Lok Sabha Question No. 2668 (UNSTARRED), answered on 2016-05-10
Subject: Surplus Stock with FCI
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: ANANDRAO  ADSUL, NAGENDRA KUMAR PRADHAN, DHARMENDRA YADAV, RAHUL RAMESH SHEWALE, SHIVAJI ADHALRAO PATIL

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2668 TO BE ANSWERED ON 10 th   MAY, 2016

SURPLUS STOCK WITH FCI

2668.

SHRI ANANDRAO ADSUL:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI DHARMENDRA YADAV:

SHRI RAHUL SHEWALE:

SHRI ADHALRAO PATIL SHIVAJIRAO:

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  despite  selling  more  than  seven  million  tonnes  of  excess wheat stocks through the Open Market Sales Scheme in FY 16, the Food Corporation  of  India  (FCI)  continue  to  hold  grains  in  excess  of  the mandated buffer stock at the start of the current fiscal if so, the details thereof and the reasons therefor indicating the losses suffered by FCI on account of holding these excess stocks;
- (b) the corrective steps taken to utilise these stocks;
- (c) whether  there  is  any  proposal  to  bring  Food  Subsidy  under  Direct Benefit Transfer scheme and if so, the details
- (d) whether  the  Government  is  considering  to  provide  additional  food subsidy, over and above, the budgetary provisions, if so, the details thereof indicating  the  subsidy  provided  during  the  last  three  years  and  the additional subsidy proposed to be provided?

A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS PASWAN)

- (a)  :  Yes,  Madam.    A  quantity  of  70.78  lakh  MT  wheat  in  excess  of stocking norms was available in the central pool as on 01.04.2016. The excess  food  grains  in  Food  Corporation  of  India  (FCI)  over  and  above buffer  norms  leads  to  increase  in  carrying  costs,  which  consists  of storage charges and interest cost for blocking of capital.   At FCI cash credit interest rate and Central Warehousing Corporation (CWC) storage rate,  the  estimated  carrying  cost  of  wheat  is  Rs.21.42  per  quintal  per month for the year 2015-16 (RE).

(b): In order to offload surplus stock in excess of stocking norms, during the year 2016-17, the Government has set a target for sale of 65-75 LMT wheat through e-auction under Open Market Sale Scheme (Domestic) by the  FCI.

(c) Direct Benefit Transfer (DBT) for foodgrains is being implemented on pilot  basis  in  the  Union  Territories  of  Chandigarh  and  Puducherry  with effect from September, 2015 and    in Silvassa Municipal area and Dadra Panchayat  of  Dadra  &  Nagar  Haveli  from  March,  2016  to  test  the feasibility of launch of the scheme in other States/UTs.

(d)  :  No,  Madam.  Government  of  India  provides  food  subsidy  as  per  the budgetary provisions only. The year-wise break-up of subsidy released for distribution  of  subsidized  foodgrains  and  maintenance  of  buffer  stocks during the last three years to FCI and the States operating the Decentralised Procurement (DCP) Scheme is as under:

(Rs. in crore)

| Year    | Subsidy released   | Subsidy released   | Subsidy released   |
|---------|--------------------|--------------------|--------------------|
|         | FCI                | States             | Total              |
| 2013-14 | 75500.02           | 14240.00           | 89740.02           |
| 2014-15 | 91995.35           | 21175.81           | 113171.16          |
| 2015-16 | 112000.00          | 22919.00           | 134919.00          |

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