Lok Sabha Question No. 130 (STARRED), answered on 2024-12-04
Subject: Foodgrains Procurement and Distribution
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Arun Bharti

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## GOVERNMENT OF INDIA

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

## LOK SABHA

STARRED QUESTION NO.130 TO BE ANSWERED ON 4TH DECEMBER, 2024

## FOODGRAINS PROCUREMENT AND DISTRIBUTION

## 8130. SHRI ARUN BHARTI:

Will the Minister of CONSUMER  AFFAIRS,  FOOD  AND PUBLIC DISTRIBUTION wft6r WIg, m©3araT+#flq fiam +ft be pleased to state:

- (a) whether the Department of  Food and Public Distribution (DFPD) and the Food Corporation of India (FCD have signed a Memorandum of Understanding (MoU)  aiming at enhancing the efficiency  and accountability  of  foodgrains procurement and distribution  in the country;
- (b) if  so, the details thereof along with  the specific mechanisms  being introduced under this MoU  to reduce wastage, leakage and pilferage in the foodgrains supply chain including the manner in which the goal/aim is to be achieved;
- (c) the steps  taken to maintain the transparency  and efficiency in foodgrains procurement and distribution;
- (d) the manner in which  the  Government plans to  involve  State-level stakeholders and local bodies in implementing the provisions of this MoU;  and
- (e) the details of measures being taken by the Government to  ensure that this MoU directly  benefits the end consumers particularly in ensuring timely  delivery  of food?

## ANSWER

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AND MINISTRY OF NEW AND RENEWABLE ENERGY

(SHRI PRALHAD JOSHD

(a) to (e):

A  statement is laid  on the Table of the House

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE STARRED QUESTION NO. 130 FOR ANSWER ON 04.12.2024 IN THE LOK  SABHA.

- (a): Yes, MOU has been signed between Food Corporation of  India (FCD  and Department of Food and Public Distribution  (DFPD), MOCA,  F&PD  on 13.09.2024.
- (b): The following parameters have been included in the MOU with the intention of monitoring  the performance of critical  operational parameters and establishing institutional accountability  :
1. Procurement (Wheat and Rice).
2. Sales (Liquidation  of excess stock over foodgrain stocking norms for the Central Pool).
3. Storage (Storage capacity utilization-  Owned/Hired).
4. Handling and Transportation cost (Handling Cost-Contract labour, Transportation cost).
5. Movement (Rake release performance within Railway Free TimePercentage improvement over the average of last five years).
6. Operational Losses (Storage & Transit).
7. Training and capacity development
8. Treasury Management (Total interest cost on short-term borrowings i.e. STL &CCL).
- 9 . Modernization--Re-engineering,  Digitization, workflow  automation etc.
- (a) Integration of  lorry weighbridge (LWB)  ofFCI  with  depot online system (DOS).
- (b) Integration of FCI labs (QMS).
- (c)  Depot  efficiency  parameters (Capture,  account  and  monitor  the  six  depot-wise operational efficiency parameters for each quarter).
10. Security (Depot, where IP-based CCTV  Cameras will  be installed Modern  surveillance system).
- (c): The following  steps have been taken to maintain transparency and efficiency  in food grain procurement in the country :
- (i) Procurement- centres are opened by  respective State Government Agencies/ FCI taking  into  account the estimated production, marketable surplus, convenience of  farmers and availability  of  other logistics /  infrastructure such as storage and transportation etc. Large number of  temporary purchase centres in  addition to  the  existing Man(iis and depots/godowns are also established at key points for the convenience of the farmers.

(ii) in  orders to  widen  outreach of  MSP operations, provision has been made for engagement of Co-operative  societies / Self Help  Groups/  Panchayats / Primary  Agriculture Cooperative Societies (PACS) by the State procuring agencies so that maximum farmers can avail the benefit of Price Support operations.

(iii) Farmers are made aware of  the  quality  specifications  and purchase system etc. so as to facilitate them to bring their produce conforming to the specifications.

(iv) Payment of MSP is being made directly into farmers' bank accounts.

(v) FCI  and  all the  procuring States have  developed  their  own  Online  Procurement System to ensure transparency and convenience to the farmers through proper registration and monitoring of actual procurement.

(vi) Farmers get latest/updated information  through  e-procurement module  deployed by procuring  agencies regarding  declared MSP,  nearest purchase centre, date on which  the farmer has to bring  his produce to the purchase centre etc. This  facilitates delivery  of  stock by the farmers conveniently in the mandi/purchase centers.

(vii) Government of  India  has introduced Minimum  Threshold Parameters (MTPs)  for implementation by all procuring  states towards development of an application eco-system, wherein requisite information in  respect of procurement is available at single source by integrating all State procurement portals  with  Minimum  Threshold Parameters for monitoring  and strategic decision-making  and to ensure uniformity and transparency. MTPs involve online registration of  farmers with  Aadhar seeding, integration of  land records, digitized man(Ii  operations,  MSP  transfer  to  farmers,  Rice/Wheat  delivery  management, auto generation of bills etc.

(d): The Memorandum of Understanding (MoU) between the Government of India and the Food Corporation of  India (FCI) outlines parameters on the basis of  which FCI performance is assessed as per their achievements vis a vis target sets for the FY. Implementation  of these performance  parameters involves  state level  stakeholders and local bodies. State procuring  agencies are engaging cooperative societies, self-help groups, panchayats, and Primary Agricultural  Cooperative Societies (PACS) to  maximize farmer participation  in Procurement process. MSP payments are credited directly to farmers' bank accounts, ensurrng transparency.

(e):  The Food Corporation of India  (FCI), established under the Food Corporations Act, 1964, ensures procurement, storage, and distribution  of food grains to support farmers and stabilize  prices.  The  MoU focuses  on  improving cost-effectiveness and  accountability through MoU  parameters airning  to  streamline operations, ensuring timely  food  delivery and enhanced service to  end consumers. FCI  and procuring  states have developed online procurement systems for  efficient  registration and monitoring.  These systems provide farmers with real-time information on  MSP, nearby purchase centers,  and scheduled delivery dates,  enabling smooth and  convenient stock delivery at  mandis or  purchase procurement centers.

This MoU is an internal mechanism to monitor performance of FCI vis a vis the targets by  highest authorities  of FCI  and DFPD  for  ensuring  increased efficiency  in the FCI operations. This  with cooperation and efficient  operations by the  State Governments wil] ultimately results  into  timely delivery of  food  to the  end consrrmer.

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