Government of India Ministry of Consumer Affairs, Food and Public Distribution

Department of Food and Public Distribution

“Ensuring food security for citizens of the country”

Narendra Modi Hon’ble Prime Minister of India

Ram Vilas Paswan Hon’ble Minister for C.A, F&PD

The primary policy objective of the Department of Food & Public

Distribution is to ensure food security for the country through timely and

efficient procurement and distribution of Food grains. This involves

procurement of various Food grains, building up and maintenance of food

stocks, their storage, movement and delivery to the distributing agencies and

monitoring of production, stock and price levels of Food grains.

The focus is on incentivizing farmers through fair value of their produce by

way of Minimum Support Price mechanism, distribution of Food grains to

Below Poverty Line (BPL) families and covering poor households at the risk

of hunger under Antyodaya Anna Yojana (AAY), establishing grain banks in

food scarce areas and involvement of Panchayati Raj Institutions in Public

Distribution System (PDS).

The Department is also responsible for formulation of policies concerning

the sugar sector such as fixing of Fair and Remunerative Price (FRP) of

sugarcane payable by Sugar factories, development and regulation of sugar

industry (including training in sugar technology). The Department also

formulates policies on export and import of food grains, sugar and edible

oils.

Secretary, Department of Food and Public Distribution, Ms. Vrinda Sarup receiving Rajbhasha

Kirti Puraskar 2014-15 from the Honb’le President of India, Sh. Pranab Mukherjee on 14.09.2015

on the occasion of Hindi Divas at Vigyan Bhawan, New Delhi.

Conference of Food Secretaries of States/UTs held on 23 November, 2015

SIGNIFICANT ACTIVITIES AND

ACHIEVEMENTS

OF

DEPARTMENT OF FOOD & PUBLIC DISTRIBUTION

GOVERNMENT OF INDIA

MINISTRY OF CONSUMER AFFAIRS,

FOOD & PUBLIC DISTRIBUTION

CONTENTS

S. No. TITLE PAGE No.

1. Significant Achievements 1-8

2. Food grains Management & Food Security 9-11

3. Distribution of Food grains 12-14

4. Reforms in Sugar Sector 15-16

5. Digital India 17-19

6. Swachh Bharat Mission 20-22

1

Chapter-1

SIGNIFICANT ACHIEVEMENTS

Number of States/UTs implementing National Food Security Act, 2013

increased from 11 to 25

Major reforms in Public Distribution System (PDS) during 2015.

Digitisation of Ration Cards completed in 34 States.

Online foodgrains allocation started in 19 states.

Procurement policy modified to provide benefits of MSP to more farmers for

paddy procurement

Sustained efforts bring the cane price arrears due to farmers from a peak of

Rs.21,000 crore to Rs. 3476 crore

New provisions to promote quality products & services and to boost consumer

protection

New initiative taken to upgrade and modernize storage capacity.

The National Food Security Act which was enacted in 2013, had been

implemented in only 11 States/UTs. By then end of 2015, the number of States/UTs

implementing the Act has increased to 25.

The Government achieved significant milestones in the reforms of PDS by

making it more transparent and leak proof. During 2015 digitisation of ration cards

has been completed in 34 States while it was just 19 in the beginning of the year, the

number of States with online foodgrains allocations increased from 9 to 19 during the

year and online grievance redressal has been introduced by 36 States/UTs. Direct cash

transfer of food subsidy to the beneficiaries started in Chandigarh and Puducherry in

September, 2015.

Based on the recommendation of High Level Committee (HLC) on restructuring

of FCI, procurement policy for paddy modified to ensure increased reach of MSP

operations to more farmers. Millers levy on rice was abolished. The Government also

provided relief to the farmers during the year by relaxing procurement norms for their

crops affected by the unprecedented rains & hailstorms.

Due to sustained efforts to facilitate payment of sugarcane dues to the farmers,

the arrears have come down to Rs. 3476 crore at the end of December, 2015 from a

peak of Rs. 21,000 crore in the sugar season of 2014-15.

2

Highlights of other initiatives are as under:

Improving Foodgrain Management

A High Level Expert Committee under the Chairmanship of Shri Shanta Kumar,

MP, was constituted to make recommendations on re-structuring of FCI. Based on

the recommendations, several measures have been initiated to improve the

functioning of FCI and to bring in cost efficiency in its operations.

To bring all operations of FCI Godowns online and to check leakage, “Depot

Online” system initiated and integrated security system is being set up in all

sensitive depots.

Sufficient food grains are available in Central Pool Stocks of FCI. Stocks as on

01.12.2015 are 368.26 lakh MT, comprising 268.79 lakh MT wheat and 99.47 lakh

MT rice.

Besides 12 States/UTs which are already under Decentralised Procurement(DCP),

Telangana has become a new DCP State for procurement of rice and Andhra

Pradesh & Punjab have also adopted this system partially during 2014-15 to

improve the efficiency of foodgrains procurement and distribution operations.

The Government of India has approved approximately 111 lakh MT of wheat and

20 lakh MT of Grade-A rice for sale in the year 2015-16 under Open Market Sale

Scheme (OMSS), out of which, 36.87 lakh MT of wheat and 0.57 lakh MT of

Grade-A rice was sold by the end of December, 2015.

Adequate supply of food grains made using multi-modal transport in North Eastern

States despite disruption in rail route due to gauge conversion from Lumding to

Badarpur. 80,000 MT foodgrains moved through roads every month besides

creating additional storage of 20000 MT in the region. Foodgrains also inducted

into Tripura via Bangladesh through riverine route during Mega Block.

1,03,636 MTs of Rice have been moved from Andhra Pradesh to Kerala for the first

time through riverine/coastal movement in 2014-15.

Adequate supplies of food grains maintained during natural calamities of Hud-Hud

cyclone in Andhra Pradesh and devastating floods in J&K.

The Government has revised the buffer norms w.e.f. January, 2015 and

Nomenclature of buffer norms has been changed to “Foodgrain stocking norms for

the Central Pool”. The Government has revised the norms for better management of

foodgrain stocks.

During 2015-16 both storage losses and transit losses have been reduced to

(-) 0.03% due to storage gain in wheat and 0.39% against MoU target of 0.15% and

0.42% respectively.

1

3

100 MT of rice was sent to Myanmar to help the flood affected pocket near

Manipur border.

796.08 lakh MT storage capacity is available for central pool stocks of food grains.

New Godowns having capacity of 10 lakh MT under Private Entrepreneur Guarantee

(PEG) Scheme in 20 States, 20000 MT under Plan Scheme in North East and 1.78

lakh MT through CWC in 12 States have been added.

A transformation plan for the Warehousing Development and Regulatory Authority

(WDRA) has been initiated to streamline the warehousing sector. The work for

creation of IT platform and rewriting of rules and procedures has been initiated.

Request For Proposal (RFP) for construction of steel silos for bulk storage of wheat

has been floated for 3 locations - Whitefield , Katihar and Kotkapura on PPP mode

with Viability Gap Funding (VGF). Approval for VGF has been received for 3 more

locations - Narela, Sahnewal and Changsari and RFP is to be floated shortly. This

effort will add 2.5 lakh MT capacity of modern storage to FCI’s capacity.

610.08 lakh MT of foodgrains have been allocated to States/UTs for distribution

under Targeted Public Distribution System (TPDS) and other Welfare Schemes

during 2015-16 (upto 04.01.2016).

For maintaining supplies and securing availability and distribution of essential

commodity mainly foodgrains under TPDS, in exercise of the powers conferred

under Section 3 of the Essential Commodities Act, 1955, the Department has

notified the TPDS (Control) Order, 2015 on 20.03.2015. The Order supersedes the

existing PDS (Control) Order dated 31.08.2001 and is in consonance with the

National Food Security Act, 2013. The Order is in force from the date of its

publication in the official gazette i.e. 20.03.2015. The Order empowers the State/UT

Governments to take all necessary actions to ensure proper implementation of

TPDS within State to ensure that highly subsidised foodgrains reaches to the

intended beneficiary. The Department has subsequently notified the Targeted Public

Distribution System (control) Amendment Order, 2015 on 29.10.2015 in the

Gazette of India Extraordinary Part-II, Section-3, Sub-section (i) vide GSR No. 814

(E) dated 28.10.2015. The amendment order has done away with the restrictions on

identification of new Antyodaya households that had been imposed under provisions

of the TPDS (C) Order, 2015 dated 20.03.2015.

Implementation of Component-I of the Scheme on End-to-End Computerization of

TPDS in States/UTs is in progress. Guidelines for FPS automation shared with all

States/UTs. In Jan, 2015, a MoU was signed with STQC (Directorate under DeitY)

to certify the PoS devices and Mobile terminal.

Sustained efforts have resulted in significant reforms in TPDS. As a result thereof

by the end of December 2015, digitisation of ration cards completed in 34

States/UTs, over 24 crore ration cards have been digitized and over 9.5 crore

2

4

ration cards have been seeded with Aadhaar, Supply chain management

implemented in 10 states/UTs, Online allocation of foodgrains implemented in 19

states/UTs, 62,680 Fair Price Shops (FPS) automated by installing ‘Point of Sale’

device, Toll free help lines and online grievance redressal system implemented in

all States/UTs to display all operations of TPDS.

At the end of one year after National Food Security Act, 2013 (NFSA) came into

force, i.e, upto July, 2014, implementation of the Act had started in 11 States/UTs.

Since then, 14 more States/UTs have started implementing NFSA and the total

number of States/UTs now implementing the Act is 25.

In order to facilitate direct cash transfer of food subsidy to the beneficiaries,

Government has notified “Cash Transfer of Food Subsidy Rules, 2015” on

21.08.2015 under the NFSA. These rules provide that Direct Benefit Transfer

(DBT) scheme will be implemented in a State/UT with the consent of the concerned

State Government/UT Administration. Accordingly, keeping in view of checking of

leakage and diversions, this Department is pursuing with States/UTs to opt for DBT

scheme in lieu of foodgrains under which subsidy component will be credited to

bank accounts of beneficiaries who will be free to buy foodgrains from anywhere in

the market. For taking up this model, pre-requisites for the States/UTs would be to

complete digitization of beneficiary data and seed Aadhaar and bank account details

of beneficiaries. The scheme has been launched in Chandigarh and Puducherry

w.e.f. September, 2015.

The Central Government also decided to share 50% (75% in the case of Hilly and

difficult areas) of the cost of handling & transportation of foodgrains incurred by

the states and the dealer’s margin so that it is not passed on to the beneficiaries and

they get coarse grain @ Rs. 1/Kg, wheat @ Rs. 2/Kg and rice @ Rs. 3/Kg.

Department Food & PD’s ‘Group’ namely “Food Security” was opened @ myGov

portal i.e. www.myGov.in for engaging with citizens by inviting their

comments/suggestions on various issues from time to time. Under the said Group

‘Food Security’ a discussion thread namely ‘Improving the TPDS’ was opened for a

period of one month during February, 2015. Suggestions /comments received from

citizens have been shared with the States/UTs as well as within the Department for

sending an action taken report on the suggestions accepted and the action taken or

to be taken on them for achieving the objective of an improved TPDS.

Relief to the Farmers

In order to give relief to the farmers affected by the unprecedented rains &

hailstorms, Government relaxed the quality norms for the wheat procurement to the

maximum possible. The Central Government decided to reimburse the amount of

value cut imposed on such relaxation to the State Government/their agencies so that

farmers can get full Minimum Support Price (MSP) even for shrivelled and broken

wheat grains having lustre loss. Such a farmer’s centric step was taken for the first

time by the Central Government.

5

Govt. agencies procured 280.88 lakh MT wheat during RMS 2015-16, providing

relief to the farmers affected by freak rains and hailstorm.

The Government has enhanced custom import duty on wheat from 10 % to 25%

w.e.f. 19.10.2015 to help the Indian Farmers.

The Government has also relaxed procurement norms of paddy and resultant rice

during KMS 2015-16 in affected areas of Andhra Pradesh and Uttar Pradesh on the

request of State Government to help the farmers and to avoid the distress sale.

The drop in international prices of imported oils was affecting the prices of

domestically produced edible oils consequent upon which farmers’ interest was

affected. Department of Food and Public Distribution had recommended an increase

in the import duty on edible oils with a dynamic range which varies according to

international prices. Accordingly, Department of Revenue, vide Notification No.

46/2015-Customs dated 17.09.2015 increased the import duty on Crude oils from

existing 7.5% to 12.5% and the import duty on Refined oils from existing 15% to

20%.

Millers levy on rice abolished

With effect from 01.10.2015, levy of rice on millers has been discontinued. This

will save farmers from exploitation and now they will not depend on millers for

selling their paddy. This initiative has improved delivery of MSP to the farmers for

paddy even in the situation of market prices ruling below the MSP, especially in the

states of Andhra Pradesh, Telangana, Uttar Pradesh and West Bengal, where the

farmers are substantially dependent on millers for selling their paddy.

During Kharif Marketing Season (KMS) 2013-14 only a quantity of 8.52 lakh MT

of paddy had been purchased directly from the farmers by the State Agencies in

unified Andhra Pradesh, but in KMS 2014-15, such direct purchase of paddy has

gone upto 36.76 lakh MT in Andhra Pradesh and Telangana together. The reduction

of levy in KMS 2014-15 has not resulted in any substantial reduction of overall

procurement of rice in these two States till date compared to KMS 2013-14.

Similarly in Uttar Pradesh, the procurement of paddy has gone up from 9.07 lakh

MT in previous season to 18.18 lakh MT in current season and overall procurement

of rice has gone up from 11.05 lakh MT of previous season to 16.10 lakh MT till

April, 2015. In West Bengal also, the procurement of paddy has gone up from 5.79

lakh MT in previous season to 13.29 lakh MT in current season and overall

procurement of rice has gone up from 8.27 lakh MT to 13.31 lakh MT till April,

2015.

Outreach of MSP increased in Eastern States for paddy farmers:

In a bid to increase reach of minimum support price (MSP) operations to more

farmers and increase procurement of paddy, a policy for engagement of private

6

players in procurement in Eastern States has been formulated this year. Now

Private firms have been allowed to procure paddy from farmers in a cluster,

indentified by the respective state government in the states of Assam, Bihar, Eastern

Uttar Pradesh, Jharkhand and West Bengal, where the Food Corporation of India

(FCI) does not have a robust procurement mechanism which often forces farmers to

go for distress sale. Private firms would deliver custom milled rice (CMR) at the

FCI or state government-owned agency godowns.

Reforms in Sugar Sector & steps taken to liquidate Cane Price Arrears of farmers

Sugar production during current sugar season is estimated to be sufficient for

domestic consumption requirements.

To facilitate clearance of cane price arrears of the farmers relating to FRP for the

sugar season 2014-15, a scheme for extending soft loans to the extent of Rs. 6000

crore to the sugar industry was notified on 23.06.2015. Rs 4152 crore have been

disbursed under the scheme. The government also extended period by one year for

achieving eligibility under the soft loan scheme and decided to bear the interest

subvention cost to the extent of Rs. 600 crore for the extended period. This will

extend benefits to larger number of farmers by enabling more mills to avail the

benefits of the scheme. It has also been decided that after clearing cane dues of

farmers, subsequent balance, if any, will be credited into the mill accounts. This will

benefit about 150 additional sugar mills which had proactively liquidated more than

90 percent of their cane dues payable. This would ensure that mills are incentivized

for arranging bridge finances for timely clearance of cane dues to farmers.

Direct Subsidy to farmers, Government decided to pay a production linked subsidy

of Rs 4.50 per quintal in 2015-16 seasons, to sugar mills to offset the cost of cane

and facilitate timely payment of cane price dues of farmers for sugar season 2015-

16. A notification in this regard issued on 2.12.2015. Funds released under the

scheme shall be directly credited into farmers’ accounts.

The export incentive on raw sugar has been increased from Rs 3200/MT to Rs.

4000/MT. Funds have been allocated to support 14 lakh MT of raw sugar exports as

against 7.5 LMT achieved last year. In September 2015 Government also

announced quotas for mills and co-operatives for mandatory exports of four million

tonne of sugar in 2015-16.

The Government has enhanced import duty on sugar from 25% to 40% to

discourage imports. Also, to prevent leakages of sugar in the domestic markets, the

export obligation period has been reduced from 18 months to 6 months under the

Advanced Authorization Scheme.

Blending targets under Ethanol Blending Programme (EBP) has been scaled up

from 5% to 10%. Remunerative prices for Ethanol supplied under EBP has been

7

fixed in the range of Rs. 48.50-49.50 per litre, a substantial increase over previous

years. As a result, the supplies of ethanol for blending have increased from about 32

crore litres per year to 103 crore litres per annum. Excise duties on ethanol supplied

for blending in the next sugar season has also been waived off to further incentivize

ethanol supplies for the blending program. This would further increase the ex mill

price of ethanol and help improving liquidity in the industry facilitate payment of

cane price arrears.

In order to mobilise more funds for various intervention to be undertaken to

facilitates liquidation of arrear of cane dues, such as interest subvention based soft

loans, export incentives and production assistance, amendment in the Sugar Cess

Act, 1982 was introduced in the Parliament.

Due to sustained efforts to facilitate payment of sugarcane arrears to the farmers,

arrears came down to Rs. 3476 crores at the end of December, 2015 from Rs.

21,000 crore in the sugar season 2014-15.

The Government has extended the incentive benefits on Marketing and Promotion

Services of Raw Sugar Production @ Rs 4000 per MT for the sugar season 2014-

15.

The fair & Remunerative Price (FRP) of sugarcane payable to the farmers in sugar

season 2015-16 by sugar mills has been enhanced by Rs. 10/- per quintal to Rs. 230

per quintal.

A web-based platform to facilitate the sugar mills for submission of inputs has been

started. Online data regarding production, cane price arrears, etc. are accessible for

States. In order to reduce inventory levels, the Government has notified mill-wise

Minimum Indicative Export Quota (MIEQ) to be exported by sugar mills. Also, the

Government has formulated a national grid allocating the concerned mills having

ethanol distillation capacity to produce and supply ethanol to Oil Marketing

Companies (OMCs) to achieve blending levels of 10%.

Other Achievements

FCI has started procurement of pulses from farmers at market price and is also

working on procurement plan for oilseeds to ensure MSP for farmers.

In order to have better targeting of ‘Other Welfare Schemes’ for poor, a Committee

of Ministers set up under the Chairmanship of Hon’ble Minister for Consumer

Affairs, Food and Public Distribution. The Committee not only decided

continuation of foodgrain allocation for other welfare schemes but also nutritional

support by providing milk and eggs etc. under the schemes.

8

The Central Warehousing Corporation (CWC) has achieved an all time high

turnover of Rs. 1562 crore in 2014-15 and paid a dividend of Rs.20.21 crores to

the Government.

9

Chapter-2

FOOD GRAIN MANAGEMENT AND FOOD SECURITY

Reduction in Old Stocks of Food Grains

Food grain stocks available with FCI are now not more than two years old.

This has been brought about by enhanced allocation in TPDS and disposal of surplus

stocks through sale in market.

Increase in Storage Capacity

FCI has its own grid of covered godowns in all states to safely stock the

Central Pool food grains. More than 800 lakh MT storage capacity was available for

Central Pool stocks of food grains as in December, 2015. Since, higher MSP coupled

with better outreach has led to higher procurement in the past few years, a necessity

was felt to augment the storage capacity for food grains. The Department is

implementing two schemes, namely Private Entrepreneurs Guarantee (PEG) Scheme

and Plan scheme, for augmenting the covered storage capacity.

Under the PEG Scheme, godowns are constructed in PPP mode and the land

and construction cost is borne by the selected partners. FCI on its part guarantees 10

years usage of storage capacities to the private investors and 9 years to CWC and

SWCs.

Under the scheme, about 131 lakh MT capacity have been completed till

30.11.2015 and 121 lakh MT capacity have been taken over by FCI. Further,

construction of modern Silos has been planned through PPP mode. FCI has issued

RFQ for 6 locations viz Changsari (Assam), Narela (Delhi), Sahnewal (Punjab),

Kotkapura (Punjab), Kaithar (Bihar) and Whitefield (Karnataka) on 22.04.2015 for

construction of silos for storage of wheat. The empowered institution of DEA has

conveyed in-principle approval for sanction of VGF for three silo projects of capacity

1 lakh MT at Whitefield, Katihar and Kotkapura for which RFP has been floated. The

proposals for remaining three locations have also been approved by DEA for VGF

and RFP is shortly to be floated.

Government is also constructing godowns under Plan scheme with focus on

the North Eastern States. The capacity created in 12th Five Year Plan till 30

th

November, 2015 is 88,060 MT.

PEG godown at Dhuri

10

Procurement of Food Grains

The Central Government extends price support to paddy, wheat and coarse

grains through the Food Corporation of India (FCI) and State Agencies. All the

foodgrains conforming to the prescribed specifications offered for sale at specified

centers are bought by the public procurement agencies at the Minimum Support

Price (MSP). 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.

To improve outreach of MSP operations to cover more farmers and extend

direct benefits to them, the Government has discontinued the levy on rice since

October, 2015. With a view to effect savings in the form of reduction in the outgo

of food subsidy, enhancing the efficiency of procurement and PDS and encouraging

local procurement to the maximum extent thereby extending the benefits of MSP to

local farmers, scheme of Decentralized Procurement (DCP) of foodgrains was

introduced in 1997-98. Under the DCP, the State Government itself undertakes

direct purchase of paddy and wheat and procurement of levy rice on behalf of

Government of India. The Central Government meets the entire expenditure

incurred by the State Governments on the procurement operations as per the

approved costing. Presently 12 States / UTs viz. West Bengal, Madhya Pradesh,

Bihar, Chhattisgarh, Odisha, Tamil Nadu, Karnataka, Kerala, Uttarakhand, Gujarat,

Telangana and A&N Islands are undertaking paddy/wheat procurement under the

scheme. In addition, the States of Andhra Pradesh and Rajasthan have partially

adopted the scheme for limited number of districts while the State of Punjab has

adopted it for supply under the National Food Security Act, 2013.

Sufficient food grains are available in Central Pool Stocks of FCI. Stocks as

on 01.12.2015 are 368.26 lakh MT, comprising 268.79 lakh MT wheat and 99.47

lakh MT rice.

PEG godown at Dhuri

Silos

11

Trend of production & procurement of Wheat and Rice during the last five

years is as under:

Wheat Rice

Movement of Food Grains

Food Corporation of India undertakes the activities connected with the

movement of foodgrains for the Public Distribution System and other welfare

schemes. Movement division in the Department closely monitors the movement and

co-ordinates with FCI and Railways. Optimum evacuation of foodgrains from the

procuring regions and induction and stocking of foodgrains in the North Eastern

States, Jammu & Kashmir and other deficit areas, identified from time to time is

specially monitored.

FCI has also initiated coastal movement of foodgrains from Andhra Pradesh

to Kerala and riverine movement in NE States. Despite disruption in rail route due

to gauge conversion from Lumding to Badarpur in NE States and natural calamities

of Hud-Hud cyclone in Andhra Pradesh and devastating floods in J&K, food

supplies of food grains were maintained in the States.

Disposal of Surplus Food Grains under Open Market Sale Scheme

The Government of India has approved sale of approximately 111 lakh MT

of wheat and 20 lakh MT of Grade-A rice under Open Market Sale Scheme

(OMSS), out of which 36.87 lakh MT of wheat and 0.57 lakh MT of Grade-A rice

was sold by the end of December, 2015 through E-Tender/Auction.

868.74 948.82

935.01 958.49 889.38

225.14 283.85 381.48

250.92 280.23

0

200

400

600

800

1000

1200

2010-11 2011-12 2012-13 2013-14 2014-15

Production (in lakh tonnes)

Procurement (in lakh tonnes)

959.8 1053.01 1052.41 1066.45 1047.98

341.98 350.41 340.44 318.45 321.70

0

200

400

600

800

1000

1200

2010-11 2011-12 2012-13 2013-14 2014-15

Production (in lakh tonnes) Procurement (in lakh tonnes)* As on 01.01.2016

Movement of foodgrains by rail to Adanis Scientific

Silo at Kaithal (Haryana)

Coastal movement of foodgrains

Marketing Seasons Marketing Seasons

12

Chapter-3

DISTRIBUTION OF FOOD GRAINS

Government is committed to provide food grains - wheat and rice, at

reasonable prices to the weaker sections of the society. Food grains are allocated to

State/UT Governments for distribution under Targeted Public Distribution System

(TPDS)/ National Food Security Act (NFSA) and Other Welfare Schemes (OWS).

Allocation of Food Grains under TPDS/NFSA

Government has enacted the National Food Security Act, 2013, which came

into force w.e.f. 05.07.2013. Under the Act, eligible households are entitled to

receive foodgrains at highly subsidized price of Rs.1/-, Rs.2/- and Rs.3/- per kg for

coarsegrains, wheat and rice respectively @ 35 kg per family per month to

Antyodaya Anna Yojana (AAY) families and @5 kg per person per month to

priority households. So far, implementation of the Act has started in 25 States/UTs

i.e. Andhra Pradesh, Assam, Delhi, Goa, Haryana, Rajasthan, Himachal Pradesh,

Bihar, Punjab, Karnataka, Chhattisgarh, Maharashtra, Madhya Pradesh, West

Bengal, Chandigarh, Lakshadweep, Tripura, Puducherry, Uttarakhand, Jharkhand,

Telangana, Odisha, Sikkim, Uttar Pradesh and Daman & Diu. Out of these

States/UTs, the UTs of Chandigarh and Puduchery are following DBT mode and

providing direct cash transfer of food subsidy to the beneficiaries. In remaining

States/UTs which are not under NFSA coverage, foodgrains are being allocated

under existing TPDS.

The States/UTs which have not implemented NFSA are being allocated

foodgrains under the existing Targeted Public Distribution System (TPDS) under

which Government of India has been making allocation of foodgrains @ 35kg per

family per month for Antyodaya Anna Yojna (AAY) and Below Poverty Line

(BPL) families and @ 10kg-35kg per family per month for Above Poverty Line

(APL) families. These non-NFSA States/UTs have also been allocated additional

foodgrains for APL and BPL families till implementation of the Act.

For the year 2015-16, an allocation of 278.25 lakh MT of foodgrains has been

made under NFSA and 216.54 lakh MT of foodgrains has been made to States/UTs

which have not implemented NFSA so far, under existing TPDS. In addition a

quantity of 52.18 lakh MT has been allocated for APL and BPL families in the non-

NFSA States/UTs. The Government has also allocated a quantity of 11.14 lakh MT

for natural calamities, festivals and additional TPDS requirements, etc.

13

Allocation of Food Grains under Other Welfare Schemes

The Government also makes allocation of subsidized foodgrains for the Other

Welfare Schemes (OWS) administered by various Ministries/Departments of the

Central Government such as Mid-day-Meal Scheme (administered by M/o Human

Resources Development), Wheat Based Nutrition Programme (administered by M/o

Woman & Child Development), Rajiv Gandhi Scheme For Empowerment of

Adolescent Girls - SABLA (administered by M/o Woman & Child Development),

Annapurna Scheme (administered by M/o Rural Development), Welfare Institutions

Schemes and SC/ST/OBC Hostels Scheme (both administered by D/o Food &

Public Distribution). During the current year, the Government has so far allocated a

quantity of 51.97 lakh MT under OWS.

Status of Implementation of NFSA

NFSA provided for a period not exceeding 365 days after the commencement

of the Act for identification of eligible households for receiving subsidized

foodgrains under Targeted Public Distribution System (TPDS). At the end of this

one year period i.e. 04.07.2014, implementation of the Act had started only in 11

States/UTs. Accordingly the time period for identification of beneficiaries had to

be extended thrice, upto 30.09.2015. In the last 6 months, 14 more States/UTs have

implemented the Act and the total no. of such States/UTs now is 25.

Preparedness of States/UTs for implementation of the Act is regularly

reviewed. A National Consultation Meeting was held on 7th July, 2015 with the

Food Ministers of the States/UTs under the chairmanship of Hon’ble Minister for

Consumer Affairs, Food & Public Distribution. Secretary (F & PD) also reviewed

the progress in a meeting held on 1st September, 2015 with the Food Secretaries of

States/UTs where implementation of the NFSA has not started yet/partially started

or where progress of end-to-end computerization of Targeted Public Distribution

System (TPDS) scheme is slow. A workshop to review the preparedness of North-

Eastern States for computerization of TPDS, NFSA roll out and their Fair Price

Shop (FPS) automation was held on 19th November, 2015 in Guwahati. On 23

rd

November, 2015 a one day Conference of Food Secretaries of all States/UTs was

organized in New Delhi under the chairmanship of Hon’ble Minister for Consumer

Affairs, Food and Public Distribution to review the progress of end-to-end

computerization of TPDS operations, implementation of NFSA, FPS automation

and other reforms in TPDS. Status of their preparedness to implement the Act and

the progress of TPDS computerization was reviewed and need for early

implementation of the Act was stressed in the meeting.

The TPDS (Control) Order, 2015 notified by the Department regulates the

implementation of TPDS as per the provisions of the NFSA in the States/UTs. It

supersedes the existing PDS (Control) Order dated 31.08.2001. However, the

14

provisions of the PDS (C) Order, 2001 shall continue to have effect as against the

corresponding provisions of the TPDS(C) Order, 2015, in any State which has not

implemented the NFSA or is implementing it only in part.

Hon’ble Minister in National Consultation Meeting with the Consumer Affairs and Food

Ministers of States/UTs held on 07.07.2015.

Hon’ble Minister for Consumer Affairs, Food & Public Distribution in a

National Consultation Meeting with the Consumer Affairs and Food Ministers of

States/UTs on 07.07.2015 inter-alia reviewed the progress of preparedness of

States/UTs for implementation of the National Food Security Act, 2013.

15

Chapter-4

REFORMS IN SUGAR SECTOR

Since last five sugar season, the production of sugar have been more than the

domestic demand, leaving surplus for export. Production of sugar during the last 4

years is as under:

Excludes 6.76 lakh tonnes white sugar produced from imported raw sugar.

Excludes 1.05 lakh tonnes white sugar produced from imported raw sugar.

(P) - Provisional

The Central Government has de-controlled the sugar sector in April, 2013.

The levy obligation on sugar mills has been removed. The State Governments/UT

administrations have been asked to procure sugar for PDS from the open market

through a transparent system. To make sugar available in the PDS the Central

Government is reimbursing to the States/UTs @ Rs.18.50 per kg, limited to the

quantity based on their existing allocations.

Total sugar subsidy burden on the Government exchequer is estimated to be

at about Rs.5000 crore per annum for estimated supply of 27 lakh tonnes. So far,

30 States/UTs have participated in the new subsidy scheme from June 2013

onwards and Rs. 4500.00 crores has been released to these States/UTs including

FCI during 2014-15.

The Cane price arrears for the sugar season 2014-15 has come down to Rs.

3476 crores at the end of December, 2015 from Rs. 21,000 crore. Government has

implemented two schemes namely, ‘Scheme For Extending Financial Assistance

to Sugar Undertaking (SEFASU-2014)’ and ‘incentive for marketing and

promotion services for raw sugar production’ to help the sugar mills to clear cane

price arrears of the farmers. The Government has decided to provide soft loans to

the extent of Rs. 6000 crore to the sugar industry to facilitate clearance of cane

price arrears of the farmers relating to FRP for the current sugar season 2014-15.

To ensure that farmers are paid their dues expeditiously, the Government has

mandated that banks pass on the financial assistance directly to the cane growers

263.43

251.83 245.54

270

227.25 230 243

248

200210220230240250260270280290300

Production of Sugar(Figure in lakh tonnes)

16

after obtaining the list from the mills. Furthermore, in order to incentivize the mills

to clear their dues, the Government has also decided that the approved soft loans

will be provided to those units which have cleared at least 50% of their

outstanding arrears. The Government has provided one year moratorium on this

loan, and will bear the interest subvention cost to the extent of Rs. 600 crore for

the said period.

Hon’ble Minister in a meeting with the Ministers of major sugarcane growing

States

17

Chapter-5

DIGITAL INDIA

Department of Food & Public Distribution has been playing a pioneer role in

propagating IT based development, solutions to facilitate rapid growth and

transformation in the ICT culture for efficient and effective delivery of services.

Department is constantly in the pursuit of developing/implementing state of-the-art

application software related to various areas of importance. It has also undertaken

various projects related to capacity building and is also following Central

Government e-Governance action plan. Various initiatives taken under e-

governance to make Digital India Programme successful are as follows:

Department is implementing a Plan Scheme on ‘End-to-End Computerisation’ of

TPDS Operations on cost sharing basis with States/UTs. Costs are being shared on

90:10 basis with North Eastern States and on 50:50 basis with other states/UTs.

The scheme is a Mission Mode Project (MMP) under the National e-Governance

Programme. The progress of implementation of Component-I of the scheme is as

follows:

a) Digitization of FPS database and godowns database has been completed by

all States/UTs. Digitization of ration cards/beneficiary data base has also been

completed in 34 States/ UTs and is in progress in the remaining 2 States/UTs.

b) Online allocation of foodgrains has been implemented fully in 19 states/UTs.

Supply chain has been computerized in 10 States/UTs.

c) Toll free helpline for TPDS and Online grievance redressal mechanism for

registration and tracking of grievance is now available in all 36 Sates/UTs.

d) The Department in consultation with NIC, Deity and UIDAI, has prepared

and circulated Guidelines for Fair Price Shops (FPS) Automation and the

same were shared with States/UTs in November, 2014 and updated in May,

2015. Consultations were held with States/UTs, UIDAI and NIC etc. to

discuss various aspects of FPS automation rollout in November, 2015.

Communication regarding providing of financial assistance to States/UTs for

FPS automation has been issued.

e) The ‘Cash Transfer of Food Subsidy Rules, 2015’ was notified on

21.08.2015, under the National Food Security Act, 2013. The Rules stipulate

that the DBT Scheme shall be implemented in identified areas for which there

is a written consent of the State Governments for implementation of the

scheme. Section (5) of the Rules stipulate that the amount of food subsidy

payable to beneficiaries shall be computed by multiplying entitled quantity of

food grains with difference between 1.25 times applicable Minimum Support

Price (MSP) and the Central Issue Price (CIP) or as may be revised from time

to time by the Central Government. Direct Benefit Transfer (DBT) is being

implemented on pilot basis in UTs of Chandigarh and Puducherry w.e.f.

September, 2015.

18

In order to provide transparency in the data management of sugar mills as well

as Government’s working, the Directorate of Sugar has developed a web based

platform (esugar.nic.in/sugar_pii) for online submission of inputs by sugar mills

on monthly basis. This has helped the Government to take prompt and informed

policy decisions for better management of the sugar sector. The portal also

provides windows for online connectivity with the State Governments for getting

inputs regarding production, stocks utilization of levy sugar for PDS, cane price

arrears of sugar mills on fortnightly basis etc.

Bio-metric attendance system has been installed in the Department to enforce

punctuality and manual attendance system has been discontinued. E-filing is

operational in Department under e-office initiatives which include opening

electronic files, movement and receipt of files, submission of files and draft etc.

Pay slips on monthly basis and income tax details of the officials of Department

have been made online. RTI request and Appeal Management Information

System (RTI-MIS) web based software developed by NIC is installed in the

central server to track the RTI requests and appeals. Public Grievance portal is

available on official website of the Department.

Food Corporation of India (FCI) is one of the first Government organizations to

start the “MyGov” platform involving citizens in the governance process. Depot

online project has been approved so as to manage overall operations of FCI on

the depot level which would include procurement, storage and movement of

foodgrains. FCI has also implemented e-tendering. It has implemented Integrated

Information System for Foodgrains Management (IISFM) under which

information with regard to receipt and issue of foodgrains and stock position is

received daily from all the depots. An online procurement monitoring system has

been launched for reporting and monitoring procurement of wheat, paddy and

coarse grain in the country on daily basis.

Central Warehousing Corporation (CWC) plan for computerization aims to

improve services to farmers, customers, vendors, employees, and other stake

holders. CWC is exploring implementation of Integrated Business Management

Solution (IBMS) project. This project envisages linking all the operations units

of the Organization to facilitate faster decision both at the Corporate Office and

Regional Officer level. After signing of contract IBMS, the implementation may

be completed in 2 Phases- 12 months and 6 months respectively.

Warehousing Development Regulatory Authority (WDRA) has undertaken a

transformation plan which envisages involvement of digital system for its major

activities. It has been proposed to put in place a system of electronically

Negotiable Warehouse Receipt (NWR) in electronic form only; plan includes

online application and registration of warehouse. This proposal is under process

19

in consultation with Department of Economic Affairs. WDRA has launched a

website on 20.11.2014 regarding the directory of warehousing in the country.

Continuous efforts are being made in the Department and its Organizations for

exploring more items which can be made online to make the Digital India

Programme successful both at the National and State/UT level.

20

Chapter-6

SWACHH BHARAT MISSION

The Prime Minister of India had given a call for “Swachh Bharat” as a mass

movement to realize Gandhiji’s dream of a clean India by the 150th birth

anniversary of Mahatma Gandhi in 2019.

Weeding out of old records as well as cleanliness drives was carried out regularly,

so that healthy, hygiene and clean environment may be created. Total 432 files have

been weeded out and 540 files have been recorded for further retention during the

special drives carried out. Disposal of old/obsolete/mutilated books of Department

Library has been done and action has also been initiated for disposal of old/obsolete

furniture and other items. Steps have been taken for special cleaning and

modernization of record room of this Department.

Deep cleaning of the rooms in the Department of Food & Public Distribution is also

being done in phased manner in every month. In order to keep the working

atmosphere neat and clean, white- washing, pest control and rodent control of the

corridor and rooms are being done at regular intervals. The services of Central

Warehousing Corporation (CWC), who have expertise in pest/rodent control are

being utilized.

This Department has initiated process for modernization of 12 rooms which are in

bad condition, with the help of Department of Administrative Reforms and Public

Grievances (D/o AR&PG). The proposal has been submitted to D/o AR&PG. If the

proposal is approved it will be a significant achievement towards cleanliness.

Cleanliness of all fixtures and fitting is being looked after regularly. Rooms and

toilets under the charge of the Department in Krishi Bhawan, are inspected

regularly and found to well maintained. As the cleanliness is regular process,

Department is taking appropriate action for the purpose from time to time. Special

drives/campaign have also been carried out in the Department as and when

conveyed by the Ministry of Drinking Water and Sanitation and by the Cabinet

Secretary. Special drive was held from 25.09.2014 to 31.10.2014, 22.06.2015 to

26.06.2015 and 25.09.2015 to 31.10.2015 for cleanliness under “Swachh Bharat

Mission”.

Floor Officers have been nominated on each floor of the Department for proper

supervision of cleanliness. Further a Committee for monitoring the progress of

sanitation & cleanliness in the Department of Food and Public Distribution has also

been constituted under the Chairmanship of Joint Secretary (Admn.).

21

Department has organized Drawing-cum-painting competitions for the wards of

employees of Department of Food & Public Distribution and poetry and essay

competition on the subject cleanliness during the special cleanliness drive from time

to time. With the help of Red Cross, this Department, organized a blood donation

camp on 05.10.2015 in the Krishi Bhawan during the special campaign from

25.09.2015 to 31.10.2015.

A circular in the Department of Food and Public Distribution was issued for seeking

the suggestions on cleanliness. Some suggestions have been received and

Department will take action on the suggestions.

A running trophy will be instituted in the DFPD to be awarded to the best Division

on the basis of quarterly evaluation. Evaluation criteria would include maintenance

of files, upkeep, presentation, use of e-files etc.

CWC has started using logo of Swachh Bharat Mission and its tagline on all

stationery items, annual reports, magazines. Thorough cleaning of offices through

cleanliness drive once in three months has been started. Floor wise nodal officer in

CO/RO building of CWC has been nominated to ensure cleanliness floor wise.

CWC has made a budget provision of Rs. 100 lakh towards Swachh Bharat Mission

for the year 2015-16. Rs. 1 crore is being deposited in Swachh Bharat Kosh during

22

2015-16. 55 Rain Water Harvesting structure are being constructed in various

places. Proposal to construct toilets in schools is also under consideration of CWC.

CRWC arranged in house lecture on significance of “Hygiene and Cleanliness in

day to day life”. Employees of CRWC voluntarily carried out cleaning activities at

nearby surroundings of the corporate office and other field units and made aware

other personnel also about the significance of cleanliness at their home, office

premises and nearby surroundings. A special drive was also launched for weeding

out of all old record and ensuring cleanliness in all sections of CRWC, Corporate

office/RWCs. “Swachh Bharat Swasth Bharat” headline has been scrolling on the

CRWC website.

CRWC has undertaken an Integrated Village Project in the backward district of

Rajasthan’s Sawai Madhopur Village Laxmipura for renovation of toilets in school,

construction of new toilets and two sanitation awareness campaigns among

individuals. It has also been decided to undertake a project in a MCD school at

Mangolpuri, Delhi for construction of child friendly toilet blocks with running

water and hand washing facilities, up-gradation of drinking water facilities with

provision of filters and garden in the school near the RWC, Shakurbasti of CRWC.

Construction of 10 toilets in various schools of Uttarkashi (Uttrakhand) and

Gurgaon-NCR (Haryana) is ongoing for providing sanitation and hygiene facilities

in these schools. Rs. 10 lakh and 5 lakh are also being contributed towards ‘Swachh

Bharat Kosh’ and ‘Clean Ganga Fund’ respectively.

FCI would continue to maintain the facilities created and upgrade them. All the

existing lavatory blocks are being maintained properly. It is targeted to provide 150

no. of Female Lavatory block in FCI own depot in 2015-16. Female Lavatory block

are being provided with latest technology i.e. Bio-digester. Bio-toilet technology

has been developed by DRDO. It is also targeted to provide safe drinking water

facility in 75 FCI depots and to construct 150 Labour sheds in existing FCI depots

during 2015-16.

23

Government of India

Ministry of Consumer Affairs, Food & Public Distribution

Department of Food & Public Distribution

Krishi Bhawan, New Delhi – 110001

EPABX: 23383911 FAX: 23782213, Website: http://dfpd.nic.in

Web based platform for Sugar: esugar.nic.in/sugar_pii