Lok Sabha Question No. 4197 (UNSTARRED), answered on 2017-03-28
Subject: Expenditure on Procurement by FCI
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: PARASURAMAN K.

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 4197

TO BE ANSWERED ON 28 th  MARCH, 2017

## EXPENDITURE ON PROCUREMENT BY FCI

## 4197.   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) the  amount  of  money  utilised  in  the  procurement  of  food  grains through  the FCI for the last three financial years, State-wise;
- (b) whether the Government is planning to reduce the role of the FCI in procurement of grains and make it more State centred and if so, the details thereof;
- (c) whether the Government has accepted the report and recommendations made by the Shanta Kumar committee on restructuring of FCI; and
- (d) if  so,  the  details  of  the  action  taken  by  the  Government  in  this regard?

## A N S W E R

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

- (a):  The  total  amount  of  money  utilised  in  the  procurement  of  food  grains through the Food Corporation of India (FCI) for the last three financial years, State-wise is at Annexure-I.
- (b): Decentralized Procurement Scheme (DCP) was introduced by Government of India (GOI) in 1997-98 to increase participation of states in procurement and distribution. Under DCP  system, the State Govt./its agencies procure , store and distribute (against GOI's allocation for Targeted Public  Distribution  System  (TPDS)/  National  Food  Security  Act  (NFSA)  and Other Welfare Scheme (OWS) rice /wheat within the state. The excess stocks (Rice & wheat) procured by the State /its agencies are handed over to FCI in Central Pool. The expenditure incurred by the State Government  on procurement, storage and distribution of DCP stocks are reimbursed by GOI on the laid down principles.
- 13  States  have  adopted  DCP  mode  of  procurement  for  Rice  and  8 States adopted DCP mode for Wheat. In addition, Jharkhand has adopted DCP for  rice  from  KMS  2016-17  onwards  for  one  district  i.e.  Ramgarh  revenue district.
- (c) & (d): The Action taken on the major accepted recommendations of High Level Committee headed by Shri Shanta Kumar, Hon'ble MP is enclosed at Annexure-II.

****

## ANNEXURE-I

## ANNEX REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO 4197 TO BE ANSWERED ON 28 TH  MARCH, 2017 IN LOK SABHA.

| The details of amount utilised in the procurement of wheat, paddy/rice through the FCI including MSP &Incidental Charges based on the audited accounts for   | The details of amount utilised in the procurement of wheat, paddy/rice through the FCI including MSP &Incidental Charges based on the audited accounts for   | The details of amount utilised in the procurement of wheat, paddy/rice through the FCI including MSP &Incidental Charges based on the audited accounts for   | The details of amount utilised in the procurement of wheat, paddy/rice through the FCI including MSP &Incidental Charges based on the audited accounts for   | The details of amount utilised in the procurement of wheat, paddy/rice through the FCI including MSP &Incidental Charges based on the audited accounts for   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                              |                                                                                                                                                              |                                                                                                                                                              |                                                                                                                                                              | Rs. In Crore                                                                                                                                                 |
| S.No.                                                                                                                                                        | Name of State/Unit                                                                                                                                           | 2013-14                                                                                                                                                      | 2014-15                                                                                                                                                      | 2015-16                                                                                                                                                      |
| 1                                                                                                                                                            | Bihar                                                                                                                                                        | 1890.92                                                                                                                                                      | 0.35                                                                                                                                                         | 0.35                                                                                                                                                         |
| 2                                                                                                                                                            | Jharkhand                                                                                                                                                    | 239.49                                                                                                                                                       | 4.24                                                                                                                                                         | 124.72                                                                                                                                                       |
| 3                                                                                                                                                            | Orissa                                                                                                                                                       | 2906.20                                                                                                                                                      | 3323.63                                                                                                                                                      | 3784.22                                                                                                                                                      |
| 4                                                                                                                                                            | West Bengal(Including Sikkim)                                                                                                                                | 181.38                                                                                                                                                       | 28.97                                                                                                                                                        | 677.22                                                                                                                                                       |
| 5                                                                                                                                                            | Assam                                                                                                                                                        | 35.42                                                                                                                                                        | 14.65                                                                                                                                                        | 54.03                                                                                                                                                        |
| 6                                                                                                                                                            | Arunachal Pradesh                                                                                                                                            | 0.00                                                                                                                                                         | 0.00                                                                                                                                                         | 0.16                                                                                                                                                         |
| 7                                                                                                                                                            | NEF                                                                                                                                                          | 0.74                                                                                                                                                         | 38.54                                                                                                                                                        | 0.00                                                                                                                                                         |
| 8                                                                                                                                                            | N&M                                                                                                                                                          | 0.18                                                                                                                                                         | 0.05                                                                                                                                                         | 0.00                                                                                                                                                         |
| 9                                                                                                                                                            | Delhi                                                                                                                                                        | 0.11                                                                                                                                                         | 0.18                                                                                                                                                         | 2.77                                                                                                                                                         |
| 10                                                                                                                                                           | Haryana                                                                                                                                                      | 22937.76                                                                                                                                                     | 20067.65                                                                                                                                                     | 19725.91                                                                                                                                                     |
| 11                                                                                                                                                           | Himachal Pradesh                                                                                                                                             | 0.33                                                                                                                                                         | 0.20                                                                                                                                                         | 0.23                                                                                                                                                         |
| 12                                                                                                                                                           | Jammu &Kashmir                                                                                                                                               | 0.08                                                                                                                                                         | 0.00                                                                                                                                                         | 15.44                                                                                                                                                        |
| 13                                                                                                                                                           | Punjab(Including Chandigarh)                                                                                                                                 | 46769.29                                                                                                                                                     | 47725.49                                                                                                                                                     | 50427.43                                                                                                                                                     |
| 14                                                                                                                                                           | Rajasthan                                                                                                                                                    | 1738.75                                                                                                                                                      | 3090.59                                                                                                                                                      | 1932.25                                                                                                                                                      |
| 15                                                                                                                                                           | Uttar Pradesh                                                                                                                                                | 4050.91                                                                                                                                                      | 4804.13                                                                                                                                                      | 10264.93                                                                                                                                                     |
| 16                                                                                                                                                           | Uttaranchal                                                                                                                                                  | 584.09                                                                                                                                                       | 455.12                                                                                                                                                       | 716.99                                                                                                                                                       |
| 17                                                                                                                                                           | Andhra Pradesh (Including Andman Nicobar &Telengana)                                                                                                         | 10452.11                                                                                                                                                     | 12965.21                                                                                                                                                     | 9375.19                                                                                                                                                      |
| 18                                                                                                                                                           | Karnataka                                                                                                                                                    | 0.14                                                                                                                                                         | 0.03                                                                                                                                                         | 0.16                                                                                                                                                         |
| 19                                                                                                                                                           | Kerala (Including Lakashadweep)                                                                                                                              | 0.00                                                                                                                                                         | 0.00                                                                                                                                                         | 1.07                                                                                                                                                         |
| 20                                                                                                                                                           | Gujrat                                                                                                                                                       | 0.21                                                                                                                                                         | 0.60                                                                                                                                                         | 15.52                                                                                                                                                        |
| 21                                                                                                                                                           | Maharashtra (Including Goa)                                                                                                                                  | 396.11                                                                                                                                                       | 365.88                                                                                                                                                       | 557.48                                                                                                                                                       |
| 22                                                                                                                                                           | Madhya Pradesh                                                                                                                                               | 5979.63                                                                                                                                                      | 7380.34                                                                                                                                                      | 9973.03                                                                                                                                                      |
| 23                                                                                                                                                           | Chhattisgarh                                                                                                                                                 | 5027.14                                                                                                                                                      | 6073.45                                                                                                                                                      | 8229.38                                                                                                                                                      |
|                                                                                                                                                              | Total                                                                                                                                                        | 103190.99                                                                                                                                                    | 106339.30                                                                                                                                                    | 115878.48                                                                                                                                                    |

***

## ANNEX REFERRED TO IN REPLY TO PARTS (c)&(d) OF UNSTARRED QUESTION  NO  4197  TO  BE  ANSWERED  ON  28 TH   MARCH,  2017  IN LOK SABHA.

Action taken on the major recommendations of High Level Committee headed by Shri Shanta Kumar, Hon'ble MP

|   S. No | Action Point                                            | Action taken                                                                                                                                                                                                                                                                                                                                                          |
|---------|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | Improvement of procurement operations in Eastern States | 37.81 LMT of rice has been procured in Eastern States during ongoingKMS 2016-17.                                                                                                                                                                                                                                                                                      |
|       2 | Implementation of Depot Online System                   | Depot Online System is operational at 508 FCI Depots.                                                                                                                                                                                                                                                                                                                 |
|       3 | Fixation of scientific norms for storage losses         | A study has been assigned to through ICAR for evolving scientific norms for storage losses. The performance of FCI with regards to control of storage losses is satisfactory. During 2016-17, there is a net gain of 0.13%.                                                                                                                                           |
|       4 | Reduction in transit losses                             | Cumulative transit losses during 2016-17 (April, 2016 to January, 2017) has been reported to the tune of 0.38%.                                                                                                                                                                                                                                                       |
|       5 | Procurement of pulses and oilseeds by FCI.              | FCI has procured around 64613.94 MT of Moong, 18234.23 MTof Urad and 148735.14 MTof Tur.                                                                                                                                                                                                                                                                              |
|       6 | Issue relating to Contract Labour                       | In pursuance of the High Court of Bombay, Nagpur Bench, judgement directing for rationalization of Labour strength to optimize labour cost, Ministry of Labour & Employment notification dated 6 th July, 2016 gives exemption for two years for notified depots. FCI has taken appropriate steps for shifting/transfer/repositioning of 1739 labours within regions. |