Lok Sabha Question No. 4058 (UNSTARRED), answered on 2018-03-20
Subject: Details of Rent Paid to Private Godowns
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: DIPSINH SHANKARSINH RATHOD, VINOD CHAVDA, PARASURAMAN K.

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 4058

## TO BE ANSWERED ON 20 TH  MARCH, 2018

## DETAILS OF RENT PAID TO PRIVATE GODOWNS

4058.   SHRI D.S. RATHOD: SHRI VINOD LAKHAMASHI CHAVDA: SHRI K. PARASURAMAN:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government has any data about rent paid to the private godown owners to keep the grain purchased by the Government, if so, the details thereof including the details of the rent paid to private godowns;
- (b) the  details  of  the  Government  and  private  godowns  in  the  country, State-wise;
- (c)
- the details of storage capacity for both types of godowns;
- (d) the details of the empty time of the private and Government godowns in a year; and
- (e) whether  the  FCI  has  also  any  plans  to  increase  its  own  storage capacity so as to reduce huge sum on hiring godowns and if so, the details
- thereof and if not, the reasons behind the stance of the FCI in this regard?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

(a):  Yes,  Madam.  Food  Corporation  of  India  (FCI)  hires  godowns  from  Central Warehousing  Corporation  (CWC),  State  Agencies  and  private  parties  to  store foodgrains  procured  by  FCI  and  State  Agencies  for  distribution  under  Public Distribution System (PDS). The state-wise details of rent paid by FCI to the private godown owners to stock the foodgrains procured by FCI and State Agencies in the year 2016-17 are in Annexure-I.

- (b):    As  on  31.01.2018,  a  total  of  1840  godowns  of  FCI,  CWC,  State  Agency  and private  godowns  are  functional  across  the  country.  The  State-wise  details  are  at Annexure-II.
- (c):  As  on  31.01.2018,  FCI  has  owned  godowns  of  capacity  of  128.38  Lakh Metric Tonnes (LMT), State Agencies have godowns of capacity 278.13 LMT and FCI has hired godowns of capacity of 204.80 LMT.

(d):  FCI  has  either  owned  or  hired  capacity  and  capacity  utilization  varies  from month  to  month  depending  on  the  level  of  procurement.  Generally,  FCI  does  not have any capacity which is unutilized or empty.  However, in case private godowns are  underutilised  or  empty,  the  same  are  de-hired.    In  case  of  owned  godowns, sometimes,  they  are  not  utilized  to  optimum  level  due  to  various  reasons  / circumstances.  Some of them are given below:

- (i) The utilization of hired capacities is given priority as FCI has to pay fixed rentals for hired godowns irrespective of utilization.
- (ii) Some of the  FCI  owned  godowns remain  under  Zero  Physical  Verification and stocks are completely issued out to verify shortages etc., if any.
- (iii) In order to control high cost of handling in FCI owned depots due   to departmental labour , the low cost hired depots are preferred.
- (iv) Non-utilization of FCI owned silos which were constructed in 1960 and 1970 and have become non-operative. Some depots have come in city premises and cannot be utilized effectively.
- (v)
- Repair and maintenance of own depots.
- (vi) Other capacities whichever cannot be put to use or in DCP mode have been rented out or are being considered for renting out.  .

(e):  In  order  to  augment  capacities  in  specific  areas  and  to  modernize  the storage  facilities,  the  Government  has  been  implementing  the  following schemes:

- I. Private  Entrepreneurs  Guarantee  (PEG)  Scheme:  Under  this  Scheme, which was formulated in 2008, storage capacity is created by private parties, Central Warehousing Corporation (CWC) and State Government Agencies for guaranteed hiring by FCI. A capacity of 140.62 lakh MT has already been since completed as on 31.01.2018.
- II. Central  Sector  Scheme:  This  scheme  is  meant  for  the  North  Eastern States along with Himachal Pradesh, Jharkhand and Kerala. Funds are released  by  the  Government  to  FCI  and  also  directly  to  the  State Governments for construction of godowns. During 12 th Five Year Plan, a capacity of 1,17,680 MT in North Eastern (NE) States and 20,000 MT in other than NE States has been completed by FCI. Further, a capacity of 46,495 MT has been created by State Governments. This scheme is being continued for next 3 years i.e. upto 2020. A capacity of 4,590 MT has been completed by FCI and 4,500 MT by State Governments upto 31.01.2018 in the current financial year.
- III. Construction  of  steel  silos:  Government  of  India  has  also  approved action plan for construction of steel silos in the country for a capacity of  100  LMT,  for  modernizing  the  storage  infrastructure  and  improving shelf  life  of  stored  food  grains.  As  on  31.01.2018,  tenders  have  been awarded for a capacity of 38.50 LMT and a capacity of 6.25 LMT silos has already been added under the above action plan. However, contract for capacity of 0.50 LMT has been cancelled by FCI due to failure on the part of concessionaire to provide the performance security.

****

## ANNEXURE  REFERRED  TO  IN  REPLY  TO PART (a) OF THE UNSTARRED QUESTION NO. 4058 DUE FOR ANSWER ON 20.03.2018 IN THE LOK SABHA.

The state-wise details of rent paid by FCI to the private godown owners to stock the foodgrains  procured  by  FCI  and  State  Agencies  in  the  year  2016-17  are  as  given below:

(Amount in Rs Lakhs)

| SL   | Name of State                                          | Amount    |
|------|--------------------------------------------------------|-----------|
| 1    | Bihar                                                  | 79.53     |
| 2    | Jharkhand                                              | 1,085.99  |
| 3    | Odisha                                                 | 0.00      |
| 4    | West Bengal (includes Sikkim)                          | 463.41    |
| 5    | Assam                                                  | 190.45    |
| 6    | Manipur, Meghalaya and Tripura                         | 36.12     |
| 7    | Arunachal Pradesh                                      | 6.63      |
| 8    | Haryana                                                | 23,590.43 |
| 9    | Himachal Pradesh                                       | 235.62    |
| 10   | Jammu &Kashmir                                         | 1518.93   |
| 11   | Punjab ( includes Chandigarh)                          | 42,407.73 |
| 12   | Rajasthan                                              | 1178.14   |
| 13   | Uttar Pradesh                                          | 5,032.78  |
| 14   | Uttarakhand                                            | 2.16      |
| 15   | Andhra Pradesh (includes Telangana, Andaman & Nicobar) | 654.59    |
| 16   | Kerala (includes Lakshadweep)                          | 0         |
| 17   | Karnataka                                              | 784.79    |
| 18   | Tamil Nadu (includes Pondicherry)                      | 889.17    |
| 19   | Gujarat (includes Daman &Diu)                          | 77.93     |
| 20   | Maharashtra (includes Goa)                             | 5,037.33  |
| 21   | Madhya Pradesh                                         | 132.26    |
| 22   | Chhattisgarh                                           | 6.75      |
|      | Total                                                  | 83,410.74 |

## ANNEXURE REFERRED TO IN REPLY TO PART (b)  OF THE UNSTARRED QUESTION NO. 4058 DUE FOR ANSWER ON 20.03.2018 IN THE LOK SABHA.

State-wise number of storage godowns available with FCI as on 31.01.2018

| SL. NO.   | REGION/U.T.                 | COVERED         | COVERED   | COVERED   | COVERED   | COVERED   | COVERED   | COVERED         | COVERED     | COVERED       |
|-----------|-----------------------------|-----------------|-----------|-----------|-----------|-----------|-----------|-----------------|-------------|---------------|
|           |                             | FCI OWNED GOVT. | STATE     | CWC       | SWC       | HIRED PEG | PWS 2010  | PRIVATE PARTIES | TOTAL HIRED | TOTAL COVERED |
| 1         | BIHAR                       | 12              | 2         | 10        | 23        | 15        | 1         | 4               | 55          | 67            |
| 2         | JHARKHAND                   | 6               | 0         | 2         | 11        | 19        | 0         | 1               | 33          | 39            |
| 3         | ODISHA                      | 22              | 0         | 8         | 22        | 0         | 0         | 0               | 30          | 52            |
| 4         | WEST BENGAL                 | 23              | 0         | 3         | 0         | 0         | 0         | 7               | 10          | 33            |
| 5         | ARUNACHAL                   | 6               | 3         | 0         | 0         | 0         | 0         | 5               | 8           | 14            |
| 6         | ASSAM                       | 20              | 2         | 3         | 4         | 1         | 0         | 10              | 20          | 40            |
| 7         | MANIPUR                     | 4               | 1         | 0         | 0         | 0         | 0         | 0               | 1           | 5             |
| 8         | NAGALAND                    | 5               | 0         | 1         | 0         | 0         | 0         | 0               | 1           | 6             |
| 9         | MEGHALAYA, MIZORAM, TRIPURA | 14              | 4         | 0         | 2         | 0         | 0         | 0               | 6           | 20            |
| 10        | DELHI                       | 6               | 0         | 0         | 0         | 0         | 0         | 0               | 0           | 6             |
| 11        | HARYANA                     | 33              | 16        | 17        | 27        | 130       | 0         | 1               | 191         | 224           |
| 12        | HIMACHAL PRADESH            | 6               | 6         | 3         | 0         | 3         | 0         | 0               | 12          | 18            |
| 13        | JAMMU AND KASHMIR           | 16              | 1         | 0         | 0         | 7         | 0         | 7               | 15          | 31            |
| 14        | PUNJAB                      | 118             | 1         | 25        | 205       | 186       | 0         | 10              | 427         | 545           |
| 15        | RAJASTHAN                   | 36              | 0         | 24        | 67        | 12        | 0         | 4               | 107         | 143           |
| 16        | UTTAR PRADESH               | 45              | 1         | 21        | 99        | 60        | 1         | 0               | 182         | 227           |
| 17        | UTTARAKHAND                 | 4               | 3         | 5         | 5         | 0         | 0         | 0               | 13          | 17            |
| 18        | ANDHRA PRADESH              | 24              | 0         | 2         | 1         | 5         | 0         | 1               | 9           | 33            |
| 19        | KARNATAKA                   | 22              | 0         | 5         | 19        | 7         | 0         | 1               | 32          | 54            |
| 20        | KERALA                      | 23              | 0         | 0         | 0         | 1         | 0         | 0               | 1           | 24            |
| 21        | TAMIL NADU                  | 14              | 0         | 11        | 11        | 10        | 0         | 2               | 34          | 48            |
| 22        | TELANGANA                   | 11              | 1         | 7         | 5         | 6         | 0         | 0               | 19          | 30            |
| 23        | CHHATTISGARH                | 21              | 1         | 3         | 12        | 4         | 0         | 0               | 20          | 41            |
| 24        | GUJARAT                     | 14              | 2         | 8         | 0         | 1         | 0         | 1               | 12          | 26            |
| 25        | MADHYA PRADESH              | 19              | 0         | 2         | 0         | 0         | 0         | 0               | 2           | 21            |
| 26        | MAHARASHTRA                 | 13              | 0         | 9         | 24        | 27        | 2         | 1               | 63          | 76            |
| 27        | COUNTRY TOTAL               | 537             | 44        | 169       | 537       | 494       | 4         | 55              | 1303        | 1840          |