Lok Sabha Question No. 1529 (UNSTARRED), answered on 2017-07-25
Subject: Rotting Foodgrains
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: ASHWINI KUMAR, JYOTIRADITYA MADHAVRAO SCINDIA

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1529

TO BE ANSWERED ON 25 th  JULY, 2017

## ROTTING FOODGRAINS

## 1529.   SHRI JYOTIRADITYA M. SCINDIA: SHRI ASHWINI KUMAR:

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  Union  Government  is  aware  that  foodgrains  worth several metric tonnes are rotting in the godowns of Food Corporation of India (FCI) across the country, if so, the facts and details in this regard;
- (b) the quantum and value of foodgrains found damaged or non-issuable in FCI godowns across the country since May, 2014 to March, 2017 and the reasons for damage;
- (c) whether  the  Government  has  fixed  any  responsibilities on the officials  involved  for  showing  negligence  in  ensuring  proper  upkeep  of foodgrains in FCI godowns;
- (d) if  so, the details in this regard and the steps proposed by the Union Government to check such criminal wastage of foodgrains in future; and
- (e) the  procedure  to  dispose  of  the  damaged  foodgrains  in  godowns declared as unfit for human consumption?

## A N S W E R

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

(a)&(b): Procured foodgrains are stored in scientific storage. Scientific codes of practices for safe storage of foodgrains are followed during storage. Inspite of all precautions, some quantity of foodgrains may get damaged/become non-issuable during storage due to various reasons such as storage  pests'  attack,  leakages  in  godowns,  procurement  of  poor  quality stocks,  exposure  to  rains,  floods,  negligence  on  the  part  of  concerned persons  in  taking  precautionary  measures  etc.  The  details  of  the  quantity accrued as damaged/non-issuable and its value in Food Corporation of India (FCI) since May, 2014 to March, 2017 is as under:-

| Year                    |   Quantity of damaged/non- issuable foodgrains (in lakh tons) |   Value of damaged/non- issuable foodgrains (Rs. in crores) |
|-------------------------|---------------------------------------------------------------|-------------------------------------------------------------|
| May 2014 to March, 2015 |                                                          0.19 |                                                       19.73 |
| 2015-16                 |                                                          0.03 |                                                        3.44 |
| 2016-17                 |                                                          0.09 |                                                        9.12 |
| Total                   |                                                          0.31 |                                                       32.29 |

(c)&(d): Appropriate disciplinary action against the officials found responsible for negligence in proper preservation of foodgrains are invariably taken. Various penalties such as recovery of losses, compulsory retirement, reversion  to  lower  post  and  reduction  in  time  scale  of  pay  etc  have  been imposed against the defaulters. The details of the action taken against the officials found responsible for damage to foodgrains for the last three years are as under: -

| Year    |   No. of Officials |
|---------|--------------------|
| 2014-15 |                 77 |
| 2015-16 |                 31 |
| 2016-17 |                 13 |

Steps  taken  by  the  Government  for  safe  storage  to  avoid  damage  are  at Annex-I.

(e): Procedure for disposal of damaged/non-issuable foodgrains in FCI is at Annex-II.

****

## ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PARTS (c) & (d) OF UNSTARRED

## QUESTION NO 1529 TO BE ANSWERED ON 25 TH  JULY, 2017 IN LOK SABHA.

## STEPS TAKEN BY THE GOVERNMENT AVOID THE DAMAGE OF FOODGRAINS IN STORAGE

Before  the  commencement  of  Rabi  and  Kharif  Marketing  Seasons,  Ministry  of  Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution, Govt. of India issues uniform specifications for procurement of foodgrains for the Central Pool. These uniform specifications are circulated to F.C.I. and all State Govts./Agencies with instructions to ensure that foodgrains are procured strictly in accordance with the uniform specifications.

2. Foodgrains procured by F.C.I. and State Govts/Agencies are stored in covered godowns as well as in CAP (cover and plinth).
3. During storage, the following steps are taken for safe storage and preservations of foodgrains:
3. (i) All godowns are constructed as per specifications.
4. (ii) Foodgrains are stored by adopting proper scientific code of storage practices.
5. (iii) Adequate dunnage materials such as wooden crates, bamboo mats, polythene sheets are used to check migration of moisture from the floor to the foodgrains.
6. (iv) Fumigation covers, nylon ropes, nets and insecticides for control of stored grain insect pests are provided in all the godowns.
7. (v) Prophylactic (spraying of insecticides) and curative treatments (fumigation) are carried out regularly and timely in godowns for the control of stored grain insect pests.
8. (vi) Effective rat control measures, both in covered godowns as well as in CAP storage are used.
9. (vii) Foodgrains in 'Cover and Plinth' (CAP) storage are stored on elevated plinths and wooden crates are used as dunnage material. Stacks are properly covered with specifically fabricated low-density black polythene water -proof covers and tied with nylon ropes/nets.
10. (viii) Regular periodic inspections of the stocks/godowns are undertaken by qualified and trained staff and all senior officers. The health of the foodgrains is monitored at regular intervals by a system of checks and super checks at different levels. Following Checks and Super checks are conducted in the godowns by FCI to ensure proper preservation of foodgrains in the storage.
- a. Fortnightly inspection of stocks on 100% basis by Technical Assistant.
- b. Monthly inspection by Manager(QC)
- c. Quarterly inspection by AGM(QC)
- d. Super Checks by Regional, Zonal and FCI Hqrs Squads.
15. (ix) The principle of 'First in First Out' (FIFO) is followed to the extent possible so as to avoid longer storage of foodgrains in godowns.
16. (x) Only covered rail wagons are used for movement of foodgrains so as to avoid damage during transit.
17. (xi) Damage Monitoring Cells have been set up at District, Regional and Zonal levels to regularly monitor quality of stocks and reduce damages.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (e)  OF  UNSTARRED QUESTION NO 1529 TO BE ANSWERED ON 25 TH  JULY, 2017 IN LOK SABHA. PROCEDURE FOR DISPOSAL OF DAMAGED/NON-ISSUABLE FOODGRAINS IN FCI

On  identification  of  damaged  food  grains  by  concerned  Technical  Assistant  at  the depot the following procedure of categorization/ disposal are followed:

## A. Categorization

1. The three tier  categorization  at  Depot  level,  Regional  level,  Zonal  level  shall  be  as under:
- a) On identification/categorization of damaged foodgrains by Technical Assistant/Manager (QC) at the depot, 100% stock should be further categorized by the District  Categorization  Committee  (DCC)  consisting  of  Area  Manager,  Manager (QC),  District  Lab,  Manager  (QC)  of  concerned  depot  and  Manager  (Fin.  A/Cs) within  15  days  from  the  date  of  detection/categorization  of  damaged  foodgrains  at depot.
- b) Regional Categorization Committee (RCC) consisting of Assistant General Manager (QC), AGM (Fin./A/Cs) of Regional Office concerned and Area Manager/AGM (QC) of concerned District will test check 20% of the total stock categorized by the DCC.
- c) Zonal Categorization Committee (ZCC) consisting of QC officers nominated by ED (Zone), AGM (QC) of R.O. & AGM (QC)/Area Manager of the concerned District will  test  check  5%  of  the  stocks  categorized  by  the  DCC  within  15  days  from  the receipt of the report from GM (Region) concerned.
- d) RCC/ZCC will test check and submit the report with specific recommendations to the General Manager (Region), through their respective offices.
- e) The categorization of damaged foodgrains will be deemed / treated as final only on the  receipt  of  categorization  reports  of  RCC  &  ZCC  by  the  General  Manager (Region).
2. F.C.I. Headquarters deputed Vigilance Squads in case accrual of damaged foodgrain is more than 1,000 MT in a particular Region.

## Categorization of damaged foodgrains is based on the % of sound grain.

Category :

%age  of sound grains other than foreign matter & damaged

foodgrains

Feed-I :

85% to less than 94% ( in wheat )/95% ( in rice )

Feed-II :

70% to less than 85%

Feed-III :

55% to less than 70%

Industrial Use :

30% to less than 55%

Manure Use :

10% to less than 30%

Dumping :

less than 10% (to be offered as Manure before dumping)

## Disposal of damaged foodgrains:

- (i) GM (Region) is competent Authority for disposal of damaged foodgrains for quantity where the price received in the tender/auction is above the reserve price.
- (ii) Wherever,  the  rates  of  damaged  foodgrains  received  in  tender  inquiry/  auction  are below the reserve price, such rates shall invariably be approved by the  next higher authority i.e. Executive Director (Zone).
- (iii) GM. Region can dispose damaged foodgrain under Rate Running Contract but if at any time accrual is more than 500 MT, it is to be disposed off through tenders only (Copy of MTF enclosed).
- (iv) F.C.I.  has  to  confirm  that  the  parties  involving  tender  enquiry  including  State Departments and Agencies have feed stock manufacturing plants.
- (v) Besides  above,  Executive  Director  (Zone)  shall  be  competent  to  take  decision  on extension of period for lifting of stocks by Registered Parties / RCC holders beyond stipulated  period  of  30  days  provided  the  concerned  parties  have  deposited  the requisite  cost  of  damaged  foodgrains  as  per  terms  and  conditions  of  the  contract. However, this should be decided on merit of each case not in routine.
- (vi) Wherever, the rates of damaged foodgrains received in tender inquiry /  auction are below the reserve price, such rates shall invariably be approved by the  next higher authority i.e. Executive Director (Zone).

## 3. RESERVE PRICES

The Reserve Price of damaged foodgrain is as under:-

| (I)   | Feed -I        | -   | 60% of MSP of the Crop Year for Wheat. 60% of derived MSP of the Crop Year for Rice.   |
|-------|----------------|-----|----------------------------------------------------------------------------------------|
| (II)  | Feed-II        | -   | 50% of MSP of the Crop Year for Wheat. 50% of derived MSP of the Crop Year for Rice.   |
| (III) | Feed-III       | -   | 40% of MSP of the Crop Year for Wheat. 40% of derived MSP of the Crop Year for Rice.   |
| (IV)  | Industrial Use | -   | 30% of MSP of the Crop Year for Wheat. 30% of derived MSP of the Crop Year for Rice.   |
| (V)   | Manure         | -   | 10% of MSP of the Crop Year for Wheat. 10% of derived MSP of the Crop Year for Rice.   |

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