Lok Sabha Question No. 1535 (UNSTARRED), answered on 2016-05-03
Subject: Revamp of FCI
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: PRALHAD VENKATESH JOSHI, RAVNEET SINGH, RAMESH BIDHURI

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1535 TO BE ANSWERED ON 03rd MAY, 2016

## REVAMP OF FCI

1535. SHRI PRALHAD JOSHI: SHRI RAVNEET SINGH: SHRI RAMESH BIDHURI:

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  the  Government  proposes  to  restructure/revamp  the  Food Corporation of India (FCI) as per Shanta Kumar Committee recommendations, if so, the details thereof;
- (b) whether the Government proposes to slowly withdraw itself from the procurement and hand it over to States having adequate experience and procurement/storage  infrastructure  particularly  in  Haryana  and  Punjab,  if so, the details thereof and time frame fixed therefor;
- (c) the States from which FCI proposes to procure wheat and paddy for food security schemes in future; and
- (d) the steps proposed to mitigate the hardships/problem of farmers who have to resort to distress sale in the absence of Government procurement facilities?

## A N S W E R

## MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS PASWAN)

- (a): Yes, Madam. The latest position on Action Plan for implementation of acceptable recommendations of the High Level Committee (HLC) concerning Food Corporation of India (FCI) is enclosed as Annexure.
- (b): Yes,  Madam.  The  Government  proposes  to  slowly  withdraw  itself from  the  procurement  and  hand  it  over  to  States  having  adequate experience and procurement/storage infrastructure particularly in Haryana and  Punjab.  FCI's  withdrawal  shall  be  based  on  the  consent  of  State Governments.

Accordingly, FCI had not participated in wheat  procurement  in Haryana during Rabi Marketing Season (RMS) 2015-16. On the request of the Government of Punjab, FCI participated in wheat & paddy procurement during RMS 2015-16 and Kharif Marketing Season (KMS) 2015-16. Similarly, FCI has participated on request of State Government of Haryana in Wheat procurement in RMS 2016-17.

(c): The Central Government extends price support to paddy and wheat through the FCI and State Agencies. The producers have the option to sell their  produce  to  FCI/State  Agencies  at  MSP  or  in  the  open  market  as  is advantageous to them. Foodgrains procured by the State Governments and their  agencies  are  ultimately  taken  over  by  the  FCI  for  distribution throughout the country.

The objective of foodgrains procurement by Government agencies is to ensure that farmers get remunerative prices for their produce and do not have  to  resort  to  distress  sale.  It  aims  to  service  the  TPDS  and  other welfare  schemes  of  the  Government  so  that  subsidised  foodgrains  are supplied to the poor and needy, and to build up buffer stocks of foodgrains to  ensure  foodgrain  security.  The  procurement  is  sufficient  to  fulfil  the requirement of wheat and paddy for food Security Schemes.

(d): Special  focus  has  been  given  to  increase  the  spread  of  Minimum Support Price (MSP) operations in paddy and wheat in eastern States of the country  viz  Uttar  Pradesh,  Jharkhand,  West  Bengal,  Assam  and  Bihar.  A policy  has  been  framed  by  GOI  for  engagement  of  private  players  in paddy/rice  procurement  for  extending  the  reach  of  MSP  operation  to remote  and  interior  areas,  earlier  not  operated  by  State  agencies/FCI. Private  players  have  already  been  engaged  by  FCI  in  Jharkhand,  West Bengal and Uttar Pradesh.

****

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PART (A) OF THE UNSTARRED QUESTION NO. 1535  DUE FOR ANSWER ON 03.05.2016 IN THE LOK SABHA

## Recommendations of High Level Committee, decisions taken by Government of India and Action Taken by FCI thereon

(As on 21.04.2016)

|   Sl. No. | Recommendations                                                                                                                                                                                                                                                                  | Decisions taken by the Govt.                                                                                                                                                                                                                                                                                                                                                                                        | Action Taken by FCI                                                                                                                                                 |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | HLC recommends that FCI hand over all procurement operations of wheat, paddy and rice to states that have gained sufficient experience in this regard and have created reasonable infrastructure for procurement. These States are Andhra Pradesh, Chhattisgarh, Haryana, Madhya | All States excluding Punjab and Haryana are DCP States where FCI is not involved in procurement. In Punjab and Haryana, FCI will stop procurement only on getting request from concerned State Governments. The State Government of Haryana has already given consent for not to involve FCI in procurement of wheat for RMS 2015-16, consequently, FCI is not taking part in procurement of wheat this year there. | FCI participated in paddy procurement in Punjab and Haryana during KMS 2015-16 and wheat procurement in RMS 2016-17 on the request of respective State Governments. |

| Pradesh, Odisha and Punjab                                                                                                                                                                                                                                | Similarly, FCI will not take part in procurement of paddy in KMS 2015-16 in Haryana as per consent of the State Government. FCI is taking part in procurement of wheat in RMS 2015-16 as per the request of State Government of Punjab.                                                                                                                                          |                                                                                                |                           |                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|---------------------------|---------------------------|
| FCI should move on to help those states where farmers suffer from distress sales at prices much below MSP, and which are dominated by small holdings, like Eastern Uttar Pradesh, Bihar, West Bengal, Assam etc. This is the belt from where second green | FCI will provide only guidance and outside support in procurement work in case of DCP States. In Non-DCP States, FCI will help in the following manner- (1) Procurement plan will be prepared in consultation with the State Governments. (2) FCI, as far as possible, will open its procurement centers in larger numbers. (3) Where FCI and State Government Agencies will not | for procurement operation the outreach of MSP District covered, purchase Eastern States are as |                           |                           |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  | Centres Operated                                                                               | Quantity Procured (In MT) | Quantity Procured (In MT) |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  | 2696                                                                                           | 2910364                   | 2910364                   |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  | 7832                                                                                           | 1209600                   | 1209600                   |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  | 427                                                                                            | 168816                    | 168816                    |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                | 2169764                   | 2169764                   |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  | 40702                                                                                          |                           |                           |
|                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                  | 69                                                                                             | 21596                     | 21596                     |
|                                                                                                                                                                                                                                                           | be able to open procurement                                                                                                                                                                                                                                                                                                                                                      |                                                                                                |                           |                           |
|                                                                                                                                                                                                                                                           | centers, procurement would be                                                                                                                                                                                                                                                                                                                                                    |                                                                                                |                           |                           |
| revolution                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                |                           |                           |
|                                                                                                                                                                                                                                                           | done through of private                                                                                                                                                                                                                                                                                                                                                          |                                                                                                |                           |                           |
|                                                                                                                                                                                                                                                           | agencies.                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                |                           |                           |
|                                                                                                                                                                                                                                                           | (4) Training would be imparted to                                                                                                                                                                                                                                                                                                                                                |                                                                                                |                           |                           |
|                                                                                                                                                                                                                                                           | State Governments on quality                                                                                                                                                                                                                                                                                                                                                     |                                                                                                |                           |                           |

|    | is expected, and where FCI needs to be pro-active, mobilizing state and other agencies to provide benefits of MSP and procurement to larger number of farmers, especially small and marginal ones. .   | and storage for doing arrangements like States of Madhya Pradesh, Chhattisgarh etc. from time to time. (5) For creating infrastructure in these States, development of Agricultural Mandies, arrangements of storage, arrangements of machines, equipments etc. could be done under the purview of Ministry of Agriculture.   |                                                                                                                                                                              |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3 | DFPD/ FCI at the Centre should enter into an agreement with states before every procurement season regarding costing norms and basic rules for procurement.                                            | There is already agreement with DCP States. FCI would prepare agreements for Non- DCP States in consultation with State Governments.                                                                                                                                                                                          | The agreements for Non DCP States in consultation with State Governments is under finalization.                                                                              |
|  4 | Quality checks in procurement have to be adhered to, and anything below the                                                                                                                            | FCI would strengthen its quality control infrastructure and modernize its laboratories.                                                                                                                                                                                                                                       | Board agenda note on Roadmap for modernization of lab in FCI was submitted before Board of Directors in its 75 th meeting held on 25.2.2016 at FCI, Hqrs, for consideration. |

| specified quality will not be acceptable under central pool. Quality checks can be done either by FCI and/ or any third party accredited agency in a transparent manner with the help of mechanized processes of quality checking.   | The Board agreed to the proposal for up gradation of IFS Lab, Gurgaon and outsourcing of testing of chemical parameters to fulfill FSSAI requirements till the up-gradation of IFS lab is completed. The board further directed that FCI may upgrade all the Zonal Labs to equip those with testing of chemical parameters. Accordingly all Zones have been directed to take necessary action for empanelment of NABL accredited labs notified by FSSAI for a period of 1 year by inviting expression of interest (EOI)/e-tendering process. FCI, QC Division Hqrs has initiated the process for modernization of IFS, Gurgaon and working on modalities for appointment of consultant on turnkey basis for upgradation of lab, purchase of equipments and NABL accreditation. Reputed Govt. Institutes i.e. CFTRI Mysuru, NIPHM Hyderabad, NIFTEM Sonepat, IICPT Thanjavur and IARI Pusa New Delhi which have expertise in consultancy services for setting of food labs have been requested for providing their inputs for finalization of terms & conditions in respect of appointment of Consultant for setting up of IFS lab at Gurgaon. Further, assessment of requisite manpower required for IFS Lab as per NABL guidelines is under process.   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| FCI would make arrangements for quality checks by External agencies, as per need. FCI would contact premier institutions of the country for mechanized quality checking.   | The BOD has approved the Model Tender Form (MTF) for engagement of service provider for quality assurance and checking during receipt, preservation/ maintenance, dispatches and issues of foodgrains as per GOI specifications in identified FCI godowns, to be effective from KMS 2015-16 onwards. The tenders have been floated by Chhattisgarh, Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu but the participation was low &subsequently all tenders were scrapped. As directed, a committee of GM (QC) Hqrs along with GM (A.P.) & GM (Mah.) reviewed the clauses of MTF on 09.02.2016 affecting implementation on Engagement of Service Provider. The suggestions submitted have also been discussed by ED (QC) on 18.02.2016 &09.03.2016 with GM(Law), GM(Cost), GM(IRL) &GM(IT). As per the advice of Legal Division, necessary amendments in the scope of work & liabilities clauses' have been made and for finalization a meeting was held on 19.04.16 in FCI Hqrs. The amendments are still in process and will be decided in the next meeting.   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| QC division organized customization operation of Rice Analyzers for OSAW India Pvt. Ltd Ambala, C-DAC Kolkata & Tara international w.e.f. 8.12.15 to 18.12.15 where all the above parties along with Technical officers/ officials of concerned FCI offices i.e. Punjab, Haryana, U.P., A.P., Chhattisgarh and Orissa brought rice samples and analyzed the same. C-DAC analyzed 50 rice samples from Annadarpan and Indosaw Pvt. Ltd. has analyzed 287 samples from their rice analyzer. Tara international has not attended the customization operation. The examination of analysis results reveled variation with FCI manual analysis. The analysis results of rice analyzer and their variation with FCI manual analysis have been forwarded to respective parties. Further, a detailed discussion was held with the representative of INDOSAW on 10 th and 11 th Feb -2016 regarding the variation between computerized and manual analysis. The representatives have requested for samples of each refraction of rice for further customization at their end. The representatives were provided with samples for taking necessary action for customization. Second (2 nd ) round of customization of Rice Analyzer (Annadarpan) developed by C- DAC was done at FCI, Hqrs on 6 th , 11 th , 12 th and 13 th April, 2016, wherein 12 samples of rice were physically analyzed   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                   | and subjected for repeated analysis with coded samples in Rice Analyzer from which analysis results were drawn for assessing its accuracy. The analysis results replicated samples are under process of examination to arrive at comparative results variations. Moreover, customization of rice analyzer developed by OSAW India Pvt. Ltd. has been done with 5 samples at RO Lab, Panchkula Haryana and 7 samples at RO Chandigarh on 07.4.2016 and 08.04.2016 respectively. Variations have been reported,   | and subjected for repeated analysis with coded samples in Rice Analyzer from which analysis results were drawn for assessing its accuracy. The analysis results replicated samples are under process of examination to arrive at comparative results variations. Moreover, customization of rice analyzer developed by OSAW India Pvt. Ltd. has been done with 5 samples at RO Lab, Panchkula Haryana and 7 samples at RO Chandigarh on 07.4.2016 and 08.04.2016 respectively. Variations have been reported,   | and subjected for repeated analysis with coded samples in Rice Analyzer from which analysis results were drawn for assessing its accuracy. The analysis results replicated samples are under process of examination to arrive at comparative results variations. Moreover, customization of rice analyzer developed by OSAW India Pvt. Ltd. has been done with 5 samples at RO Lab, Panchkula Haryana and 7 samples at RO Chandigarh on 07.4.2016 and 08.04.2016 respectively. Variations have been reported,   | and subjected for repeated analysis with coded samples in Rice Analyzer from which analysis results were drawn for assessing its accuracy. The analysis results replicated samples are under process of examination to arrive at comparative results variations. Moreover, customization of rice analyzer developed by OSAW India Pvt. Ltd. has been done with 5 samples at RO Lab, Panchkula Haryana and 7 samples at RO Chandigarh on 07.4.2016 and 08.04.2016 respectively. Variations have been reported,   | and subjected for repeated analysis with coded samples in Rice Analyzer from which analysis results were drawn for assessing its accuracy. The analysis results replicated samples are under process of examination to arrive at comparative results variations. Moreover, customization of rice analyzer developed by OSAW India Pvt. Ltd. has been done with 5 samples at RO Lab, Panchkula Haryana and 7 samples at RO Chandigarh on 07.4.2016 and 08.04.2016 respectively. Variations have been reported,   |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | the details of same are awaited. Details regarding the states in which FCI is procuring Pulses and their quantity under:                                                                                                                                                                                                                                                                                                                                                                                        | the details of same are awaited. Details regarding the states in which FCI is procuring Pulses and their quantity under:                                                                                                                                                                                                                                                                                                                                                                                        | the details of same are awaited. Details regarding the states in which FCI is procuring Pulses and their quantity under:                                                                                                                                                                                                                                                                                                                                                                                        | the details of same are awaited. Details regarding the states in which FCI is procuring Pulses and their quantity under:                                                                                                                                                                                                                                                                                                                                                                                        | the details of same are awaited. Details regarding the states in which FCI is procuring Pulses and their quantity under:                                                                                                                                                                                                                                                                                                                                                                                        |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | States                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Figures in Quintals RMS 2016-17*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Figures in Quintals RMS 2016-17*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | TUR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | URAD                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | CHANA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | MASUR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Andhra Pradesh                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 3147.50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Bihar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Gujarat                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 5095.10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Karnataka                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 6324.48                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 158.50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Maharashtra                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 72260.22                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 47.28                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 45.98                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Madhya Pradesh                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 42629.58                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 1973.15                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  5 | GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive structures in favour of wheat and rice. | Department has agreed for procurement of pulses and oilseeds through FCI on the pattern of NAFED under the Price Support Scheme of the Department of Agriculture & Cooperation. This will not create burden on food subsidy and FCI will create separate fund for this procurement with the assistance of Department of Agriculture &Cooperation. | Rajasthan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | --                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 278.50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|    |                                                                                                                                                                                                                                                                                                             |                                                                                    | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | --                                                             | --                                                             | --                                                             | --                                                             |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                             |                                                                                    | Telangana                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 73278.79                                                       | --                                                             | --                                                             | --                                                             |
|    |                                                                                                                                                                                                                                                                                                             |                                                                                    | West Bengal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | --                                                             | --                                                             | --                                                             | --                                                             |
|    |                                                                                                                                                                                                                                                                                                             |                                                                                    | Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 202735.67                                                      | 47.28                                                          | 204.48                                                         | 2251.65                                                        |
|    |                                                                                                                                                                                                                                                                                                             |                                                                                    | *Procurement is under progress and figure are as on 16.04.2016                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *Procurement is under progress and figure are as on 16.04.2016 | *Procurement is under progress and figure are as on 16.04.2016 | *Procurement is under progress and figure are as on 16.04.2016 | *Procurement is under progress and figure are as on 16.04.2016 |
| 6  | HLC recommends that FCI should outsource its stocking operations to various agencies such as Central Warehousing Corporation, State Warehousing Corporation, Private Sector under Private Entrepreneur Guarantee (PEG) scheme, and even state governments that are building silos through private sector on | FCI would outsource of management of newly constructed godowns under Plan Schemes. | Tenders were invited in North-Eastern States namely Assam, Nagaland, NEF (Mizoram, Meghalaya &Tripura), Arunachal Pradesh and Manipur. Assam : Tenders were invited twice and opened on 05.11.15 and 24.12.15 for 3 depots (Changsari, Lalbazar &Jogighopa). Dimapur : Tenders were invited twice and opened on 05.11.15 and 29.12.15 for 3 depots (Mon, Mokokchung &Tuensang). NEF: Tender was invited & opened on 16.11.15 for 8 depots (Nandan Nagar, Chandrapur, Kumarghat, Jowai, Bairabi, Aizwal, Lunglei &Lanwngtlai). Arunachal Pradesh: Tender was invited and opened on 03.11.15 for 8 depots (Jamiri- Bomdila, Ziro, Seppa, Tawang, Anini, Khupa, Yingkiong &Tezu) Manipur: Tenders (Senapati, Ukhrul not technically | were invited & Jiribam). qualified.                            | twice & However,                                               | opened on 31.10.15 no bids                                     | and 29.12.15 been received                                     |

| Madhya Pradesh). It should be done on competitive bidding basis, inviting various stakeholders and creating competition to bring down costs of storage.   | The concerned Regions have reported that main reasons for less participation seem to be security deposit and experience requirement. These issues have been deliberated and it has been decided to keep sufficient bank guarantee to safeguard FCI against possible theft. The work cannot be entrusted to inexperienced bidders. The above position was communicated to the Ministry vide letter dated 22.01.2016 and further direction/advice of the Ministry was sought. For operating the newly constructed godowns, requirement of manpower is also being worked out. In the meeting taken by Secretary (Food) on 01.02.2016, it was suggested that CWC may examine possibility of taking up storage operations of FCI as outsourced services. In this regard, CWC vide letter dated 02.02.16 has sought detailed list of places where new capacities are coming up and the rates which shall be payable to CWC for operations of such capacities to conduct cost benefit analysis. The list of FCI godowns has been provided to MD, CWC vide letter dated 14.03.2016 where CWC may carry out the operations.   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Godowns  of  CWC/  SWC  will  be hired  as  per  existing  arrangement and  where  such  godowns  are  not available;  private  godowns  will  be hired  on  the  basis  of  competitive bidding.

CWC has been requested to inform / propose the rates for same with full justification to get the approval from Ministry. Reminder in this regard has been issued on 31.03.2016.Ministry vide letter dated 24.02.2016 has directed for re-tendering.

Accordingly,  ED  (Zone),  NE  Guwahati  and  GMs  (Region)  of  NE  Zone  have  been requested vide letter dated 03.03.16 to retender and explore the possibilities of outsourcing of these godowns.

Accordingly, tenders have been floated as follows:

| Region                             | Tender Floated on   | Tender Opening Date   | Status of Bids       |
|------------------------------------|---------------------|-----------------------|----------------------|
| Assam                              | 10.03.2016          | 04.04.2016            | No Bid Received.     |
| Nagaland                           | 15.03.2016          | 05.04.2016            | No Bid Received.     |
| NEF (Mizoram , Meghalaya, Tripura) | 18.03.2016          | 18.04.2016            | No Bid Received.     |
| Arunachal Pradesh                  | 19.03.2016          | 11.04.2016            | Status being sought. |
| Manipur                            | 12.03.2016          | 02.04.2016            | No Bid Received.     |

|    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                         | Instructions to hire CWC/SWC godowns as per existing procedures and to hire godowns through tendering process wherever there is shortfall have been issued vide letter dated                                                                                                                                                                                        | Instructions to hire CWC/SWC godowns as per existing procedures and to hire godowns through tendering process wherever there is shortfall have been issued vide letter dated                                                                                                                                                                                        | Instructions to hire CWC/SWC godowns as per existing procedures and to hire godowns through tendering process wherever there is shortfall have been issued vide letter dated                                                                                                                                                                                        | Instructions to hire CWC/SWC godowns as per existing procedures and to hire godowns through tendering process wherever there is shortfall have been issued vide letter dated                                                                                                                                                                                        | Instructions to hire CWC/SWC godowns as per existing procedures and to hire godowns through tendering process wherever there is shortfall have been issued vide letter dated                                                                                                                                                                                        |
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|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 02.06.2015. 1. FCI has finalized the tender process for setting up of Silos for capacity 2.5 LMT at 6 locations under VGF mode and Letter of Award (LOA) has been issued to the selected bidder. It is pertinent to note that Premium has been quoted for 5 locations as against Viability gap for only one location. The details of the 6 locations are as below:- | 02.06.2015. 1. FCI has finalized the tender process for setting up of Silos for capacity 2.5 LMT at 6 locations under VGF mode and Letter of Award (LOA) has been issued to the selected bidder. It is pertinent to note that Premium has been quoted for 5 locations as against Viability gap for only one location. The details of the 6 locations are as below:- | 02.06.2015. 1. FCI has finalized the tender process for setting up of Silos for capacity 2.5 LMT at 6 locations under VGF mode and Letter of Award (LOA) has been issued to the selected bidder. It is pertinent to note that Premium has been quoted for 5 locations as against Viability gap for only one location. The details of the 6 locations are as below:- | 02.06.2015. 1. FCI has finalized the tender process for setting up of Silos for capacity 2.5 LMT at 6 locations under VGF mode and Letter of Award (LOA) has been issued to the selected bidder. It is pertinent to note that Premium has been quoted for 5 locations as against Viability gap for only one location. The details of the 6 locations are as below:- | 02.06.2015. 1. FCI has finalized the tender process for setting up of Silos for capacity 2.5 LMT at 6 locations under VGF mode and Letter of Award (LOA) has been issued to the selected bidder. It is pertinent to note that Premium has been quoted for 5 locations as against Viability gap for only one location. The details of the 6 locations are as below:- |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | S.No.                                                                                                                                                                                                                                                                                                                                                               | Location                                                                                                                                                                                                                                                                                                                                                            | Capacity (MTs)                                                                                                                                                                                                                                                                                                                                                      | Selected Bidder                                                                                                                                                                                                                                                                                                                                                     | Premium Offered in the First Year of the Concession Period (In Rs.)                                                                                                                                                                                                                                                                                                 |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 1                                                                                                                                                                                                                                                                                                                                                                   | NARELA, DELHI                                                                                                                                                                                                                                                                                                                                                       | 50,000                                                                                                                                                                                                                                                                                                                                                              | Sri Karthikeya Spinning & Weaving Mills Pvt Ltd                                                                                                                                                                                                                                                                                                                     | 82,23,000.00                                                                                                                                                                                                                                                                                                                                                        |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 2                                                                                                                                                                                                                                                                                                                                                                   | CHANGSARI, ASSAM                                                                                                                                                                                                                                                                                                                                                    | 50,000                                                                                                                                                                                                                                                                                                                                                              | Sri Karthikeya Spinning & Weaving Mills Pvt Ltd                                                                                                                                                                                                                                                                                                                     | 68,22,000.00                                                                                                                                                                                                                                                                                                                                                        |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 3                                                                                                                                                                                                                                                                                                                                                                   | SAHNEWAL, PUNJAB                                                                                                                                                                                                                                                                                                                                                    | 50,000                                                                                                                                                                                                                                                                                                                                                              | Sri Karthikeya Spinning & Weaving Mills Pvt Ltd                                                                                                                                                                                                                                                                                                                     | 66,66,000.00                                                                                                                                                                                                                                                                                                                                                        |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 4                                                                                                                                                                                                                                                                                                                                                                   | KATIHAR, BIHAR                                                                                                                                                                                                                                                                                                                                                      | 50,000                                                                                                                                                                                                                                                                                                                                                              | Adani Agri Logitics Limited                                                                                                                                                                                                                                                                                                                                         | 20,20,000.00                                                                                                                                                                                                                                                                                                                                                        |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 5                                                                                                                                                                                                                                                                                                                                                                   | WHITEFIELD, KARNATAKA                                                                                                                                                                                                                                                                                                                                               | 25,000                                                                                                                                                                                                                                                                                                                                                              | Sudheeksha Warehouse& Construction Company                                                                                                                                                                                                                                                                                                                          | 6,31,314.00                                                                                                                                                                                                                                                                                                                                                         |
|  7 | India needs more bulk handling facilities than it currently has. Many of FCI's old conventional storages that have existed for long number of years can be converted to silos with the help of private sector and other stocking agencies. | FCI will undertake construction of approx. 43.5 lakh tonnes capacity of silos in next five years. FCI depots having railway sidings, will be upgraded to Silos first. Where FCI or State Agencies do not have their own land, Silos would be built on Private land. FCI has already engaged a Consultant for this work. | 6                                                                                                                                                                                                                                                                                                                                                                   | KOTKAPURA, PUNJAB                                                                                                                                                                                                                                                                                                                                                   | 25,000                                                                                                                                                                                                                                                                                                                                                              | Adani Agri Logitics Limited                                                                                                                                                                                                                                                                                                                                         | 5,69,00,000.00                                                                                                                                                                                                                                                                                                                                                      |

| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   | 2. It is also informed that FCI has given work of conducting project feasibility study construction of Silos at 17 locations to project consultant M/s SREI Infrastructure Finance Ltd. All these locations have railway sidings and the existing godowns plus years old and it is proposed to demolish part of the existing capacity to space for construction of silos.   | 2. It is also informed that FCI has given work of conducting project feasibility study construction of Silos at 17 locations to project consultant M/s SREI Infrastructure Finance Ltd. All these locations have railway sidings and the existing godowns plus years old and it is proposed to demolish part of the existing capacity to space for construction of silos.   | 2. It is also informed that FCI has given work of conducting project feasibility study construction of Silos at 17 locations to project consultant M/s SREI Infrastructure Finance Ltd. All these locations have railway sidings and the existing godowns plus years old and it is proposed to demolish part of the existing capacity to space for construction of silos.   | 2. It is also informed that FCI has given work of conducting project feasibility study construction of Silos at 17 locations to project consultant M/s SREI Infrastructure Finance Ltd. All these locations have railway sidings and the existing godowns plus years old and it is proposed to demolish part of the existing capacity to space for construction of silos.   |
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| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | SL NO.                                                                                                                                                                                                                                                                                                                                                                      | LOCATION STATE                                                                                                                                                                                                                                                                                                                                                              | SILO CAPACITY                                                                                                                                                                                                                                                                                                                                                               |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 1                                                                                                                                                                                                                                                                                                                                                                           | Nagpur                                                                                                                                                                                                                                                                                                                                                                      | Maharashtra 50,000 MT                                                                                                                                                                                                                                                                                                                                                       |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 2                                                                                                                                                                                                                                                                                                                                                                           | Mayapuri Delhi                                                                                                                                                                                                                                                                                                                                                              | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 3                                                                                                                                                                                                                                                                                                                                                                           | JJP West                                                                                                                                                                                                                                                                                                                                                                    | Bengal 1,00,000MT                                                                                                                                                                                                                                                                                                                                                           |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 4 OJM                                                                                                                                                                                                                                                                                                                                                                       | West                                                                                                                                                                                                                                                                                                                                                                        | Bengal 1,00,000MT                                                                                                                                                                                                                                                                                                                                                           |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 5                                                                                                                                                                                                                                                                                                                                                                           | Udaipur                                                                                                                                                                                                                                                                                                                                                                     | Rajasthan 50,000 MT                                                                                                                                                                                                                                                                                                                                                         |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 6                                                                                                                                                                                                                                                                                                                                                                           | Gandhinagar                                                                                                                                                                                                                                                                                                                                                                 | Rajasthan 50,000 MT                                                                                                                                                                                                                                                                                                                                                         |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 7 Gorakhpur                                                                                                                                                                                                                                                                                                                                                                 | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                               | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 8 Talkatora                                                                                                                                                                                                                                                                                                                                                                 | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                               | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 9 Agra Cantt                                                                                                                                                                                                                                                                                                                                                                | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                               | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 10 Hapur                                                                                                                                                                                                                                                                                                                                                                    | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                               | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 11 Varanasi                                                                                                                                                                                                                                                                                                                                                                 | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                               | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 12 Harduaganj                                                                                                                                                                                                                                                                                                                                                               | Uttar                                                                                                                                                                                                                                                                                                                                                                       | Pradesh 50,000 MT                                                                                                                                                                                                                                                                                                                                                           |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 13 Chanderi                                                                                                                                                                                                                                                                                                                                                                 | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                               | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 14 15 Phulwarisharif                                                                                                                                                                                                                                                                                                                                                        | Digaghat Bihar                                                                                                                                                                                                                                                                                                                                                              | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 16                                                                                                                                                                                                                                                                                                                                                                          | Bihar Bihar                                                                                                                                                                                                                                                                                                                                                                 | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                             | Mokama Gaya                                                                                                                                                                                                                                                                                                                                                                 | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |
| Better mechanization is needed in all silos as well as conventional storages. While there is need to work out specific quantity and what places it needs to be through a more detailed study, HLC's overall assessment is that given the overall production in the country, and drought prone nature of many regions, a silo capacity of about 10 MMT (together for wheat and rice) should be created in the next 3-5   |                                                                                                                                                                                                                                                                                                                                                                             | 17                                                                                                                                                                                                                                                                                                                                                                          | Bihar                                                                                                                                                                                                                                                                                                                                                                       | 50,000 MT                                                                                                                                                                                                                                                                                                                                                                   |

| years.   | The study shall include evaluation to consider demolition of existing godowns which have been constructed more than 40 years ago. 3. Further, for Kilaraipur in Punjab, tenders have been floated by Punjab Govt. agency & LOA is expected to be issued soon. The silo at Kilaraipur is being constructed on behalf of FCI &guarantee is also provided by FCI. State Government of Madhya Pradesh is constructing silos on PPP mode with VGF funding (Niti aayog model) on land belonging to State Government. Work has already been completed for 4.5 LMT capacity at 9 locations. These silos have been built without railway siding. In Punjab, State Agencies - PUNGRAIN and PSWC have floated tenders for construction of silos for capacity of 11.75 lakh MTs which are primarily mandi silos to be built on land belonging to State Agencies under PPP mode with VGF funding. However, VGF has been proposed to be given by Punjab Government. These Silos are without railway sidings. Contract have been signed for 3.5 LMT.   |
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|    |                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                              | 4. Preliminary feasibility study at other FCI's own godowns having railway siding have been done and it has been found feasible to construct Silos at 2 locations for 1.0 LMT. Details are as follows: Dhamora (U.P.) - 50,000 MT, and Borivilli (Maharashtra) - 50,000 MT. 5. In addition, tenders to construct Silos under Non-VGF Route through Design, Build, Finance, Own &Operate (DBFOO) basis will be floated shortly.                                                                                                                   |
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|  8 | Covered and plinth (CAP) storage should be gradually phased out with no grain stocks remaining in CAP for more than 3 months. Silo bag technology and conventional storages where ever possible should replace CAP. | FCI will de-hire its currently hired CAP capacity of 1.94 lakh MT within 1 month. There are 8.90 LMT FCI owned CAP capacity. CAP Complexes having 5000 MT or above capacity will be taken up for conversion into silos. In addition, grains kept in CAP will be evacuated within 6-8 months. | All the CAP capacities hired during RMS 2015-16 have been dehired. As per the recommendations of HLC, the hired CAPcapacity of 1.94 LMTwas de-hired. CAP capacity of 169 MT has been hired on AUB basis in the UT of Chandigarh for storing the paddy procured locally. Preliminary feasibility study at other FCI's own godowns having railway siding have been done and it has been found feasible to construct Silos at 2 locations for 1.0 LMT. Details are as follows: Dhamora (U.P.) - 50,000 MT, and Borivilli (Maharashtra) - 50,000 MT. |

|    |                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Instructions have been issued to all the field offices by FCI Hqrs. vide letter dated 24.04.2015 to liquidate stocks in CAP capacities in consuming Regions. It has also been decided that stocks stored in CAP in procuring Regions should also be liquidated within 6-8 months.                                                                                                                                                                             |
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|  9 | Each State, especially the deficit ones in difficult terrain (like hilly areas of North-East, Jammu and Kashmir etc), must have storage of grains for at least three months of their consumption requirement. | The construction work of godowns is going on in the States of North- East Region under Plan Schemes. By the end of September, storage capacity of two months consumption requirement of grains, will be available in the States of North-East region. On construction of additional 5 LMT storage capacity, it would be feasible to store foodgrains for 3 months consumption requirement in NER. Efforts will be made to increase storage capacity in J&K to store foodgrains for 3 months requirement against existing two- month capability. | Existing storage capacity in NE is 5.30 LMT. Construction works for 16,910 MT are in progress under Plan Scheme and 25,000 MT under PEG scheme. The monthly allocation of food grains for NE is 2.88 LMT. Thus, 2 months' storage requirement will be fulfilled. Total covered storage capacity with FCI in J&K is 2.39 LMT (Owned 1.03 LMT and Hired - 1.36 LMT) which is sufficient to store 3 months' requirement. Monthly allocation for J&K is 0.76 LMT. |

| 10   | FCI engages large number of workers (loaders) to get the job of loading/ unloading done smoothly and in time. Currently there are roughly 16,000 departmental workers, about 26,000 workers that operate under Direct Payment System (DPS), some under no work no pay, and about one lakh contract workers. A departmental worker (loader) costs FCI about Rs 79,500/ per month (Apri-Nov 2014 data) vis-a-vis DPS worker at Rs 26,000/per month   | FCI has already requested the Ministry of Labour & Employment to de-notify the depots. Only contractual labour will be engaged in the depots after their de- notification. If, Ministry of Labour & Employment agrees, contractual labour would be engaged in all its depots and the cadres of Departmental Labour will be declared as dying cadres.   | 1. In the matter of De-notification of FCI Depots/Railheads the CACLB in its 88 th Meeting held on 30-31 March 2016 has rejected the request of FCI for granting Exemption &de-notifying FCI Depots/Railheads citing following reasons : (a) The ground of emergency submitted by FCI is not establishment-wise/ depot-wise and not specific; (b) The non-production of future rationalization action plan of the establishment; and (c) FCI seeking blanket exemption for entire establishment without conditions and without fixed period which cannot be granted as per Section 31 of CL(R&A) Act, 1970. Hence engagement of contract labour in place of highly paid Departmental labour in such depots is not possible at this stage. 2. Regarding engagement of proxy labour & restructuring of labour engaged in FCI Depots, it is informed that the instructions had been issued for medical/Fitness test of Departmental labour vide letter dated 19.02.2016 & transfer of Departmental labours from one Depot to another to bring down the cost of handling vide letter dated 07.12.2015. Both these steps have been opposed by Unions. While FCI Workers Union has served a strike notice for shifting of departmental labour, FCI Shramik Union has   |
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| and contract labour costs about Rs 10,000/ per month. Some of the departmental labour (more than 300) have received wages (including arrears) even more than Rs 4 lakhs/per month in August 2014. This happens because of the incentive system in notified depots, and widely used proxy labour. This is a major aberration and must be fixed, either by de- notifying these depots, or handing them over to states or private sector on service contracts,   | The restructuring of labour force of FCI would be done by taking the labour unions in confidence. Capping of incentive being given to the regular workers of FCI is not advisable as it would lead to delay in unloading at the railheads. Regular strict vigil would be kept to provide better facilities to contractual labour prescribed under various labour laws.   | sent a strike notice for medical/fitness test. Besides FCI Workers Union and FCI Handling workers Union have protested against transfers & FCI Shramik Union has protested against Medical Fitness test. Suitable reply has been given to the Unions. However, on the issue of Medical/Fitness test of Departmental Labours, matter is being heard by RLC Delhi as an ID dispute. The issue of change in scheme of Incentive structure with respect to revision in datum of 135 Bags per labour per day from the existing datum of 105 Bags per labour per day is pending before CGIT Delhi in ID case no. 195/2001 & 239/2011. The case is to be heard on 25.04.2016. 3. Regarding negotiations to be held with Unions, as per the advice of Secretary (Food) to arrive at an amicable settlement for labour restructuring, it is informed that meetings were held with the Unions by an ED level Committee as well as CMDin the past. No consensus was arrived at in such Meetings. However to continue the dialogue with the Unions, the ED level Committee is scheduled to hold discussions with major Unions on 26 th &27 th April 2016. HTC MTF in vogue already has sufficient provisions to ensure better facilities and   |
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| maximum limit on the incentives per person that will not allow him to work for more than say 1.25 times the work agreed with him. These depots should be put on priority for mechanization so that reliance on departmental labour reduces. If need be, FCI should be allowed to hire people under DPS/ NWNP system.   | adequate welfare provisions like EPF, Minimum Wages, ESI, Workmen Compensation etc. and facilities like canteen/restrooms, urinal, and drinking water facilities under CL (R&A) Act, 1970 by the Contractor. However, this office also from time to time keeps on issuing directions to Regions for compliance of various welfare provisions and facilities as vogue in CL(R&A), Act, 1970. Furthermore, directions vide letter dt 19.02.2015 addressed to all Regions have been issued by this office directing therein to appoint Nodal Officer at District Office Level to ensure compliance and implementation of various welfare provisions and facilities to Contract labour. Moreover, quarterly report for compliance of various welfare facilities has also been sought from Regions. Information regarding appointment of Nodal Officer has been received from all Regions.   |
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| HLC recommends that the condition of contract labour, which works the hardest and are the largest in number, should be improved by giving them better facilities.   |
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| 11   | HLC recommends total end to end computerization of the entire food management system, starting from procurement from farmers, to stocking, movement and finally distribution through TPDS. It can be done on real time basis, and some states have done a commendable job on computerizing the procurement operations. But its dovetailing with movement and distribution in TPDS has been a weak link, and that is where much of the diversions take   | 1. User credentials for all the Pilot & Pre-Pilot Depots have been created by the SI and have been forwarded to the concerned District offices along with the link for accessing the application for logging in. User Credentials for the HO/ZO/RO and DO are being created by System Integrator (SI, M/s Ricoh). 2. Trainings for the implementation of the application at depots other than Pre-Pilot & Pilot Depot have been conducted by SI, at 151 FCI District Offices, 23 FCI Regional Offices and 4 FCI Zonal Offices have been completed. Week 11 training is underway at 8 District Offices & at Zonal Office (North). Week 12 Training will start from 18.04.2016 at 5 District Offices &2Regional Offices. 3. Hardware at the 359 FCI Owned depots & 71 District Offices other than 30 Pre- Pilot &Pilot Depots has been delivered by the SI. 4. E-mail gateway has been provided by NIC and SI has integrated the same with the application. 5. Provisioning of SMS Gateway for the application is underway. 6. DR Site for the application is being provisioned by NIC. 7. Issues, related to the application, are being addressed, as and when reported, by the SI. 8. Depot Online System has been inaugurated and launched on 17 th March 2016, by Hon' ble Minister for Consumer Affairs, Food and Public Distribution, Sh. Ram Vilas Paswan at FSD Mayapuri.   |
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| 9. In Phase I, Depot Online System has been launched at 31 FCI Depots. 10. In Phase II, the application will be implemented at rest of the FCI (524) Depots across the country which is expected to be completed by July 2016.   |
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| 12   | The new face of FCI will be akin to an agency for innovations in Food Management System with a primary focus to create competition in every segment of foograin supply chain, from procurement to stocking to movement and finally distribution in TPDS, so that overall costs of the system are substantially reduced, leakages plugged, and it serves larger number of farmers and consumers.   | This is partially accepted. Abolition of Zonal Offices of FCI is not found to be feasible, as these are the backbone of the organization and are involved in managing various functions of Personnel and Labor (IR), Commercials, Procurement, Quality Control, Storage and Vigilance Wings of FCI. It is stipulated that FCI will in future : (1) Play a proactive role for increasing procurement in Eastern India. (2) Focus on logistics management and introduce modern technologies and practices in procurement, storage and movement of foodgrains. (3) Introduce end to end computerization in foodgrains   |
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| In this endeavour it will make itself much leaner and nimble (with scaled down/ abolished Zonal offices), focus on eastern states for procurement, upgrade the entire grain supply chain towards bulk handling and end to end computerization by bringing in investments, and technical and managerial expertise from the private sector. It will be more business oriented with a pro-active liquidation policy to liquidate stocks in OMSS/ export   | (4) Increase awareness and share knowledge and best practices among the stake holders.   | FCI has started focusing on procurement in eastern States. Detailed status is given in point No 2 above. Efforts are being made to modernize labs. Status of silos is given in point No 7. M/s RICOH India Ltd has been appointed as the System Integrator for the Implementation of Depot Online System through an open tender process. Detailed status is entailed at point No 11.   |
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| markets, actual exceed In order the vision, FCI can into an Innovations Foodgrain Management Systems sole objective modernization towards handling cutting   | A Committee of 3 EDs of FCI has been constituted to prepare a road map for building the new face of FCI.   |
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