt. of India to
make significant and measurable progress in order to contribute to the following two objectives:(i)
(ii)
ensuring access to safe; nutritious and sufficient food for all people all year round
ensuring ending malnutrition according to internationally agreed targets, with a focus on stunting and
wasting for children under 5 years of age, and addressing the nutritional needs' of adolescent girls,
pregnant and lactating women, and older persons.
Supporting the Government of India to advance these objectives, WFP will work with the Government at the
National and State level and collaborate with UN agencies including FAO and UNICEF within the United Nations
.,.
73
Outcome Budget 2016-17, Department of Food & Public Distribution
Development Action Framework (UNDAF). In this regard, 4 strategic priority areas have been identified to achieve
the Outcomes during 2015-2018. Strategic Outcome-I: The efficiency of food based national safety-nets is
improved to support the efforts of the Government of India to deliver the Zero Hunger and National Food
Security Act targets, is one of these areas to be implemented by Deptt. of Food and P.D. among other line
Ministries/Departments.
During 2015 WFP has set under its Annual Work Plan 2015, Component-I: Support state Governments to
build a scalable implementation approach that enhances the effectiveness and efficiency of the National Food
Security Act concerning this Department for implementation. The following are the expected CSP Outputs in this
area:• TPDS ration distributed to the right beneficiaries in right quantity and quality in the WFP supported
States;
• Enhanced nutritional contents of food safety-net schemes under NFSA;
• An operational model for e-vouchers developed and implemented.
WFP through the Annual Work Plan, 2015 under CSP-I proposed support for beneficiary identification and
enrolment/digitization in State Govts. especially in Odisha and Kerala and implementation ofTPDS reforms.
3.42
SAARC FOOD BANK:
In pursuance of the decision taken in the 14th SAARC Summit held in New Delhi on April 3-4, 2007, the Heads
of States of South Asian Association for Regional Cooperation(SAARC) countries have signed the Agreement to
establish the SAARC Food Bank. The Food Bank will supplement national efforts to provide food security to the
people of the region. The agreement on Establishing the SAARC Food Bank has since been ratified by the President of
India on 1ih April, 2007. As per this agreement, SAARC Food Bank shall have a reserve of foodgrains to be
maintained by each member states consisting of either wheat or rice, or a combination of both as assessed share of the
country.
11-379 Deptt.of F & PD/2015
74
Outcome Budget 2016-17, Department of Food & Public Distribution
India's initial assessed share in the reserve was 1,53,200 MTs out ofa total share of2,43,000 MTs. The assessed
share is presently kept as 3,06,400 MTs out of a total share of 4,86,000 MTs. The quantum of reserve have been kept in
different strategic locations in the designated Godowns of Food Corporation of India (FCI). Joint Secretary(lC),
Department of Food & Public Distribution has been designated as Member of SAARC Food Bank Board to represent
India.
The Board has considered and agreed to the proposal to designate the Central Grain Analysis Laboratory
(CGAL), New Delhi as the regional reference laboratory for SAARC Food Bank.
. The 8th SAARC Food Bank Board (SFB) meeting has been held on 2-3 September, 2015 at Male, Maldives.
India represented the meeting at the level Joint Secretary(IC) in the department in the capacity of Member, SAARC
Food Bank Board. The meeting inter-alia discussed matters relating to the development of the SAARC Food Security
Information System (SF SIS), formulation of the guidelines and storage methods, practices and quality control
measures, foodgrains scenario in South Asia and lowering the threshold limit for withdrawing foodgrains from food
bank etc.
3.43 FOOD AND AGRICULTURAL ORGANISATION (FAO) and World Food Security (CFS):Food and Agricultural Organization (FAO) is one of the largest specialized agencies in the UN System founded
in 1945 with a mandate to raise levels of nutrition and standard of living by improving agricultural productivity and
living conditions of rural population. The Committee on World Food Security (CFS) serves as a forum in the United
Nations System for review and follow-up of policies concerning world food security, including food production,
physical and economic access to food. India is a member to both FAO and CFS. Committee on World Food Security
(CFS) monitors the progress of implementation of the WFS Plan of Action.
The 42nd Session of the Committee on World Food Security(CFS) held at FAO Headquarters in Rome, Italy
from iz" .is" October, 2015 has been attended by a delegation led ;by Ms. Vrinda Sarup, Secretary, Department of
Food & P.D. and Shri Vimlendra Sharan, Minister (Agriculture), Embassy of India, Rome.
Deliberation on the
following issues have been made during the Session:(i)
(ii)
CFS and the Sustainable Development Goal Challenge
State of Food Insecurity in the World(SOFI), 2015-11-09
..
75
(iii)
(iv)
(v)
II,
3.44
Outcome Budget 2016-17, Department of Food & Public Distribution
Policy Round Table on Water for Food Security and Nutrition
Framework for Action for Food Security and Nutrition in Protracted Crisis
Food Security and Nutrition in the Post 2015 Development Agenda: Goals, Action and Outcomes
Enhancing Regional Food Supply System and Processes to improve Nutrition
(vi)
(vi)
National Multi Stakeholder Approaches and Experiences to improve Nutrition.
(vii)
The Global Strategic Framework for Food Security and Nutrition
(viii)
Outcomes of High Level Forum on Connecting small holders to markets
(ix)
CFS and its role in advancing Nutrition
G-20 MATTERS:
A Steering Committee has been constituted in the Department of Agriculture & Cooperation under the
Chairmanship of Secretary (A&C) to oversee the development, follow-up action on the initiative declared in Ministerial
declaration endorsed at G-20 Agriculture Ministers meeting held in June, 2011. The Committee is comprised of
representatives from different line Ministries. Deptt. of Food & P.O. has been made the Nodal Department for (i) Rapid
Response Forum and (ii) Emergency Humanitarian Food Reserves. Besides, this Department has been included as a
member of Agricultural Marketing Information System (AMIS) under the Nodal authority of Deptt. of Agriculture &
Coop. to carry out different mandate as considered appropriate.
3.45
INTERNATIONAL GRAINS COUNCIL (IGC):
India is a member of the International Grains Council (IGC) an intergovernmental forum of exporting and
importing countries for co-operation in wheat and coarse grain matters which was previously known as International
Wheat Council up to 1995. It administers the Grains Trade Convention 1995. The IGC Secretariat, based in London
since 1949, also services the Food Aid Committee, established under the Food Aid Convention. International Grains
Agreement comprises of Grains Trade Convention (GTC) and Food Aid Convention (FAC). India is signatory to the
International Grains Agreement (IGA) 1995 and its Grain Trade Convention (GTC) 1995 which is effective from l "
July 1995. IGC have two types of members-Importing Members and Exporting Members. India has been included in
a
76
Outcome Budget 2016-17, Department of Food & Public Distribution
the category of Exporting members in July, 2003 and represented in the meetings/session of the Council held from time
to time. Besides, this Department also participates in other meetings of IGC like Market Conditions Committee
meetings and Executive Committee meetings. Department of Food & P.D. pays India's Annual membership
contribution to the Council.
3.46 VISITS OF FOREIGN DIGNITARIES OF OTHER COUNTRIES:
In order to strengthen the bi-Iateral relations especially in the Food & Agriculture Sectors, foreign dignitaries at
the level of Foreign Ministers, Ambassadors and high level business executives of the countries concerned visits this
Department to have a delegation level talks with Hon'ble Ministers, Secretary & other officers of this Department.
3.47 TRAINING PROGRAMMES ETC.
Training is one of the effective and tested tools for performance enhancement as well as upgradation of
knowledge and skills of the personnel. Organizational motivation and morale, as reflected in the attitudes and
administrative culture, are rendered through relevant and sharply focused effective training programmes. Officials of
this Department have been nominated from time to time to attend training programmes under domestic & foreign
funding schemes of Department of Personnel & Training conducted in various institutes/universities abroad. Besides,
officers/delegation of the level of Under Secretary and above of this Department have also been deputed abroad for
undertaking official study tours and to attend International Conferences/Seminar/meetings
of International
organizations like Food & Agriculture Organisation(F AO), International Grains Council(IGC), International Sugar
Organisation(ISO) & for matters related with SAARC Food Bank.
Following is a list showing training programme attended by officers of this Department during 2015 (upto 3011-2015):Purpose of the Training
Name of the Officer
To attend the customized training programme on "Negotiations for Public Leaders" at Shri Prabhas Kumar Jha, SS & FA,
University of California, Barke1ey(UCB), USA from 1 -12 June, 2015
Department of Food & P.D.
77
Outcome Budget 2016-17, Department of Food & Public Distribution
Secretary,
Sarup,
Vrinda
To attend customized training programme on "Leadership & Strategic Thinking" at Ms.
Department of Food & P.O.
Cambridge University, London, U.K. scheduled on 5-10 July, 2015
To attend short-term training programme on "Structuring and Negotiating Legal Shri Manoj Kumar Gupta, Director,
Agreements for Public-Private Partnership Concessions and Contracts" at Institute of Department of Food & P.O.
Public-Private Pminership(IP3), Washington DC from 14-25 September, 2015
Table 3.15
"
3.48 BUDGETARY ALLOCATION AND UTILISATION:
Two budgetary non-plan heads are being operated in IC Section i.e. 345l.47.0 l.12- Foreign Travel Expenses and
2408.02.00.32- Contribution to International Grains Council.
Regarding budgetary provision under Foreign Travel Head, a sum of ~42.00 lakh under B.E.-20 15-16 has been
provided under this head. A sum of ~ 17.54 lakh has actually been spent as on date leaving a sum of ~24.46 lakh to
spend during the remaining period from December, 2015 to March, 2016 of the F.Y.
Regarding budgetary provision on heads for contribution to IGC, provision of ~ 30.00 lakh was made under
B.E.2015-16. Out of ~30.00 lakh, a sum of ~26,63,772/- has 'actually been spent as on date for making full and final
payment of India's membership contribution of GBP 27417 for the current financial year. The unutilized sum of
~ 3,36,228/- has been surrendered with budget at RE .
*****
78
Outcome Budget 2016-17, Department of Food & Public Distribution
CHAPTER- IV
REVIEW OF PAST PERFORMANCE:
4.1
This Chapter deals with the review of past performance in terms of targets. The analysis gives scheme-wise
physical performance with reasons for variations. Scope and objectives of individual programmes and schemes have
been given along with their targets and achievement under the sub-headings 'Food Management', 'Management of
Sugar' and 'Management of Edible Oil's.
4.2
FOOD MANAGEMENT:
Government undertakes to purchase all wheat and paddy of prescribed specifications offered on sale by the
farmers at the notified Minimum Support Price, thereby ensuring them a stable market for their produce. Non Basmati
rice is procured for the Central Pool under the statutory levy system imposed by the State Government in exercise of
powers conferred on them under the Essential Commodities Act, 1955. In view of increase in direct procurement from
the farmers over the years coupled with comfortable central pool rice stock position, initially it was decided by
Government that starting from the KharifMarketing Season (KMS) 2013-14, levy percentage in all the States/UTs may
not be allowed to exceed 25%. However, in view of administrative difficulties expressed by the State Governments, the
decision to limit levy percentage to 25% has been deferred for one year.
4.3
DECENTRALIZED
PROCUREMENT
OF FOODGRAINS
SCHEME:
The scheme of Decentralized Procurement of foodgrains was introduced by the Government in 1997-98 with a
view to effecting savings in the form of reduction in the outgo of food subsidy, enhancing the efficiency of procurement
and PDS and encouraging local procurement to the maximum extent thereby extending the benefits of MSP to local
farmers. Under the decentralized procurement scheme, the State Government itself undertakes direct purchase of paddy
and wheat including procurement of levy rice on behalf of Government of India. Purchase centres are opened by the
State Governments and their agencies as per their requirements.
..
79
Outcome Budget 2016-17, Department of Food & Public Distribution
4.4
The Central Government undertakes to meet the entire expenditure incurred by the State Governments on the
procurement operations as per the approved costing. The Central Government also monitors the quality of foodgrains
procured under the scheme and reviews the arrangements made to ensure that the procurement operations are carried
out smoothly. The State Governments/UTs undertaking Decentralised Procurement Scheme are as under:Procurement of foodgrains
S.No Name of the State
1.
West Bengal
Rice/Wheat
2.
Madhya Pradesh
Wheat/Rice
.).
Chhattisgarh
Rice/Wheat
4.
Uttarakhand
Rice/Wheat
5.
Andaman & Nicobar Islands
Rice
6.
Odisha
Rice
7.
Tamil Nadu
Rice
8.
Gujarat
Wheat
9.
Karnataka
Rice
10.
Kerala
Rice
11.
Andhra Pradesh
Rice
12.
Bihar
Rice/ Wheat
13.
Rajasthan (Alwar only)
Wheat
14.
Punjab
Wheat (For NFSA obligation)
15.
Telangana
(9 Districts in process)
Rice
,..,
i
Table 4.01
80
Outcome Budget 2016-17, Department of Food & Public Distribution
4.5
The procurement of wheat and rice in the States which have adopted decentralized
last five years has been as under:-
procurement
during the
(in lakh tonnes)
Rice
Marketing Year
Wheat
2011-12
51.12
123.63
2012-13
87.89
123.59
2013-14
63.62
110.20
2014-15
70.96
188.17
2015-16
73.86*
17.87*
Table 4.02
*FCI figures as on 04.12.2015
4.6,
PROCUREMENT
OF RICE:
The procurement of rice for Central Pool (including paddy in terms of rice) since 2009-10 is given below:Procurement of Rice for Central Pool
( Kharif Marketing Season: October-September)
(Figures in lakh tonnes)
FCI
Procurement
State Agencies
Total
2009-10
101.73
218.61
320.34
2010-11
119.70
222.09
341.79
2011-12
91.10
259.31
350.60
Year
';.
••
2012-13
81
Outcome Budget 2016-17, Department of Food & Public Distribution
70.33
270.11
340.44
2013-14
60.62
257.83
318.45
2014-15*
23.95
297.70
321.65
2015-16*
4.71
135.90
140.61
Table 4.03
*Position as on 1.12.2015
4.7
For the year 2015-16, procurement of rice is in progress and is estimated to be 300.00 lakh tonnes. The Statewise percentage of the procurement of rice to the Central Pool during 2015-16 and 2014-15 is given below:
PROCUREMENT OF RICE INCLUDING (PADDY IN TERMS OF RICE) DURING KMS 2015-16 AND
CORRESPONDING POSITION DURING KMS 2014-15 FOR THE CENTRAL POOL
Total procurement during KMS 2015-16 = 146.15 LAKH TONNES (As on 7.12.2015)
Total procurement during KMS 2014-15 = 114.87 LAKH TONNES (As on 7.12.2015)
State
KMS 2015-16
KMS 2014-15
Andhra Pradesh
Chhattisgarh
Haryana
Madhya Pradesh
Maharashtra
Odisha
Punjab
Tamil Nadu
Uttar Pradesh
12-379 Deptt.of F & PD/2015
Quantity procured %
of Quantity Quantity
%
of
Quantity
(in lakh tonnes)
procured to total procured in lakh procured to Total
procurement
tonnes
procurement made by
made by all States
all States
2.88
1.97
0.19
0.16
6.16
4.21
0.10
0.08
28.54
19.52
19.92
17.34
1.05
0.71
1.11
0.96
0.18
0.12
0.18
0.15
0
0
0
0
93.43
63.92
77.61
67.56
0.39
0.26
0.02
0.01
0.70
0.47
0
0
1.76
135.09
11.06
146.15
Uttarakhand
Total
Others
Grand Total
82
Outcome Budget 2016-17, Department of Food & Public Distribution
0.82
0.95
1.20
87.12
100.08
92.43
12.87
14.79
7.56
100.00
114.87
100.00
Table 4.04
# Procurement figures ofKMS 2015-16 as per FCI's report dated 7.12.2015.
@ Figures of procurement ofKMS 2014-15 in corresponding period as on 7.12.2015.
4.8
The State-wise procurement of wheat during the Rabi Marketing Season during the last 5 years is given below:
(In Lakh Tonnes)
State
2011-12
2012-13
2013-14
2014-15
2015-16
Haryana
68.28
58.73
64.95
M.P.
Punjab
Rajasthan
U.P.
49.65
109.57
13.03
34.61
86.65
84.93
128.34
19.64
63.55
108.97
70.94
116.41
Others
All India
7.19
50.63
11.29
12.68
06.83
0.16
21.58
06.28
0.07
67.78
73.09
103.44
13.00
22.67
283.35
381.48
250.92
280.23
0.9
280.88
Table 4.05
4.9
The State-wise procurement of wheat during 2015-16 is given below:
Procurement of Wheat during 2015-16 Rabi Marketing Season
Total Quantity Procured=280.88 Lakh Tonnes
Quantity Procured (In lakh tonnes)
States
Haryana
M.P.
FCI
State Agencies
Total
0
0
67.78
73.09
67.78
73.09
% of Quantity Procured
by State agencies to
Total Procurement made
by all States
24.13
26.02
Punjab
Rajasthan
U.P.
Total
Others
Grand Total
18.48
9.50
1.64
29.62
0.22
29.84
83
Outcome Budget 2016-17, Department of Food & Public Distribution
84.96
103.44
36.82
3.50
13.00
4.62
21.03
22.67
8.07
250.36
279.98
99.67
0.68
0.9
0.32
251.04
280.88
100.00
Table 4.06
4.10
Foodgrains are procured at the Minimum Support Price (MSP) fixed by the Government. The MSP for
Common and Grade 'A' paddy was fixed at ~ 1410/- and ~ 1450/- per quintal respectively for the 2015-16 Kharif
Marketing Season (October - September). The MSP of wheat was fixed at ~ 1450/-per quintal for the Rabi Marketing
Season 2015-16. MSP of wheat has been fixed at ~ 1450/- per quintal for RMS 2015-16. The comparative MSP of
wheat and paddy since 2007-2008 to 2015-2016(marketing seasons) is given below:
(~ per quintal)
2007-08
2008-09
2009-10
2010-1 I
Wheat
(MSP+Bol1us)
750$(+ 100)=850
1000
1080
1100
KMS
KMS
KMS
KMS
RMS 201 1-12
1170/\ (1120+50)
KMS 201 1-12
1080
1110
RMS 2012-13
1285
KMS 2012-13
1250
RMS 2013-14
RMS 2014-15
RMS2015-16
1280
1350
1400
KMS 2013-14
KMS 2014-15
KMS 2015-16
1310
1360
1410
1345
1400
1450
Year
RMS
RMS
RMS
RMS
1450
Year
!
,
2007-08
2008-09
2009-10
2010-11
Paddy
I
COl11l11on+Bonus
Grade A+Bonus
645%(+ 100)=745
675%( + 100)=775
850* (+50)= 900
880*(+50)=930
950* *(+50)=1000
980**(+50)=1030
1000
1030
Table 4.07
84
Outcome Budget 2016-17, Department of Food & Public Distribution
An incentive bonus of ~ 40 per quintal approved for paddy procured till 31.3.2007. Later the applicability of bonus
extended upto 30.9.2007 for the States of Andhra Pradesh, Tamil Nadu, Orissa, West Bengal and Chhattisgarh and for Bihar and
Kerala upto 31.5.2007.
$ An incentive bonus of ~ 100 per quintal over and above the MSP was also given during the entire RMS 2007-08.
% An incentive bonus of ~ lOOperquintal over and above the MSP was also given during the entire
KMS 2007-08. In KMS 2007-08, MSP was further increased to ~ 850 and ~ 880 per quintal for Common and Grade 'A'
varieties of paddy w.e.f. 24.6.2008.
* An incentive bonus of ~ 50 per quintal over and above the MSP was also given during the entire KMS 2008-09.
** An incentive bonus of ~ 50 per quintal over and above the MSP was given during entire KMS 2009-10.
/\ An incentive bonus of ~ 50 per quintal of wheat over and above the MSP was given during RMS 2011-12.
4.11
DISTRIBUTION OF FOODGRAINS:
The following table shows the offtake of rice and wheat under TPDS during the financial years 2011-12 to 2015-16 (upto
November, 2015).
Offtake of Foodgrains (Rice + Wheat) from Central Pool
Schemes
TPDS of which*
BPL*
APL*
Antyodaya (AAY)*
AA Y/ Priority
Tide Over
Special Adhoc
1501174 Poorest District
Offtake against allocation made at Eco. Cost! MSP rate
Welfare Schemes
2011-12
2012-13
2013-14
2014-15
431.020
173.030
160.900
97.090
448.757
179.615
168.987
100.155
445.269
·162.065
156.393
126.810
---
---
--72.080
6.470
--44.012
21.779
---
---
41.183
43.525
474.15
96.12
105.25
56.39
183.50
4.61
21.57
--6.72
41.25
----16.835
0.033
5.173
43.891
(In lakh tons)
2015-16 (upto Nov., 15)
382.82
75.34
83.87
40.88
164.06
3.01
14.41
1.25
24.97
'.
85
outcome B ud get 2016 - 17, D epartment 0fF 00d & PubI"lC D·IStn·bution
Open Market Sale
Export
Total
12.030
0.986
563.769
69.681
30.709
658.463
62.839
24.289
598.328
41.96
0.40
559.45
26.55
0
435.45
Table 4.08
Note:- the above offtake figures are as per the report prepared by FCI. Under TPDS offtake is against the allocation upto Dec, 2015.
*Revised by FCr for 2013-14
4.12
ALLOCATION OF FOOD GRAINS UNDER TPDS:
With a view to make receipt of foodgrains under TPDS, Government of India has enacted NFSA which has
come into force w.e.f. 5-7-2013. The Act provides for coverage of upto 75% of the rural population and upto 50% of
the urban population for receiving subsidized foodgrains under Targeted Public Distribution System(TPDS), thus
covering about two-third of the population. The eligible persons identified by the StateslUTs will be entitled to receive
5 kgs of foodgrains per person per month at subsidized prices of ~ 3/211 per kg for rice/wheat/coarsegrains. The
existing Antyodaya Anna Yojana (AA Y) households, which constitute the poorest of the poor, will receive 35 kgs of
foodgrains per household per month.
The States/UTs which have not implemented the Act are receiving foodgrains under existing TPDS which is
based on March, 2000 population estimates of Registrar General of India and 1993-94 poverty estimates of erstwhile
Planning Commission under which foodgrains (including additional allocations) are allocated @35 kg per family per
month for AA Y and BPL families and @ 15-35 kg per family per month for APL families.
So far only 25 State/UTs Governments i.e Andhra Pradesh, Assam, Bihar, Chhattisgarh, NeT of Delhi, Goa,
Haryana, Himachal Pradesh, lharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Sikkim,
Talangana, Tripura, Uttar Pradesh, Uttrakhand, West Bengal, Chandigarh, Lakshadweep, Pudducherry and Daman &
Diu have implemented NFSA and revised monthly allocation of foodgrains under NFSA has been made to these
States/UTs. Rest of the 11 States/UTs continue to get foodgrains under TPDS for AA Y, BPL and APL families on the
basis 1993-94 poverty estimates of Planning Commission and March 2000 population estates ofRGI.
86
Outcome Budget 2016-17, Department of Food & Public Distribution
Under existing TPDS, the Government has so far made a provisional allocation of 278.25 lakh tons to 25
StateslUTs who have implemented NFSA and 216.64 lakh tons of foodgrains to the reaming 11 States UTs during the
current year. Further, an additional quantity of 52.18 lakh tons of foodgrains have also been allocated during the current
year for Below Poverty Line (BPL) and Above Poverty Line (APL) families in the States/UTs where NFSA has not
been implemented. In additional 11.14 lakh tons of foodgrains have been allocated to the States for festival, calamities
and additional TPDS requirement etc, and 51.97 lakh tons have been allocated under Other Welfare Schemes (OWS)
for 2015-16 so far. Thus, during the current year, Government has so far made a provisional allocation of 610.08 lakh
•
tons for TPDS, OWS, festivals relief etc.
4.13
BUFFER STOCKING POLICY OF FOODGRAINS:
The objectives of the Buffer Stocking Policy are :-
(i)
(ii)
(iii)
(iv)
To meet the prescribed Minimum Buffer Stock norms for food security,
For monthly releases of foodgrains for supply through the PDS/Welfare Schemes,
To meet emergency situations arising out of unexpected crop failure, natural disasters etc. and
. For market intervention to augment supply so as to help moderate the open market prices.
EXISTING BUFFER NORMS
(from January, 2016)
(In lakh tons)
Total
Rice
Wheat
210.40
1st April
135.80
74.60
411.20
1st July
135.40
275.80
307.70
102.50
1st October
205.20
214.10
76.10
1st January
138.00
Table 4.09
Includes Food Security Reserve of 30 lakh tons of wheat from 1.7.2008 onwards and 20 lakh tons of rice from 1.1.2009 onwards.
~ I
87
Outcome Budget 2016-17, Department of Food & Public Distribution
4.14
STOCK POSITION IN THE CENTRAL POOL:
The stock offoodgrains in the Central Pool as on 1.1.2016 was 365.76 lakh tons which comprised of 126.891akh tons of
Rice and 237.88 lakh tons of Wheat and 0.99 lakh tons of coarsegrains. The total stock of foodgrains in the Central Pool vis-a-vis
foodgrain stocking norms since 1.1.2012 was as follows:
(In lakh tons)
RIC
WHEAT
AS ON
TOTAL
E
Actual stock
Minimum
FOODGRAIN
STOCKING NORMS
Actual stock
Minimum
FOODGRAIN
STOCKING NORMS
Actual stock
Minimum
FOODGRAIN
STOCKING NORMS
1.1.2012
256.76
112
297.18
138
553.94
250
1.4.2012
199.52
70
333.50
142
533.02
212
1.7.2012
498.08
201
307.08
118
805.16
319
1.10.2012
431.53
140
233.73
72
665.26
212
1.1.2013
343.83
112
322.21
138
666.04
250
1.4.2013
242.07
70
354.68
142
596.75
212
)
1.7.2013
423.97
201
315.08
118
739.05
319
1.10.2013
361.00
140
190.33
72
551.33
212
,I
1.1.2014
280.47
112
146.98
138
427.45
250
1.4.2014
178.34
70
202.78
142
381.12
212
1.7.2014
398.01
201
212.36
118
610.37
319
1.10.2014
322.63
140
154.22
72
476.85
212
1.1.2015
251.13
138.00
117.43
76.10
368.56
214.10
1.4.2015
172.21
74.60
170.94
135.80
343.15
210.40
1.7.2015
386.80
275.80
158.95
135.40
545.75
411.20
1.10.2015
324.50
205.20
125.78
102.50
450.28
307.70
1.1.2016
237.88
138.00
126.89
76.10
364.77
214.10
;
!
I
Table 4.10
Includes Strategic Reserve of 30 lakh tons of wheat and 20 lakh tons of rice.
88
Outcome Budget 2016-17, Department of Food & Public Distribution
4.15 The Government reviews on monthly basis, the position of foodgrain stocks held in the Central Pool by FCI and
the State Governments and their agencies. The stock of rice and wheat in the Central Pool is sufficient to meet the
requirement under Targeted Public Distribution System (TPDS) and Welfare Schemes during 2015-16.
4.16
REVISION OF FOODGRAIN
STOCKING
NORMS (EARLIER
..
CALLED BUFFER NORMS):
Government of India has revised the foodgrain stocking norms for the central pool (Earlier called Buffer Norms) from Jan,
2015 as under.
4.17
As on
Operational Stock
1st April
1st July
1st October
1st January
Rice
115.80
115.40
82.50
56.10
Wheat
44.60
245.80
175.20
108.00
Total
160.40
361.20
257.70
164.10
Fig. In lakh MT
Strategic Reserve
Grand Total
Rice
20.00
20.00
20.00
20.00
210.40
411.20
307.70
214.10
Wheat
30.00
30.00
30.00
30.00
Table 4.11
PUBLICITY-CUM-AWARENESS.:_
A publicity-cum-awareness campaign has been undertaken amongst the TPDS beneficiaries, functionaries of the
State Governments and the general public for increasing their awareness/sensitivity about functioning of TPDS. An
amount of ~ 50.00 lakhs under Plan scheme was provided in the budget of the Department of Food and Public
Distribution for 20 15-16. ~ 0.80 lakh and ~ 12.00 lakh were sanctioned to State Government of Meghalaya & State
Government of Uttar Pradesh respectively & ~ 0.30 lakh (~ 29137/-) was released for Advertisement of specification
of Point of Sale Device (POS) and ~ 0.80 lakh (~ 79800/-) was sanctioned to M/s Indian Agribusiness Systems Pvt.
..,
89
Outcome Budget 2016-17, Department of Food & Public Distribution
Ltd for publication of newsletter 'Khadya Suraksha' for the quarter January to March, 2015 under the Scheme. As of
now, total ~ 13.90 lakh has been released under the Scheme.
4.18
FOOD SUBSIDY:
Food subsidy is provided in the Budget of the Department of Food and Public Distribution to meet the difference
between Economic Cost of foodgrains and their sales realization at Central Issue Price (CIP) fixed for TPDS and other
welfare schemes. In addition, the Central Government also procures foodgrains for meeting the requirements of buffer
stock. Hence, part of the food subsidy also goes towards meeting the carrying cost of buffer stock.
Since 2004-05, the Minimum Support Price (MSP) of wheat has increased from ~ 630 per quintal to ~ 1450 per
quintal in RMS 2015-16. Similarly, MSP plus bonus of paddy (Common) has increased from ~ 560 per quintal to
~ 1410 per quintal in KMS 2015-16. However, the CIP of wheat and rice for AAY, BPL and APL families has not
been revised since 2002. As a result, the gap between Economic Cost and CIPs has been increasing and food subsidy
incurred by the Government has risen substantially.
2.
3.
The subsidy is provided to FCI, which is the main instrument of the Government of India for procurement and
distribution of wheat and rice under TPDS and other welfare schemes and for maintaining the buffer stock of
foodgrains as a measure of food subsidy.
This apart, 15 States/UTs, namely, Andhra Pradesh, A&N Islands, Bihar, Chhattisgarh, Gujarat, Kerala,
Karnataka, Madhya Pradesh, Punjab, Odisha, Rajasthan, Telangana, Tamil Nadu, Uttarakhand, West Bengal have
adopted the DCP Scheme and have undertaken the responsibility of not only procuring food grains from within the
State but also distributing the same to the targeted population under TPDS and other welfare schemes. Under this
Scheme of Decentralised Procurement, State-specific economic cost is determined by the Government of India and the
difference between the economic cost so fixed and the Central Issue Price is passed on to the State as Food Subsidy.
13-379
Oeptt. of F & PO/2015
90
Outcome Budget 2016-17, Department of Food & Public Distribution
4.
The year-wise break-up of subsidy released for distribution of subsidized food grains and maintenance of buffer
stocks during the last seven years and current financial year to FCl and the States operating the Decentralised Scheme is
as under:
Year
Subsidy released
States
11375.31
12200.00
12845.00
12574.00
14240.00
21175.81
20075.85
Table 4.12
FeI
46867.14
50729.56
59525.90
71980.00
75500.02
91995.35
87000.00
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16*
Total
58242.45
62929.56
72370.90
84554.00
89740.02
113171.16
107075.85
*As on 27.01.2016
4.19
ECONOMIC COST OF RICE AND WHEAT:
The FCl and state agencies are reimbursed the difference between the economic cost of foodgrains and the issue
price. The economic cost of foodgrains is directly related to MSP and bonus, incidence of taxation and levies, incidental
expenses on acquisition and distribution of foodgrains.
Year
Rice $
Procurement
Incidentals
Distribution Cost
Economic Cost $
(Ru oees per QUintaI)
05-06
06-07
07-08
08-09
09-10
2010-11
2011-12
2012-13
2013-14
2014-15
(U/A)
2015-16
(RE)
2016-17
(BE)
39.12
193.66
214.91
226.87
288.60
313.09
350.00
383.76
463.53
594.72
493.37
541.21
272.37
1339.69
289.58
1391.18
297.82
1549.86
280.76
1740.73
184.92
1820.07
223.49
1983.1I
260.74
2122.94
287.28
2304.87
389.97
2615.51
497.42
2943.58
532.62
3093.73
586.18
3266.70
171.20
180.15
164.02
179.62
206.88
212.38
235.68
263.35
286.41
346.57
360.54
381.15
Wheat
Procurement
Incidentals
\
91
Distribution Cost
Economic Cost
$ Weighted average of Common and Grade' A' rice taken together
For Rice, from 2006-07, in the procurement incidentals weightage of levy rice incidentals is also being taken.
4.20
CONSTRUCTION OF STORAGE GODOWNS BY FCI:
The Department is implementing projects under Plan Schemes for construction of storage godowns. In
addition, DFPD has been requesting the state governments to create intermediate storage capacities at BlockiTaluka
level to store foodgrains collected from FCI depots, for further distribution to fair price shops. This is necessary to
improve the supply chain logistics for TPDS. While construction of intermediate godowns is the responsibility of the
state governments, plan funds are provided as Grant-in-Aid also to governments of the NE states and J&K for this
purpose, considering their difficult geographical conditions.
Under the Plan Scheme, funds are released to the FCI in the form of equity for land acquisition and for
construction of storage godowns, and related infrastructure like railway sidings, electrification, installation of
weighbridge, etc.
The following is the Plan outlay for XII Five Year Plan.
Sl
Head
1
Construction of godowns by FCI at 37
locations in the NE (2,92,730 MT).
2
Construction of godowns by FCI at 9
locations in 4 other states (76,220 MT).
Outlay in
Unspent
12th Plan (Rs
balance of
crore)
11th Plan
(Rs crore)
509.76
51.20
458.56
Estimated
Cost
(Rs crore)
72.14
16.06
56.08
'"'
.)
4
92
Outcome Budget 2016-17, Department of Food & Public Distribution
Grant-in-Aid to NE states for intermediate
14.36
0.00
storage at 74 locations.
15.36
Grant-in-Aid to J&K for intermediate storage
at 1 location.
Total
1.00
0.00
597.26
67.26
530.00
Table 4.14
Physical and Financial Achievements by FCI during 2012-13, 2013-14, 2014-15 and 2015-16 are as below:Year
North East Region
Other States
Total (NE+Other States)
Physical
Financial
Physical
Financial
Physical
Financial
(In MT)
(Rs in crore)
(In MT)
(Rs in crore)
(In MT)
In Rs Crore
2012-13
2,910
27.72
1,160
2.64
4,070
30.36
2013-14
2,500
30.94
20,000
11.02
22,500
41.96
2014-15
43,480
76.48
-
0.99
43,480
77.47
2015-16
19,170
43.00
-
0.00
19,170
43.00
Total
68,060
178.14
21,160
14.65
89,220
192.79
Table 4.15
/,
93
Outcome Budget 2016-17, Department of Food & Public Distribution
The detailed budgetary status under RE 2015-16 and BE 2016-17 for requirement of funds under Plan schemes is as per the
following:(Rs in Crore)
Head and Scheme
4408.02.190.04.01.54
BE 2016-17
BE 2015-16
RE 2015-16
10.00
-
-
75.00
68.39
50.00
5.00
11.61
2.00
90.00
80.00
52.00
- Release of Equity to FCI for construction of storage
godowns by FeI (areas other than NE Region)
4552.00.126.01.01.54
- Release of Equity to FCI for Projects/Schemes for
North Eastern States including Sikkim
2552.00.308.02.00.35
- Grants in Aid to State Governments of North East
Region including Sikkim
Grand Total
Table 4.16
The details of quarter-wise targets for various projects of FCI in NE Region under 12th Five Year Plan during 2015-16 is as
follows:(Figures in Crore)
State
No
of Capacity to Actual
Estimated
Estimated
Projects
be created
Expenditure
expenditure expenditure
(In MT)
during 2015- for 2015-16 for 2016-17
16(As on date)
Assam
9
177000
10.33
32.40
86.00
Arunachal 10
17230
2.50
13.49
5.10
Pradesh
Manipur
8
30410
14.80
33.75
-
94
Meghalaya
.)
Mizoram
Nagaland
Sikkim
Tripura
Total=
1
2
1
2
36
"'I
10000
15000
14590
3500
25000
292730
Outcome Budget 2016-17, Department of Food & Public Distribution
6.30
3.50
32.75
3.04
10.04
-
-
15.87(*)
82.18
5.15
4.00
5.00
32.5
202.60#
Table 4.17
(*) N.B.: For the year 2015-16, an allocation of ~ 75.00 crore has been made under BE 2015-16 (reduced to ~ 68.39 under RE
2015-16) out of which, an equity of ~ 43.00 crore as on 31112/2015 has been released by the Ministry. The expenditure incurred
upto 3rd Quarter was ~ 24.07 Crore.
# Only ~ 50.00 crore has been allocated by the Ministry in BE 2016-17 as per ceiling provided by the Ministry of Finance.
4.21
COMPUTERIZATION
OF TPDS OPERATIONS:
In October, 2012, Government approved Component -I of the Plan Scheme of End-to-end Computerization of
TPDS Operations comprising activities, namely, digitization of ration cards/beneficiary and other databases,
computerization of supply-chain management, setting up of transparency portal and grievance redressal mechanisms for
implementation in all States/UTs during lih Five Year Plan (2012-17) on cost-sharing basis with a total outlay of ~
884.07 crore out of which, Government of India's share is ~ 489.37 crore and the States/UTs share is Rs 394.70 crore.
National Informatics Centre (NIC) is the technical partner in this project. Under the scheme, ~ 41.69 crore were
released in 2012-13, ~ 184.20 crore were released in 2013-14, ~ 33.81 crore were released in 2014-15, ~ 52.41 crore
have been released during 2015-16 (31.01.2016). Andhra Pradesh, Chhattisgarh, Delhi, Gujarat, Goa, Karnataka,
Madhya Pradesh, Puducherry and Telangana have completed Component-I of the scheme whereas other States/UTs
have also made significant progress in this direction. Efforts are being made by the Department to expedite the
implementation of the project by holding regular meetings, workshops, video-conferences, etc. with States/UTs. Further
Cash Transfer Scheme has been implemented in 2 UTs of Chandigarh and Puducherry w.e.f. September, 2015. As
regards component-II of the scheme i.e. FPS automation, more than 79000 FPSs have been automated across the
country.
..
95
Outcome Budget 2016-17, Department of Food & Public Distribution
4.22
(a)
STRENGTHENING
OF PDS & CAPACITY BUILDING:
TPDS - Training
In the n" Five Year Plan (2007-12), against an outlay of ~ 2.50 crore, an expenditure of ~ 2.50 crore had been
incurred. 24 States & UTs, namely, Mizoram, Rajasthan, Orissa, Madhya Pradesh, Manipur, Goa, Haryana, Andhra
Pradesh, Tripura, Sikkim, Kerala, Bihar, Tamil Nadu, Himachal Pradesh, Maharashtra, West Bengal, Punjab, J&K,
A&N Islands, Gujarat, Assam, Karnataka, Uttar Pradesh and Meghalaya have availed of funding under this component.
Under the scheme, around 449 training programmes were organized wherein approximately 26640 persons have been
trained during the 11th Five Year Plan.
In 1th Five Year Plan (2012-2017), the status of expenditure incurred under the Scheme from 2012-13 to 201516 (up to so" November, 2015) is as under:
(Figures in crore)
Financial Year
B.E.
R.E.
2012-13
0.50
0.50
2013-14
0.62
0.4203
Actual Expenditure
0.50
0.3846
Name of agency/State/UT to whom fund released
State GOYt. of Tamil Nadu and Chhattisgarh
State GOYt. of Gujarat, Nagaland, Chhattisgarh and Food Corporation of
India (FCI).
2014-15
0.87
0.51
0.25785
State GOYt. of Mizoram, Puducherry, Sikkim and Food Corporation of
India (FCI).
2015-16
0.25
0.24
0.20
State GOYt. of Madhya Pradesh and Food Corporation ofIndia (FeI).
(up to 22.02.16)
Table 4.18
From 2012-13 to 2015-16 (upto 22.02.2016), 299 training programmes/workshops
wherein approximately 5709 officials have been trained.
have been conducted and
(b)
Evaluation, Monitoring & Research
96
Outcome Budget 2016-17, Department of Food & Public Distribution
Concurrent evaluation study on TPDS was conducted in 26 States/UTs by National Council of Applied
Economic Research (NCAER) (2006-09) and Indian Institute of Public Administration (IIPA) (2007-11). NCAER and
IIPA submitted final reports of the study carried out by them in twelve States and fourteen States respectively, which
have been accepted by the Government. Copies of the reports have been sent to the State/UT Governments concerned
for taking necessary remedial measures to remove the deficiencies noticed in the functioning of TPDS, including
leakages and diversion of foodgrains, inclusion/exclusion errors, and so on.
.,.
In the lih Five Year Plan, an evaluation study on functioning of TPDS in six select States i.e. Assam, Bihar,
Chhattisgarh, Karnataka, Uttar Pradesh and West Bengal was awarded to National Council of Applied Economic
Research (NCAER) in March, 2014 with a total cost of ~ 93,03,408/-. NCAER had submitted its report in September,
2015 which has been sent to the States concerned for taking necessary remedial measures to remove deficiencies
noticed in the functioning ofTPDS.
In iz" Five Year Plan (2012-2017), the status of expenditure incurred under the Scheme from 2012-13 to 201516 (up to 30th November, 2015) is as under:
Financial Year
B.E.
R.E.
2012-13
2013-14
0.40
0.62
0.00
0.31
0.00
0.31
2014-15
0.63
0.4343
0.43424
2015-16
(upto 22.2.2016)
0.90
0.70
0.18606
Actual Expenditure
(Figures in crore)
Name of agency to whom fund released
Agency could not be finalized
National Council of Applied Economic Research
(NCAER)
National Council of Applied Economic Research
(NCAER)
NCAER
Table 4.19
..
97
Outcome Budget 2016-17, Department of Food & Public Distribution
I,
4.23
POST HARVEST OPERATION:
1.
Indian Grain Storage Management
& Research Institute (IGMRI)
The Indian Grain Storage Management & Research Institute (IGMRI), functioning under the direct control of
Department of Food & Public Distribution is engaged in Research & Development activities on storage and
preservation of foodgrains. IGMRI is located at Hapur (UP) with its two field stations at Hyderabad (AP) and Ludhiana
(PB).
The targets and achievements ofIGMRI during 2014-15,2015-16
Target
Continuing Scheme
Other
activities
y.
15
LTTC/STTC
(No. of courses)
Achievement
2016-17
2015-16
2014-2015
Item of Work
Training
and proposed for 2016-17are as under:-
Target
Achievement
(upto Dec
2015)
15
15
12
15
a. Analysis of food grains samples
for physical quality parameters.
500
500
500
404
500
grams
150
151
150
131
150
75
76
75
61
75
b. Monitoring of
samples for pesticide
residue.
of
c. Monitoring
for
samples
contaminati on.
food
food grams
mycotoxin
Table 4.20
I.
14-379 Dept!.of F & PD/2015
Proposed
Target
98
Outcome Budget 2016-17, Department of Food & Public Distribution
Quality Control Cells (QCC)
ii).
The Quality Control Cells situated at New Delhi, Kolkata, Hyderabad, Bangalore, Bhopal, Bhubaneswar,
Lucknow, Pune, Chennai, Guwahati and Patna are monitoring the quality of foodgrains at the time of procurement,
storage and distribution. These cells also ensure that guidelines/ instructions issued by the Government from time to
time about scientific storage and preservation of foodgrains are followed by FCI, CWC, SWC and State agencies.
The targets and achievements of the Quality Control Cells during 2014-15, 2015-16 and target proposed for
2016-17 are as under: -
s.
Item of work
2015-16
2014-15
No
2016-17
(Proposed)
Tar.
Ach.
Tar.
Ach.(up to
Dec. 2015)
Tar
1.
Inspection of Food Storage Depots
930
954
1140
810
1140
2
Training Programmes under Plan Scheme
32
32
38
24
38
Table 4.21
2. Central Grain Analysis Laboratory (CGAL)
The main function of CGAL is to, lay down quality standards for procurement of Kharif and Rabi foodgrains
being procured for Central Pool stock keeping in view the interest of producers, consumers and the provisions under the
Food Safety and Standards Act. In addition, it also carries out classification of rice/paddy varieties for fixation of
procurement and issue prices, assessment of the quality of foodgrains that are imported or exported under Central Pool
account in relation to the contractual specifications and assessment of the quality of foodgrain samples brought by
inspecting officers of Quality Control Cell, New Delhi and other senior officers.
.,
99
Outcome Budget 2016-17, Department of Food & Public Distribution
This lab has also been designated as referral lab in case of disputes in acceptance of Custom Milled Rice
consignments between FCI and State agencies/rice millers. Achievements of the Central Grain Analysis Laboratory
during 2014-15,2015-16
and target proposed for 2016-17 are as under: -
Tar.
1.
2
3
4
Analysis
Analysis
Analysis
Analysis
of
of
of
of
foodgrain samples
foodgrain samples
wheat samples for
wheat samples for
for physical quality parameters
for protein determination
falling number/hardness index
Uric Acid determination
1700
1700
Total
4.24
2015-16
2014-15
S. Item of work
No
2016-17
(Proposed)
Ach.(up to
Dec. 2015)
Ach.
Tar.
1900
325
848
398
1700
79
26
1351
1700
Table 4.22
660
2885
Tar
1700
1700
MANAGEMENT OF SUGAR
PAYMENT FROM SUGAR DEVELOPMENT FUND
Subsidy for Maintenance of Buffer Stock of Sugar:
•
The objective of the scheme is to give subsidy to the sugar mill to enable them to liquidate the sugarcane price arrears.
The table below indicates the performance for 2014-15 and 2015-16 (up to 31.12.2015)
Performance in 2014-15
Target
Physical I Financial
22 cases I 5.00 crore
Achievement
Physical
I Financial
4.94 crore
23 cases I
Performance in 2015-16
(up to 31.12.2015)
Achievement
Target
Physical
I Financial
Physical
I Financial
4
cases
I 1.04 crore
8 cases
I 3.00 crore
.Table 4.23
100
Outcome Budget 2016-17, Department of Food & Public Distribution
4.25 PAYMENT OF INTERNAL TRANSPORT AND FREIGHT CHARGES, OCEAN FREIGHT AND
HANDLING & MARKETING CHARGES ON EXPORT SHIPMENT OF SUGAR:The Central Government vide its Notifications dated 21.6.2002 and 19.11.2003 decided to defray the
expenditure on internal transport and freight charges and payment of neutralization of ocean freight charges and
handling and marketing charges respectively to the sugar factories on export shipment of domestically manufactured
sugar with a view to promoting sugar export and liquidating surplus sugar stocks available with the sugar factories.
Defraying of expenditure on export shipment of the sugar was made effective for exports made with effect from
21.6.2002 upto exports made till 18.8.2004 in pursuance of release orders issued upto 20.6.2004 with validity of two
months.
4.26 The Government has announced new export assistance on export of sugar by sugar mills for exports made on or
after 19.4.2007 for one year. which was later extended to 30-09-2008 under Govt. order dated 28-03-2008..The new
export assistance cover payment of internal transport and freight charges including ocean freight and handling and
marketing charges at a flat rate of ~ 1350 per tonne for sugar mills located in coastal states and ~ 1450 per tonne for
sugar mills located in non-coastal states. The procedural details etc. for new export incentives have been notified on
7th November,2007 by amending SDF Rules with insertion of rule 20 A therein.
•
.,
101
Outcome Budget 2016-17, Department of Food & Public Distribution
The past performance and physical target & achievement during the financial year 2008-09, 2009-2010, 20102011,2011-12,2012-13,2013-14,2014-15
and 2015-16(upto 31.12.2015) are given below:---,
(~ in Crore)
Year
2008-09
Target
Financial
Physical
285
700
Nos. of claim
Achievement
Financial
Physical
285
462
Nos. of claim
Reason for variation
Target has been Achieved.
Target has been Achieved.
2009-10
700
Nos. of claim
285
443
Nos. of claim
285
2010-11
300
Nos. of claim
150
268
Nos. of claim
146.81
2011-12
50
Nos . of claim
15
41
Nos. of claim
15
2012-13
20
Nos. of claim
10
10
Nos. of claim
4.78
Target could not be achieved due to non-furnishing of
requisite information/proper documents by the concerned
sugar mills.
2013-14
Nos. of claim
NIL
.01
NIL
NIL
Target could not be achieved due to non-furnishing of
requisite information/proper documents by the
concerned sugar mills.
2014-15
NIL
0.01
NIL
NIL
-
2015-16
(31.12.15)
NIL
0.01
NIL
NIL
-
.,.'
Target could not be achieved due to non-furnishing of
requisite information/proper documents by the
concerned sugar mills.
Target has been Achieved
Table-4.24
102
Outcome Budget 2016-17, Department of Food & Public Distribution
4.27
SCHEME FOR EXTENDING
FINANCIAL ASSISTANCE TO SUGAR UNDERTAKINGS,
Remarks
i
The Government on 03.01.2014 has notified a Scheme viz. Scheme for Extending
Financial Assistance to Sugar Undertakings (SEFASU-14) for providing financial assistance
in the form of interest free loans worth ~ 6600 crores for additional working capital to sugar
mills for clearance of cane price arrears. Interest burden estimated at ~ 2303.77 crores over
next five years would be borne by the Central Government through Sugar Development Fund.
The loan will be utilized by the sugar mills for clearance of cane price an-ears of previous
sugar seasons and timely settlement of cane price of current sugar season relating to the Fair
and Remunerative Price (FRP) fixed by the Central Government to the sugarcane farmers.
Performance in
2014-15
703.77
crore
2014:
i
Performance in
2015-16
(upto 31.12.15)
600.60
crore
Table 4.25
4.28 INCENTIVE
ON MARKETING
AND PROMOTION
SERVICES OF RAW SUGAR PRODUCTION
Remarks
Performance in
2014-15
In order to encourage sugar factories to diversify their produce of traditional white sugar
into raw sugar for export, the Government notified another scheme allowing incentives for
marketing and promotion services for raw sugar production targeted for export market during
the sugar seasons 2013-14 and 2014-15. The incentive available under the Scheme shall be
utilized by the sugar mills for making payment to the farmers.
183.87
crore
Performance in
2015-16
(upto 31.12.15)
99.67
crore
Table 4.26
103
Outcome Budget 2016-17, Department of Food & Public Distribution
4.29
LOANS FOR REHABILITATION/ MODERNIZATION OF SUGAR INDUSTRY:
The object of the scheme is to facilitate the rehabilitation. modernization and expansion of crushing capacity of sugar
industries.
The table below indicates the performance for 2014-15 and 2015-2016 (upto 31.12.2015):
Targets
Physical
-
4.30
Performance 2014-15
Achievements
Physical
Financial
Increased
200
crushing
capacity by
24450 tonnes.
Financial
200
Reasons for
variation
Target
achieved.
(~ in crore)
Performance 2015-16
Reasons for
Achievements
Targets
variation
(upto 31.12.2015)
Financial
Physical
Physical Financial
Target likely to
50.08
Increased
150.00
be achieved
crushing
upto
capacity by
31.03.2016.
4000 tonnes.
Table 4.27
LOANS TO !SUGAR MILLS FOR CANE DEVELOPMENT:
The objective of the scheme is the development of sugarcane in the area where sugar factory is situated. The table below
indicates the performance for 2014-15 and 2015-2016 (upto 31.12.2015):
(~ in crores)
Performance 2015-2016
Performance 2014-15
Reasons for
Achievements
Targets
Reasons for
Achievements
Targets
variation
(upto 31.12.2015)
variation
Financial
Physical
Physical Financial
Financial
Physical
Physical Financial
Target likely to be
12.73
Increased
30.74
72.92
Increased
72.92
achieved upto
production by
production by
31.03.2016
14.791akh
lakh
61.895
tonnes
tonnes
Table 4.28
104
Outcome Budget 2016-17, Department of Food & Public Distribution
4.31
LOANS TO SUGAR FACTORIES
FOR BAGASSE BASED COGENERATION
POWER PROJECT
The objective of the scheme is to improve the economic viability of sugar mill and efficiently utilized bagasse produced
by the sugar mills. The table below indicates the performance for 2014-15 and 2015-2016 (upto 31.12.2015):
(~ in crores)
Performance 2014-2015
Performance 2015-2016
Targets
Achievements
Achievements
Reasons
Targets
Reasons for
for
(upto 31.12.2015)
variation
Physical
Financial Physical
Financial variation Physical
Financial Physical
Financial
46.45
Increased by
46.45
200
29.71
Increased by
Target
52.50 Mega
39.75 Mega
likely to be
Watt (MW)
Watt (MW) of
achieved
of electricity
electricity
upto
generation
generation
31.03.2016
Table 4.29
4.32 LOANS TO SUGAR FACTORIES
FROM ALCOHOL.
FOR PRODUCTION
OF ANHYDROUS ALCOHOL
OR ETHANOL
The objective of the scheme is to improve the economic viability of sugar mills. The table below indicates the performance for
2014-2015 and 2015-16 (upto 31.12.2015):
(~ in crores)
Targets
Physical
-
Performance 2014-15
Achievements
Reasons
for
Financial Physical
Financial variation
77.07
Increased by for 77.07
Target
production
achieved
IS
230
Kilolitres
per day(KLPD
Targets
Physical Financial
76.83
-
Performance 2015-16
Achievements
(upto 31.12.2015)
Physical
Financial
Increased by for 16.89
production is 200
Kilolitres
per
day(KLPD)
Table 4.30
•
Reasons for
variation
Target likely to
be achieved
upto
31.03.2016.
105
Outcome Budget 2016-17, Department of Food & Public Distribution
4.33
LEVY SUGAR PRICE EQUALIZATION
FUND: -
During the current financial year 2015-16 (upto 31.12.2015). no recovery has been made against revised budgeted target
of ~ 2 crore fixed for the financial year 2015-16.
Years
Target Amount
Achievement Amount
(In crore)
(In crore)
~ 5.00
~ 6.84
~ 5.00
~ 6.38
~ 5.00
~ 9.04
~ 2.00
~ 2.96
~ 5.00
~ 12.64
~ 10.00
~ 4.97
~ 7.00
~ 15.63
~ 6.00
~ 9.26
~ 6.00
~ 6.36
~ 4.00
~ 3.52
~ 2.00
~ 0.00
Table No. 4.31
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016 (upto 31.12.15)
4.34
TRAINING AND RESEARCH
INSTITUTE
- NSI, KANPUR
The National Sugar Institute, Kanpur is a subordinate establishment of the Ministry of Consumer Affairs, Food &
Public Distribution engaged in providing technical education in various branches of Sugar Technology, Sugar
Engineering, Alcohol technology and other allied branches. The Institute has a Farm & Experimental Sugar Factory for
training of the students of various courses. The overview of budget provisions of National Sugar Institute, Kanpur is as
under:
(~
in Lakhs) _
I RE 2015-16
BE 2014-15
RE 2014-15
PLAN
250.00
250.00
250.00
............................_ .............._ .
350.00
NON-PLAN
1726.00
1677.70
I
1809.00
....................._ ....._. ..................................
BE 2015-16
.•.••••....•.........
-..........
1856.00
Table 4.32
15-379 Dept!. of F & PD/2015
BE 2016-17*.........................
i 0.00
2399.00
--
106
Outcome Budget 2016-17, Department of Food & Public Distribution
* From the financial year 2016-17, provision of Plan expenditure has been shifted under Non-plan expenditure as per instructions
of Ministry of Finance.
The Non-Plan Expenditure is meant for meeting Administrative Expenses of the Institute & Hostels. Expenditure
related to Experimental Sugar Factory & Farm is also met from this budget.
Plan provision is intended to meet the expenditure; mainly on civil & electrical works relating to the development of
infrastructure capacities & augmenting of R&D facilities; such as renovation of research laboratories & procurement
of additional equipments for laboratories etc.
The brief particulars regarding number of research schemes undertaken, number of students trained etc. during the
period from 2013-14 onwards are given below:
:
2013-14
T
2014-15
2015-16
...........
01
02
NO. OF STUDENTS TRAINED
197
214
211
Table 4.33
Work on applied research on different topics has also been carried-out in different divisions either through the
research scholars or by the staff.
RESEARCH
SCHEMES
(in Hand)
Nil
The Budget provision (Plan and Non-Plan) includes:
a). Expenditure on establishment of the Institute includes Experimental Sugar Factory and Farm. The present staff
position (as on l" December 2015) is as given in the Table here under:
GROUP-A
GROUP - B (Gazetted)
GROUP - B (Non-Gazetted)
GROUP - C ( Min. & Non-Min)
GROUP - C (MTS)
TOTAL
SANCTIONED STRENGTH
EXISTING STRENGTH
53
06
13
123
112
307
31
03
05
62
72
173
Table 4.34
......_.
..
107
Outcome Budget 2016-17, Department of Food & Public Distribution
b).
c).
d).
e).
f).
g).
h).
Expenditure
Purchase of
Operational
Expenditure
Expenditure
Expenditure
Misc. office
4.35
on hiring of professionals for academic & other services,
laboratory equipments (Glass-ware & chemicals etc.),
expenses for Experimental Sugar Factory,
for maintenance of Agricultural Farm,
on research work & organising various other technical activities e.g. Seminar /Refresher Course etc.
on maintenance and repairs of administrative, residential and non-residential building.
expenditure e.g. payment of telephone /electricity bills, office stationery, furniture & fixture etc.
INTERNATIONAL
Contribution
.,.
COOPERATION
to International
Grain Council:
India is a member of the International Grains Council (IGC) which was previously known as International Wheat
Council up to 1995 and is an intergovernmental forum of exporting and importing countries for co-operation in wheat
and coarse grain matters. It administers the Grains Trade Convention 1995. The IGC Secretariat, based in London since
1949, also services the Food Aid Committee, established under the Food Aid Convention. International Grains
Agreement comprises of Grains Trade Convention (GTC) and Food Aid Convention (FAC). India is a signatory to the
International Grains Agreement (IGA) 1995 and its Grain Trade Convention (GTC) 1995 which is effective from 1st
July 1995. IGC have two types of members-Importing Members and Exporting Members. India has been included in
the category of Exporting members in July, 2003 and represented in the meetings/session of the Council held from time
to time.
Besides, this Department also participates in other meetings of IGC like Market Conditions Committee
meetings and Executive Committee meetings.
India being a member of the International Grains Council, this
Department pays the annual membership contribution to the Council.
4.36 India being a member of the International Grains Council, this Department pays the annual membership
contribution to International Grains Council. For the fiscal year 2015-16, a sum of ~ 26,63,772/- has been paid towards
India's membership contribution to IGC.
*******
108
Outcome Budget 2016-17, Department of Food & Public Distribution
CHAPTER- V
FINANCIAL REVIEW
This chapter on financial review covers overall trends in expenditure vis-a-vis Budget Estimates and Revised Estimates since 2014-15.
Data has been segregated scheme wise and object head wise. Position of outstanding utilization certificates has also been brought out.
A-Programme/
Activity
wise
Classification
BE 2014-15
Plan
NonPlan
3
RE 2014-15
Plan
NonPlan
5
Actual
2014-15
BE 2015-16
RE 2015-16
(31.12.2015)*
NonPlan
NonPlan
Plan
Plan
1
2
4
6
7
8
9
10
ESTABLISHMENT EXPENDITURE OF SECRETARIAT & FOOD, STORAGE AND WAREHOUSING
1.
Secretariat
0.00
39.87
0.00
38.79
0.00
37.87
0.00
42.22
0.00
Economic Services
2. Directorate
of
Sugar & Vegetable
Oils #
3. National Sugar
Institute, Kanpur
Actual upto
( ~ in crores)
BE 2016-17
Plan
NonPlan
Plan
11
12
NonPlan
13
Plan
14
NonPlan
15
42.20
0.00
32.49
0.00
51.85
0.00
7.12
0.00
7.09
0.00
6.74
0.00
7.20
0.00
6.50
0.00
4.72
0.00
8.04
2.50
17.26
2.50
16.78
2.33
16.23
2.50
18.56
3.50
18.09
0.00
12.08
0.00
23.99
4. Indian
Grain
0.00
Storage
Management
and
Research Institute
5. Central Grain
0.00
Analysis
Laboratory
6. Quality Control
0.00
Cell
FOOD MANAGEMENT
3.82
0.00
3.53
0.00
3.14
0.00
4.12
0.00
3.92
0.00
2.45
0.00
5.07
0.02
0.00
0.02
0.00
0.01
0.00
0.02
0.00
0.02
0.00
0.00
0.00
0.05
8.13
0.00
7.38
0.00
7.01
0.00
8.24
0.00
6.87
0.00
5.22
0.00
8.74
92000.00
0.00
97000.00
0.00
91995.35
0.00
97000.00
0.00
112000.00
0.00
87000.00
0.00
103334.61
7. Food Subsidy to
FCI
0.00
,.
109
Outcome Budget 2016-17 Department of Food & Public Distribution
!
•
iI
8. Food Subsidy to ! 0.00 I 18500.00
States
on I
I
Decentralized
I
!
i
Procurement
i
9. Ways and Means!
0.00 i 10000.00
advance payable to
FC}
10. Subsidy
for
0.00
0.00
Imported
Edible
Oils
Past
Liabilities
11.
Central
0.00
0.00
assistance
to
States/UTs
for
meeting
expenditure
on
intra-state
movement,
handling
of
food grains and FPS
dealers
margin
under
NFSA
(Grants-in-aidGeneral)
SUGAR MANAGEMENT
0.00
21175.81
0.00
21175.81
0.00
22919.00
0.00
22919.00
0.00
18419.01 i
0.00
I.
27000.00
I
I
j
I
!
!
0.00
]0000.00
O.OO!
]0000.00 i
0.00
10000.00
0.00
20000.00
i
:
I
i
0.00
1
10000.00 :
I
I
0.00
10000.00 I
I
I
0.00
0.00
0.00
0.00
0.00
0.00
0.00
150.00
0.00
150.00
0.00
567.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.79
0.00
0.00
0.00
2500.00
-
12. Sugar Subsidy
to FCI / States
0.00
4500.00
0.00
4500.00
0.00
4500.00
0.00
4500.00
0.00
4500.00
0.00
3488.48
0.00
4500.00
13. Transfer
to
Sugar
Development Fund
(SDF)
0.00
250.00
0.00
250.00
0.00
250.00
0.00
500.00
0.00
750.00
0.00
750.00
0.00
2000.00
20.50
0.00
20.48
0.00
20.47
0.00
20.54
0.00
20.54
0.00
13.87
0.00
20.60
Scheme Financed from SDF
14. Administration
ofSDF
0.00
ou tcome
115.
Grants-in-aid
for Development of
I
! Sugar Industry
0.00
2.00
0.00
i
0.84
0.00 I
0.75
110
t fF 00d & P u bliIC D'ISt n'b UtiIOn
B u d ge t 2016 - 17, D epa rt mento
0.00
2.00
0.00 I
0.80
I
0.00
I
0.08
,
!
0.00
i
1.00
I
16. Subsidy
for
maintenance
of
buffer
stock
of
sugar
17. Reimbursement
of
Internal
Transport & freight
charges to sugar
factory on export
shipment
and
payment of other
l'_ermissible claims
18.
Scheme
for
Extending
Financial
Assistance to Sugar
Undertakings, 2014
19. Incentive
on
Marketing
and
Promotion Services
for
Raw
Sugar
Production
20.
Interest
subvention
on
scheme
for
extending soft loan
to sugar mills, 2015
21.Production
Subsidy to Sugar
Mills to offset cost
of
cane
and
0.00
1
I
i
I
5.00 ;
I
0.00 ,.
5.00
!
I
0.00
I
I
!
I
I
i
!
I
4.94
0.00
3.00
0.00 :
3.00
I
1
!
I
i
I
0.00 i
I
,
I
i
0.00 :
I
I
.._--"
1.04
i
I
0.00 .
i
I
I
I
I
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
100.00
0.00
703.77
0.00
703.77
0.00
800.00
0.00
800.00
0.00
600.61
0.00
800.00
0.00
0.00
0.00
200.00
0.00
183.87
0.00
0.00
0.00
200.00
0.00
99.67
0.00
30.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
202.50
0.00
100.00
0.00
202.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
950.01
111
Outcome Budget 2016-1 7. Department of Food & Public Distribution
I
I timely
facilitate
cane
payment
I
to
price
dttes
I
I
I
farmers .
150.00
for
0.00
22.
Lo~ns
Rehabilitation
/
of
Modernization
Sugar Mills
75.00
0.00
23. Loans to Sugar
for
Cane
Mills
Development
200.00
0.00
24. Loans to sugar
for
factories
based
bagasse
cogeneration
power project
75.00
0.00
25. Loans to sugar
for
factories
of
production
anhydrous alcohol
from
or ethanol
alcohol
INTERNATIONAL COOPERATION
hf
/
I
26. Contribution to
International Sugar
Council
27. Contribution to
International Grain
Council
STRENGTHENING
Consultancy,
28.
and
Training
Research
0.00
0.32
I
I
I
!
I
i
I
i
i
I
1
I
I
I
,
i
!
!
I
!
I
1
_.
I
I
I
i
i
I
I
;
1
50.09 I
0.00
150.00 I
200.00
0.00
200.00
0.00
150.00
0.00
75.00
0.00
72.93
0.00
75.00
0.00
30.74
0.00
12.73
0.00
75.00
0.00
46.45
0.00
46.45
0.00
200.00
0.00
200.00
0.00
29.71
0.00
200.00
0.00
75.00
0.00
77.07
0.00
75.00
0.00
76.83
0.00
16.89
0.00
125.00
0.00
0.32
0.00
0.31
0.00
0.34
0.00
0.34
0.00
0.00
0.00
0.34
0.00
!
150.00 : 0.00
~
II
I
i
I
0.00
I
I
;
!
!
I
.
,
0.00
0.30
~
0.00
0.28
0.00
0.28
0.00
0.30
0.00
0.27
0.00
0.27
1.65
0.00
1.43
0.00
0.85
0.00
0.85
0.00
0.18
0.00
-
.).~
OF PDS OPERATIONS
1.50
0.00
0.40
0.00
Outcome Budget 2016-17, Department of Food & Public Distribution
29. End - to - end
Computerization of
TPDS operations
!
12850
B-Financial
Assistance
to
States/ UTs
for
generating
awareness amongst
TPDS beneficiaries
about
their
entitlement
and
redressal
mechanism
CEvaluation,
Monitoring
and
Research
in
Foodgrain
Management
and
Strengthening
of
PDS (ConsultancyProfessional
Services)
31. Assistance to
States/
UTs
for
providing
nonbuilding assets to
State
Food
Commission
0.00 ; 35.00
0.00
!
33.08
0.00
!
80.00
0.00
60.00
0.00
46.98
0.00 : 75.0q:
1
I
i
i 30.
Strengthening
of
PDS
and
Capacity Building
A- Training
!
I
!
I
!
"
I
[
!
I
I
t
!
0.00
!
!
0.87
0.00
0.51
0.00
0.26
0.00
0.25
0.00
0.24
0.00
0.20
0.00
0.25
0.00
1.00
0.00
0.56
0.00
0.16
0.00
0.50
0.00
0.46
0.00
0.14
0.00
0.50
0.00
0.63
0.00
0.43
0.00
0.43
0.00
0.90
0.00
0.70
0.00
0.18
0.00
0.85
0.00
1.00
0.00
0.20
0.00
0.00
0.00
2.00
0.00
0.75
0.00
0.00
0.00
1.00
0.00
•
113
Outcome Budget 2016-17, Department of Food & Public Distribution
32. Strengthening
5.00'
of Quality Control
Mechanism
,
AUTONOMOUS BODY
33.
Warehousing
8.00
Development
and
Regulatory
Authority
STORAGE AND GODOWNS
I'
I
0.00
3.50 I
0.00 i
I
I
0.00
13.81
5.00
0.00
5.00
176.00
0.00
330.00
Deduct Recovery
Less
Repayment
(Ways & Means
advance)
Net
I
0.00
2.72
i
0.00
I
5.00
0.00
3.50 .
O.OO!
2.241-
-O~OO--2:00
1-
-0.00
I
13.81
0.00
30.00
0.00
15.00
0.00 : 3.00
0.00
18.00
0.00
5.00
0.00
5.00
0.00
11.61
0.00
4.00
0.00
2.00
0.00
86.84
0.00
86.83
0.00
85.00
0.00
68.39
0.00
43.00
0.00
50.00
0.00
125954.34
150.00
134326.54
146.05
129303.00
212.00
136325.55
165.00
162084.41
99.92
120789.41
150.00
0.00
152554.11
-627.50
0.00
-1326.54
-5.48
-1321.86
0.00
-1325.55
0.00
-1684.41
-34.52
-562.50
0.00
0.00
-2554.11
10000.00
0.00
10000.00
0.00
10000.00
0.00
10000.00
0.00
20000.00
0.00
0.00
0.00
10000.00
330.00
115326.84
150.00
123000.00
140.57
117981.14
212.00
125000.00
165.00
140400.00
65.40
120226.91
150.00
140000.00
I
0.00 I
State Governments
34. Construction of
Food Storage in NE
Region by State
Governments
(Grants for creation
of capital assets)
Food Corporation
oLlndia
35. Construction of
Storage Godowns
byFCI (Investment)
Total Grant
* Actual Expenditure as on 31.12.2015show above does not includes, authorization issued till then.
# Figures for FY2014-15in respect of earlier Directorate of Sugar & Directorate of Vanaspati, Vegetable Oils and Fats have been clubbed
together.
16-379 Deptt.of F & PDI2015
Ol
r-,
'I
co
114
Outcome Budget 2016-17. Department of Food & Public Distribution
-----
------------------------~----.---
<0
FINANCIAL REVIEW
~--.--.----.---~--.-~---~--.--.-------.--
..
-..
----.-.
.._._-_
..
_---------------j
(~ in crore)
BE 2014-15
B. OBJECT-WISE
-CLASSIFICATION
NonPlan
3
2
Plan
NonPlan
5
4
01 Salaries
-
58.43
-
56.21
02 Wages
-
1.25
-
1.27
-
1.34
03 Overtime
Actual 2014-15
BE 2015-16
I
RE 2015-16
Actual 2015-16
(upto31.12.2015)*
... '
BE2016-17
I
Plan
1
RE 2014-15
I
I
0.23
0.22
Plan
NonPlan
7
6
-
54.80
1.24
Plan
NonPlan
9
8
10
59.44
1.48
1.73
-
61.83
1.46
1.22
-
0.16
NonPlan
11
-
-
1.25
Plan
1.39
0.23
Plan
12
NonPlan
13
-
46.61
Plan
NonPlan
15
14
75.37
0.02
-
0.76
-
1.58
1.71
-
1.01
-
1.81
1.53
0.08
0.98
1.98
0.12
Allowance
1.42
1.73
-
1.45
-
-
0.65
-
0.35
-
0.29
-
0.42
-
0.42
-
0.22
-
0.50
13 Office Expenses
1.14
7.49
1.00
7.69
7.48
1.78
7.60
1.60
7.46
1.10
7.72
-
0.65
-
0.65
0.65
-
0.71
-
0.72
-
5.10
14 Rent, Rates and
-
0.63
-
0.72
16 Publications
-
0.33
-
0.20
0.18
0.34
-
0.20
-
0.16
-
0.34
20 Other
-
1.06
-
1.10
-
1.30
-
1.27
-
0.87
-
1.35
06 Medical Treatment
11 Domestic Travel
Expenses
12 Foreign Travel
Expenses
Taxes
-
1.03
Administrative
•
Expenses
21 Supplies &
Materials
-
0.51
-
0.46
-
0.45
-
0.51
-
0.51
-
0.23
-
0.55
"
,-.;
o
~
-n
115
Outcome Budget 2016-17. Department of Food & Public Distribution
4;~~:~~t:~~k'
__
~
.--L
&
~::.
_
:~_
;t
~06! __ :.~:!_
~--------------------.-
.• -.------
--.----
-.---.
- .. --.
-
T--
- .. - - .--.---
--·r-··--··--:--
--- --- ..---.----- - .---.-
:'~J~121_~.::
.
l _
o~ __ ~~~ ... o"~l __ ~.:; ._o.oI
~,.~
_____~
_______~_,
i
____ .___ t-
!
28 Professional
;
I
5.63
i
._----_-
r------ f---0.34
__
_'
0.34
3.43
2.00
43.32
0.84
42.47
2.51 i
0.29 .
I
Services
31 Grants-in-aid-
--
3.40 •
0.37
i
i
2.00 \ 69.03 I
3.59
4.33
0.37
I
I
0.751104.42
46.79
0.08
87.20
2501.00
0.27
-
0.64
109858.80
-
137384.13
0.03
0.03
-
0.01
-
0.04
5.00
-
11.61
-
4.00
-
2.00
-
-
3.00
-
3.00
-
3.00
-
3.83
-
4.39
20.14
6.10
20.23
4.60
20.22
2.42
13.60
2.40
21.14
2.08
2.25
1.60
43.00
-
-
68.39
-
-
85.00
-
3.25
86.84
-
50.00
-
10396.45
-
10396.45
-
10500.00
-
20457.57
-
10109.42
-
10550.00
-
250.00
-
250.00
-
500.00
-
750.00
-
750.00
-
2000.00
150.00
134326.54
146.05
129303.00
212.00
136325.55
165.00
162084.41
99.92
120789.39
150.00
152554.11
0.01
5.00
-
-
2.70
5.40
20.16
2.25
86.84
-
10500.00
-
-
250.00
330.00
125954.34
0.60
-
0.59
115105.00
-
123584.58
118563.74
0.06
-
0.03
-
5.00
-
5.00
-
3.79
-
2.70
50 Other Charges
6.75
20.17
53 Major Works
2.25
176.00
-
-
0.64
Stipend
of capital assets
36 Grants-in-aid-
0.61
Salaries
54 Investments
55 Loans and
Advances
63 Inter-Account
...
0.47
140774.50
125222.01
-
35 Grants for creation
I
--------_
-
0.62
34 Scholarships /
0.70
-
-
-
33 Subsidies
I
!
General
32 Contributions
. r--------:
~-----0.19'
3.3;,
____;__--------
\
129.44
-
-
-
Transfer
..
Total
* Actuai Expenditure as on 31.12.2015shown above does not includes authorization, issued till then.
116
Outcome Budget 2016- t 7. Department of Food & Public Distribution
,---_ .._.
__ ._ _...
-_"-. --~-.
FINANCIAL REVIEW
--_-_
.
c. YEAR-WISE
BE
RE
Expenditure
Trends
Plan
Non-Plan
Plan
Actual
I
(~ in crore)
Percentage
expenditure with
reference to BE
Percentage
expenditure with
reference to RE
1
2
3
4
NonPlan
5
2013-14
259.00
101469.64
200.00
103406.17
194.07
103404.16
74.93
101.90
97.03
100.00
150.00
134326.54
146.05
129303.00
42.25
102.65
97.36
96.26
165.00
162084.41
99.92
120789.39
47.13
88.60
60.55
74.52
2014-15
2015-16
2016-17
*
-------------
330.00
212.00
150.00
125954.34
136325.55
Plan
Non-Plan
Plan
6
7
Plan
Non-Plan
8
NonPlan
9
10
11
152554.11
Expenditure upto 31st Dec, 2015
•
I
117
Outcome Budget 2016-17. Department of Food & Public Distrihution
Review of the position of unspent balances and position regarding liquidation of pending utilization certificates for the 3rd quarter
ending from Oct-Dec, 2015
Department
of Food & Public Distribution
SI.
No.
Name of the Scheme
1
2
I
2
3
I
Unspent
balances as
on
01.04.2014
Unspent
balances
as on
01.04.2015
Unspent
balances
as on
31.12.2015
3
4
5
Amount of
UCs
pending as
on
01.04.2014
6
Amount of
UCs
pending as
on
01.04.2015
7
(~ in crore)
Amount of
UCs
pending as
on
31.12.2015
8
Strengthening of PDS and Capacity Buildings (Financial
Assistance to States for curbing leakages diversion,
Evaluation, Monitoring and research and Training)
(Plan)
2.08
1.65
1.47
2.08
1.65
1.47
'Constructions
Vans/Trucks".
(Plan)
16.48
9.03
3.58
16.48
9.03
3.58
(Plan)
223.96
255.66
255.15
40.44
223.26
144.77
of
Godowns'
and
"Purchase
of
Computerization ofTPDS operations.
4
Village Grain Bank Scheme
(Plan)
22.35
20.57
2.91
5
22.35
20.57
Strengthening of PDS operations
2.91
(Plan)
1.65
0.84
0.19
1.65
0.84
0.19
(Plan)
0.79
9.11
8.24
0.79
9.11
8.24
(Plan)
24.96
45.90
64.73
24.96
45.90
64.73
(Plan)
7.96
7.96
5.16
7.96
7.96
5.16
(Non-Plan)
26.10
26.10
26.10
26.10
26.10
26.10
(NonPlan)
187.47
203.26
108.49
15.04
41.20
48.07
TOTAL Plan
300.23
350.72
341.43
116.71
TOTAL Non Plan
318.32
231.05
213.57
229.36
134.59
41.14
67.30
GRAND TOTAL
74.17
513.80
580.08
476.02
157.85
385.62
305.22
6
Warehousing Development and Regulatory Authority
7
Strengthening of godowns
8
Integrated
Information
Management
9
10
System
for
Foodgrains
Smart Card based delivery ofTPDS Commodities.
Sugar Development Fund
******
118
Outcome
Budget ~Ol 6-17. Department
of Food & Public Distribution
CHAPTER-VI
6.1
REVIEW OF PUBLIC SECTOR UNDERTAKI!\iCS:
This chapter deals with the review of performance of the 1'0110\\ ing three public sector undertakings under the
administrative control of the Department ofFood and Public Distribution: 1.
Food Corporation of India
2.
Central Warehousing Corporation
3.
Hindustan Vegetable Oil Corporation Ltd.
6.2
FOOD CORPORATION OF INDIA:
The Food Corporation ofIndia (FCI) is the nodal agency of the Government of India responsible for executing
food policies of the Central Government. The functions of FCI primarily consist of purchase, procurement at Minimum
Support Price (MSP) from fanners, storage, movement / transportation, distribution and sale of foodgrains on behalf of
the Central Government.
6.3
ORGANIZATIONAL SET-UP:
The Food Corporation of India co-ordinates its functions through a country-wide network of offices with
Headquarters at New Delhi and 5 Zonal Offices, 24 Regional Offices, 1 Special Regional Office at Imphal covering the
political State of Manipur, 1 Port office at Kandla and 162 District Offices.
6.4 STAFF IN POSITION:
The Category-wise staff position for the quarter ending 30.09.2015 is as under:
CATEGORY
Catezorv-I
Category-II
Category-III
Category-Tv
Total
SANCTIONED STRENGTH
1111
MEN IN POSITION
6221
27270
2380
36982
792
4362
12934
3782
21870*
Table 6.01
*Men-in-position (MIP) includes employees working against Watch & Ward posts for which sanctioned strength is under review.
119
Outcome Budget 2016-17, Department of Food & Public Distribution
6.5
..
CAPITAL STRUCTURE:
The uuthorized/subscrib,
. d capital
or Fe! i.-:
~IS
under:
-_.
(~ in Crores )
;
I
As on
As on
31.03.2014
310.3.2015
31.12.2015
3500.00
3500.00
3500.00
3500.00
(i)working capital
1484.00
1484.00
1484.00
1484.00
(ii)Const. of Godowns& Silos * *
1078.31
1081.31
1168.15
1211.15
(iii) IISFM Project
96.74
96.74
96.74
96.74
(iv) Others
13.90
13.90
13.90
13.90
2672.95
2675.95
2762.79
2805.79
19.28
NIL
71.84
43.00
Authorised Capital
As on
As on
31.03.2013
Subscribed Capital
Total
* * Equity release for NE during the year
Table 6.02
6.6
AUDIT & ACCOUNTS:
The responsibility of auditing of the accounts of the Food Corporation of India rests with the Comptroller and
Auditor General of India (C&AG). The Accounts of the Corporation for the year 2013-14 have been laid before both
Houses of Parliament during the month ofMay'2015. The accounts for 2014'-15have been approved by the Board in its
meeting held on 04.11.2015. The Accounts were submitted to the C&AG for audit on 05.11.2015. C&AG audit has
been completed on 09.12.2015.
120
Outcome Budget 2016-17, Department of Food & Public Distribution
C&AG is likely to issue final audit report in January,2016.Audited Accounts and Audit Report will be approved
by the Board in February. 2016.Printed Accounts will be sent to the Ministry for onward submission to both the Houses
of Parliament in March. 2016.
'.
The turnover of the Corporation for the last six years is given below:
( ~ In Crores)
Year
Purchases
Sales
Subsidy on
Total
Food Grains
2009-10
62731.10
23320.38
42873.11 128924.59
2010-11
73324.71 25566.58
56394.42 155285.71
2011-12
87888.64 26686.92
68697.06 183272.62
2012-13
101923.28 39849.73
80563.18 222336.19
2013-14
103947.80 38356.90
89492.14 231796.84
2014-15
106804.l2
29757.01
105007.03 241568.16
(ProvisionallUnaudited)
•
Table 6.03
6.7
PROCUREMENT:
Wheat Procurement
During RMS 2015-16, total procurement of wheat for the central pool was 280.88 lakh MT as against 280.23
lakh MT during RMS 2014-15. The Region wise procurement of wheat in last two Marketing Seasons is as under:
Sl. No.
STATES/UTs
1
Bihar
Gujarat
Haryana
H.P.
J&K
(Fig. in Lakh MT)
Rabi Marketing Season
2014-15
2
3
4
5
2015-16
0.00
0.00
64.95
0.00
0.00
0.00
0.73
67.78
0.00
0.00
6
7
8
9
10
11
12
13
14
..
M.P.
Punjab
Rajasthan
Uttarakhand
UP
Chandigarh
Delhi·
West Bengal
Maharashtra
TOTAL
121
Outcome Budget 2016-17, Department of Food & Public Distribution
70.94
73.09
116.41
103.44
21.59
13.00
0.01
0.04
6.28
22.67
0.05
0.11
0.02
0.00
0.00
0.00
0.00
0.00
280.23
280.88
Table 6.04
It may be seen from the above that Punjab, Haryana, Madhya Pradesh & Uttar Pradesh have accounted for more
than 95% of the total procurement of wheat during RMS 2015-16.
Paddy Procurement
The total quantity of paddy procurement during KMS 2015-16 is 330.37 (as on 1.1.2016) as against 425.06 lakh
MT of paddy procured during previous KMS 2014-15.
Total Rice Procurement (including paddy in terms of rice)
The total procurement of rice during KMS 2014-15 for Central Pool was 321.65 lakh MT as against 318.45 lakh
MT of rice (including paddy in terms of rice) during KMS 2013-14.
..
KMS 2015-16 has commenced from I" Oct, 2015. Upto 1.1.2016, 189.66 lakh MT rice (including paddy in
terms of rice) has been procured by Govt. agencies including FCI.
17-379 Dept!.of F & PD/2015
I
a
122
r--e-
Outcome Budget 2016-17, Department of Food & Public Distribution
The Region-wise procurement of rice for last two and current Marketing Season is as under:
(Quantity in Lakh MT)
SI. No.
STATES/UTs
2013-14
2014-15
2015-16
1 A.P.
37.38
35.96
9.82
-2 Telangana
43.53
35.04
8.86
3 Assam
0.00
0.15
0.00
4 Bihar
9.42
16.14
0.09
5 Chandigarh
0.12
0.10
0.16
6 Chhattisgarh
42.90
34.23
23.10
7 Haryana
24.06
20.15
28.54
8
9
10
11
Jharkhand
l&K
0.00
0.06
0.01
0.00
0.00
0.06
Karnataka
Kerala
0.00
3.59
0.88
3.74
0.00
1.10
10.45
8.07
13 Maharashtra
1.61
14 Odisha
_ ..-15 Puducherry
28.00
1.99
34.87
5.61
0.61
0.00
0.00
0.00
16 Punjab
81.06
77.86
93.49
0.00
0.00
0.00
6.84
10.51
0.41
11.27
16.98
4.63
4.65
8.70
2.61
13.59
20.32
0.00
0.82
0.00
12 M.P.
17 Rajasthan
18 Tamil Nadu
19 U.P.
20 Uttrakhand
21 West Bengal
22 Others
Total
-
0.00
318.45
321.70
Table 6.05
5.67
189.66
...
II
I
I
123
Outcome Budget 2016-17, Department of Food & Public Distribution
""
,.,
Procurement of Levy Rice
The procurement of levy rice by FCI & State Govt. for the central pool during KMS 2014-15 was 36.80 lakh MT
as against 80.07 lakh MT of levy rice received during KMS 2013-14. Further, GOI vide letter No. 6(1)/2007-Py.lII
dated 20.02.2015 has issued directions for abolition of levy on rice w.e.f.01.10.2015.
Paddy and Rice procurement during KMS 2014-15 and KMS 2015-16
Region-wise procurement of paddy and receipt of levy rice and CMR during KMS 2014-15 is as under:
KMS 2014-15
Sl.No.
I
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
States/UTs
A.P.
Telangana
Assam
Bihar
Chandigarh
Chattisgarh
Haryana
Jharkhand
J&K
Karnataka
Kerala
M.P.
Maharashtra
Odisha
Pucucherry
Punjab
Paddy
42.19
24.32
0.23
24.09
0.15
51.08
30.07
0.02
0.00
1.31
5.50
12.04
2.97
52.03
0.00
116.21
Levy
7.69
18.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
(Quantity in Lakh MT)
Total Actual
CMR
Rice Received
35.85
28.16
34.86
16.11
0.15
0.15
16.13
16.13
0.10
0.10
34.21
34.21
19.87
19.87
0.02
0.02
0.00
0.00
0.00
0.00
3.73
3.73
7.68
7.68
1,.80
1.80
33.15
33.14
0.00
0.00
77.56
77.56
17.
18.
19.
20.
21.
Rajasthan
Tamil Nadu
U.P.
Uttarkhand
West Bengal
Total
124
Outcome Budget 2016-17, Department of Food & Public Distribution
0.00
0.00
0.00
0.00
15.69
0.00
10.42
10.42
18.18
4.80
12.17
16.97
6.12
0.55
4.11
4.66
22.86
5.00
15.27
20.27
425.06
36.80
280.63
317.43
Table 6.06
Region-wise procurement of paddy and receipt of CMR during current KMS 2015-16 (upto 31.12.2015) is as
under:
KMS 2015-16
SI.No..o.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
STATES/UTs
A.P.
Telangana
Assam
Bihar
Chandigarh
Chhattisgarh
Haryana
lharkhand
l&K
Karnataka
Kerala
M.P.
Maharashtra
Odisha
Puducherry
Punjab
Paddy
14.66
13.22
0.00
0.13
0.24
36.87
42.77
0.01
0.09
0.00
1.61
11.47
' 0.91
8.45
0.00
143.39
(Quantity in Lakh MT)
CMR
Total Rice
5.39
5.39
2.31
2.31
0.00
0.00
0.00
0.00
0.09
7.77
10.63
0.00
0.00
0.00
0.80
0.00
0.01
0.53
0.00
24.84
0.09
7.77
10.63
0.00
0.00
0.00
0.80
0.00
0.01
0.53
0.00
24.84
'.
Rajasthan
Tamil Nadu
U.P.
Uttrakhand
West Bengal
Others
17
18
19
20
21
22
•
125
f
F
d
&
P
blic
Distribution
u
outcome BudIget 2016- 17, Department 0 00
0.00
0.00
0.00
0.00
0.00
0.61
6.08
6.08
38.11
1.58
1.58
7.37
0.00
0.00
1.21
9.25
Total
60.03
60.03
330.37
Table 6.07
Procurement of Coarse Grains
In the States of Maharashtra, Karnataka, Madhya Pradesh, Chhattisgarh and Andhra Pradesh, the State Govt.
and their agencies undertook the procurement of coarse grains.
The Region-wise procurement of coarse grain during last two Marketing Seasons is as under:
(Quantity in MT)
2013-14
Maized
Bajra
REGION
Jowar
Maharashtra
Chattisgarh
M.P.
A.P.
Telengana
Kamataka
Bihar
Total
85
-
-
-
2
-
-
4
91
-
-
95555
2587
86573
27918
288904
713807
722
1216066
2014-15
Maize
Bajra
-
Jowar
Ragi
-
5867
1643
Ragi
-
1619
-
-
301842
4945
6438
-
-
-
-
14788
6839
-
-
135955
-
-
-
314844
-
14788
14349
Table 6.08
135955
126
Outcome Budget 2016-17, Department of Food & Public Distribution
MSP of Wheat, Paddy & Coarse grain
As per the Ministry's letter No. 5(1O)/2010-Py.I dated 16.09.2012 and O.M. No. 011IFUD/005/142453 dated
30.08.2011, FCI is making payment to farmers through electronic mode/cheques in all States excepting the State of
Punjab and Haryana where payment to farmers is made through KatchaArhtiyas.
MSP of wheat during RMS 2014-15 and 2015-16 is as under:
(~ per quintal)
Commodity
Wheat
RMS 2014-15
1400
RMS 2015-16
1450
Table 6.09
MSP of paddy &coarse grains during KMS 2014-15 and KMS 2015-16 is as under:
(~ per quin
. ta 1)
Commodity
Paddy - Common
Paddy - Grade' A'
]owar - Hybrid
]owar - Maldandi
Bajra
Maize
Ragi
KMS 2014-15
~ 1360/~ 1400/~ 1530/~ 1550/~ 1250/~. 1310/~ 1550/-
KMS 2015-16
~ 1410/~ 1450/~ 1570/~ 1590/.~ 1275/~ 1325/~ 1650/Table 6.10
Projection of wheat Procurement upto 31.03.2016
Based on trend of wheat procurement during last three years, about 3.50 lakhMT wheat is likely to be procured
in RMS 2016-17 in M.P. Region upto 31.03.2016.
..
127
Outcome Budget 2016-17, Department of Food & Public Distribution
Projection of Rice Procurement upto 31.03.2016
..
Based on trend of rice procurement (including paddy in terms of rice) during last three years, Region-wise rice
(including paddy in terms of rice) projected to be procured during KMS 2015-16 is as under:
S.No.
STATES/UTs
(Fig in Lakh MT)
KMS 2015-16
Projection upto 31.03.2016
1
A.P.
20.00
2
Telangana
16.00
3
Assam
0.06
4
Bihar
9.31
5
Chandigarh
0.11
6
Chhattisgarh
44.97
7
Delhi
0.00
8
Gujarat
0.00
9
Haryana
29.00
10
H.P.
0.00
11
Jharkhand
0.45
]2
I&K
0.01
13
Karnataka
0.48
14
Kerala
1.68
15
M.P.
9.14
16
Maharashtra
1.44
128
Outcome Budget 2016-17, Department of Food & Public Distribution
0.00
17
Nagaland
18
Odisha
22.76
19
Pondicherry
0.00
20
Punjab
81.48
21
Rajasthan
0.00
22
Tamilnadu
3.73
23
U.P.
21.00
24
Uttrakhand
4.12
25
West Bengal
10.20
Total
275.94
Table 6.11
Out of this, 189.661akh MT rice (including unmilled paddy in terms of rice) has already been procured during KMS 201516 for Central Pool upto 31.12.2015.
6.8
STOCK MANAGEMENT
The stock holding under central pool as on 01.01.2016 is 364.77 lakh MT
lakh MT). In addition, 199.04 lakh MT paddy is also available in central pool.
(rice 126.89 lakh MT; wheat 237.88
The Crop Year-wise percentage of issuable stock in central pool as on 01.01.2016 is as under:
(F"igures III
. Iakh MTs)
Crop Year
2015-16
2014-15
2013-14
Wheat
%age of stocks
48.26
50.59
01.14
Rice
%age of stocks
46.45
53.14
00.38
"
129
outcome Budget 2016- 17, Department of Food & Public Distribution
2012-13*
Total
00.01
100
O~:Q)
100
Table 6.12
* Stock of crop year 2012-13 covered under lCAR study
Remark: The stock exclude stocks in transit, BRL/Upgradable/Non-issuable/"C&D' category wheat and "D" category rice.
6.9
PROCUREMENT OF COARSEGRAINS:
In the States of Andhra Pradesh, Telangana, Haryana, Maharashtra, Karnataka, Madhya Pradesh and
Chhattisgarh, the State Government and their agencies undertook the procurement of coarsegrains. The State wise
details of procurement of coarsegrains during last two Marketing Seasons and current marketing season are as under:
KHARIF MARKETING SEASON 2014-15
STATE
Andhra Pradesh
Telangana
Chandigarh
Delhi
Haryana
Madhya Pradesh
Maharashtra
Karnataka
Punjab
Total
18-379
Oeptt. of F & PO/2015
Figure in tonnes
JOWAR
BAJRA
MAIZE
0
0
0
0
0
5867
1643
6839
0
14349
0
0
0
0
0
0
0
0
0
4945
6438
0
0
0
1619
301842
0
0
314844
0
RAGI
0
0
0
0
0
0
0
135955
0
135955
Table 6.13
TOTAL
4945
6438
0
0
0
7486
303485
142794
0
465148
130
Outcome Budget 2016-17, Department of Food & Public Distribution
Figure in tonnes
KHARIF MARKETING SEASON 2015-16
....
STATE
JOWAR
BAJRA
MAIZE
RAGI
TOTAL
Andhra Pradesh
0
0
0
0
0
Telangana
0
0
0
0
0
Chattisgarh
0
0
0
0
0
Delhi
0
0
0
0
0
Haryana
0
5053
0
0
5053
Madhya Pradesh
4665
0
13496
0
18161
Maharashtra
.Karnataka
7440
0
8
0
7448
0
0
0
0
0
Punjab
0
0
0
0
0
Total
12105
0
30662
5053
13504
Table 6.14
6.10
TARGETED PUBLIC DISTRIBUTION SYSTEM (TPDS):
(i)
The TPDS is operated under the joint responsibility of Central Government and StateslUTs. While the Central
Government makes allocation of foodgrains, the distribution of foodgrains under TPDS and Other Welfare
Schemes (OWS) to the targeted beneficiaries is made by the StatelUT Governments and their agencies. FCI
ensures adequate foodgrains stocks at all its base depots throughout the country for TPDS and OWS.
."
131
Outcome Budget 2016-17, Department of Food & Public Distribution
",,-
..
(ii)
The offtake of wheat and rice under TPDS and all other welfare schemes of Government of India during the year
2015-16(Upto November, 2015) was as under:
In Lakh tons
2015-16 (Upto November, 2015)
Total
Rice
Wheat
83.87
37.97
45.90
APL
TPDS
75.34
57.85
17.48
BPL
40.88
33.49
7.39
ANTYODAYA
164.06
73.19
90.86
AAY/ Priority
3.01
1.10
1.92
Tide Over
367.16
203.60
163.56
TOTAL
14.41
10.22
4.19
SPECIAL ADHOC
1.25"
0.60
0.65
Offtake against allocation made at Eco. Cost! MSP rate
~--52.64
18.42
34.22
ALL OTHER SCHEMES*
232.84
435.45
202.62
GRAND TOTAL
(*) All other welfare schemes included Mid Day Meal, Nutrition Programme, Welfare Institutions
and Hostels, Relief Works, Annapurna, WFP, NPAG, Open Market sale, Exports etc.
Under TPDS offtake is against the allocation upto December, 2015.
Name of scheme
Category
Table 6.15
-I
132
Outcome Budget 2016-17, Department of Food & Public Distribution
The estimated offtake of wheat and rice for the period 01.01.2016 to 31.03.2016 i,$ as under:
(In Lakh MT)/(Provisional)
Name of
Category
2015-2016
scheme
Wheat
Rice
(a)TPDS
APL
6.70
5.31
APL Addl.
2.90
0.62
BPL
4.89
9.39
BPL Addl.
1.33
2.41
ANTYODAYA
1.95
6.15
NFSA
37.93
44.58
Other than NFSA
0.95
0.82
TOTAL "TPDS
56.65
69.28
(b) Addl. Allocations for relief/flood & Festivals etc.
0.02
5.43
(c) OTHER WELFARE SCHEMES (OWS)
3.51
0.13
(d) OMSS(D)
40.00
0.13
GRAND TOTAL
100.18
74.97
Table 6.16
'
...
Total
12.01
3.52
14.28
3.74
8.1
82.51
1.77
125.93
5.45
3.64
40.13
175.15
Note: (l) Offtake includes stocks lifted by the State Govt. from the stocks procured under decentralised procurement
scheme (DCP).
(2) other Welfare Schemes include Mid Day Meal, Nutrition Programme, Welfare Institutions and SC/ST/OBC
Hostels, Annapurna and DefencelBSF /CRPF.
(3) Offtake under TPDS/OWS/OMSS(D) is estimated for January to March 2016, as per the allotment received
till date from Ministry and current trend of offtake during 2015-16.
(iii) In North Eastern States, difficulties are faced in maintaining adequate level of foodgrains stocks due to
topographical constraints and natural calamities. The induction of stocks in the North-Eastern States is a perpetual
..
I
133
Outcome Budget 2016-17, Department of Food & Public Distribution
problem which gets acute during the monsoons due to breaches in roads, landslides, cloud burst and washing away of
bridges in the Region etc. FCI is taking all possible steps to induct as much stocks as possible with a view to meet the
monthly allocations in North Eastern States. Besides, the law and order problems, the constraints of the Railways to
carry the required number of rakes on daily basis for the North Eastern States is also another limiting factor.
(iv)
The State-wise issue of foodgrains under all the schemes during the year 2015-16 (upto 31.12.2015) and the
comparative position of the corresponding period during the year 2014-15 and estimated offtake for 2015-16 in NE
, States are as under:
(In Lakh MTs)
State .
Assam
Arunachal
Tripura
Manipur
Nagaland
Mizoram
Meghalaya
·<rotal
Wheat
Actual
Actual
Estimated
Total Estimated
2014-15
upto
31.12.14
2015-16
upto
31.12.15
2015-16
(01.01.16 to
31.03.16)
2015-16
upto
31.03.16
3.82
0.00
0.23
0.18
0.23
0.08
0.17
4.71
4.02
0.00
0.22
0.28
0.30
0.07
0.23
5.12
0.61
0.00
0.06
0.09
0.09
0.02
0.07
0.95
4.63
lln~.~lV'ITs)
0.28
0.37
0.39 '
0.09
0.30
6.06
Table 6.17
~
134
Outcome Budget 2016-17, Department of Food & Public Distribution
(In Lakh MTs)
State
Assam
Arunachal
Tripura
Manipur
Nagaland
Mizoram
Meghalaya
Total
Actual
Actual
2014-15
upto
31.12.14
13.95
0.90
2.69
1.56
1.22
1.07
1.61
23.00
2015-16
up to
31.12.15
11.13
0.86
2.14
1.37
0.98
0.55
1.45
18.48
Rice
Estimated
2015-16
(01.01.16 to
31.03.16)
4.48
0.28
0.67
0.79
0.26
0.18
0.46
7.13
TotalEstimated
2015-16
upto
31.03.16
15.61
1.14
2.81
2.16
1.24
0.73
1.91
25.61
Table 6.18
In North East Region, the total offtake of wheat during 2015-16 (upto 31.12.2015) has increased from 4.71 Lakh
MT to 5.12 Lakh MT and in case of rice it has decreased from 23.00 Lakh MT to 18.48 Lakh MT, as compared to the
corresponding period in the last year.
(v)
The comparative stock position of foodgrain in the North Eastern Region as on 01.01.2015 and 01.01.2016 is as
under:
As on
01.01.2015
01.01.2016
Wheat
0.64
0.53
(In lakh MT)
Total
Rice
3.43
2.79
2.92
2.39
Table 6.19
135
Outcome Budget 2016-17, Department of Food & Public Distribution
The stocks as on 01.01.2016in respect of wheat & rice has decreased by 0.11 lakh MTand 0.40 Lakh MT,
respectively, when compared to the stock position as on 01.01.2015 in the NE Region.
(vi) Further, the month-wise estimated offtake of foodgrains in respect of NE Region for the remaining period of
2015-16 is as under:
(Figs in lakh tonnes)
Total
Rice
Period
Wheat
January 2016
0.32
2.38
3.29
February 2016
0.32
2.38
3.29
March 2016
0.31
2.37
3.29
Total
0.95
7.13
9.87
Table 6.20
Offtake is estimated for January to March 2016, based on the allotment received till date from Ministry. It is
presumed that balance allotment would be lifted 100% & OMSS (D) is as per current trend of sale.
6.11
IMPORT & EXPORT
There has been neither export nor import of foodgrains during 2015-16 (till 31.12.2015). FCI carries out
export/import of foodgrains on Govt. of India directives and as of now, there is no direction from the Ministry
regarding export/import of foodgrains from Central Pool.
6.12
AIDTOMYANMAR
Government of Indiahas donated 100 MT rice to Myanmar for flood affected areas near Indian Borders out of
Central Pool Stocks during 2015-16.
136
OutcomeBudget2016-17,Departmentof Food & PublicDistribution
6.13
QUALITY CONTROL
The Quality Control (QC) wing of FCI is entrusted with enormous task of procurement & preservation of
foodgrains. The foodgrains are procured as per laid down specifications of Govt. of India and inspected regularly
during storage to monitor the quality. Representative samples of the stocks are drawn for physical analysis to ensure
whether the quality standard meets the parameters of laid down Specifications of Govt. of India and Food Safety &
Standard Authority of India (FSSAI). This is done through a network of2133 laboratories (ason01.01.2016)throughout
the country. The laboratories at Headquarters, IFS Gurgaon, Zonal, Regional, District & Depots levels are equipped to
carry out physical analysis of the foodgrains.
The senior Q.C. Officers undertake frequent visits to the procurement & storage points to inspect the quality of
foodgrain stocks and advise QC staff on the spot to ensure procurement of foodgrains conforming to specifications and
its maintenance during storage at all levels. Appropriate action is also initiated against defaulters, if any, in order to
tighten the supervisory arrangement and fixing responsibilities on all found responsible for procurement of stocks
beyond laid down parameters. Long terms/short term training is held for QC staffs on procurement and preservation of
foodgrain management.
Periodical disinfestation measures are undertaken i.e. prophylactic and curative treatments is given to the stocks
with the permitted insecticides to ensure the health of the grains so that it is preserved in the highest category possible.
Preventive measures are also undertaken to control rodents, birds and pest infestation by appropriate measures.
The stocks of foodgrains strictly conforming to FSSAI norms are issued under TPDS and OWS to various State
Governments by adopting joint sampling system scrupulously.
Non-Issuable (Damaged) Foodgrains and its Disposal
Foodgrains which do not conform to FSSAI norms and further cannot be reconditioned for normal issue are
considered 'Non-Issuable'. Damage to the stock may occur in the Covered/CAP storage or in transit.
1
137
Outcome Budget 2016-17, Department of Food & Public Distribution
The non-issuable foodgrains classified under various categories are disposed off as per procedure. Fresh
allocations and sale of non-issuable foodgrains held by the FeI and State Agencies is made only to bonafide registered
parties to avoid circulation of non-issuable foodgrains into the market. Executive Directors (Zone) & General Managers
(Region) are vested with full power for disposal of Non-Issuable foodgrains.
The major quantity got damaged due natural calamities such as cyclone (Andhra Pradesh Region) and rain (UP,
TN, Kerela and Gujrat Region). Some quantity of foodgrain stocksalso gets damaged due to prolonged storage, in
transit damage etc.
The break-up of damaged foodgrains accrued during 2015-16 (upto 01.01.2016) is under: .
Reasons for damage
Quality complaints
Prolonged storage
Negligence
Cyclone
Railhead damage
Rain
Transit damage
CAP damage
Others
Total
Quantity (in MT)
323
24
79
2039
13
101
317
2
29
2927
Table 6.21
A quantity of 4320 tonnes of non-issuable foodgrains has been disposed off during 2015-16 (from April, 2015 to
December, 2015).
New Initiatives
•
19-379 £)pott of F II. PD/?(l1;
The BOD has' approved the Model Tender Form (MTF) for engagement of service provider for quality.
assurance and checking during receipt, preservation, maintenance, despatches and issue of foodgrains in
138
Outcome Budget 2016-17, Department of Food & PublicDistribution
designated FCI godowns. Currently tenders have been floated by Chhattisgarh, Maharashtra, Gujrat, Andhra
Pradesh and Tamil Nadu.
• Procurement of pulses has started from KMS 2015-16 (Tur and Urad). Necessary directions has been given to
Institute of Food Security, Gurgaon, to arrange training programme for Officers/Officials for smooth
procurement, storage, preservation and liquidation of pulses.
• As huge quantity of wheat has been procured under relaxed specification (URS) during RMS 2015-16 in
various wheat procuring States, a study on "Shelf-life of wheat procured under relaxed specifications" is
currently being done by IGMRI Hapur to evaluate the quality of procured wheat during RMS 2015-16 and
further drawing priority for issuance.
As per recommendations ofHLC andsubsequent decision taken by Govt. of India, FCI has drawn a roadmap for
'strengthening its quality control infrastructure and modernization of laboratories. In this track, FCI has approached
reputed Govt. Institutes and private parties for evolving and field testing of mechanized devices for quality checking of
nee.
6.14 STORAGE OF FOODGRAINSAND AUGMENTATION OFSTORAGE CAPACITY:
1
Procurement, in the last few years, has touched new heights given remunerative MSPs coupled with better
operational outreach. As a result, Central Pool Stocks had increased from 196.38 lakh MTs as on 01.04.2008 to a peak
level 823.17 lakh MTs as on 01.06.2012. The position of stocks in the Central Pool as on 01.01.2016 was 237.47 lakh
MTs. To meet the short-term peak requirements of storage capacity, FCI resorts to short-term hiring of covered
godowns as well as storage of foodgrains under Cover & Plinth (CAP). CAP is also a scientific method for storage of
foodgrains.
Total storage capacity available with Food Corporation of India is 359.25 lakh"MTs as on 31.12.2015. Storage
capacities, both Covered and CAP, available with State agencies for Central Pool stock of foodgrains is 452.84 Lakh
MTs. As a result, total of about 812.09 Lakh tonnes of storage capacity is available for storage of Central Pool stock of
foodgrains which stood at 364.77 Lakh MTs as on 31.12.2015. The detailed statement is as follows:-
\
-,~
139
Outcome Budget 2016-17, Department of Food & Public Distribution
-
Covered
Hired
Owned
... '4
Bihar
Jharkhand
Orissa
West Bengal
Assam
Arunachal Pd
Meghalaya
Mizoram
Tripura
Manipur
Nagaland
Delhi
Haryana
Himachal Pd.
l&K
Punjab
Rajasthan
Uttar Pradesh
Uttarakhand
Andhra Pradesh
Telangana
Kerala
Kamataka
Tamilnadu
..
Gujarat
Maharashtra
Goa
Madhya Pradesh
Chhattisgarh
Total
(Fig. inLMT as on 31.12.2015)
Total Storage Capacity with FCI (Owned/Hired)
State
3.66
0.67
3.12
8.5
2.7
0.18
0.14
0.25
0.29
0.28
0.21
3.36
7.68
0.19
1.03
22.24
7.06
14.95
0.66
7.36
5.37
5.29
3.81
6.24
5
8.85
0.15
3.37
5.12
127.73
CAP
Total Storage Capacity
with State Agencies
Total
Grand Total
Owned
Hired
Covered
CAP
Covered
CAP
Covered
CAP
2.6
1.65
2.41
1.15
1.05
0.04
0.14
0
I
0.05
0
0.51
0
0
0
0
0
0
1
0.05
3.45
-
-
0
0
0
9.71
2.32
11.69
16.14
6.02
0.33
I
0.05
0
0
0
6.26
2.32
5.53
9.65
3.75
0.22
0.07
0.04
0
0
0
0.31
3.33
0
0.1
7.31
1.85
5.19
0.21
1.6
0
0
0
0
0
0
0
0.1
0.13
0
41.99
0.3
1.36
79.28
10.42
29.51
0.98
4.91
3.35
0.05
3.7
4.67
1.89
10.69
0.05
0.05
2.92
205.4
333.13
0
0
0
1.02
0.21
0
0
0
1.36
0.31
0.27
0
0
0
1.02
0
0
0
0.36
0.01
0
0
26.02
0.1
26.12
0.28
0.25
0.36
0.32
0.34
3.36
49.67
0.49
2.39
101.52
17.48
44.46
1.64
12.27
8.72
5.34
7.51
10.91
6.89
19.54
0.2
3.42
8.04
-
6.16
-
0.51
6.49
2.27
-
-
0.11
-
-
0.42
-
-
0.31
3.33
-
-
30.99
30.53
-
-
0.1
7.41
1.85
5.19
0.21
-
-
42.42.
100.44
0.19
-
1.6
1.02
0.21
1.36
0.31
0.27
0.48
5.78
14.12
1.86
12.88
-
-
-
-
12.27
0.97
20.36
0.41
5.71
2.06
-
-
0.51
-
0.28
0.67
0.84
-
0.32
0.34
3.36
80.66
0.49
2.39
143.94
23.26
58.58
3.5
25.15
20.99
6.3 I
27.87
0.31
33.86
0.1
107.85
2.04
5.19
0.21
1.6
1.02
0.21
1.77
0.31
0.27
16.62
8.95
1.02
0.36
om
333.13
26.12
359.25
11.18
111.6
15.41
14.28
-
306.99
145.85
452.84
Table 6.22
30.92
115.02
23.45
1.02
14.64
0.01
640.12
171.97
812.09
Outcome
Budget 2016-17,
Department
140
of Food & Public Distribution
Storage capacity available with FCI is concentrated mainly in the procuring hub located in the Northern
Zone: The Northern Zone has about 67% of the total available storage capacity, the Southern Zone has about 14%,
Western Zone has about 11%, Eastern Zone has about 7% and North-Eastern Zone has 1% of the total available
storage capacity. As stated above, around 69% of the storage capacity is concentrated in 7 major procuring States
i.e. Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, Telangana, Madhya Pradesh and Chhattisgarh, while about
7% storage capacity is available in the four newly emerging procuring States of Bihar, Odisha, Jharkhand and West
Bengal. Capacity enhancement as per requirement is taking place through PPP mode through creation of
€onventional godowns as well as steel silos.
PEG Scheme for construction of godowns
To overcome storage constraints and ensure safe stocking of food grains across the country, Government is
implementing the Private Entrepreneurs Guarantee (PEG) Scheme for construction of storage godowns in PPP through
private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Assessment
of additional storage capacities required under the scheme is base3d on the overall procurement/consumption and the storage
space already available.
Under the PEG scheme, FCI gives a guarantee of 10 years to private investors and 9 years to CWC/SWCs/State
Agencies. A capacity of 151.20 Lakh MTs has been sanctioned for construction of PEG godowns in 20 states. A capacity of'
131.66 lakh MT has been completed and a capacity of 14.96 lakh MT is under construction upto 31/12/2015. State-wise
status report of the Scheme is given is below.(Fig. in MT as on 31.12.2015)
SI.
No.
State
2
Andhra Pradesh
Bihar
3
Chhattisgarh
1
Capacity
sanctioned/
allotted
1,12,800
5,25,000
5,42,230
Capacity
completed
Capacity taken
over
87,800
1,45,000
87,800
80,000
4,92,390
4,92,390
Capacity under
construction
Capacity for which
construction work is
yet to start
25,000
2,60,000
49,840
0
1,20,000
0
•
141
oucome
t
Buige
d t201617
ep men
- , Dartt
r
ubrIC D·IS tibution
0fF 00d&P
4
5
Gujarat
Haryana
50,000
34,93,309
49,800
34,56,629
49,800
33,67,779
0
16,680
200
20,000
6
Himachal Pradesh
24,170
24,170
19,170
0
0
7
Jammu & Kashmir
2,94,010
1,27,180
1,27,180
1,20,160
46,670
8
Jharkhand
2,53,000
1,13,000
1,13,000
30,000
1,10,000
9
Karnataka
2,41,440
2,04,770
2,04,770
36,670
0
10
Kerala
5,000
5,000
5,000
0
0
11
Madhya Pradesh
15,55,060
11,71,690
6,20,890
3,83,370
0
12
Maharashtra
5,64,527
5,64,527
5,39,527
0
0
13
Odisha
3,70,000
2,79,500
2,59,500
45,500
45,000
14
15
Punjab
Rajasthan
45,08,858
2,50,000
44,15,225
2,20,000
43,55,225
1,63,000
78,270
15,000
15,363
15,000
16
Tamilnadu
2,50,000
1,60,000
1,40,000
75,000
15,000
17
Telangana
3,19,000
2,69,000
2,38,000
18
Uttarakhand
0
0
0
0
0
19
Uttar Pradesh
15,51,127
12,33,127
12,23,127
3,18,000
0
20
West Bengal
2,10,180
1,51,19,711
1,46,770
81,500
1,21,67,658
43,010
14,96,500
4,57,633
Total
1,31,65,578
50,000
20,400
Table 6.23
During 2015-16, the target of FCI for capacity construction was 3.00 Lakh MT. A Capacity of 4.65 Lakh MT
has been completed upto 31.12.2015 and additional capacity of 1.25 Lakh MT is likely to be completed upto March
2016. The state-wise storage capacity created under PEG scheme in 2015-16 is as follows:T'
STATE-WISE STORAGE CAPACITY CREATED UNDER PEG SCHEME IN 2015-16 (UPTO 31.12.2015)
(Capacity in Lakh MT)
Achievement
State
Sl.no
0.00
Andhra Pradesh
1
0.15
Bihar
2
142
outcome Bud[get 2016 - 17, Department of Food & Public Distribution
3 .
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Chhattisgarh
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Odisha
Punjab
Rajasthan
Tamilnadu
Telengana
Uttar Pradesh
Uttarakhand
West Bengal
Total
0.42
0.00
0.00
0.00
0.00
0.13
0.00
0.00
1.49
0.00
0.30
1.25
0.00
0.05
0.00
0.00
0.20
'"
0.66
4.65
Table 6.24
Silos - Scientific Storage of Food Grains.
Steel Silo' storage with bulk handling facility is highly mechanized and modernized way of storing of
foodgrains in bulk. It ensures better preservation of foodgrains and enhances its shelf life. If foodgrains are stored
in Silos and transported in bulk, losses due to theft, pilferage and transportation would be negligible compared to
foodgrains storage in bags in conventional warehouses. Further since land availability in existing FCI godowns is
scarce, it would be prudent to shift to storage of foodgrains in Silos as it requires approximately 1/3rd land as
compared to conventional storage warehouses. Moreover, Silos can be operated round the clock which would
bring in flexibility and would improve overall efficiency. As such, construction of Silos and utilization of Silos
,
./
143
Outcome Budget 2016-17, Department of Food & Public Distribution
for storing and transportation of foodgrains in bulk would be beneficial to the nation as a whole besides also
creating an efficient Food Supply Chain Management System. Accordingly FCI has plans to modernize its storage
facilities by construction of modern steel Silos on a PPP mode.
At present, FCI has steel silos of 5.5 LMT capacity being operated in PPP mode. The capacities of Silos in
the Base and Field Dpots in two circuits are as given belowcCircuit-I
Circuit-II
Storage size
Depot 2,00,000 MTs
. Storage size
Location
Location
Base Depot Moga (Pb) 2,00,000 MTs Base
Kaithal (Hr)
Field Depot
Field Depot
Chennai (TN)
25,000 MTs
Navi Mumbai
Coimbatore
Bangalore (KNK)
25,000 MTs
25,000 MTs
Hooghly (WB)
50,000
25,000 MTs
Table 6.25
It is proposed to augment Silo capacity in the country in phases as follows:
Year
,.
2016-17
2017-18
2018-19
2019-20
2020-21
Total
Selection
(LMT)
36.25 LMT
29.00 LMT
34.75 LMT
-
100 LMT
of
Silo
(Phase - 1)
(Phase - 2)
(Phase - 3)
Operator
.
Silo
Completion
(LMT)
5LMT
15 LMT
30LMT
30LMT
20 LMT
100 LMT
Table 6.26
144
Outcome Budget 2016-17, Department of Food & PublicDistribution
Construction will be done in PPP mode through FCI, State Governments and other agency like CWC. It
has also been proposed to get the study conducted by independent experts prior to proceeding with construction of
Silos in phase 2 and phase 3.
Accordingly, FCI has already floated tenders (RFQ) for construction of Silos through PPP mode for total 1.5
Lakh MT capacity at 6 locations viz. Narela, Changsari, Katihar, Whitefield, Sahnewal and Kotkapura on 23.04.2015.
Request for proposal (RFP) has been floated on 11.12.2015 for Katihar, Kotkapura& Whitefield after getting inprinciple approval for VGF grant from Empowered Institution of DEA. RFP for remaining three locations will be
floated soon.
Plan Scheme for construction of storage godowns:
Augmentation of Storage Capacity in the North East Region (including Sikkim):
The Department is creating storage capacity in the NE Regions under the Plan Schemes "Construction of
storage godowns". While finalizing the scheme for 11 th Five Year Plan, it was decided to expand the scope of the
Scheme to States like Himachal Pradesh, Jharkhand, Bihar, Odisha, West Bengal, Chhattisgarh, Maharshtra and
Lakhadweep for the purpose of construction of godowns.
In addition, DFPD has been requesting the state governments to create intermediate storage capacities at
BlockiTaluka level to store foodgrains collected from FCI depots, for further distribution to fair price shops. This is
necessary to improve the supply chain logistics for TPDS. While construction of intermediate godowns is- the
responsibility of the state governments, plan funds are provided as Grant-in-Aid also to governments of the NE states
and 1&K for this purpose, considering their difficult geographical conditions.
Under the Plan Scheme, funds are released to the FCI in the form of equity for land acquisition and for
construction of storage godowns, and related infrastructure like railway sidings, electrification, installation of
weighbridge, etc.
The followingis
145
Outcome Budget 2016-17, Department of Food & Public Distribution
the Plan outlay for XIIth Five Year Plan.
Head
1
Construction of godowns by FCI at 37
locations in the NE (2,92,730 MT).
Construction of godowns by FCI at 9
locations in 4 other states (76,220 MT).
Grant-in-Aid to NE states for intermediate
storage at 74 locations.
Grant-in-Aid to J&K for intermediate
storage at 1 location.
Total
2
3
4
Physical and Financial Achievements
Year
2012-13
2013-14
2014-15
2015-16
Total
Outlay in
12th Plan
(Rs crore)
509.76
Unspent
balance of
11th Plan
(Rs crore)
51.20
72.14
16.06
56.08
14.36
0.00
15.36
1.00
0.00
1.00
597.26
67.26
Table 6.27
530.00
Estimated
Cost
(Rs crore)
Sl
by FCl during 2012-13, 2013-14,2014-15
North East Region
Physical
Financial
(Rs in crore)
(In MT)
27.72
2,910
2,500
43,480
19,170
68,060
30.94
76.48
43.00
178.14
Other States
Physical
Financial
(In MT)
(Rs in crore)
1,160
2.64
20,000
21,160
11.02
0.99
0.00
14.65
458.56
and 2015-16 are as below:Total (NE+Other States)
Physical
Financial
(In MT)
In Rs Crore
4,070
30.36
22,500
43,480
19,170
89,220
Table 6.28
41.96
77.47
43.00
192.79
Total 75 projects of capacity 78,055 MT were sanctioned for construction of intermediate
storage godowns
using Grants-in-Aid
in the North Eastern States and Jammu & Kashmir. As on 31112/2015, capacity of 54,855 has
been completed.
20-379
Deptt. of F & PD/2015
146
Outcome Budget 2016-17, Department of Food & PublicDistribution
.
In addition, hiring of storage capacities is done by FCI wherever required and maximum utilization was made of
existing capacities. The storage capacity available with FCI and the percentage utilisation during last five years is as
under:
(Figuresin LakhMT)
Position as
on
30.06.2011
30.06.2012
30.06.2013
30.06.2014
30.06.2015
6.15
Covered
Owned Hired
129.91
130.03
12.9.96
130.09
127.40
Total
167.75 297.66
195.64 325.67
225.23 355.19
224.03 354.12
217.90 345.30
Owned
26.36
26.36
26.37
26.38
26.02
CAP
Hired
8.50
12.35
10.23
6.90
1.68
Total
34.86
38.71
36.60
33.28
27.70
Grand
Total
%age
utilization
332.52 91%
364.38 97%
391.79 84%
387.40 82%
373.00 82%
Table6.29
VIGILANCE & SECURITY:
The Vigilance Division in Headquarters is headed by the Executive Director (Vig.)/CVO, who is assisted by
General Manager (Vig.)/ Deputy General Manager (Vig.) and Asstt. General Manager (Vig.) along with Managers
(Vig.) and supporting staff. Similar vigilance set-up exists in the Zones/Regions. In Zones, Vigilance Division is
headed by General Manager(Vigilance & Security) who is assisted by Deputy General Manager(Vig.) / Asstt.
General Manager (Vig.), Managers(Vig.) and supporting staff. General Manager (Vigilance) functions directly under
the Executive Director (Zone). Similarly in the Regions, depending upon the staff strength and work load, Vigilance
Unit is headed by Deputy General Manager (V&S) or Asstt. General Manager(V&S) and assisted by Managers &
supporting staff.
The functions of Vigilance Division are both punitive as well as preventive. During the course of surprise
checks/ regular checks, whenever irregularities come to the notice of Vigilance Division, necessary steps to punish
delinquent staff are taken by the concerned unit i.e. in respect of Category-IV by the District Offices, for Category-III
by Regional Offices, for Category-II by Zonal Offices, for Category-I by Headquarters. For preventive vigilance, time
147
Outcome Budget 2016-17, Department of Food & Public Distribution
to time surprise checks/regular checks are carried out and based on the observations of these squads, operative
Divisions are advised to put in place instructions/circulars to plug loopholes in procedure so as to minimize/eliminate
scope of manipulation by unscrupulous stakeholders.
During the period from 1st April, 2015 to JIst December 2015, 763 vigilance cases were initiated and 802
vigilance cases were disposed off.
In order to minimize the storage and transit losses and to ensure the quality of foodgrains , 6014 regular and
2027 surprise inspections were conducted by various vigilance units of FCI during 2015-16 (upto 31.12.2015), some of
them resulting into vigilance cases .
.
In order to effectively carry out objectives of FCI and curb the instances of corruption, following preventive
measures aimed to reduce the scope for corruption! irregularities/ frauds are being taken:
Preventive Vigilance measures in respect of Procurement:
(i)
(ii)
.
(iii)
(iv)
,
(v)
In order to eliminate subjectivity in the physical and visual analysis of quality parameters in respect of rice,
each refraction was pictorially depicted and introduced to the field functionaries of FCI and put up in public
domain.
The process of appeal and grievance redressal mechanism was reviewed and instructions circulated by QC
Division, FCI Hqrs on 31.03.2015
Emphasis is being laid on introduction of Good Laboratory Practices in respect of QC labs.
Emphasis on introduction of identity-blind/coding system, for fair analysis of QC samples of food grains is laid
and instructions have been issued accordingly .
By making senior management functionaries responsible for effective supervision &control in QC functions,
incidents ofBRL food grains have come down considerably.
148
Outcome Budget 2016-17, Department of Food & PublicDistribution
Preventive Vigilance measures in respect of Storage and Contracts
Ensuring that the terms & conditions of tender notice are not designed to block wider participation of bidders
which is aimed at getting benefit of competitive bidding to FCI.
(ii) Modifications were suggested in Model Tender Forms so as to simplify pre-qualification conditions, increase
competition and to provide security for performance in the form of Bank Guarantees.
(iii) Introducing a system of monitoring of QPV, APV and Zero Balance PV by Vigilance Division. Random
scrutiny of QPV/APV reports is done during the inspections by Vigilance Squads. Instructions on QPV/APV
were issued vide FCI Hqrs Circular 99/2013.
(iv) The list of sensitive districts have been comprehensively reviewed and revised.
(i)
Preventive Vigilance measures in respect of Transportation/ Movement
(i)
(ii)
(iii)
(iv)
(v)
Prescribing proper management of records.
E-tendering and tender results are published in web-site of FCI.
Stringent penalty of recovery from contractors introduced to deter manipulation/losses.
Prescribing inspections by Sr. officers in case of SL/TL exceeding pre-determined levels.
Provision for Independent Consignment Certification Squad (lCCS) at the time of loading and unloading of
foodgrains moved through railways.
(vi) Provision for electronic weighbridges at all depots with periodic calibration.
(vii) Installation ofCCTV cameras in godowns.
Preventive Vigilance measures in respect of Distribution
(i)
(ii)
For assuring consumer satisfaction, circulars have been issued by QC division, Hqrs on Quality Assurance.
The Corporation is also in the process of introducing automation in storage and handling. Bids have been
invited for building, operating and maintaining modem silos with high degree of automation. This will
reduce contact points as well as discretion of the Corporation officials in the depots.
149
Outcome Budget 2016-17, Department of Food & PublicDistribution
(iii)
(iv)
In addition, a comprehensive on-line depot manag~ment system is proposed to be implemented. This will
help improve and automate record keeping as well as provide real-time information about activities in the
godowns as well as bring in transparency in day-to-day operations.
FCI has also introduced e-payment system for almost all transactions in the Corporation.
Security
Security of FCr s men and material is managed through its own Watch & Ward as well as through outsourcing
of Ex-Servicemen, State Home Guards & Police Force personnel.. At certain vulnerable depots, the security of food
grains is manned by the State Armed Police.
Security surveillance through installation of CCTV Cameras & integrated security surveillance system ( Security
gadget with man power) has been completed at 58 and 07 FCI designated depots inthe financial year 2013-14 & 201415 respectively, for effective security surveillance to minimize theft, pilferage etc.
In addition to the above, installation of CCTV cameras in all the FCI owned depots (excluding the depots where
such facilities already exist) is underway. Further instruction has been issued for engagement of SAP/CISF in 18
vulnerable locations to ensure proper security safety of stocks.
In order to prevent occurrence of fire, the depot/ office are provided with adequate fire-fighting equipment and
all the ZOs/ ROs have certified the proper functioning of fire-fighting equipment.
A total of 559 Security inspections at various levels were conducted from 01.01.2015 to 31.12.2015.
The Security Division at Hqrs monitors cases of theft! fire/ pilferage intimated by Regions and issue directions
whenever required.
150
Outcome Budget 2016-17, Department of Food & Public Distribution
Statement showing the security inspection conducted w.e.f. 01.01.2015 to 31.12.2015 is given below:
SI.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22:
23.
24.
25.
26.
27.
28.
29.
.30.
Name of the Region
Headquarters
ZonaIOffice(North)
Delhi
Harvana
Puniab
Raiasthan
Dehradun (Uttrakhand)
Lucknow (UP)
Jammu (J&K)
Shimla (Himachal Pradesh)
ZonaIOffice(South)
Hvderabad (Andhra Pradesh)
Tamil Nadu(Chennai)
Benzaluru (Karnataka)
Trivandrum (Kerala)
ZonaIOffice(West)
R.O. Mumbai
Raipuri Chhatishgarh)
Bhopal (M.P)
Ahmedabad
Zonal Office(East)
R.OIEast)
Patna (Bihar)
Ranchi
Bhubneshwar
Zonal Office(NE)
ShiIIong
Dimpur (N&M)
Arunachal Pd
Assam (Guwahati) .
Total
Security Inspection
00
01
03
16
67
34
01
35
00
06
15
05
19
00
05
13
03
51
50
24
34
10
82
07
70
00
00
00
00
08
559
Table 6.30
151
Outcome Budget 2016-17, Department of Food & Public Distribution
6.16 TRANSPORT OF FOODGRAINS:
Movement of food grains is undertaken in order to evacuate stocks from surplus Regions, to meet the
requirements of deficit regions and also to create buffer stocks in deficit Regions. A quantity of 45 to 50 million tonnes
of food grains are transported by FCI across the country in a year. Movement of food grain is undertaken by rail, road
and riverine systems, singularly or in combination. More than 90% of the movement of stocks is undertaken by rail
(covering an average lead of 1500 KMs), rest is moved by road. A small quantity is also moved by ocean vessels to
Lakshadweep and Andaman & Nicobar Islands and through coastal shipping and riverine movement to KeralaiTripura.
FCI is major customer of Indian Railways. Annual freight being paid, at present, is around ~ 7,000 crore apart
from other charges levied by Indian Railways. Rail freight is about 5% & 6% of the economic cost of rice and wheat,
respectively.
The All India movement of foodgrgains, and movement Ex. N0l1h during the period from April, 2015 to
December, 2015 and projected movement from January, 2016 to March, 2016 is as under:
2015-16(Provisional)
(Fig in lakh MT)
Movement Ex. North
All India Movement
Rail
April,15 to
.,
Dectember,15 (Actual)
Road
Total
Inter
Intra
Inter & Intra
Rail & Road
Inter & Intra
Rail & Road
Total
Rail
Road
Inter
Total
Intra
Total
240.49
40.63
281.12
247.34
33.78
281.12
167.88
20.80
188.68
180.93
7.75
188.68
85.87
13.14
99.01
86.21
12.80
99.01
59.93
6.54
66.47
62.5
3.97
66.47
326.36
53.77
380.13
333.55
46.58
380.13
227.81
27.34
255.15
243.43
11.72
255.15
January, 2016 to
March'2016
(Projection)
Total
Table 6.31
152
Outcome Budget 2016-17, Department of Food & Public Distribution
During 2015-16 there is 19% and 22% decrease in All India Movement of foodgrains and ex-North Movement
respectively compared to 2014-15 for the same period. Accordingly projected Movement of foodgrains for the period
January, 2016 to March, 2016 has been prepared.
The movement of foodgrains during 2014-15 is as under:
2014-15
(Figures in lakh MT)
Month
Rail
All India movement
Rail & Road
Inter & Intra
Total
Road
Inter
Intra
Total
Rail
Movement Ex. North
Rail & Road
Inter & Intra
Road
Total
Inter
Intra
Total
April, 2014 to
December,14 (Actual)
303.32
41.58
344.9
303.04
41.86
344.9
219.73
22
241.73
230.95
10.78
241.73
January, 2015 to
March,15 (Actual)*
106.oI
16.22
122.23
106.43
15.8
122.23
76.83
8.38
85.21
80.12
5.09
85.21
Total
409.33
57.8
467.13
409.47
57.66
467.13
296.56
30.38
326.94
15.87
326.94
311.07
Table 6.32
*Including export Position
All India movement (Inter + Intra by Rail and Road) w.e.f. April, 2015 to December, 2015 is given below:
(Fig. in lakh MT)
Sl.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Month
Food grains (Wheat + Rice)
April,15
May,15
June, 15
July,15
August, 15
September,15
October, 15
November, 15
December, 15
Total
27.38
30.12
29.26
34.53
34.19
31.84
28.02
30.22
35.56
281.12
Table 6.33
•
153
Outcome Budget 2016-17, Department of Food & Public Distribution
The position of inter State inflow outflow by rail and road during 2014-15 and 2015-16 is given below:
(Provisional)
INTER STATE INFLOW OUTFLOW BY RAIL & ROAD
(Figures in lakh MT)
2014-15
2015-16_1UJ!_toDecember)
REGION
WHEAT'
RICE
TOTAL
WHEAT
RICE
TOTAL
WHEAT
RICE
TOTAL
WHEAT
RICE
0
0
29.58
0
0
62.73
97.68
55.33
0
124.13
32.16
0
221.81
87.49
0
0
0
18.15
0
0
12.56
0
0
30.72
67.88
40.82
0
59.96
11.04
0
127.85
51.86
0
3.15
0.01
3.16
0
1.78
1.78
2.48
0.06
2.54
0
1.21
1.21
3.94
6.63
10.57
0
0
0
2.23
5.86
8.09
0
0
0
3.54
2.22
5.76
0
0
0
2.66
1.51
4.17
0
0
0
DELHI
7.62
1.02
8.64
0
0
0
3.6
0.78
4.38
0
0
0
RAJ
9.58
0.42
10
0
0
0
10.55
0.31
10.86
0
0
0
60.98
39.88
100.86
153.01
158.07
311.08
39.67
21.08
60.75
108.71
72.21
180.92
29.99
22.74
52.73
0
0
0
20.89
15.09
35.98
0
0
0
0
0.07
0.07
28.95
0.11
29.06
0
0
0
16.01
0
16.01
I.I
0
I.I
0
23.86
23.86
0.4
0
0.4
0
19.35
19.35
24.93
0
0
0
13.4
2.44
0
U.P
UCL
J&K
H.P
TOTAL
MAHA
M.P
CHG
GUJ
GOA
TOTAL
T.N
KNK
KERALA
A.P
TOTAL
ORISSA
JHK
W.B
BIHAR
N.E.
TOTAL
G.TOTAL
16.62
8.31 .
15.84
0
0
0.18
0.52
0.7
0
0
0
0
0
0
0
0
0
47.89
31.64
79.53
28.95
23.97
52.92
34.69
17.53
52.22
16.01
19.35
35.36
0.91
38.46
39.37
0
0
0
1.8
23.03
24.83
0
0
0
9.12
26.24
35.36
0
0
0
5.12
16.7
21.82
0
0
0
324
1.81
15.08
11.73
0
76.43
14.97
1.81
91.51
0
0.15
0.15
0
34.32
34.32
0
49.32
49.32
2.04
0.64
9.59
7.03
0
46.76
9.07
0.64
56.35
0
0
0
0
20.75
20.75
0
20.75
20.75
4.94
0.03
4.97
0
11.01
11.01
2.84
0.01
2.85
0
10.31
10.31
0.24
12.75
12.99
0
0
0
0.77
8.93
9.7
0
0
0
25.21
20.69
10.23
25.53
35.44
46.22
0
0
0
0
0
0
17.39
14.97
0.97
9.6
18.36
24.57
0
0
0
0
0
0
0
0
7.08
30.88
37.96
0
0
0
4.81
17.74
22.55
0
58.16
79.42
137.58
0
11.01
11.01
40.77
37.25
78.02
0
10.31
10.31
182.11
227.37
409.48
182.11
227.37
409.48
124.72
122.62
247.34
124.72
122.62
247.34
Table 6.34
21-379
TOTAL
'0
0
33.15
PUNJAB
HARYANA
Deptt. of F & PD/2015
~
I..
154
Outcome Budget 2016-17, Department of Food & Public Distribution
Month Wise Movement by Rail and Road Ex Punjab & Haryana during 2015-16 (upto December 2015) is given below:
(Fi
. lakh MT)
FIg. In
STATEMENT
SHOWING MONTH WISE MOVEMENT BY
EX PUNJAB & HARYANA DURING 2015-16.
2015-16
EX.HARYANA
2015-16
EX. PUNJAB
MONTH
April,15
May,15
June,15
July,15
August,15
Sept,15
Oct, 15
. Nov, 15
Dec, 15
Total
Wheat
4.35
6.09
8.46
9.58
8.68
7.80
6.09
8.08
8.76
67.89
TOTAL
Rice
6.09
7.16
6.94
7.36
7.33
8.39
7.33
4.32
5.04
59.96
RAIL AND ROAD
10.44
-1-3.25
15.40
16.94
16.01
16.19
13.42
12.40
13.80
127.85
Wheat
3.60
5.55
1.37
4.08
5.00
5.38
4.89
5.69
5.26
40.82
Rice
1.76
1.15
0.26
0.86
0.73
0.38
0.61
1.95
3.33
11.03
Table 6.35
TOTAL
5.36
6.7
1.63
4.94
5.73
5.76
5.50
7.64
8.59
51.85
Significant achievements in Movement of Foodgrains
•
•
FCI is undertaking multi-model transportation of rice involving coastal shipping and road movement from
. designated depots of Andhra Pradesh to designated depots in Kerala. The operations were started in March 2014
and 110531 MTs food grains have been transported by FCI during 2014-15. In 2015-16 (Upto 7th January 2016)
14585 MT has been moved since September 2015
Movement of foodgrains to South Assam, Manipur, Mizoram & Tripura was a herculean task due to
transshipment of Foodgrains at Lumding due to MG route from Lumding to South Assam, Tripura and Manipur.
..
155
Outcome Budget 2016-17, Department of Food & PublicDistribution
Railway started the gauge conversion from Lumding to South Assam, Tripura and Manipur in October 2014.
Due to gauge conversion, supply of foodgrains got affected to these routes.
•
During the gauge conversion, induction of food grains to Tripura was also made through riverine route passing
through Bangladesh as an alternative mode. Initially 9942 MT of foodgrains was moved Ex-AP to Tripura via
Ashuganj(Bangladesh). Subsequently foodgrainswere also moved Ex-Kolkata to Tripura via
Ashuganj(Bangladesh) and 9691 MT was moved Ex-Kolkata to Tripura.
•
In phase-I, gauge conversion of Lumding-Badarpur section has been completed by 31st March 2015. Salchapra
and Bihara railheads in South Assam have been declared operational by railways w.e.f 25.03.2015 and
20.07.2015 respectively, from where induction of foodgrains by road is being done to South Assam, Manipur
Mizoram, Tripura.
Phase-II of gauge conversion by railways had begun in October 2015 and in most likely to be completed by 31st
March 2016. With completion of this phase, Tripura and Manipur win be connected directly by broad gauge Railway
network.
6.17 ENGINEERING
Storage Construction Programme
For the year 2015-16, it has been planned to augment storage capacity by 82550 MT with a financial target of
82.18 crores. During 2015-16 (upto 31.12.2015) godowns of storage capacity of 19170 MT have been completed and
an expenditure of ~ 23.78 crores has been incurred. At 13 locations construction of godown of 63380 MT in progress
as giv.ingbelow:
(Fig.in MT)
Location/
State
Assam
No.
Centres
03
of Name
Centre
Changsari
Bindukuri
of Targeted
Capacity
Capacity under
Capacity
Realized
Progress
25,000
9,170
15830
20,000
10,000
10000
156
.
Arunachal
05
Manipur
02
Nagaland
02
Tripura
Total
01
13
outcome Bu dtget 2016- 17, Department
5,000
Karimganj
640
Yingkiong
640
Khuppa
3,340
Lohit
1,670
Tawang
3,340
Bomdilla
2,500
Churachandpur
2500
Thoubal
4590
Kohima
8330
Dimapur
5000
Kumarghat
82,550
19,170
Table 6.36
0f F 00d
& P u blic Distribution
5000
640
640
3340
1670
3340
2500
2500
4590
8330
5000
63,380
All efforts are being made to ensure that all physical and financial targets are met fully in the current financial
year.
In States other than North East, targeted capacity for financial year 2015-16 is 10000 MT with expenditure of
~ 15.00 crore. The work of 5000 MT capacity godown at Angadipuram is presently in progress. The .land acquisition
process in Himachal Pradesh for a capacity of 11220 MT at 5 locations (4200MT-Mandi, 2240 MT - Palampur, 1640
MT - Nahan, 640 MT - Recongpeo, 2500MT - Kangra), and in Goa 20000 MT is in progress. It is proposed to
construct 10,000 MT capacity godown at West Hill in Kerala within the existing depot. An expenditure of ~ 0.16
crores has been incurred upto 31.12.2015.
6.18 SWACHHBHARATCAMPAIGN
,
As a part of Swacch Bharat Campaign initiated by Hon'ble Prime Minister of India, it is targeted to provide 150
no. of Female Lavatory blocks in FCI own depots in 2015-16.
..
157
Outcome Budget 2016-17, Department of Food & Public Distribution
Under Corporate Social Responsibility and Sustainable Development (CSR&SD), besides female lavatories as
stated above, it is proposed to provide labour sheds in 150 FCI depots and safe drinking water facilities in 75 FCI
owned depots.
As per MoU between FCI and Ministry of CAF & PD, it has been planned to transform 50 existing depots into
Model Depots. A FeI depot having cumulative weightage of 90% or more is termed as model depot. Weightage of
depot is assessed by 22 parameters based on functional utility which includes profile roof sheeting, CC road, proper
flooring, weighbridge, proper office block, electrification, CCTV, signage, Solar Panel, toilet, labor shed, safe drinking
water facilities etc.
/
)
Office Building
During current year 8 office buildings are being constructed at a total cost of ~ 62.31 crores.
The present status is as under:
r
Sl.No.
Location
Estimated cost (in crores)
1.
Distt. Office Mohalil Punjab
Preliminary estimate under process.
2.
Distt. Office Bhatina/ Punjab
Preliminary estimate under process..
3.
Distt. Office KotalRajasthan
1.35 (Under progress)
4.
Distt. Office GandhidharnlGujarat
With held
5.
Regional Office, PatnalBihar
17.00
6.
ZO/RO/ZTI GuwahatilAssam
21.02
7.
R.O. Shillong/Meghalaya
9.69 (under progress)
8.
Distt. Office Thanjavur/Tamilnadu
2.41(Under progress)
Table 6.37
')
6.19
TRAINING
158
OutcomeBudget2016-17,Departmentof Food & PublicDistribution
The Food Corporation of India has its own Training Institute, the Institute of Food Security (lFS) at Gurgaon
(Haryana). The Institute imparts training to officers and officials in various disciplines relevant to FCI operations i.e.
Depot Management, Quality Control, Industrial Relations, Administration, Computer, Vigilance, Financial
Management, Financial Accounting Package, Rajbhasha Hindi, Internal Audit etc. and also conducts Management
Development Programmes. IFS also imparts Induction Training to newly recruited Management Trainees. The
Management has envisaged OrientationlInduction Training Programme for Officers/Officials to keep them abreast on
the operational/functional activities of the Corporation in the grass root level. The major achievements of IFS during the
period 2015-16 (up to 31.12.2015) are as under:
• 49 training programmes involving 1119 In-service officers/officials have been conducted.
• IFS has also conducted 02 training programme on National Food Security Act, 2013 as per directions of
MOCAF&PD - 55 officers trained.
• Induction Training Programme (Batch-I, II, III, IV & V) impartedibeing imparted to 205 newly recruited
Management Trainees at the level of Manager at various cadres ofFCI at IFS, Gurgaon.
In addition to the training at IFS, officers of FCI have also been nominated for various specialized/management
development programmes in professional Institutes of repute viz. Middle Level Vigilance courses, CBI Academy
GZB; Management Programme in Public Policy, ISB Hyderabad/ Mohali; GST Seminar, SCOPE; Improving
Enterprise performance, India Infrastructure publishing Pvt Ltd; Risk Based IA for effective management control at
Ooty, ICWAI; Managing IT Projects 11M,Ahmedabad; Workshop on SRD for PWDS at New Delhi, IPA; International
conference for CAs, ICAI; Conduct of Table top exercise on Disaster Management; NDMA Bhawan; Contract
LabourlEPF programmes, Labour Law Reporter; International Workshop' on Governance of State Owned Enterprises
(SOEs); National Convention on Risk Management, Institute of Directors. These programmes include diverse subjects
having relevance to the functioning of FC!. In all 25 officers/officials have so far been nominated in 13 specialized
programmes for the period 2015-16.
159
Outcome Budget 2016-17, Department of Food & Public Distribution
In order to keep pace with the changing environment in view of globalization and liberalization policy of GOI, 3
senior level management officers were also deputed abroad to attend various training/conferences.
In addition to the training efforts at the Corporate level, training programmes are also conducted at various Zonal
. Training Institutes (ZTls) located at Noida, Mumbai, Kolkata, Guwahati and Chennai. These ZTls mostly impart inservice training to Cat. III officials within the Zone apart from conducting Induction Training for newly recruited Cat.
III Staff. At Zonal level 1046 and 1991 employees have been imparted In-service and Induction Training respectively.
Thus, 4389 officers/officials have been trained in the Corporation for the period 2015-16.
FCI also extended internship/training to approximately 115 students from various recognized Universities and
Professional Institutes.
6.20 SC/STEMPLOYEES IN FCI
Statement showing the representation ofSCs/STs in services ofFCI as on 30.09.2015 is as under:
CATEGORY
CaU
CaUl
CaUII
Cat.lV (Excluding Safaiwala)
CaUV (Safaiwala)
Grand Total
....
Sanctioned
Strength
1111
6221
27270
2380
0
Total No. of
. Employees
792
4362
12934
3728
54
No.ofSC
201
939
2751
1270
25
106
690
1200
484
1
36982
21870
5186
2481
Table 6.38
No.ofST
160
Outcome Budget 2016-17, Department of Food & PublicDistribution
6.21
COMPUTERIZATION IN FOOD CORPORATION OF INDIA
Implementation of e-Tenderingle-Procurement
FCI took a decision to switch over to e-Tendering (under NIC's Central Public Procurement (CPP) portal) in
compliance of the guidelines issued by Government of India, to switch over to e-Tendering for tenders of value of ~ 5
Lakhs and above. Accordingly, the implementation of e-tendering was initiated in all FCI offices, with specific
directions to completely switch over to e-Tendering by 31.01.2014. The concerned FCI offices have switched over to eTendering completely.
6.22 INTEGRATED INFORMATION SYSTEM FOR FOOD GRAINS MANAGEMENT (IISFM)
Government had sanctioned "Integrated Information System for Food Grains Management" (IISFM) Project in
the io" Five Year Plan, with a total estimate cost of ~ 96.74 Crore, in August,2003, to put in place an on-line MIS for
stock position in any FCI Depot, at any given point of time. The IISFM project has been successfully implemented in
all FCI Depots, including the depots under North East Zone, covering all seven North Eastern States.
A)
District Stock Accounting Module (DISFM/District Module)
NIC, in 2005, developed District Information System for Food Grain Management (DISFM), an online
application, to enable the FCI Districts to enter the fortnightly stock position, to fulfill FCl's reporting needs. This is a
web based MIS system, working through the central server located at NIC. All FCI Zonal offices, Regional offices,
District Offices and Headquarter can generate fortnight stock position and off-take MIS reports, along with StatelUTwise reports through this application. DISFM is fully functional in all FCI District Offices.
B)
IISFM Rapid Reporting Service (IRRS)
IISFM Rapid Reporting Service (IIRS) application for reporting information related to receipt, issues, dispatches
of various commodities of food grain stock for all FCI depots (owned and hired) has been stabilized with almost 90%
depots reporting up-to-date data, on any given day.
•
161
Outcome Budget 2016-17, Department of Food & PublicDistribution
Various reports, on stocks position and off-take data, depot capacity utilization etc., are generated through this
web-based application and used at all levels of FCI offices. Based on the feedback from various stake-holder of the
project, several modifications have been made in the application from time to time and a few additional reports are also
being generated to make the IRRS reports more comprehensive and need based.
The stock information in IRRS has been made viewable to the general public by NIC on the PDS portal and on
IISFM site (http://egrains.nic.in).Alink for PDS portal has also been provided on the FCI Website, under the News &
Updates Column (http://fciweb.nic.inlnews/view/@15) and under stocks details Sections (http://fciweb.nic.inlstocks
view/14).
C)
IRRS in DCPIMajor Procuring States
IRRS application has also been extended to the 7 DCP/Major procuring States to capture Central Pool stock
position and off-take information. Among the identified seven DCP States, namely Chhattisgarh, Karnataka, MP,
Odisha, Tamil Nadu, Haryana and Uttar Pradesh, where hardware has been supplied under the IISFM project, IRRS has
already been implemented by Odisha, Tamil Nadu, Chhattisgarh, Madhya Pradesh and Karnataka with varying degrees
of success. The other major procuring States viz. Haryana and Uttar Pradesh are continuously being pursed and
encouraged to use IRRS to report the central pool stock information available with them.
6.23
Release Order Module (Under Implementation)
NIC submitted a Detailed Project Report (DPR) for development of the Release Order (RO) module, which will
generate computerized Release Orders and record RO-wise lifting. After long deliberations, it was decided to link
weighbridge, FAP applications and the Release Order Module. The consolidated feedback of FCI on the DPR was
provided to NIC for incorporation in the kelease Order Module
·For initiating the study for RO Module, the developer has conducted field study at four (4) FCI sites, viz. D.O.
Sanathnagar, D.O. Warangal, D.O. Tarnaka (A.P. Region)& D.O Mayapuri (Delhi Region).
22-379
Deptt. of F & PD/2015
162
Outcome Budget 2016-17, Department of Food & Public Distribution
An Internal User Group (lUG) has also been constituted with officers from all concerned Operating Divisions in
FCI. This group is coordinating with NIC and the vendor to facilitate the development and implementation of the RO
module.
The developer has provided the Weigh Bridge linked Input Screens and the process flow of the R.O. Module
application which have been finalized for further development of the module. Finalization of data sharing methodology
between RO Module and FAP is under process.
lUG Members have reviewed the SRS Document (Version 1.6) and have submitted the report regarding
finalization of SRS Document (version 1.6). The SRS Document has been approved and NICSI has been requested to
expedite the development work.
6.24
Depot Online System
For automation of depot operations, FCI is implementing the Depot Online System, which seeks to automate all
the operations at the depot level and eliminate usage of manual registers by capturing data online at source and on a real
time basis.
The key objectives of the project are the following:
1)
2)
3)
4)
Standardization and automation of depot level processes
Efficiency improvement in management of food grains storage and distribution
Enablement of real time monitoring of operations
A Linear Programming Model integrated with FOIS of railways for efficient movement operations
5) Timely data reporting
6) Improvement in end-to-end operational visibility for informed decision making
7) Effective planning and optimization of administrative work
\
...'
163
Outcome Budget 2016-17, Department of Food & PublicDistribution
The expected benefits are mentioned below:
1) Integrated view of end to end processes, use of workflow, notification and alerts
2) Seamless connection between depots and district/regional offices ofFCI
3) Capture data at source and in real time through Handheld Devices, reduce redundancy
4) Integrate with weigh bridge to read data automatically
5) Standardize and improve current processes to increase efficiency
6) Free up manpower from laborious data collation and report preparation
7) Leverage IT as decision support systems to handle dynamic nature of business
8) KPI driven dashboard for the top management
9) Integrate with various stake holder community
IO)Alignwith 'Digital India' vision of the Government
A Detailed Project Report (DPR) for the nation-wide roll-out of the project, was prepared by Mis
PricewaterhouseCooper Pvt. Ltd. (PwC) (the Consulting Agency), capturing the functional as well as systemic
requirements for implementing the project.
For the development & Implementation of Depot Online System in FCI, Mis RICOH India Limited has been
appointed as System Integrator. The Letter for Award of Contract was issued to the said vendor on 14th Aug
20I5.System Integrator (SI, i.e. Mis Ricoh India Limited) has started the development work. Live demonstrations of
the modules are being conducted by the SI, for instant feedback and approvals from the process owners of FCI. Project
Execution Committee meetings are being convened on a weekly basis, to review the progress of the project and provide
directions.
It is planned that the application will be initially rolled out in pilot depots (at least one from each FCI region,
during Oct-Dec'I5) and subsequently in all FCI depots (Dec'I5 onwards). Stabilization of the application is planned to
be achieved by March' 2016.
164
Outcome Budget 2016-17, Department of Food & Public Distribution
The SI has provided the initial version of the application & accordingly, the User Acceptance Testing (UAT) of -,
the Depot Online application is being conducted at FCI HQ & the Pre- Pilot depots. Training at Pre- Pilot and Pilot
Depots has-been started by the System Integrator.
6.25 PROGUREMENT MONITORING SYSTEM (PMS)
Procurement Monitoring System (PMS) was developed by NIC, in compliance to JS (P&FCI) letter dated l "
July, 2013, with an objective to monitor the progress of procurement of wheat/rice
The Paddy/Rice (KMS) Module was rolled out on 01stOctober 2013 for the KMS 2013 -14 and Wheat (RMS)
Module was rolled out on 24thMarch 2014 for the RMS 2014 - 15.
As the State agencies of Punjab, Haryana and Telangana States were ready to feed their own data from RMS
2015 -16, their user IDs / passwords were created in the PMS. But due to non-feeding of data by some State agencies, it
has been subsequently decided by JS (P & FCI) in the meeting dated 21.07.2015 that FCI District Offices will feed the
procurement data for both FCI and State Agencies henceforth across India.
6.26
LANIWAN RESTRUCTURING AND BANDWIDTH UP-GRADATION
To keep up with the increasing demands of web based IT applications, FCI has upgraded/revamped the existing
LAN/WAN infrastructure. This has been accomplished through the following:
a)
Bandwidth Up-Gradation
FCI has established network bandwidth of 34 Mbps for HQ, 10 Mbps for ZOs & ROs and 4 Mbps for sensitive
DOs and 2 Mbps for other DOs through BSNL. Point to point lease line connectivity has been provided between FCI
offices up to district level and the corresponding NIC offices.
b)
LAN/W AN Restructuring
The existin~ LAN/WAN infrastructure in the FCI offices upto district level, has been restructured with latest
active (routers, switches etc.) and passive network items, which is IPv6 Compliant.
165
Outcome Budget 2016-17, Department,of Food & Public Distribution
Video Conferencing
To leverage the sound bandwidth and network connectivity setup under the restructuring of LAN/WAN, project,
FCI is also implementing/upgrading the Video Conferencing facility at FCI up to District office level.
Video Conferencing has been made operational at FCI Headquarter, all Zonal offices, all Regional offices except
RO Shillong ana 110 District offices. Remaining offices are expected to have video conferencing facility by January
2016.
Cyber Security Policy
The 'Cyber Security Policy' has been finalized and approved by the BoD, FCI on 31.07.2014 and has been
circulated to all concerned for compliance.
6.27
AADHAR ENABL~D BIOMETRIC
ATTENDANCE
SYSTEM (AEBAS)
Food Corporation of India has been registered at centralized attendance portal viz. http://fci.attendance.gov.in
and AEBAS has been successfully implemented in FCI HQ with effect from 01.01.2015. For the proper functioning of
the Aadhar Enabled Biometric Attendance System (AEBAS), registration of all FCI employees & FCI offices on said
portal, i.e. www.fci.aitendace.gov.in, is under process. As on 23.1 0.20 15, 2288 FCI employees have already been
registered on central attendance portal.
6.28
o
SPORTS AND CULTURAL ACTIVITIES
Notable achievements of the FCI sportspersons (event-wise) during 2015-16 (upto 31.12.2015) are given as under:
SI.No. Name of the Tournaments
FCIs Position
1.
BADMINDON - All India Inter Institutional Badminton Third place (Men Singles)
Tournament held at Dehradun from 28-31 July, 2015.
Second Place (Men Doubles)
Second Place (Team Event)
2.
TABLE TENNIS - 45tn All India Inter Institutional Third Place (Women's Team)
Table-Tennis Championship held at Indoor Stadium, New Third place (Mixed Double)
autcome
3.
4.
5.
6.
166
Bu dget 2016- 17, Department 0f F00d & PusnlC Distribution
Third Place (Women's Double)
Delhi from July zs" - 2na August, 2015
HOCKEY - Sf. National Hockey Tournament held at
Pune from 16thto 28thApril, 2015.
FOOTBALL
All India Public Sector Football
Tournament org., by CCL at Burla/Sambalpur (Orissa)
from 20th- zs" April, 2015.
CRICKET - All India Coromandal King Moin-ULDowlah Gold Cup Cricket Tournament held at Hyderabad
from l" to 15thSeptember, 2015.
68tn Man's & Women's National Weightlifting
Championship at Patiala from 25_29thDecember, 2015.
Participated
-
Participated
Participated
Participated (Men's)
Table 6.39
Keeping in view the infrastructure facilities available at various places, the following calendar of sports &
cultural competition was decided after detail deliberation:
Event
Host Unit
FCI Inter Zonal Football Tournament
South Zone
FCI Inter Zonal Badminton & Table NE
Tennis (M&W) Tournament
FCI Inter Zonal Cricket Tournament
North Zone
FCI Inter Zonal Cultural Competition
NE Zone
FCI Inter Zonal Hockey Competition
West Zone
All India Public Sector Cultural West Zone
Competition (allocated by AIPSSPB)
Venue
Tentative date/month
Allepy/Munnar (Kerala)
December, 2015.
NE(Zone)
Venue and date to be decided
Venue to be decided March, 2016
Guwahati
Ilth& 12thJanuary, 2016
Mumbai (Maharashtra)
February, 2016
Goa (date to be decided)
Table 6.40
)
•
I
167
Outcome Budget 2016-17, Department of Food & Public Distribution
6.29 WOMEN CELLIWOMEN EMPOWERMENT
(a)
FCI follows the Government of India's policies and guidelines for empowerment of its women employees. The
Corporation functions on the principle of gender equality and no discrimination what-so-ever is made on this account,
whether in postings or in decision-making.
(b)
Representation of women in Selection Committee and Department Committee for recruitment/promotion to all
post in FCI has been implemented vide Circular No.EP-02-2014-15 dated 07.08.2014.
(c)
Women employees are given special dispensation in transfer policy circulated vide Circular No.EP-03-2014-05
dated 12.02.2014.
(d)
Besides women employees are provided protection against harassment at work places. In this behalf, pursuant to
the orders of Hon'ble Supreme Court of India dated 13.08.l997 in the matter ofVishakha&Ors Vis. State of Rajasthan
and another judgement dated 26.04.2004, the Corporation has taken following initiatives to prevent and redress
grievances relating to sexual harassment of women at work places :(i)
The guidelines set by the Hon'ble Supreme Court of India for prevention and to redress grievances on
sexual harassment of women at work places have been given wide publicity in the Corporation for
awareness of the employees.
The Complaint's Committee has been constituted which has been functioning in the Corporation to look into the
complaints/grievances of women relating to sexual harassment in the offices of the Corporation.
(ii)
The instructions have been issued to treat report of the Complaint's Committee as enquiry report which
will be binding upon the Disciplinary Authorities to initiate disciplinary proceedings against the
employees concerned under the provisions of Discipline & Appeal Regulations of FCI (Staff)
Regulations, 1971.
(iii)
The amendments in the Conduct Regulations of FCI (Staff) Regulations, 1971, incorporating a provision
of prohibition of sexual harassment of women at work places have been made, as indicated below:
'.
168
Outcome Budget 2016-17, Department of Food & Public Distribution
Prohibition
of sexual harassment
of working women.
(l) No employees shall indulge in any act of sexual harassment of any woman at her work place.
(2) Every employee who is in-charge of a work place shall take appropriated steps to prevent sexual
harassment to any woman at such work place.
For the purpose of this Regulation, "sexual harassment" includes unwelcome sexually
determined behaviour, whether directly or otherwise, such as :
Explanation:-
(a) Physical contact and advances;
(b) Demand or request for sexual favours;
(c) Sexually coloured remarks;
(d) Showing any pornography; or
(e) Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature."
-~
(iv) The provisions have been made in the Conduct Regulations of FCI (Staff) Regulations, 1971 to the effect
that:
(a) Every employee shall act in accordance with Govt. policies regarding age of marriage;
•iI
(b) Sexual harassment of working women at work places would be prohibited.
(v)
The following acts have been included in the list of 'misconducts' under Conduct Regulations ofFCI (Staff)
Regulations, 1971:
(a) Neglect of spouse and family is unbecoming of an employee of the corporation;
/
(b) Bigamous marriage: (i) No employee can enter into or contract a marriage with a person having a
spouse living.
169
Outcome Budget 2016-17, Department of Food & PublicDistribution
(vi)
Ministry of Law and Justice, Government of India, vide Gazette Notification No.18 dated 23.04.2013 notified
the "The Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013"
(No.14 of 2013) in The Gazette of India, Extraordinary, Part II - Section I. This has been circulated by FeI
Circular No. EP-24-2015-05 dated 27.02.2015.
(vii) All the offices of FCI directed to constitute a Committee for dealing with the cases/reports of sexual
harassment of women at work place. The Committee at Headquarter level is headed by a Senior level women
employee viz. female Executive Director level officer with majority female members including a nominee
from non - government organization committed to cause of women.
6.30
MARKET BORROWINGS:
Cash Credit Facility
The FCI is enjoying a Cash Credit facility of ~54,495 crore from a Consortium of 66 banks led by State Bank of
India against a single default guarantee of Government of India. The rate of interest charged to FCI Cash Credit
Account is determined as average base rate of top 5 leading banks of the Consortium having highest share plus a
positive spread of 55 bps. The interest rate varies with any change in base rate of 5 major banks. The effective monthly
compounding interest rate charged by the bank from 01.04.2014 to 31.12.2014 is 10.83% p.a. and 10.73% p.a. from
01.01.2015 onward.
6.31
SHORT TERM LOAN (STL)
As a measure to meet the short term requirement over and above the Cash Credit Limit, the FCI has the approval
of its Board of Directors to avail Short Term Loan (STL) frorr the scheduled Banks to the ·extent of ~ 30,000 crore
during the financial year 2015-16. The Corporation has availed ~ 47,215 crore through STL during2015-16 Out of this,
an amount of ~ 39,345 crore has been repaid, leaving an outstanding balance of ~ 7,870 crore as on 31.12.2015. STL
are availed from different banks at their respective quoted rate ranging from 9.20% to 10.00% which is less than the
CCL interest cost. This has resulted in savings of ~ 65.04 crore during 2015-16 (upto 31.12.2015).
23-379
Oeptt.of F & PO/2015
170
Outcome Budget 2016-17, Department of Food & Public Distribution
6.32
ISSUE OF BONDS
As on 31.12.2015, total outstanding Long Term Government Guaranteed Bonds are of ~ 13,000.00 crore after
the redemption of Bonds worth ~ 3,121.00 crore as on 16.12.2015.No fresh bonds are issued in the 2015-16.
6.33
WAYS & MEANS ADVANCE
To meet the temporary requirement of funds, Gol provided Fel a recoverable WMA of ~ 10,000 crore in the
year 2015-16 which carries an interest rate ,equivalent to average 364 days T. Bills rate and outstanding WMA shall be
recovered by the Government in the last quarter ofFY 2015-16 from the last instalment of Food Subsidy schedule to be
received in January'2016.
6.34
PHYSICAL AND FINANCIAL PERFORMANCE OF FOOD CORPORATION OF INDIA:
I
PHYSICAL ACHIEVEMENT
A
Procurement
(i) Wheat MSP Based
(ii)Rice (Including paddy in rice terms)
Next Financial year
Previous Year
Current Year
2014-15
Value
Qty.(in Lakh
(in Cr)
Tonnes)
2015-16 (RE)
Value
Qty.(in Lakh
(in Cr)
Tonnes)
2016-17 (BE)
Value
Qty.(in Lakh
(in Cr)
Tonnes)
251.08
34769.71
245.34
35105.65
252.30
37728.68
231.65
47157.34
262.79
55844.75
262.99
57832.03
(iii)Sugar
B
6538.15
5267.62
3894.93
(iv)Other (Gunny, Stores and Spares)
Total
482.73
85821.98
508.13
96218.02
515.29
102098.86
Sales
(i)wheat including Wheat Export
242.45
15320.10
275.16
18328.41
303.17
16362.15
261.45
14432.29
262.44
13927.07
246.09
8802.98
503.9
29752.39
537.6
32255.48
549.26
25165.13
(ii)Rice Including Rice Export
(iii)Sugar (Ind. & Imported)
(iv)Coarsegrains
Total
oucome
t
II
RESULT OF OPERATIONS
(a) Receipt
171
Bu diget201617
- , Dep.artmen t 0 fF 00 d & Pu brIC D·IStnibUfIon
29752.39
32255.48
25165.13
95904.99
108563.00
125318.00
8052.18
5085.00
9089.00
1035.03
907.00
0.00
146810.48
995.00
0.00
160567.13
i) Sales and Other Income
ii) Subsidy for the year
(a) (Consumer Subsidy)
.
Subsidy towards buffer carrying cost for the
year includingcarryover charges and others
iii) (a) Shortages reimbursable on
regularisation
(b) Deficit on Sugar
TOTAL ( i+ ii + iii)
0.00
134744.59
(a»
Previous Year
2014-15
Qty.(in Lakh
Value
(b) Cost of Sales excluding interest and
Current Year
2015-16 (RE)
Qty.(in Lakh
Value
126424.20
76.09
8244.30
( c) Depreciation
(d) Interest
(e) Tax Provision
(f) Balance amount realisable (a-
Next Financial year
2016-17 (BE)
Qty.(in Lakh
Value
137638.35
83.00
9089.13
151310.14
85.00
9171.99
(b+c+d+e)
III
,f;
(g) Net Profit/Loss after taxation
INVENTORIES
Raw material stores and spares
i) Wheat
ii) Rice (incl. paddy in rice terms)
95.39
134.42
ii) Coarsegrains
IV
A
iv) Sugar (incl. imported)
0
v) Others
vi) Gunny, Stores and spares
vii) Fertilizers
TOTAL INVENTORIES
229.81
RESOURCES AND APPLICATION OF FUNDS
Sources
15940.21
32920.46
0
0
65.19
131.49
743.41
49604.08
11459
33676
13.91
144.96
806.27
196.68
45941.27
2576
38857
924.89
158.87
42357.89
[Equity
ii) Reserves(Otherthandepreciationreserve)
iii) Depreciation reserve
iv) Government of India Loan
172
outcome Bu dlget 2016- 17, Department 0f F00d & PubrIC D·istnibution
2762.79
2837.79
3082.88
1143.52
1226.52
1311.52
vi) Surplus in SPEF
78108.93
0
84793.3
0.00
75765.06
0.00
vii) Other Loans
TOTAL
82015.24
88857.61
80159.46
v) Bank Borrowings (incl. Bonds and short term Loan)
Table 6.41
Previous Year
2014-15
Qty.(in Lakh
Value
Tonnes)
(in Cr)
B
APPLICIATlON
i) Fixed Assets (Including deposits for
construction)
ii) Stock offoodgrains, Stores & Spares,
Fertilizers
building materials and other commodity
iii) Sy. Debtors
Current Year
2015-16 (RE)
Qty.(in Lakh
Value
(in Cr)
Tonnes)
Next Financial year
2016-17 (BE)
Qty.(in Lakh
Value
Tonnes)
(in Cr)
1820.77
2225.59
2748.52
49604.08
45941.27
42357.89
30590.39
40690.75
35053.05
82015.24
88857.61
80159.46
2762.79
79252.45
2837.79
86019.82
3082.88
77076.58
iv) Deficit in SPEF
TOTAL
V
NET WORTH EMPLOYED
i) Net Worth (Equity)
ii) Capital employed
VI
VII
Total of (IV-A)
RESULT OF CENTRAL
GOVERNMENT INVESTMENT
Interest on Government Loan
PERFORMANCE AND
EFFICIENCY INDICES
TOTAL INVENTORIES TO SALES
(QTY. TONNES)
45.61%
36.58%
28.92%
Table 6.42
,
173
Outcome Budget 2016-17, Department of Food & PublicDistribution
6.35
REVIEW OF CENTRAL WAREHOUSING CORPORATION:
1.
The Central Warehousing Corporation (CWC) was established on 2nd March, 1957 under the Agricultural
Produce (Development and Warehousing) Corporations Act, 1956, and commenced its operations during July,
1957. The Agricultural Produce (Development and Warehousing) Corporations Act, 1956 was repealed and
replaced by the Warehousing Corporations Act, 1962. The main objective of the CWC is to provide scientific
storage facilities for agricultural inputs, produce and other notified commodities besides providing logistics
infrastructure like.CFSs/ICDs, Land Customs Stations, Air Cargo Complexes, etc. for import-export cargo.
2. CWC is ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified organization. It is a Schedule' A'
- Mini Ratna, Category- I organization.
3. As on l " November, 2015, CWC was operating 468 warehouses with an average storage capacity of 117.32
lakh MT with average capacity utilization of 82%. The average capacity utilization during 2014-15 was 80%.
ewc is the leading player in the Warehousing/Logistics business providing infrastructural facilities to a
diversified group of clients including Government Departments, semi-Government agencies, autonomous
bodies, cooperative institutions, business houses, multinational companies as well as farmers and traders.
4. Ever since its inception, CWC has been providing scientific storage facilities for storage of agricultural inputs
and produce and notified commodities at reasonable cost. In order to cross-subsidize the agricultural sector and
to sustain its operation, CWC has been diversifying into different areas. It made an entry into operation of
public bonded warehouses in the late seventies, when the CBEC, acknowledging the expertise of CWC in the
field of storage and warehousing, appointed it as a custodian for running Bonded Warehouses for storage of
imported dutiable·goods. CWC, as on l" September, 2015 was operating 57 Bonded Warehouses with a storage
capacity of 3.09 lakh MT. CWC also runs 4 Air Cargo Complexes with 7401 MT capacity (Chennai,
Singanallur, Goa, IGI Airport) 31 Container Freight Stations (CFSs)/lnland Clearance Depots (ICDs) with a
storage capacity of 14.76 lakh MT and 5 temperature controlled warehouses at Amritsar, Nimakmahal,
Vandenmedu, Vashi, Virugambakkam with 3984 MT capacity.
24-379 Deptt.of F & PD/2015
174
Outcome Budget 2016-17, Department of Food & Public Distribution
5. Against the authorized share capital of ~ 100.00 crore, the paid-up capital of the CWC is ~ 68.02 crore.
CWC is not dependent upon any budgetary support from the Government and all its operations/construction
plans are met out of internal generation of resources.
6. The financial results of the Corporation for the past five years are as under:
(~ in crore)
Year
Turnover
Expenditure
Profit
Profit
Dividend
Before Tax
After Tax
In lakh
Rate
Amount (~ InLakh)
2011-12
1218.65
1059.53
159.12
100.46
40%
2718.96
2012-13
1406.70
1197.47
209.23
139.55
41%
2786.93
2013-14
1528.19
1271.72
256.47
161.05
48%
3262.75
2014-15
1561.83
1301.77
260.06
182.12
54%
3670.70
2015-16
891.00
747.34
143.66
94.82
-
-
.
(upto to 31.10.2015
Table 6.~3
7.
CWC has been a consistently dividend paying PSU ever since its inception in 1957. The Corporation has so
far paid a total dividend of ~ 393.13 crore upto the financial year 2013-14 to its shareholders. An amount of
~ 219.16 crore has been so far paid to the Central Govt. against ~ 37.42 crore invested by it in the share capital
ofCWC. CWC has declared dividend @ 54% for the year 2014-15 as against 48% for the year 2013-14.
8. In order to encourage the fanning community and motivate them to avail public warehousing facilities, CWC
offers a rebate of 30% in the storage charge for stocks deposited by the farmers. A warehouse receipt, which is
a negotiable instrument, is issued to the farmers, who can obtain credit on pledge of the same. In order to
,
175
Outcome Budget 2016-17, Department of Food & Public Distribution
educate the farming community on storage and preservation of stocks at farm level and reduce the avoidable
storage losses, CWC operates its Farmers Extension Service Scheme wherein the technical staff posted at its
warehouses visits the adjoining villages and trains the farmers for complete transfer of knowledge on postharvest technology. The scheme is presently in operation through 304 warehouses.
9. CWC has been providing disinfestation and pest control services for the benefit of farmers, traders, exporters,
importers, shipping agents, etc. The facilities include disinfestation operations in railway coaches, pantry cars,
aircrafts, hospitals, hotels and restaurants, export / import container fumigation, ship fumigation, etc. The
revenue under this activity has grown from ~ 2.49 crore in the year 2001-02 to ~ 19.70 crore in the year 201415.
10. CWC is operating a truck terminal at the Land Customs Station (LCS) at Petrapole (West Bengal) on the IndoBangladesh Border for facilitating IMPEX trade through land route. Developed over 17.08 acre land, this
facility is operating since 1999. During 2014-15, the facility handled 1.71 lakh Import/export trucks and earned
~ 6.07 crore. During 2015-16 (upto l" November, 2015) the facility handled 129842 import/export trucks and
earned ~ 4.00 crore.
'0
11. As a diversified activity, CWC has been running container trains since 2007. It holds a Category- I license to
operate container trains on Pan India basis. It is, however, presently operating Container Rail Terminals (CRTs)
at Loni (Delhi) and Kalamboli (Navi Mumbai) and running container trains between Loni-JN Port, LoniMundra and Loni -Pipavav sectors. During 2014-15, CWC operated 161 container trains, transported 16782
TEUs and earned revenue of ~44.29 crores. During 2015-16 (upto 31st October, 2015) CWC operated 71
Container trains, transported 7690 TEUs and earned revenue of ~ 24.13 crores.
12. Since April 2012, CWC is also operating the Cargo Terminal of the Integrated Check Post (ICP), Attari
(Punjab) and facilitating IMPEX trade between India and Pakistan through land route. The management of the
Cargo terminal entrusted initially for a period of one year effective 9th April 2012 was extended for a further
period of one year. During 2014-15 the CWC handled 79864 Export/Import trucks at this facility earning a
gross revenue of ~ 50.29 crore. The LPAI has since extended the MOA with CWC for a further period of three
176
Outcome Budget 2016-17, Department of Food & Public Distribution
years beyond 9th April 2014 for operating the Cargo terminal. During 2015-16 (upto so" Sept, 2015), CWC
handled 30736 Export/Import trucks at this facility earning a gross revenue of ~ 17.68 crore.
13. Satisfied with the performance of CWC at ICP, Attari, the management of Cargo Terminal at the ICP, Agartala
(Tripura) on Indo-Bangladesh border has also been assigned by LPAI to CWC initially for a period of one year
on similar terms and conditions of ICP, Attari. The Cargo. Terminals operations were commenced at ICP,
Agartala on 21.11.2013. This facility handled 30480 ExportlImport trucks and earned a gross revenue of
~7.15 crore during 2014-2015. During 2015-16 (upto 30th September, 2015) this facility handled 12113
ImportlExport trucks with a gross revenue of ~ 3.02 crore.
14. CWC has contributed to the equity of 17 State Warehousing Corporations (SWCs). It has invested about
~61.79 crore as on 31st October, 2015 in the equity of these SWCs. While CWC holds 50% share, the
remaining 50% is held by the respective State Government.
15. As on 1stNovember, 2015, these SWCs were running 1710 warehouses with 293.11 lakh MT capacity and
utilization of 83%.
16. The CWC has formed a 100% owned subsidiary company namely Central Railside Warehouse Company Ltd.
(CRWC) for development and operation of Railside Warehousing Complexes (RWCs). CRWC was
incorporated on io" July, 2007 and received certificate for commencement of business on 24th July, 2007.
CWC has subscribed ~ 40.56 crore as share capital of CRWC.
17. Corporation has planned for Construction of warehouses
2016-17:Item
State
Cost of Land
Cost of Construction
West Bengal
plus other capital expenditure
Odisha
Andhra
in the following states on different locations during the year
)
MTs
(Amount in Crore Rupees)
11.40
4400
16500
25000
I'
-
r
.
Kerala
Rajasthan
UP
Chhattisgarh
Gujarat
Maharashtra
Goa
Sub Total
177
outcome Budtget 2016- 17, Department 0f F00d & Public Distribution
10200
20500
6700
18900
22600
15000
2600
142400
134.56
4.30
3.56
Lorry Weigh Bridge
Wooden Crates, Polly
Pallets and PCC Blocks
IBMS
36.22
190.04
TOTAL
Table 6.44
18.Against the authorized capital of ~ 100.00 Crore, the paid- up capital of the CWC is ~ 68.02 crore and Net
worth ofCWC as on 31.3.2015 is ~ 1687.53 crore. The capital structure ofCWC is as under:
SN.
Particulars
Number of
Shares
1
Central Government
374250
Issued &
Subscribed
(~ In Lakh)
3742.50
2
State Bank of India
175440
1754.40
1474.40
3
Other Scheduled Banks
142522
1425.22
1091.84
4
Co-operative Societies
1045
10.45
10.26
5
Cooperative Societies (disqualified
share holders)
Insurance Companies including Life
463
4.63
4.6
51454
514.54
477.74
6
Called-up & Paid-up
(~ In Lakb)
3742.50
178
fF
d
&
P
bI"
D'
1St
ribution
lC
u
00
outcome Budlget 2016- 17, Department 0
7
8
Insurance Corporation of India
Recognized Associations dealing in
Agricultural Produce
Companies dealing in Agricultural
Produce etc
TOTAL
71
0.71
0.71
5
0.05
0.05
--
If.
745250
6,802.10
7452.50
Table 6.45
6.36 REVIEW OF PAST PERFORMANCE (IEBR SCHEMES)
The physical target achieved during the year 2010-11,2011-12,2012-13, 20l3-14, 2014-15 was 1.45 LMT, 2.09
LMT, 2.35 LMT, 2.21 LMT, 1.79 LMT~ and the target for the year 2015-16 and 2016-17 is 1.66 LMT and 1.42 LMT
respectively. The corresponding .aetual/budgeted financial targets vis-it-vis achievements are given as under:
2011-12
AE
Target
plus
Land
Construction
to
Contribution
Share Capital of
SWCs
IBMS
TOTAL
2012-13
AE
Target
2013-14
AE
Target
134.23 112.00
123.90
76.86
156.42
122.24
0.75
2.66
0.00
0.68
0.68
0.00
0.00
137.23 112.75
0.00
126.56
0.00
76.86
0.00
157.10
0.00
122.92
3.00
(~ in Crore)
2015-16
2014-15
AE
RE
AE
Target
30.11.15
56.67
180.60 110.37 180.07
2016-17
BE
153.82
0.00
0.00
0.00
0.77
0.00
0.00
183.30 110.37 180.84
0.00
56.67
36.22
190.04
2.70
0.00
Table 6.46
I
J
6.37
179
Outcome Budget 2016-17, Department of Food & Public Distribution
CENTRAL RAILSIDE WAREHOUSE COMPANY LTD:
Central Railside Warehouse Company Limited, (CRWC) a 100% owned subsidiary of Central Warehousing
Corporation (CWC) was formed for development of Railside Warehousing Complexes. The Company was incorporated
on 10th July, 2007. The paid up equity share capital of the company amounting to ~ 40.56 crore has been subscribed by
CWC. Besides, CWC has also transferred 7 of its Railside Warehouses to CRWC.
The Railside Warehousing Complexes are being operated by CRWC at the following locations:
(As on 31.3.2015)
Sl. No.
f.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16
17
18.
19.
NameofRWC
Capacity (in MTl
Whitefield, Bangalore
Shakurbasti, Delhi
Nishatpura, Bhopal
Sanathnagar, Hyderabad
Ghaziabad
Nasik Road
Alamnagar, Lucknow
Yamuna Bridge, Agra
Koodal Nagar, Madurai
Badnera, Amravati
Roza, Shahjaha1!Pur
Kandla, Gujarat
Korrukupet, Chennai
Hatia, Ranchi
Saswad Road, Pune
Dehri-on-Sone, Bihar
Dankuni, Kolkata
Mysore, Karnataka
Jogeshwari(Mumbai)
TOTAL
********
29,700 MT
19,330 MT
16,700 MT
13,225 MT
12,200 MT
9,270 MT
15,500 MT
18,200 MT
12,000 MT
17,000 MT
18,400 MT
32,200 MT
30,292 MT
12,800 MT
18,700 MT
11,700 MT
13,750 MT
12,500 MT
16,000 MT
3,29,467 MT
Table 6.47