Lok Sabha Question No. 111 (STARRED), answered on 2015-07-28
Subject: Liquidation of Food Stock
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: ELUMALAI VELLAIGOUNDER, MD. BADARIDDOZA KHAN

## GOVERNMENT OF INDIA

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

## LOK SABHA STARRED QUESTION NO. 111 TO BE ANSWERED ON 28 TH  JULY, 2015

## LIQUIDATION OF FOOD STOCK

- *111. SHRI ELUMALAI V.: SHRI MD. BADARUDDOZA KHAN:

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  time  and  quantity  limits  prescribed  by  the  Government  for retention  of  foodgrain  stocks  by  the  Food  Corporation  of  India  (FCI) including the stocks held by FCI during each of the last three years and the current year;
- (b) whether  the  Government/FCI  has  any  policy  to  liquidate  surplus foodstocks and if so, the details thereof;
- (c) whether  the  FCI  proposes  to  dispose  the  wheat  procured  under relaxed  specifications  at  the  earliest  irrespective  of  First-In  First-Out (FIFO) policy, if so, the details thereof and if not, the reasons therefor;
- (d) whether nearly 90% of said wheat stock has a shorter shelf life and ought to be used within 8 to 10 months; and
- (e) if so, the details thereof and the steps taken by the Government to release/liquidate this huge stock?

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

- (a)
- to (e):  A Statement is laid on the Table of the House. ***

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE STARRED QUESTION NO. *111 DUE FOR ANSWER ON 28.07.2015 IN THE LOK SABHA

- (a): Quantity  of  wheat  and  rice  prescribed  to  be  maintained  under central  pool  at  the  beginning  of  each  quarter  of  a  year  as  per  current stocking norms is given in Annexure-I. Details of Wheat and Rice available in central pool and stocking norms for last three year and current year are given in Annexure -II.
- (b):    Yes  Madam.  The  Government  has  issued  guidelines  for  sale  of  food grains under Open Market Sale Scheme (OMSS) during 2015-16. Accordingly, Food Corporation of India (FCI) sells stock of wheat available under Central Pool over and above stocking norms to State Government(s)/Bulk Consumers/Private  Traders  through  e-auctions  from  its  depots  located  in various States.

In the State of Punjab, Haryana and Madhya Pradesh, the reserve price of wheat has been kept at Rs. 1550/- per quintal. For depots of FCI located outside Punjab, Haryana and Madhya Pradesh, the reserve price of wheat is Rs.  1550/-  per  quintal  plus  railway  freight  from  Ludhiana  to  the  nearest railhead and road transportation cost from such railhead to  the depot from which the sale is to effected. The minimum and maximum quantity of wheat that a bulk consumers/trader can bid in an e-auction conducted by a Region for a State/UT is 100 MT and 3500 MT respectively. The limit for States per e-auction has been fixed at 100 MT to 40000 MT.

- (c):    Yes  Madam.  Government  has  issued  direction  that  under  relax specification  (URS)  wheat  stock  is  to  be  issued  on  over-riding  priority irrespective  of  FIFO  (Fist  In  First  Out)  Principle  for  distribution  under  the Targeted Public Distribution System (TPDS) and other welfare schemes. The surplus URS wheat stock over and above stocking norms is also to be sold in the open market on over-riding priority though e-auctions. For distribution of  food  grains  to  States  /  UTs,  there  is  a  well  defined  procedure  of  joint inspection/sampling  of  the  stock  by  the  State  Government  authority  and Food Corporation of India (FCI) ensures that only good quality food grains conforming  to  Food  Safety  Standards  are  issued  under  Targeted  Public Distribution System (TPDS) and other welfare schemes.
- (d) & (e):  Details of URS wheat procured and total wheat procured  in Rabi Marketing Season (RMS) 2015-16 are given in Annexure -III.

There is no report restricting the storage period of luster lost wheat or relaxed wheat. The wheat stocks procured under relaxed specifications in luster loss and shriveled & broken grains are as good and nutritive as sound grains for human consumption.  However, storability of the relaxed wheat may be affected during longer storage, if proper scientific code of particles is  not  followed  as  compared  to  the  sound  grains.  Therefore,  the  Food Corporation  of  India  has  been  asked  to  issue  the  wheat  procured  under relaxed specifications on overriding priority.

****

ANNEX-I ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  STARRED QUESTION  NO.  *111    DUE  FOR  ANSWER  ON  28.07.2015  IN  THE  LOK SABHA

FOODGRAINS  STOCKING  NORMS  FOR  THE  CENTRAL  POOL  w.e.f. 22.01.2015

(Fig. In lakh MT)

| As on       | Operational Stock   | Operational Stock   | Operational Stock   | Strategic Reserve   | Strategic Reserve   | Grand Total   |
|-------------|---------------------|---------------------|---------------------|---------------------|---------------------|---------------|
|             | Rice                | Wheat               | Total               | Rice                | Wheat               |               |
| 1st April   | 115.80              | 44.60               | 160.40              | 20.00               | 30.00               | 210.40        |
| 1st July    | 115.40              | 245.80              | 361.20              | 20.00               | 30.00               | 411.20        |
| 1st October | 82.50               | 175.20              | 257.70              | 20.00               | 30.00               | 307.70        |
| 1st January | 56.10               | 108.00              | 164.10              | 20.00               | 30.00               | 214.10        |

****

## ANNEX-II

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  STARRED QUESTION  NO.  *111    DUE  FOR  ANSWER  ON  28.07.2015  IN  THE  LOK SABHA

## STOCK POSITION OF WHEAT AND RICE IN THE CENTRAL POOL VIS A VIS FOODGRAINS STOCKING NORMS

(In lakh tons)

| AS ON           | W H E A T                              | R I C E      | R I C E                   | T O T A L    | T O T A L                 |
|-----------------|----------------------------------------|--------------|---------------------------|--------------|---------------------------|
| AS ON           | Actual stock Foodgrains Stocking norms | Actual stock | Foodgrains Stocking norms | Actual stock | Foodgrains Stocking norms |
| 1.4.2012 199.52 | 70                                     | 333.50       | 142                       | 533.02       | 212                       |
| 498.08          | 201                                    | 307.08       | 118                       | 805.16       | 319                       |
| 431.53          | 140                                    | 233.73       | 72                        | 665.26       | 212                       |
| 343.83          | 112                                    | 322.21       | 138                       | 666.04       | 250                       |
| 242.07          | 70                                     | 354.68       | 142                       | 596.75       | 212                       |
| 423.97          | 201                                    | 315.08 118   |                           | 739.05       | 319                       |
| 361.00          | 140                                    | 190.33       | 72                        | 551.33       | 212                       |
| 280.47          | 112                                    | 146.98       | 138                       | 427.45       | 250                       |
| 178.34          | 70                                     | 202.78       | 142                       | 381.12       | 212                       |
| 398.01          | 201                                    | 212.36       | 118                       | 610.37       | 319                       |
| 322.63          | 140                                    | 154.22       | 72                        | 476.85       | 212                       |
| 251.13          | 138.00                                 | 117.43       | 76.10                     | 368.56       | 214.10                    |
| 172.21          | 74.60                                  | 170.94       | 135.80                    | 343.15       | 210.40                    |
| 386.80          | 275.80                                 | 158.95       | 135.40                    | 545.75       | 411.20                    |

Note 2:  Food grains Stocking norms includes Strategic Reserve of 30 lakh ****

Note 1:   Revised norms is w.e.f. 22.1.2015 tons of wheat and 20 lakh tons of rice

## ANNEX-III

## ANNEXURE REFERRED TO IN REPLY TO PARTS (d) & (e)  OF THE STARRED QUESTION NO. *111  DUE FOR ANSWER ON 28.07.2015 IN THE LOK SABHA

| All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   | All India Progressive Procurement of Wheat Under FAQ & URS during RMS 2015-16   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  | Figure in MTs As on 13.07.2015                                                  |
|                                                                                 |                                                                                 |                                                                                 | PROGRESSIVE PROCUREMENT                                                         | PROGRESSIVE PROCUREMENT                                                         | PROGRESSIVE PROCUREMENT                                                         | PROGRESSIVE PROCUREMENT                                                         | PROGRESSIVE PROCUREMENT                                                         | PROGRESSIVE PROCUREMENT                                                         |
| STATE/UT                                                                        | PROGRESSIVE                                                                     | PROGRESSIVE                                                                     | FAQ                                                                             | FAQ                                                                             | FAQ                                                                             | URS                                                                             | URS                                                                             | URS                                                                             |
|                                                                                 | ARRIVAL                                                                         | PROC.                                                                           | FCI                                                                             | STATE                                                                           | TOTAL                                                                           | FCI                                                                             | STATE                                                                           | TOTAL                                                                           |
| पंजाब / PUNJAB #                                                                | 10506734                                                                        | 10343731                                                                        | 88921                                                                           | 299182                                                                          | 388103                                                                          | 1758612                                                                         | 8197016                                                                         | 9955628                                                                         |
| ह�रयाणा / HARYANA                                                               | 6778576                                                                         | 6777859                                                                         | 0                                                                               | 24764                                                                           | 24764                                                                           | 0                                                                               | 6753095                                                                         | 6753095                                                                         |
| उत्र प्रद / U.P. *                                                              | 3736111                                                                         | 2267111                                                                         | 24198                                                                           | 169816                                                                          | 194014                                                                          | 139418                                                                          | 1933679                                                                         | 2073097                                                                         |
| मधय प्रद / M.P.                                                                 | 9078428                                                                         | 7309167                                                                         | 0                                                                               | 800000                                                                          | 800000                                                                          | 0                                                                               | 6509167                                                                         | 6509167                                                                         |
| �बहार / BIHAR                                                                   | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               |
| राजस्ाा / RAJASTHAN                                                             | 1423880                                                                         | 1300017                                                                         | 4356                                                                            | 4697                                                                            | 9053                                                                            | 945564                                                                          | 345400                                                                          | 1290964                                                                         |
| उत्राांं / UTTRAKHAND                                                           | 214612                                                                          | 4085                                                                            | 0                                                                               | 4085                                                                            | 4085                                                                            | 0                                                                               | 0                                                                               | 0                                                                               |
| चंंीगढ़ / CHANDIGARH                                                             | 11064                                                                           | 10864                                                                           | 6925                                                                            | 0                                                                               | 6925                                                                            | 3939                                                                            | 0                                                                               | 3939                                                                            |
| �्ल्ल / DELHI                                                                   | 35026                                                                           | 1787                                                                            | 1787                                                                            | 0                                                                               | 1787                                                                            | 0                                                                               | 0                                                                               | 0                                                                               |
| गुजरा् / GUJARAT                                                                | 969142                                                                          | 73135                                                                           | 10024                                                                           | 22817                                                                           | 32841                                                                           | 0                                                                               | 40294                                                                           | 40294                                                                           |
| झारांं / JHARKHAND                                                              | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               |
| महाराष् / MAHARASHTRA                                                           | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               |
| �हमाच्प्रद / HIMACHA L PR.                                                      | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               |
| जममम और कशमीर / J & K                                                           | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               |
| पिशचम बंगा् / WEST BENGAL                                                       | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               | 0                                                                               |
| कु ् योग / TOTAL                                                                | 32753573                                                                        | 28087756                                                                        | 136211                                                                          | 1325361                                                                         | 1461572                                                                         | 2847533                                                                         | 23778651                                                                        | 26626184                                                                        |

****