Lok Sabha Question No. 2544 (UNSTARRED), answered on 2024-08-07
Subject: Efficiency of FCI
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Ram Shiromani Verma

## M[NISTRY OF CONSUMER AFFAIRS. FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO.2544 TO BE ANSWERED ON 7TH AUGUST, 2024

## EFFICIENCY OF FCI

## t2544 SHRI RAM SHIROMANI VERM A

Will  the Minister of  CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUtION  wrtnr wmd, amBiT trT#rf+qfqTrvr ## be pleased to state:

- (a) whether farmers are still  selling their produce at prices less than minimum  support price due to less awareness about the procurement procedure and if  so, the details thereof and the steps taken to spread awareness among the farmers;
- (b) whether the Government has assessed the efficiency of  Food Corporation of  India (FCI)  in procuring  foodgrains and if so, the details and outcome thereof and the corrective steps taken in this regard; and
- (C) the steps being taken to liquidate  the excess stock to  facilitate  fresh procurement?

## ANSWER

## MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIMATI  NIMUBEN JAYANTIBHAI  BAMBHANIYA)

- (a): There exists a transparent &  uniform  policy  for  procurement of  food  grains by Government Agencies across the country. The  Government's policy  of  procurement of  foodgrains has broad objectives of ensuring Minimum  Support Price (MSP) to the farmers and availability  of foodgrains to the weaker sections at affordable prices. Under this policy,  stocks conforming  to the Government of India ((3ol) specifications which  are ofFered by the farmers at Purchase centers are procured by the Government Agencies at MSP, However, if  the farmers get prices better than MSP in  open market, theY are free to  sell their  produce,

Govemment of India in consultation with Food Corporation of India (F(:1) and States Govemments formulates procurement plan to procure foodgrains from  the farmers. The steps taken to spread awareness among farmers are

1.  MSP is announced by Gol  at the beginning of the sowing season of crops based on the input costs and margin to farmers.  FCI and State Government  Agencies procure the foodgrains at MSP. This  enables the farmers to  take informed decision with regard to  choice of  crop to be grown

2. MSP operations are given wide publicity through pamphlets, banners, sign boards radio, TV and advertisements through print &  electronic media.
2. 3 Farmers are made aware of  the quality  specifications  and purchase system etc. to  facilitate  the farmers to bring their produce conforming to the specifications
3. 4 Procurement of  foodgrains under MSP are now  carried out in  online mode through State Procurement Portals linked  with  Central Foodgrains Procurement Portal  (CFPP). These Procurement portals provide  farmers the latest/ updated information  regarding MSP declared. nearest purchase center, date/ period of procurement,  allotment of slots/ time to farmers against their booking for  sale of produce etc. This not only has reduced the waiting period for delivery of  stock by the farmers but also enables the farmer to deliver stock as per his convenience  in the nearest mandi

(b): Government of India in consultation with FCI and respective State Governments formulates procurement  plan  to  procure food  grains (wheat/paddy/coarse grains)  from  the  farmers every year during State Food Secretaries' meeting for  Kharif and Rabi crop. Procurement operations are  regularly reviewed by Government of  India which inter-alia includes evaluation of  efficiency of FCI in procurement of grains and necessary corrective  actions, whenever required,  are taken

(c): The Government of India  distributes foodgrains to  the beneficiaries under Pradhan Mantri Garib  Kalyan  Anna  Yojana  (PMGKAY), Other  Welfare Schemes ( C)WS), defence,  additional allocations in case of natural calamity etc

In addition, GoI sells surplus food grains, beyond the PDS requirements, through open sale under Open  Market Sales Scheme (Domestic)  {OMMSS(D)}.  This helps increase the availability  of foodgrains in the market, control  inflation,  ensure food security and make foodgrains more affordable for the general population

#####