Lok Sabha Question No. 2489 (UNSTARRED), answered on 2021-03-09
Subject: Surplus Foodgrain Holdings
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sajda Ahmed

## M|N|STRY  OF CONSUMER  AFFAIRS, FOOD & PUBLIC DTSTRIBUTTON

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED OUESTION NO, 2489 TO BE ANSWERED  ON 9th March,2O2{

## SURPLUS FOODGRAIN HOLDINGS

## 2489. SHRIMATI SAJDA AHMED:

Will the Minister of GONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTIOil  5c$Iffr arr&, urc-a sit{ Trdufrfi frtr{Er d+ be pteased  to state:

- (a) whether the Food Gorporation of lndia (FGI) has been holding Iarge surplus of food grain during the last two years;
- (b)  the details of  the sale of food grains to  open market and Govemment agencies during the last three yearsl
- (c) whether the FGI has sold the food grain in open market at a loss during the last two years;
- (d) if so, the reasons therefo4  and
- (e) whether the damage of food grains occurred during last few yearc due to surplus storage?

## ANSWER

## MINISTER  OF STATE FOR MINISTRY  OF CONSUMER  AFFA|RS, FOOD & PUBLIG DISTRIBUTION

(sHRt DAi{VE RAOSAHEB DADARAO)

## (a): Foodgrains  stock available  against  the Stocking norms in Centrat Pool for last two yeans are as unden-

(ln lakh tons)

| AS ON     | WH EAT       | WH EAT                    | RICE         | RICE                       | TOTAL        | TOTAL                     |               |
|-----------|--------------|---------------------------|--------------|----------------------------|--------------|---------------------------|---------------|
|           | Actual stock | Foodgrains Stocking norms | Actual stock | Foodgrains Stocking nortns | Actual stock | Foodgrains Stocking norms | Surplus Stock |
| LOt.20t9  | 271.121      | l38.OO                    | 1't2.91      | 76.t0                      | 454.12       | 214.10                    | 240.O2        |
| 1.O7.2019 | 458.31       | 275.80                    | 2A4.21       | {35.40                     | 742.52       | 411.20                    | 33{.32        |
| 1.01.2020 | 327.96       | r38.O0                    | 237.15       | 75.1O                      | 565.{ 1      | 214.10                    | 35r.0t        |
| 1.O7.2020 | 549.9r       | 275.4O                    | 271.71       | ,t35.40                    | 421.62       | 411.20                    | 4.to.42       |
| 1.O1.2021 | 342.1 O      | {38.O0                    | 186.69       | 76.10                      | 529.59       | 214.10                    | 3,t5.49       |

- (b): Details of sale of wheat and rice under OMSS (D) during last three yearc and current years is as unden

| year          |             |                 |       | in tons     | in tons         | in tons   |
|---------------|-------------|-----------------|-------|-------------|-----------------|-----------|
|               | Wheat       | Wheat           | Wheat | Rice        | Rice            | Rice      |
|               | States/ UTs | Private Parties | Total | States/ UTs | Private Parties | Total     |
| 2017-18       | 7.06        | 7.15            | 14.21 | 4.89        | o.or            | 4.90      |
| 2018.{ 9      | 7.45        | 74.34           | 8{.83 | 8.45        | o.0{            | 8.46      |
| 2019-20       | 8.48        | 27.aa           | 36.36 | ,5.80       | o.3l            | 16.11     |
| 2020-21 (upto | 11.37       | 11.13           | 22.50 | 22.O4       | o.40            | 22.48     |

(c):  The reserve price fixed by Govt. of India for sale of wheat and rice under OMSS (D) during last two years and current year are as unden

## Wheat:

20{8-{9: The Economic Gost of wheat was Rs 2359.73/quinta!  (unaudited) against which the reserve prices under OMSS(D)  was as follows:

For Madhya Pradesh, Puniab & Haryana, reserve price for 2il ,3,n & 4th quarter was Rs. 'l9OO/-, Rs. { 925/- & Rs. {95O/- per quintal respectively. For other states railway freight ex-Ludhiana  to the nearest railhead and road transportation cost from railhead to  depot, where sale was undettaken  was added to arrive at the reserve price.

2O19-2O:  The Economic  Gost of wheat was Rs 2679.95/quinta!  (RE) against which the reserve prices under OMSS(D) was as follows:

The reserve price for Madhya Pradesh, Punjab & Haryana,  Reserve price for {o  ,  2"o  ,  3'd & 4th quarter  was initially fixed as Rs. 2O8O/-, Rs. 2135l.  ,  Rs. 2{9OA & Rs.2245i. per quintal respectively.  Ministry vide letter dated {7.O{.2O2O revised  the reserve price for Madhya Pradesh, Puniab & Haryana,  to Rs. 2135/- per quintal for FAQ wheat and Rs. 2O8O/- per quintal for URS wheat of crop year 2O,fg-2O. For other states raitway freight exLudhiana to the nearest railhead and road transportation cost from railhead  to depot, where sate was undertaken was added to arive at the reserve price.

2O2O-21=  The Economic Gost of wheat was Rs 2683.84/quintal (BE) against which the reserve prices under OMSS (D) was as foltows:

The reserve price for Madhya Pradesh, Puniab & Haryana, was initially fixed as Rs. 2{35/- per quintal for FAQ wheat and Rs. 2O8O/- per quintal for URS wheat. For other states railway freight ex-Ludhiana to the nearest railhead and road transportation  cost from railhead to depott where sale was undertaken  was added to arrive at the reserve  price.

Ministry of  GAF & PD, Govt. of lndia vide letter dated 31.O7.2O2O conveyed revised policy for  sale of  wheat to  bulk consumers/ Traders /State/UT Governments in  the open market under OMSS(D) through e-auction  for remaining  period of 2O2O-21  as under:

## l. For RMS 2O19-2O wheat:

- a. Reserve Price of RMS 2O19.2O  URS wheat only for sale from Punlab and Haryana will be Rs. {84O/- per quintal.
- b. Foi rest of the states the revised price of RMS 2Ol9-20 URS wheat will be Rs. 2O8O/- per quintal plus rail freight ex. Ludhiana to the nearest railhead and road transportation  cost from railhead to depot may be added to arrive at the reserve price of that depot.

## 2. For RMS 2O2O-21  wheat:

- c. Reserve Price of RMS 2O2O-21 URS wheat for sale from Puniab, Haryana and MP will be Rs. 2O8O/- per quintal.
- e. For the purpose of fixation of reserve price in states other than Punjab, Haryana and MP, rail freight ex-Ludhiana  to the nearest railhead and road transpottation cost from railhead to depot may be added to above, if the offercd  stocks have been moved from Puniab/Haryana  and in case the offered stocks have been transported from MPr rail freight ex' Bhopal to the nearest railhead and road transportation cost from railhead to depot may be added to above, to arrive at the reserve  price.
- d. Reserve Price for FAQ wheat(For all RMS) for sale from Puniab, Haryana and MP will be Rs. 2{35/- per quintal.

.4t-

## Rice:

2O18.19: The Economic  Gost of rice was Rs 3444.{O/qulntal  (unaudited) against which the reserve  prices under OMSS(D) was as follows:

Reserve Price of rice was fixed at Rs. 25OO/- per quintal for auction upto September  2O{8. From October 2O18, the reserve price was to  be taken as Rs. 25OO/- per quantal or MSP derived  price(MSP  of Grade'A' paddy*({.5),  whichever was higher. The reserve  price w.e.f {.{O.20{8 was accordingly fixed as Rs. 2655/- per quintal.

2O19.2Ot  The Economic Gost of rice was Rs 3748.{3/quintal (RE) against which the reserve prices under OMSS(D) was as lollows :

Reserve Price of rice was fixed at Rs. 2785/- per quintal for auctaon upto September 2O{9. From October 2O19, the reserve price was to be taken as Rs. 2785/- per quintal or MSP derived price (MSP of GradetAt paddy'(i.S),  whichever was highen The reserve  price of rice revised to Rs. 22501 per quintal after Ol.Ol.2O2O.

2O2O-21=  The Economic Gost of rice was Rs 3726.76/quintal (BE) against which the reserve prices under OMSS(D) was as follows:

lnitially a uniform  reserve of Rs. 225Ol- per quintal was fixed for sale of rice under OMSS(D) during 2O2O-21. Ministry of CAF&PD vide their letter dated O7.{2.2O2O conveyed revased  policy for sale of rice under OMSS(D) for the rest of the yeat 2O2O-21 which is as follows:

- a. The reserve price of rice under OMSS(D) for the rest of the period ot 2O2O-21  is fixed as Rs. 2OOO per qtl. For State Government and Central Government schemes and programmes including for ethanol production under bio fue! policy.
- b. Reserve price for private parties is Rs. 225Ol- per qtl. pan-lndia
3. (d): The reserve prices as explained above have been fixed in order to liquidate excess stock and to contain  inflation, FGI is undertaking sale of wheat and rice under OMSS (D) as per the guidelines  for fixation of reserve price, quantity,  methodology etc.

5t-

- (e): No damage of foodgrains occurred during the last few years due to surplus storage. Grain avaitable with FCI is  stored and preserved scaentifically.  FCI as storing/ handling large quantities  of foodgrains over long periods. Out of these Stocks, small quantities ot food grains  accrue as damaged mainly due to Natural Calamities like Gyclone/Flood. ln addition to  this, negligible quantities  become J{on-issuable  due to following reasons:
1. Transit damages viz en-route damage in wagon/truck due to contamination, wagon roof leakage etc.
2. ln some cases due to negligence  of officials/ officers, for which suitable disciplinary  action against  defaulterc are invariably taken.

The quantum  of damaged foodgrains  in FGI during the last three years and current  year is tabulated below:

| Year                     | Damage Accrual in FCI (ln Lakh tonnes)   | 7o Damaged foodgrain against offtake quantity   |
|--------------------------|------------------------------------------|-------------------------------------------------|
| 20174A                   | o.o27                                    | o.oo6                                           |
| 2018-{ 9                 | o.o5                                     | o.ol                                            |
| 2019-20                  | o.02                                     | o.o04                                           |
| 2020-21 (as on 3l-0{-2O) | 0.ot76                                   | 0.o029                                          |