PROJECT

ON

FOOD CORPORATION OF INDIA

SUBMITTED TO: SUBMITTED BY:ANJALI TULI NITESH GOSWAMIAsst. Professor B.COM. (H), 3rd YEAR

ROLL NO. 3469

HANS RAJ COLLEGEUNIVERSITY OF DELHI

SESSION 2012-2013

Declaration

The data collected in the project is based on the understanding of the

subject matter and is taken from reliable sources which provide

accurate data regarding similar topics. Any incorrect data in the project

is merely an innocent mistake and is completely out of my knowledge.

Thanking you

ANJALI TULI NITESH GOSWAMI

Assistant Professor

HANS RAJ COLLEGE

Acknowledgements

This successful project on Food Corporation of India is an effort by

many individuals and research on Internet. I would like to thank everyone

who has been involved directly or indirectly in the completion of this

project.

A special thanks to our Marketing instructor Dr. MANJEET SINGH for

teaching the basics of the subject related.

I would also like to thank my Parents and my extended family members for

their support and encouragement they have provided me throughout all my

education years.

I would like to acknowledge my deep sense of gratitude to Ms. KRITI

GOSWAMI for her under guiding help and guidance at all stages

With due regards and thanks

NITESH GOSWAMI

TABLE OF CONTENTS

SEC 1. INTRODUCTION ON FCI 1

SEC2. OBJECTIVES OF FCI

2.1 2.1 QUALITY POLICY

2 2.2 OTHER BASIC QUALITY OBJECTVES

2

SEC 3. COMPOSITION AND STRUCTURE OF FCI

3.1 3.1 CORPORATE SET UP

3.2 3.2 ORGANISATIONAL HIERARCHY

3.3 3.3 OPERATIONAL NETWORK

3.4 3.4 BOARD OF DIRECTORS

3.5 3.5 DIFFERENT FCI OFFICES

3-8

SEC 4. DIFFERENT FACETS OF FCI

4.1 CAPITAL STRUCTURE AND SUBSIDY

4.2 PROCUREMENT OF FOOD GRAIN

4.3 STORAGE MANAGEMENT

4.4 QUALITY CONTROL AND SCIENTIFIC MANAGEMENT

4.5 TRANSPORT MANAGEMENT

4.6 DISTRIBUTION OF FOOD GRAINS

4.7 STOCK MANAGEMENT

4.8 HUMAN RESOURCE DEVELOPMENT TRAINING

9-24

SEC 5. DATA ABOUT FCI 24-33

SEC 6. NEW INITIATIVES BY FCI 34

SEC 7. STRENGTH OF FCI 35

SEC 8. RECOMMENDATIONS (VISION 2020) 36

BIBLIOGRAPHY 37-39

QUESTIONNAIRE 40

INTRODUCTION

The Food Corporation of India was setup under the Food Corporations Act 1964, in order

to fulfill following objectives of the Food policy:

Effective price support operations for safeguarding the interests of the farmers.

Distribution of food grains throughout the country for Public Distribution System;

and

Maintaining satisfactory level of operational and buffer stocks of food grains to

ensure National Food Security.

Since its inception in 1965, having handled various situations of plenty and scarcity, FCI

has successfully met the challenge of managing the complex task of providing food

security for the nation. A strong food security system which has helped to sustain the

high growth rate and maintain regular supply of wheat and rice right through the year.

The efficiency with which FCI tackled one of the worst droughts of the century not only

cemented its role as the premier organization in charge of food security in India, but also

brought it accolades from international organizations.

Today it can take credit for having contributed a great deal in transforming India from a

chronically food deficit country to one that is self-sufficient

 

1

OBJECTIVES

To provide farmers remunerative prices To make food grains available at reasonable prices,   particularly to vulnerable

sections of the society

To maintain buffer stocks as measure of food security

To intervene in market for price stabilization

 

QUALITY POLICY

FCI, as the country’s nodal organization for implementing the National Food Policy, is committed to provide credible, customer focused services, for efficient and effective food security management in the country.  Our focus shall be:  

Professional excellence in management of food grain and other commodities Service quality and stake holder orientation Transparency and accountability in transactions Optimum utilization of resources Continual improvement of systems, processes and resources

.     

QUALITY OBJECTIVES

Fulfillment of all the targets set as per Govt. of India Food Policy from time to time. 

Monitoring of quality in all major transactions, processes leading to improved customer satisfaction level

Accountability for efficiency, responsiveness, performance and minimization of all losses & wastes

Need based up gradation of infrastructure and work environment Need based enhancement of available knowledge & skills. Transparency in decision making, effective communication leading to harmonious

employee relations Establishing, maintaining and improving ISO 9001:2000 based Quality

Management Systems covering all areas of activity.

2

CORPORATE  SETUP

The general superintendence, directions and management of the affairs and business of

the corporation vests with the Board of Directors

Board of Directors as per section 7(1) of the Food Corporation Act shall comprise of:

CHAIRMAN

MANAGING DIRECTOR

MD, CENTRAL WAREHOUSING CORPORATION (EX-OFFICIO)

GOVT. REPRESENTATIVES :

Three directors to represent respectively the ministries of the central govt. dealing with:

(i) FOOD

(ii) FINANCE

(iii) CO-OPERATION; and

SIX OTHER DIRECTORS (out of which four (4) are non-official Directors)

3

ORGANIZATIONAL CHART

Corporate Office

Zonal Offices [ 5 ]

Regional Offices [ 23 ]

District Offices [ 166 ]

Depots (incl. CAP) [ 1451 ]

With 1646 offices, FCI is one of the largest networked organizations in India

4

OPERATIONAL NETWORK

FCI operates through a country-wide network with its Corporate Office in New Delhi, 5

Zonal Offices, 23 Regional Offices practically in all the state capitals,  165 district

Offices(as on 01.10.2008) and 1470 depots (as on 01.01.2007)

Most of the Revenue Districts in the country are covered by FCI.

It has manpower  of 38,645 officers and staff /employees as on 30.06.2008 and about

60,109 regular food handling workers besides approximately one lakh food handling

labourers being engaged by the Handling & Transport Contractors, as on 31.03.2005

The general superintendence, direction and management of the affairs and business of the

Corporation shall vest in a board of directors which exercise all such powers as may be

exercised or done by the Corporation under this Act.

The board of directors, in discharging its functions, act on business principles having

regard to the interest of the producer and consumer and shall be guided by such

instructions on questions of policy as may be given to it by the Central Government.

5

BOARD OF DIRECTORS

(Position As on -01-08-2008))

Sl. No. Name and Address Telephone  (office)

Telephone  (Resi)

Residential Address

1. Alok Sinha,(IAS)* CMD,FCI, 16-20 Barakhamba Lane,New Delhi-1 (w.e.f. 2.1.2007 afternoon)

23414074,   23413346 9871173508

C-II/45, Tilak Lane, New Delhi-1

2 N.K.Raghupati,* Addl. Secretary & F.A, Ministry of CAF&PD, Krishi Bhawan, New Delhi (w.e.f. 24.10.2007 afternoon)

23384418   .

3 Siraj Hussain,(IAS)* Joint Secretary,  Min. Of Consumer Affairs Food & Public Distribution, Krishi Bhawan, New Delhi. (w.e.f. 10.1.2007 )

23381177  FAX-23388302

95120-2585408 9818518384

A-70, Sector 61, NOIDA-201301(U.P)

4 Mukesh Khullar *Joint Secretary,(DM)Min.of Agriculture Krishi Bhawan  New Delhi(w.e.f.23.11.06)

23381176 24106327 D-I/40, Satya Marg, Chanakya Puri,  New Delhi-21

5 B.B.Pattanaik, Managing Director, Central Warehousing Corporation, Haus Khas, New Delhi(for a period of 5 years or

26852826, 26515160 FAX-26967844

. .

6

till the date of superannuation)(w.e.f. 15..2008)

6 Shri R.P.S. Pawar, Principal Secretary (Food), Govt. of Punjab Deptt. of Food, Civil Supplies & Consumer Affairs, Mini Secretariat, Room No.410, 4th Floor,Sector-9 Chandigarh (w.e.f. 29.4.2008 to 28.4.1010)

2742836 0172-2742836(Fax)

2748686, 9417296661

 

* Members of the Executive Committee also.

7

CHART OF FCI OFFICES

8

CAPITAL STRUCTURE & SUBSIDY

Govt. of India provides funds to FCI to meet the cost of fixed assets like Offices,

Godowns, Silos, Railway Sidings and Weighbridges.

The Authorized Capital of FCI is Rs. 2500 crores and the Paid-up Capital is Rs.

2437.47 crores as on 31.03.2005.

For financing the food grains and sugar operations entrusted to corporation by the

Govt. of India, the working capital is provided by the consortium of 44 banks.

FCI purchases the food grains for the Central Pool at the procurement prices and issues

the same at the Central Issue Prices fixed by the Government of India. The issue price so

fixed does not cover the full cost incurred by the Corporation in the procurement,

movement, storage and distribution of food grains. The different represents the consumer

subsidy for the Public Distribution System, and is paid to the Corporation by the

Government of India. The Corporation also maintains buffer stock of food grains on

behalf of the Govt. of India and the carrying charges of the buffer stocks are also

reimbursed by the Government to the Corporation.

9

Food Subsidy released to FCI including sugar

(Rs. in Crores #)

Year 1995-96 1996-97 1997-98 1998-99 1999-2K 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Subsidy 5325.45 6016.73 7900.00 9049.34 9002.25 11652.13 16724.00 22678.72 23874.04 23327.73 8852.56

Year 2006-07 2007-08 2008-09 2009-10*

subsidy 20786 27760 36744 43547

* Till 27.1.2010#1 crore= 10 million

10

PROCUREMENT OF FOOD GRAINS

To nurture the Green Revolution, the Government of India introduced the scheme of

minimum assured price of food grains which are announced well before the

commencement of the crop seasons, after taking into account the cost of production \

inter-crop price parity, market prices and other relevant factors.

The Food Corporation of India along with other Government agencies provide

effective price assurance for wheat, paddy and coarse grains.

FCI and the State Govt. agencies in consultation with the concerned State

Governments. establish large number of purchase centers throughout the state to

facilitate purchase of food grains

Centers are selected in such a manner that the farmers are not required to cover

more than 10 kms. to bring their produce to the nearest purchase centers of major

procuring states.

Price support purchases are organized in more than 12,000 centers for wheat and

also more than 12,000 centers for paddy every year in the immediate post-harvest

season.

Such extensive and effective price support operations have resulted in sustaining

the income of farmers over a period and in providing the required impetus for

higher investment in agriculture for improved productivity.

To name a few states about Rs. 41,000 millions for paddy and Rs. 43,000 millions

for wheat in Punjab and Rs. 45,000 millions for levy rice in Andhra Pradesh is

paid to the farmers/ millers during wheat / rice procurement season.

India today produces over 200 million tonnes of food grains as against a mere 50

million tonnes in 1950.

11

In the last two decades, food grain procurement by Government agencies has

witnessed a quantum jump from 4 million tonnes to over 25 million tonnes per

annum.

Food grains are procured according to the Government - prescribed quality

standards.

Each year, the Food Corporation purchases roughly 15-20% of India's wheat

production and 12-15% of its rice production.

This helps to meet the commitments of the Public Distribution System and for

building pipeline and buffer stock.

The Department of Food, GOI has recently formulated aforesaid policy for involving

Central Govt. Undertaking /State Govt. undertakings/for the Central Pool and expanding

the scope of MSP operations in the areas where FCI/State agencies infrastructure for

potential of procurement is weak and existing Govt. Agencies (FCI and State Agencies)

are not able to carry out MSP operations in such areas where procurement exists to

ensure that farmers are not denied the benefit of MSP. 

The eligibility Criteria and priority for engaging such Agencies/Private companies is

mentioned n clause 2 to 2.3 of the policy guidelines. The private companies can only be

engaged as last option as per the policy guideline. The engagement of agencies falling

under clause2.2 and 2.3 must result in a cost saving of at least 10% of the incidentals

(other than taxes, statutory charges etc.) of FCI as provided at point 3.3 of policy of

guidelines of Ministry of Food. The other details are mentioned in the Policy Guidelines.

The Central Govt. Undertaking/State Govt./Undertaking/Co-operatives/Private

Companies fulfilling the eligibility criteria and desirous to undertake paddy procurement

operations on behalf of FCI may contact concerned GMs(Region),/EDs(Zone) or

Procurement Division, FCI Headquarters.

12

STORAGE MANAGEMENT

Another facet of the Corporation's manifold activities is the provision of scientific

storage for the millions of tonnes of food grains procured by it. In order to provide

easy physical access in deficit, remote and inaccessible areas, the FCI has a

network of storage depots strategically located all over India. These depots

include silos, godowns and an indigenous method developed by FCI, called Cover

and Plinth (CAP).

CAP storage is a term given to storage of food grains in the open with adequate

precautions such as rat and damp proof plinths, use of Dunn age and covering of

stacks with specially fabricated polythene covers etc.

FCI has 24.18 million tonnes (owned & hired) of storage capacity in over 1451

godowns all over India.

In order to reduce storage and transit losses of food grains and to bring additional

resources through Private Sectors participations., Govt. of India had announced a

National Policy on Handling Storage and Transportation of Food grains in June,

2004 for Bulk and conventional godowns.In the 1st phase, after a series of

deliberations, it was approved that total capacity of lakhs MT  be created at the

identified based depots and field depots through private sector participation on

Build-Own & Operate (BOO) Basis. RITES were appointed as consultants for

the project. A letter of acceptance of proposal of the project in two circuits has

been awarded to M/s. Advani Exports Ltd, the lowest bidder to complete the

Project in 3 years from the date of execution of the service agreement. 

13

STORAGE CAPACITY AS ON 1ST JULY 2008

In Million Tonnes

OWNED HIRED

Covered 12.96 CWC 1.64

Open [CAP ] 2.30 SWC 6.38

-- -- State Govt. 0.63

-- -- Pvt. Parties 1.10

-- -- Open [CAP ] 0.08

-- -- -- --

TOTAL 15.26 TOTAL 9.83

TOTAL   =  25.09

14

QUALITY CONTROL AND SCIENTIFIC PRESERVATION

The Food Corporation of India has an extensive and scientific stock preservation

system. An on-going program sees that both prophylactic and curative treatment

is done timely and adequately. Grain in storage is continuously scientifically

graded, fumigated and aerated by qualified trained and experienced personnel.

Food Corporation of India's testing laboratories spread across the country for

effective monitoring of quality of food grains providing quality assurance as per

PFA leading improved satisfaction level in producers (farmers) and customers

(consumers).

The preservation of food grain starts, the minute it arrives in the godowns. The

bags themselves are kept on wooden crates/poly pallets to avoid moisture on

contact with the floor. Further till the bags are dispatched/issued, fumigation to

prevent infestation etc. of stocks is done on an average every 15 days with

MALATHION and once in three months with DELTAMETHRIN etc. on traces

of infestation, curative treatment is done with Al. PHOSPHIDE.  

FCI's testing laboratories spread across the country (188) ensure that the stored food grains retain their essential nutritional qualities as per FAQ.

          District Labs 165           Regional Labs 23           Zonal Labs 5           Central Lab 1

15

TRANSPORT MANAGEMENT

Ensuring accessibility to food in a country of India's size is a Herculean task. The

food grains are transported from the surplus States to the deficit States.

The food grain surplus is mainly confined to the Northern States; transportation

involves long distance throughout the country. Stocks procured in the markets and

purchase centers is first collected in the nearest depot and from there dispatched to the

recipient States within a limited time.

FCI moves about 270 Lakh tonnes of food grains over an average distance of 1500

Kms.

Regularly rice and wheat procured in the Northern States is moved to far flung

corners Imphal, Manipur or Kanyakumari in Tamil Nadu and to the higher reaches of

the Himalayas in the North.

An average of 1,20,0000 bags (50 Kg) of food grains are transported every day from

the producing States to the consuming areas, by rail, road,  etc.

The stocks to Kashmir valley, H.P, NE, Sikkim A&N Islands and Lakhadweep etc.,

which don't have rail link, are fed by road.

Thus by effective planning and management of the transport system FCI regularly

moves food grain and sugar from the procuring region to the consuming region.

16

Movement                                            Lakh Tonnes(Prov.)

YearFood

grainSugar Total

1996-1997 235.5 12 247.8

1997-1998 191.1 11 202.1

1998-1999 190.8 11 201.8

1999-2000 221.9 7 228.9

2000-2001 161.6 3 164.6

2001-2002 204.5 3 207.5

2002-2003 248.8 2 250.8

2003-2004 297.0 0.8 297.8

2004-2005  338.7 1.4 340.1

2005-2006  315.5 1.8 317.3

2006-2007 288.7 2.4 291.1

2007-2008    277.92 1.78 279.70

2008-

09(June,08)61.69 0.32 62.01

17

DISTRIBUTION OF FOOD GRAINS

The national objective of growth with social justice and progressive improvements in the

living standards of the population make it imperative to ensure that food grain is made

available at reasonable prices.

Public Distribution of food grains has always been an integral part of India’s

overall food policy. It has been evolved to reach the urban as well as the rural

population in order to protect the consumers from the fluctuating and escalating

price syndrome.

Continuous availability of food grain is ensured through about 4.5 lakhs fair price

shops spread throughout the country.

A steady availability of food grains at fixed prices is assured which is lower than

actual costs due to Govt. policy of providing subsidy that absorbs a part of the

economic cost (about 45%).

The Govt. of India introduced a scheme called Targeted Public Distribution

Scheme (TPDS) effective from June, 1997. The stocks are issued under this

scheme in the following two categories:-

a) Below Poverty Line (BPL): Determination of the families under this category

in various states is based on the recommendation of the Planning Commission. A

fixed quantity of 35 Kg. food grains per family per month is issued under this

category. The stocks are issued at highly subsidized Price of Rs.4.15 per Kg. of

wheat and Rs. 5.65 per Kg. of rice.

Antyodaya Anna Yojna - During the year 2000-2001 Govt. of India decided to

release food grains under Antyodaya Anna Yojna. Under this scheme the poorest

strata of population out of earlier identified BPL population is covered. Food

grains are being provided to 1.5 crores poorest of the poor families out of the BPL

18

families at highly subsidized rates of Rs.2/- per kg. of wheat and Rs.3/- per kg. of

rice by FCI. This is the biggest food security scheme in the world.

b) Above Poverty Line (APL) – Families which are not covered under BPL are

placed under this category. The stocks are issued at Central Issue Price of Rs. 6.10

per Kg.  of wheat and Rs. 8.30 per Kg. of rice.

Allotment/Off take of Wheat/Rice

The Central Issue Price (CIP):-

Commodity As on BPL Families APL Families

Wheat 01- 04- 2002 415 510

  12- 07- 2001 415 610

Rice 01- 04- 2002 565 730

  12- 07- 2001 565 830

       

19

THERE IS NUMBER OF OTHER WELFARE SCHEMES OF THE GOVT. OF

INDIA:

(a) Mid-Day-Meal-Scheme (MDM) - The Govt. of India have introduced MDM –

National Program of    Nutrition Support to Primary Education in Primary Schools w.e.f.

15.8.1995. Under the scheme every child is entitled for 3 Kgs. of wheat/rice per month @

100 Grams.

The Scheme is partly run by Govt./Aided Schools/Local Bodies to serve free cooked /

processed hot meal. FCI is supplying food grains free of cost to the State/UTs. This

scheme is partly financed by Ministry of HRD.

(b) Wheat Based Nutrition Program (WBNP) - A scheme run by Department of

Women and Child Development, Ministry of HRD for providing nutritious food to

children below 6 years of age and expectant/lactating women. Food grains supplied by

FCI at BPL rates.

(c) & (d) SC/ST/OBC Hostels & Welfare Institutions & Hostels- The Ministry of

CAF&PD and the Ministry of Social justice & Empowerment coordinate to monitor of

the Scheme for providing food grains to SC/ST/OBC Hostels. Hostels having students

belonging to SC/ST/OBC categories are eligible to draw 15 Kgs. Food grains per resident

per month.

The Government of India decided that w.e.f. 2.11.2000 food grains (wheat/rice) will also

be allotted to the state Governments at the rate of 5 Kg per head per month for indigent

people living in Welfare Institutions, such as. Beggar Homes, Home for Nari Niketan etc.

sponsored by the State Governments. and the concerned administration. Food grains are

supplied by FCI at BPL rates. It may be clarified that from the year 2002-03, the

MOCAF&PD has been making the requirement of the State/UT under the head "Welfare

Institutions & Hostels" to meet the requirement of the State/UT for providing food grains

to different type of welfare institutions. Since April 2005, the Ministry of CAF &PD has

20

enhanced quota of allotment under this scheme to 5% of the monthly allotment made

under BPL & AAY.

(e) Annapurna Scheme- Indigent Senior Citizens of 65 years of age or above eligible for

National Old Age Pension under NOAPS, but not getting pension can get 10 Kgs of food

grains per month. FCI is issuing food grains under this scheme to State/UT Governments

at BPL rates.

Under This scheme of Ministry of Social Justice & Empowerment, Indigent people living

in Welfare institutions like Beggar Homes, Orphanages, Nari Niketans etc. are given 15

kgs of food grains per person per month. Food grains are supplied by FCI at BPL rates.

(f) Sampoorna Gramin Rozgar Yojana- A scheme financially supported by Ministry of

Rural Development in which food grains are supplied to the States/ UTs by FCI free of

cost

(g) Special Component of Sampoorna Gramin Rozgar Yojna - Under the Special

component of the SGRY financed by Ministry of Rural Development for augmenting

food security through additional wage employment during natural calamity. FCI release

food grains free of cost to the State/UTs.

(h) Food grains to Adolescent Girls - Pregnant and Lactating Mothers (AGPLM). GOI

introduced this Scheme w.e.f January, 2003 under this scheme food grains is being

supplied by FCI at BPL prices to the State/UT Govt. for Adolescent Girls, Pregnant and

Lactating Mothers (AGPLM). The identified under nourished woman/girl is provide 6

Kg. of food grains (wheat/rice)/month. The scheme is partly supported by Planning

Commission.

(i) World Food Program (WFP) - FCI is sparing stocks to WFP projects from the

Central Pool stocks as and when required by them. FCI is working as 'FOOD BANK' for

World Food Program (WFP) projects in India. When India was deficit of food grains,

WFP used to get stocks to meet the deficiency through import.

21

(J) Emergency Feeding Program - Under this scheme, Ministry of CAF & PD releases

allocation of rice at BPL rates, for KBK Districts (Bolangir, Kalahandi, Koraput,

Malakangiri, Nabarangpur, Naupada, Rayagada & Sonepur) of Orissa State on monthly

basis. Under this scheme, rice @ 6 kg/beneficiary/month is issued for 2 lakh

beneficiaries. This program is mentioned by Ministry of Social, Justice and

Empowerment at Central level.

(k) Grain Bank - this scheme provides Grants for establishment of village Grain Bank to

prevent deaths of Schedule Tribes specially children in remote and backward tribal

villages facing or likely to face starvation and also to improve nutritional standards. The

scheme provides funds for building storage facility, procurement of weights & measures

and for the purchase of initial stock of one quintal of food grains of local variety for each

family. The allocation of food grains was made by the GOI, Ministry of Tribal Affairs

during the year 2002-2003. Under this scheme food grains are allotted to States at BPL

rate. Allotment under this scheme has not been received from the year 2003-2004.

(l) National Food for Work Program - this program has been launched by the Prime

Minister during November 2004 for providing food grains in identified 150 most

backward districts of the country. The beneficiaries of this program are labourers

engaged by the State Govt. in development work. Food grains is given as part of wages

under the scheme to the rural poor at the rate of 5 kg. per man day. More than 5 kg. food

grains can be given to the labourers under this program in exceptional cases subject to a

minimum of 25% of wages to be paid in cash. Under this program food grains are issued

to states/UTs free of cost. This scheme is mentored by Ministry of Rural development.

22

STOCK MANAGEMENT

The Central Pool stocks are maintained by FCI and State Governments and their agencies.

The total stock in Central Pool as on 31/08/2008 is 313.58(Figs. in Lakh MT)

Stock in Central pool as on 31/08/2008

  Food grains With FCIWith State Govt. /

Agencies  Grand Total

Rice* 66.68 15.84 82.52

Wheat 96.97 134.09 231.06

Total 163.65 149.93 313.58

       

* Unmilled Paddy with FCI & State agencies also shown in terms of Rice

Stocks of Food grains & sugar in Central Pool as on 31.08.2008  (Figs. in Lakh MT)

  In Storage In Transit Total

Rice 82.52 2.20 84.72

Wheat 231.06 1.76 232.59

Wheat at Port 0.00 0.0 0.00

Total 313.58 3.73 317.31

Coarse Grains Sugar

0.71 0.02 0.73

0.05 0.03 0.08

Grand Total 314.34 3.78 318.12

Position on 08/09/2008

23

HUMAN RESOURCE DEVELOPMENT TRAINING

The Food corporation of India has two - tier training activities involving:-

Training of officers at the Institute of Food Security , Gurgaon

Nomination of officers in reputed technical / management institutes in India and

abroad

In addition the FCI is also organizing need based training programs in

collaboration with reputed institutes of concerned disciplines.

The Institute of Food Security situated in the institutional area at Gurgaon is state

-of- art institute having full fledged computer lab, library, hostel, conference halls,

conference equipments etc. Approximately 1500 officers are trained every year in

this institute. Officers from State undertakings and Central public sector

undertakings are also trained in the institute

'Institute of Food Security’ formerly known as ‘Central Training Institute’ of FCI

established in 1971 provides systematic and continuous training to its executives

to upgrade their knowledge and skills for new challenges of food grains

management. From, 1st August 1997, the Institute is functioning in its own

sylvan surroundings of 4.25 acres land situated at Delhi Jaipur NH-8. The

Institute provides an excellent training environment with well equipped

infrastructure of administrative block, class rooms, library, quality control lab,

conference halls, computer lab, hostel facilities etc. Programs are conducted by

experienced faculties drawn from within and eminent experts from other

institutions. Presently about 65 training programs are being conducted yearly for

about 1600 executives. “Vision 2020” of the institute is to evolve it as an institute

of excellence in the field of food grains management. Consultancy and research

would be an integral part of its activities towards self reliance  

24

REGIONS INFORMATION

North Zone

Sl.No Name of the Region

1. Uttranchal

2. U.P

3. Rajasthan

4. Punjab

5. J&K

6. H.P

7. Delhi

8. Haryana

South Zone

Sl.No Name of the Region

1. A.P

2. Kerala

3. Karnataka

4. Tamilnadu

West Zone

Sl.No Name of the Region

1. Chhattisgarh

2. Gujrat

3. Maharashtra

4. Madhya Pradesh

East Zone

25

Sl.No Name of the Region

1. Jharkhand

2. Bihar

3. Orissa

4. West Bengal

NEF Zone

Sl.No Name of the Region

1. N E F

2. N & M

3. Assam

*****

26

ALL INDIA PRODUCTION/PROCUREMENT OF WHEAT/RICE 2002-03 TO 2006-07

In Lakh Tonnes

YEAR

WHEAT RICE

Prod./Proc.

% Proc of Prod

MSP(Rs/qtl)

Prod./Proc.

% Proc of Prod

MSP(Rs/qtl) (Paddy)

2002-03 728/190 26.10 620 718/166 23.11 550/560

2003-04 658/158 24.00 620 882/229 25.96 550/580

2004-05 721/168 23.30 630 871/220 25.25 560/590

2005-06 740*/148 19.99* 640 918/276 30.06 570/600

2006-07 758/92 12.14650

+50.00(Bonus)933/251 26.90 580/610+40(Bonus)

* Estimated

MODE OF PROCUREMENT

WHEAT RICE

By direct Procurement from Farmers (approx.

25% of total Proc.).

From Millers as levy

(approx 25% of total Proc).

Through state Govt. & its agencies (approx.

75% of total Proc.).

Custom Milling of Paddy

Procured under Price

support (approx. 75% of

total Proc.).

DIFFERENT SCHEMES

27

Sl.No.Schemes

Avg. Off take of Food grains during last 3 year

Issue price

 

 

    

 

(In Lakh MTs)

%age of total

Ministry of CAF&PD

1 TDPS 193.8 45% APL/BPL/AAY

2

Welfare Institutions & SC/ST/OBC Hostels

10.9 0.4% BPL

3 WFP 0.5 0.1% BPL

4 Open Sale 42.0 10% Prefixed

5Export (up to 2003-04)

91.6 21% Prefixed

6 Relief Measures Neg Neg APL/BPL

Ministry of Rural Development

7 SGRY 42.6 10% Economic CostCentral Issue Price

8SGRY Spl. Component

27.4 6% Economic Cost(RS. / QTL)

9 Food for Work 9.9 2% BPL Wheat Rice

10 Annapurna 1.1 0.2% BPL APL 610 830

Ministry of HRDBPL 415 565

11Nutrition Program & AGPLM

2.4 0.5% BPL AAY 200 300

12 Mid-Day-Meal 20.9 5% BPLECO Cost   925

1263

Total434.3 100%     

28

OFFTAKE AND MOVEMENT OF FOOD GRAINS

YEAR OFFTAKE

UNDER TPDS* &

WELFARE

SCHEMES    (IN

LAKH MT)

OFF TAKE UNDER

EXPORT 

& OMSS**(D)   (IN

LAKH MT)

NO. OF

RAKES

MOVED

%AGE

INCREASE OF

RAKES MOVED

OVER LAST

YEAR

2000-01 136.1 34.1 6086 --

2001-02 210.2 102.8 7722 27

2002-03 315.1 181.2 9483 23

2003-04 376.9 116.4 12046 27

2004-05 386.9 15.6 13583 11

* Targeted Public Distribution System

** Open Market Sales Scheme

29

MINIMUM SUPPORT PRICE OF WHEAT/ PADDY FOR THE LAST FIVE YEARS(2002-03 TO 2006-07)

(FIGURES IN Rs. PER QUINTALS)

MARKETING

YEARWHEAT ( RABI )

PADDY (KHARIF)

Common Grade 'A'

2002-03 620.00530.00

+ * 20.00

560.00

+ * 20.00

2003-04

 

620.00

+ * 10.00 550.00 580.00

2004-05 630.00 560.00 590.00

2005-06 640.00 570.00 600.00

2006-07 650.00 +50.00(Bonus)580.00

+40.00(Bonus)610.00+40(Bonus)

NOTE: - * Draught relief announced by the Govt. of India.

30

FINANCIAL FEATURES

Average Bank Borrowing during  2007-08

(Consortium of 65 Banks as on 31.3.08)Rs. 27327 Crores

Commercial Borrowing (Bonds) Rs. 8605 Crores

Rate of Interest on Bank Borrowing w.e.f.

01.03.200810.15 % p.a. (Monthly Compounding)    

Rate of Interest on Bonds 7.31%p.a.(Annually Payable)

Equity Released for Plan Schemes and Working Capital (as on 31.03.08)

Rs. Cr.

YearWorking Capital

Construction of Godowns

IISFM Project Other Schemes Total

Upto 2002-03 1484.00 855.11 Nil 13.89 2353.00

2003-04 Nil 23.96 15.50 Nil 39.46

2004-05 Nil 5.87 39.14 Nil 45.01

2005-06 Nil 20.78 15.00 Nil 35.78

2006-07 Nil 7.50 Nil Nil 7.50

2007-08 . . . . .

First Quarter Nil Nil Nil Nil Nil

Second Quarter Nil Nil Nil Nil Nil

Third Quarter Nil 3.18 14.49 Nil 17.67

Fourth Quarter Nil 0.82 10.51 Nil 11.33

Total Nil 4.00 25.00 Nil 29.00

Total paid-up Capital 1484.00 917.22 64.64 13.89 2509.75

  . . . . .

Authorized Capital . . . . 3500.00

31

Economic Cost of Food grains of FCI

Crop-Year Wise Economic Cost (Provisional)

                                                                            (Rs./qty.)

Year Wheat Rice (Grade A)Rice

(Common)

Rabi 2008 1515 - -

Kharif 2007 - 1716 1664

Accounting Year-Wise opening Stock adjusted weighted Economic Cost

                                                                          (Rs./qty.)

Year Status Wheat Rice 

2001-02 Audited 852.94 1097.96

2002-03 Audited 884.00 1165.03

2003-04 Audited 918.69 1236.09

2004-05 Audited 1019.01 1303.59

2005-06 Un-audited 1041.85 1339.69

2006-07 (Prov) Prov. Estimates 1214.39 1411.60

2007-08(RE) Rev. Estimates 1348.69 1571.36

2008-09(BE) Budget Estimates 1458.83 1698.90

32

Food Subsidy Released to FCI and Incurred by FCI (Rs. Cr.)

Food subsidy released to FCI Food Subsidy Incurred by FCI

Year Total

Against

Earlier

years

For the

Year

Subsidy Incurred

during the year

Status of

Accounts

2001-02 16274.00 . 16274.00 18005.00 Audited

2002-03 22673.72 . 22673.72 25322.00 Audited

2003-04 23474.04 4545.86 18928.18 21587.00 Audited

2004-05 23280.00 4090.39 19189.61 20773.00 Audited

2005-06  19871.00 473.32 19397.68 21344.00 Un-Audited

2006-07 20786.21 1411.08 19375.13 24858.00 Prov.Estimates

2007-08 27759.68 5218.75 22540.93 31817.00 Rev.Estimates

2008-09

(Upto

30/04/08)

5400.04 . 5400.04 . .

33

NEW INITIATIVES

Having been acknowledged a major player in food grain management within the

Country and abroad, FCI is now endeavoring for

Resource mobilization to reduce burden on food subsidy.

Better financial & Treasury Management.

Improved stock inventory management real time on-line system through a

recently launched IISFM (Integrated Information System for Food grains

Management) in collaboration with NIC.

Creation of Profit Centers.

Upgradation of technology through interface with Agriculture

Universities/Management Institutes.

Use of ’A’ Twill texture gunny bags as against 'B' Twill bags as a project to

reduce losses in storage and transit.

Multimodal transportation system through container.

Micro level inventory management through focused weekly movement plans.

Sustained corporate communication for improving image perceptions.

34

STRENGTH OF FCI

Facilitator for food security

Provider of price & market assurance to the farmer

Ensuring steady food grain supplies to 5 Lakhs Fair Price Shops for PDS to cover

141 million APL / 67 million card holders.

Ensuring food for all other Welfare Schemes.

Management Capability and Experience

Large pool of talent managing world's largest food grain operation on behalf of

Govt. of India

Enormity of Scale

Countrywide network of offices & strategically located Food Storage Depots.

Operates in purchase centers located within 10 kms. proximity of farmers.

Undertakes purchases of 30 to 40 million tonnes annually making it the largest

buyer in the world.

Effective market intervention to stabilize prices 

State of the art experience on food grain preservation / Warehousing /

Transportation Management

Maintains the health of millions of tonnes of food grain in storage. Quality

acknowledge by International buyers.

Excellent Storage Management.

Timely movement of food grains from procuring States to consuming States.

35

RECOMMENDATION

(VISION 2020)

To aggressively promote Decentralized Procurement by State Governments with

special emphasis in non-traditional areas and commodities.

To initiate procurement of non-MSP governed commodities on commercial

principles.

To ensure adequate buffer for meeting requirements under TPDS & other Welfare

Schemes.

To dispose off surplus and un-storage worthy godowns and introduce concepts of

mechanized handling in the conventional godowns.

To undertake R&D for conversion of some of the existing capacity to bulk and

cost effective utilization of existing bulk capacity.

To optimize monthly movement program with existing state of art of

computerization within the country at various locations as per corporate policies

and priorities.

Modernization of Quality Control equipments and systems for food preservation

in order to increase the shelf life of food grain.

To venture in the fields of forward trading and exports of both surplus stocks of

food grains in Central Pool and no-traditional commodities.

To introduce state of art of financial management in order to reduce the

dependency on the present banking system in the country.

To initiate systems for settlement of storage loss and transit loss through

insurance coverage and revised inventory mechanism.

36

To develop efficiency in human resource management both in staff/officers and

workers with changed circumstances in the work approach of P.S.U. s.

To achieve state of art in computerized communication between different offices/ depots

through out the country.

QUESTONNAIRE FOR INTERNET USERS

1. Do you access Internet?

Yes No (if no, terminate)

2. Where do you access Internet?

Home Office

Institution Any other (specify)

3. For how many hours do you use Internet?

(Daily) (Weekly)

Less than 1 hour Less than 6 hours

1 – 3 hours 6 – 12 hours

More than 3 hours More than 12 hours

4. At what timing do you generally use Internet?

Office hours (9 a.m. - 6 p.m)

6 – 9 p.m. 9 p.m. – late night

Early in the morning

37

5. How best a PR person can make use of Internet?

6. How would you rank various uses of Internet according to how you use Internet?

Communication medium

Information tool Education tool

Entertainment medium PR medium

7. Which is your favorite web engine?

8. Which sites are your favorite sites (five)?

9. Does the Internet serve the purpose you bought it for?

Not really somewhat

Maybe, yes To a great extent

Totally

10. What are your suggestions regarding improvement of Internet services in Delhi.

11. Have you ever used Internet for commercial transaction?

Yes No

12. What are the general concerns in transacting on net?

38

Security problems Unsure about quality

No fun involved No bargaining

Any other (please specify)

PERSONAL INFORMATION:

Name: ________________________________________________________________

Age: __________________________________________________________________

Occupation: ____________________________________________________________

Education qualification: __________________________________________________

________________________________________________________________________

Do you have these?

Car: ___________________________________________________________________

Personal computer (with configuration): _____________________________________

________________________________________________________________________

wheeler: ________________________________________________________________

39

BIBLIOGRAPHY

BOOKS:

1. Van Horn (2002), Financial Management and Policy 12th edition, publisher Dorling Kindersley India Ltd.

2. J.R.Bhaduri (2005), Fundamentals and Financial  management, 12th edition, Pearson publisher.

3. Financial statement for the year ended 2007-08 as obtained from FCI 

4.  Annual-Report till 2008 of FCI 

5. Economic Times

6. Business Standard 

WEBSITES:

1. http://en.wikipedia.org/wiki/Food_Corporation_of_India on January

13, 2013

2. http://dfpd.nic.in/?q=node/480 on January 14, 2013

3. http://fciweb.nic.in/ on January 14, 2013

40

4. http://india.gov.in/official-website-food-corporation-india on January

15, 2013

5. http://fciweb.nic.in/articles/view/268 on January 15, 2013

6. http://fciweb.nic.in/qualities on January 15, 2013

7. www.scribd.com on January 15, 2013

41