OUTCOME BUDGET - dfpd.gov.in

f'. f.,

GOVERNMENT OF INDIA

OUTCOME BUDGET2016-17

MINISTRY OF CONSUMER l\.FFAIRS, FO'JD & PUBLIC DISTRIBUTION

Department of Food & Public Distribution

CONTENTS

Page No.

EXECUTIVE SUMMARY ( i) to (iv).

CHAPTER-I INTRODUCTION 1-9

CHAPTER-II FINANCIAL OUTLAYS 2016-17,pItOJECTED PHYSICAL OUTPUTS 10 - 37AND OUTCOMES

CHAPTER - III REFORM MEASURES AND POLICY 38 -77INITIATIVES

CHAPTER-IV REVIEW OF PAST PERFORMANCE 78 -107

CHAPTER- V FINANCIAL REVIEW 108 -117

CHAPTER- VI REVIEW OF PERFORMANCE OF 118 -179PUBLIC SECTOR UNDERTAKINGS

(i)

Outcome Budget 2016-17, Department of Food & Public Distribution

EXECUTIVE SUMMARY

In the long process of conversion of outlays into outcomes there are several intermediate stages and complementary resources are alsorequired for achieving intended outcomes. The "cause and effect" change is not always direct and several factors come into play - notjust the earmarked outlays influencing the actual outcomes.

Outcomes are the end products and results of various Government initiatives and interventions, including those involving partnershipwith the State Governments, Public Sector Undertakings, Autonomous Bodies and the Community. The Ministry of Finance(Department of Expenditure) issued instructions that from 2007-08 onwards there would be a single document titled Outcome Budget,a tool to track not just the intermediate physical 'outputs' that are more readily measurable but also the 'outcomes', which are the endobjectives of State interventions.

This document broadly indicates physical dimensions of the Financial Budget indicating the actual performance in 2014-15,performance in the year of 2015-16 and targeted performance during 2016-17, in physical terms. An attempt has been made toenumerate the activities and schemes of the Department, their financial outlays, projected physical 'outputs' and 'outcomes'. To linkfinancial outlays with the physical outputs and outcomes of various schemes require a rigorous exercise. An attempt has been made todo so in this document.

The Department of Food and Public Distribution has been entrusted with the responsibilities of formulation and implementation ofnational policies of foodgrains (wheat, rice and coarse grains) management, particularly ensuring food security to the vulnerablesections of the society, especially people living below the poverty line. The Department implements Targeted Public DistributionSystem (TPDS) in partnership with State & Union Territory Governments to ensure supply of food grains to the poor and needy atsubsidized prices. Sugar management and edible oils management are two other important activities of the Department.

This document broadly consists of the following chapters:

Chapter I _ Introduction: - The chapter gives a brief introduction of the functions, organizational set up, list of major programmes /schemes implemented by the Department, its mandate, goals and policy frame work.The mandate of the Department is broadly: -

• Management of Foodgrains (Wheat, Rice and Coarse grains)• Management of Sugar• Management of Edible Oils

(ii)Outcome Budget 2016-17, Department of Food & Public Distribution

The Department strives to realize the goal of food security to the common man by ensuring supply of foodgrains through PublicDistribution System (PDS) for the following categories of households: -

• AntyodayaAnna Yojna (AAY) for the poorest of the poor,• Below Poverty Line (BPL) and• Above Poverty Line (APL) ration cardholders• National Food Security Act, 2013 has further expended beneficiary coverage of very subsidized rates of foodgrains to about

67% of population of the country.'to,

In addition, Department also caters to the foodgrain requirements at subsidized rates for the various welfare schemes, with foodcomponent, of various Ministries of Government of India.

The Department ensures development of sugar and sugarcane by advancing loans to the sugar industry from Sugar Development Fund(SDF) for several schemes aimed at increasing productivity, sugar cane development, production of anhydrous alcohol or ethanol, andsubsidy for payment of cane dues.

The Department is also having an effective edible oil management plan for quality control and ensuring availability of edible oil atreasonable prices.

Chapter 11-Financial Outlays 2016-17, projected Physical Outputs and Projected Outcomes:- This Chapter gives the schemewise details of financial outlays for 2016-17 and projected Physical outcomes. The objective is to establish a correspondence betweenthe Financial Budget 2015-16 and Outcome Budget 2016-17. The importance of this Chapter lies in enumerating the physical outputsand projected outcomes vis-a-vis financial allocations.

The Department has been allocated net outlay of ~ 140000.00 crores in 2016-17 for Non-Plan expenditure. Out of this outlay, anamount of ~ 103334.61 crores has been earmarked under subsidy for foodgrains to Food Corporation of India (FCI) and forimplementation of National Food Security Act (NFSA), 2013, a sum of ~ 27000 crores has been provided for subsidy to StateGovernments for decentralized procurement (DCP) and distribution of foodgrains for implementation of National Food Security Act,2013. The food subsidy routed through FCI and DCP modes constitute the major non-plan expenditure of the Department in its effortsto run the Targeted Public Distribution System and have been mainly provided with the physical target of 694.26 lakh tonnes (549.26lakh tonnes through FCI and 145.00 lakh tonnes through DCP States) offoodgrain allocation.

For the purpose of storage, the Department has taken up construction of godowns by FCI and State Governments in the states of NorthEast Region at a cost of ~ 52.00 crores. This includes ~ 2.00 crores to the State Governments ofNE Region which will be released

(iii) .

OutcomeBudget 2016-17, Department of Food & Public Distribution

as 'Grants for creation of capital assets' to the States. Construction of godowns in the North Eastern States and Sikkim will improvethe availability of food grains in these states for the Public Distribution System.

Under the PEG scheme, FCI gives a guarantee of 10 years to private investors and 9 years to CWC/SWCs/State Agencies. A capacityof 202.22 Lakh MTs as on 31.12.2015 has been approved for construction of godowns in 20 states, out of which a capacity of 151.20Lakh MTs has been sanctioned for construction. A capacity of 131.66 lakh MT has been completed and a capacity of 14.96 lakh MT isunder construction.

Chapter 111-Reform Measures and Policy Initiatives: This Chapter discusses the reform measures and policy initiatives taken bythe Department to achieve the objectives of the Department. This chapter reflects the mission of the Department and the action plan totranslate these into achievable goals. The Department is contemplating to introduce some innovative schemes to improve PublicDistribution System, for improved delivery of foodgrains and making people aware of their entitlements.

Chapter IV-Review of Past Performance: This Chapter explains the scope and objectives of individual programmes and schemes. Italso contains review of the past performance of the existing schemes in terms of financial outlays, physical targets and theirachievements. The Department of Food& Public Distribution has been brought under modified cash management system. Consistentwith this system, in 2014-15 the Department had incurred plan expenditure of ~ 146.05 crores i.e. 97.37 % of Revised Estimates of~ 150.00crores; and non-plan expenditure of ~ 129303.00 crores i.e. 96.26% of the Revised Estimates of~ 134326.54crores.

Chapter V-Financial Review: - This Chapter covers overall trends in expenditure vis-a-vis Budget Estimates/Revised Estimates inthe years 2013-14, 2014-15 and 2015-16. It provides the financial outlays vis-a-vis performance up to the Object Heads. It alsocontains'a table on the status of Utilization Certificates and unspent balances, if any, with the implementing agencies. It may be seenfrom this Chapter that the expenditure budget has five major components: (i) Subsidy on foodgrains; (ii) Loans and subsidies to sugarindustry; (iii) Construction of storage godowns; (iv) Computerization of the PDS operations and (v) Other schemes under Plan forensuring food security. For 2016-17 an amount of ~ 52.00 crores has been allocated to this Department under the Plan Scheme for theconstruction of storage godowns and ~75.00 crores have been earmarked for Computerization ofPDS operations.

I / ..

Plan Budget for 2014-15 was ~ 330.00 crores which was reduced to ~ 1.)0.00 crores in the Revised Estimates for 2014-15, againstwhich ~ 146.05 crores was spent. Plan Budget for 2015-16 is ~ 212.00 crores which has been reduced to ~ 165.00 crores inRevised Estimates for 2015-16. For 2016-17 an amount of ~ 150.00 crores has been allocated to this Department. The plan schemefor strengthening of Targeted Public Distribution System (TPDS), which commenced in 2007-08, will continue during 2016-17. Thisscheme will provide Grants-in-aid to States and Union Territories. Government plans to continue awareness generation campaignamong beneficiaries of the TPDS about their entitlements and mechanism for redressing grievances. The Department is alsoimplementing a scheme on computerization ofTPDS.

(iv)Outcome Budget 2016-17, Department of Food & Public Distribution

The Budget Estimate and Revised Estimate for the Non-Plan Expenditure for financial year 2014-15 was ~ 125954.34 crores (Gross)and ~ 134326.54 crores (Gross), and the money finally spent was ~ 129303.00 crores. For 2015-16, the initial budgetary allotmentfor Non-Plan Expenditure was ~ 136325.55 crores, which has been subsequently enhanced to ~ 162084.41 crores in RevisedEstimates 2015-i6.

,.'

For financial year 2016-17, the Non-Plan ceiling fixed by the Ministry of Finance is ~ 140000.00 crores on net basis (gross BudgetEstimate of ~ 152554.11 crores and Estimated Recoveries of ~ 12554.11 crores).

Chapter VI- Review of Performance of Public Sector Undertakings: This Chapter contains review of performance of public sectorundertakings under the administrative control of the Department, namely:

(i) Food Corporation of India;(ii) Central Warehousing Corporation, and(iii) Hindustan Vegetable Oils Corporation.

Monitoring Mechanism and Public Information System: Another important feature of the Outcome Budget 2015-16 is the highlight ofthe mechanism put in place to monitor the implementation of various schemes and also a Public Information System to makeinformation available on the performance of the Department to the public. Information in this regard has been given under respectiveschemes. Besides, the Department related information like Detailed Demands for Grants (DDG), Outcome Budget and other majoractivities of the Department are available on the Department Website http://www.fcamin.nic.in. The monthly flow of expenditure andother accounting information are also made available on the website on a regular basis. Department has set up a "Facilitation Centre"in Krishi Bhawan where public can obtain any information or approach the Central Public Information Officers, as envisaged underRight to Information Act. Department has appointed 40 Central Public Information Officers (CPIOs) under the Right to InformationAct to provide information to the public. Department has also set up a 'Public Grievance Cell' which looks into the grievances ofgeneral public in respect of various activities undertaken by this Department.

****

1OutcomeBudget 2016-17, Department of Food & PublicDistribution

CHAPTER-I

INTRODUCTION:

1.1 This chapter gives a brief introductory note on the functions of Department of Food and Public Distribution, itsorganizational set up, list of major programmes/schemes implemented by the Department, its mandate and goals.

1.2 The Department comes under the Ministry of Consumer Affairs, Food and Public Distribution.

1.3 MANDATE:

The mandate of the Department of Food & Public Distribution is primarily for: (i) management of foodgrains(wheat, rice and coarsegrains) (ii) Management of sugar and (iii) management of edible oils.

1.4 FUNCTIONS:

The mandate of the Department of Food & Public Distribution is carried out through the following mainfunctions:

(i) Formulation and implementation of national policies relating to procurement, movement, storage anddistribution of foodgrains;

{ii) Implementation of the Public Distribution Systemwith special focus on the poor;(iii) Provision of storage facilities for the maintenance of central reserves of foodgrains and promotion of

.scientific storage;(iv) Formulation of national policies relating to export and import, buffer stocking, quality control and

specifications of foodgrains;(v) Administration of food subsidies relating to rice, wheat and coarse grains;

2-379 Deptt.of F& PD/2015

2Outcome Budget 2016-17, Department of Food& Public Distribution

(vi) Fixation of statutory minimum prices of sugarcane payable by sugar factories, development and regulationof sugar industry (including training in the field of sugar technology), fixation of price of levy sugar andits supply for PDS, administration of sugar subsidy and regulation of supply of free sale sugar;

(vii) Supporting industries, the control of which by the Union is declared by Parliament to be expedient inpublic interest, as far as these relate to Vanaspati, oilseeds, vegetable oils, cakes and fats; and

(viii) Price control of, inter-state trade and commerce in, and supply and distribution of Vanaspati, oilseeds,vegetable oils, cakes and fats.

1.5 ORGANIZATION:

i) The Department of Food and Public Distribution of the Ministry work under the overall guidance ofHon'bleMinister of Consumer Affairs, Food and Public Distribution. The Secretary (Food & Public Distribution) isthe Head of the Department and the principal adviser to the Ministers on all matters of policy andadministration within the Department of Food and Public Distribution. The Secretary is assisted by anSpecial Secretary & Financial Adviser, six Joint Secretaries, one Chief Controller of Accounts, one PrincipalAdviser (Cost), one Adviser (Cost), one Economic Adviser, Directors, Deputy Secretaries, one Joint Director(Movement), one Joint Commissioner (Storage and Research), Chief Director, Directorate of Sugar &Vegetable Oils, and a number of other officers and supporting staff.

ii) CMT Section nominates officers of all categories of the Department for training courses, workshop, seminars,conferences organized by various agencies viz., Institute of Secretariat Training and Management, IndianInstitute of Public Administration, National Productivity Council etc. in India. These training programmesare instrumental towards improving the efficiency of the officials and also strengthen and upgrade the skillsof the personnel. Training of officers depend on various factors like availability of slots, response from theofficers, acceptance of nominations by the concerned training institutes, exigencies of official work etc.

iii) The Department is organized into 15 Divisions and has one attached offices, namely (i) Directorate of Sugar& Vegetable Oils headed by Chief Director. There is one subordinate office under Sugar Division namely

('"J

iv)

(a)

(b)

(c)

v)namely:

a)b)c)

3Outcome Budget 2016-17, Department of Food & Public Distribution

National Sugar Institute, Kanpur and one autonomous body under storage Division namely WarehousingDevelopment Regulatory Authority (WDRA).The other subordinate offices of the Department are the following:

Indian Grain Storage Management and Research Institute (IGMRI), Hapur and its two field stations located atHyderabad and Ludhiana.Eleven Quality Control Cells (QCCs) located at New Delhi (Hqr.), Kolkata, Hyderabad, Bangalore, Bhopal,Bhubaneswar, Lucknow, Pune, Chennai, Guwahati and Patna.Central Grain Analysis Laboratory (CGAL) at Headquarters, Krishi Bhawan, New Delhi.

In addition, there are three Public Sector Undertakings under the administrative control of the Department,

Food Corporation of India (FCI)Central Warehousing Corporation (CWC) andHindustan Vegetable Oils Corporation Ltd. (HVOC)

vi) Department has a regulatory authority namely Warehouse Development and Regulatory Authority.

1.6

r"

LIST OF MAJOR PROGRAMMES/SCHEMES:

Plan Schemes(i) Construction of Food Storage Godown by FCI/State Government

(ii) Strengthening ofPDS operations*

1. End to end Computerization of TPDS operations

2. Strengthening ofPDS and Capacity Building

3. Consultancies, Training & Research


4. Strengthening of Quality Control

5. Financial Assistance to State slUTs Food Commission for non building assets

(iii) Assistance to Warehousing Development & Regulatory Authority

* After rationalization of Plan schemes "End to end Computerization of TPDS operations" and umbrellascheme "Strengthening ofPDS and Capacity Building, Quality Control, Consultancy and research".

Non-Plan Schemes

(i) Subsidy on foodgrains transactions through Food Corporation of India and State Governments(decentralized procurements).

(ii) Sugar subsidy through State Governments.

(iii) Central assistance to States/UTs for meeting expenditure on intra-state movement, handling of foodgrainsand FPS dealers' margin under NFSA.

(iv) Scheme for Extending Financial Assistance to Sugar Undertakings 2014.

(v) Incentives on marketing and promotion seryices of raw sugar production.(vi) Interest subvention on scheme for extending soft loan to sugar mills, 2015.

(vii) Production subsidy to sugar mills to offset cost of cane and facilitate timely payment of cane price dues offarmers.

(viii) Loans for modernization of sugar mills, cane development, bagasse based co-generation power projectsand projects for the production of anhydrous alcohol/ethanol.

1.7 NATIONAL FOOD SECURITY ACT, 2013:

Government of India enacted the National Food Security Act, 2013 on io" September, 2013 with the objectiveto provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of

.rJ


quality food at affordable prices to people to live a life with dignity. The Act provides for coverage of upto 75% of therural population and upto 50% of the urban population for receiving subsidized foodgrains under Targeted PublicDistribution System (TPDS), thus covering about two-thirds of the population. The eligible persons will be entitled toreceive 5 Kg of foodgrains per person per month at subsidised prices of ~ 3/211 per Kg for rice/wheat/coarse grains.The existing Antyodaya Anna Yojana (AAY) households, which constitute the poorest of the poor, will continue toreceive 35 Kg of foodgrains per household per month .

The Act also has a special focus on the nutritional support to women and children. Besides meal to pregnantwomen and lactating mothers during pregnancy and six months after the child birth, such women will also be entitled toreceive maternity benefit of not less than ~ 6,000. Children upto 14 years of age will be entitled to nutritious meals asper the prescribed nutritional standards. In case of non-supply of entitled foodgrains or meals, the beneficiaries willreceive food security allowance.

The Act also contains provisions for setting up of grievance redressal mechanism at the District and State levels.Separate provisions have also been made in the Act for ensuring transparency and accountability. The Act also containsmeasures for reforms in TPDS, to be undertaken progressively by Central and State Governments. These reforms interalia include doorstep delivery of foodgrains to the TPDS outlets, application of information and communicationtechnology tools, diversification of commodities distributed under the Public Distribution System over a period of time

etc.

1.8 COMPUTERIZATION OF TPDS OPERATIONS:

A Plan scheme on 'End-to-end Computerization of TPDS Operations' in all State s/UTs had been formulated on50:50 cost sharing basis with States/UTs except for the North Eastern States, where cost is to shared on 90:10 basis. InOctober, 2012, Government approved Component-I of the scheme with an outlay of ~ 884.07 crore during the IthFiveYear Plan. Component-I of the Scheme comprises activities, namely, digitization of ration cards/beneficiary and otherdatabases, computerization of supply-chain management, setting up of transparency portal and grievance redressalmechanisms. The pilot non-plan scheme for 'Smart Card based delivery of Essential Commodities' (approved in 2008-09 to be implemented in UT of Chandigarh and Haryana) and the pilot plan scheme on Computerization of TPDS

6OutcomeBudget2016-17,Departmentof Food& PublicDistribution

operations.(to be implemented in three districts each of four pilot States, namely, Andhra Pradesh, Assam, Chhattisgarhand Delhi) have been subsumed in the above referred scheme. Under the above-referred scheme, the Central share offunds is ~ 489.37 crore whereas States/UTs will provide funds of ~ 394.70 crore. An amount of ~ 41.69 crore hadbeen released by the Government during 2012-13, ~ 184.20 crore in 2013-14 and ~ 33.81 crore in 2014-15. Allocationfor the financial year 2015-16 (R.E.) is ~ 60 crore. To eliminate leakages, 2 models have been suggested to states/UTsunder Direct Benefit Transfer i.e. Direct Cash Transfer and Automation of Fair Price Shops (FPSs). UTs ofChandigarhand Puducherry have started direct cash transfer to beneficiaries w.e.f. September, 2015. Fair Price Shop (FPS)automation involves issuance of foodgrains to beneficiary after his/her successful authentication using Aadhaar at theFPS using Point of Sale (PoS) device/mobile terminal. DoF&PD had issued guidelines on FPS automation (includingtechnical specifications for PoS device) in November, 2014 to all States/UTs which were updated in May 2015.Government has approved ~ 17/-qtl. towards purchase and operations of the PoS device at FPS for automation underNational Food Security Act (NFSA), 2013. Relevant Rules (Assistance to State Governments) under NFSA Act havebeen notified on 17-08-2015 and conveyed to the States/UTs. So far, more than 79000 FPSs are automated across thecountry.

1.9 CAPACITYBUILDING:

(i) TPDS - Training - The scheme aims at strengthening and upgrading the skills of personnel engaged inthe functioning and implementation of Targeted Public Distribution System. Under the scheme, training programmesand seminar/workshops are conducted by the States/UTs for functionaries of State Food & Civil Supplies Departmentand State agencies like State Civil Supplies Corporation, Consumer Cooperatives, the district and block level officersengaged in the public distribution of essential commodities, members of Vigilance Committees at various level,members ofPanchayti Raj Institutions (PRIs) and Urban Local Bodies and Fair Price Shop owners. As per the existingguidelines, financial assistance is provided to States/UTs for conducting training programmes @ ~ 500/- per person perday. The maximum duration of the training programme may be of five working days and the maximum assistance pertraining programme would be ~ 50,000/-. In the case of seminars/workshops, the duration is two days. The financialassistance for conducting seminars/workshops is also ~ 500/- per person per day and the maximum assistance perSeminar/Workshop would be ~ 50,000/-. In order to successfully implement NFSA, 2013, training programmes are

'.


also organised to sensitize and train key officials of the State/UT Governments, Master T,rainers nominated byStates/UTs, etc through FCI's Institute of Food Security, Gurgaon.

(ii) PDS - Evaluation, Monitoring and Research - Under the scheme, Evaluation Studies are got conductedfrom time to time by the Department through various agencies to assess the impact of TPDS on the target beneficiaries,to plug loopholes in implementation of TPDS and improve upon its functioning in the States/U'Ts. Currently, anevaluation study on functioning of TPDS in six select States i.e. Assam, Bihar, Chhattisgarh, Karnataka, Uttar Pradeshand West Bengal has been got conducted through National Council of Applied Economic Research (NCAER). NCAERhad submitted its report in September, 2015 which has been accepted by theDepartment and has been sent to the Statesconcerned for taking necessary remedial measures to remove deficiencies noticed in the functioning ofTPDS.

1.10 WAREHOUSE DEVELOPMENT AND REGULATORY AUTHORITY:

THE WAREHOUSING (DEVELOPMENT & REGULATION) ACT, 2007

For the growth and development of the warehousing sector, to bring reforms in the agricultural marketing and toincrease credit flow in the farm sector, the Government of India has introduced a negotiable warehouse receipt systemin the country, The Parliament has enacted the Warehousing (Development and Regulation) Act, 2007 (37 of 2007)which has come into force from the zs" October, 2010, The Warehousing Development and Regulatory Authority(WDRA) consisting of the Chairman and two members has been constituted by the Central Government on the 26th

October, 2010,

The main objectives of the Warehousing (Development and Regulation) Act, 2007 are to make provisions for thedevelopment and regulation of warehouses, negotiability of warehouse receipts, establishment of a WarehousingDevelopment and Regulatory Authority (WDRA) and related matters, to make NWRs prime tool of trade and tofacilitate finance against it throughout the country. The Negotiable Warehouse Receipts (NWRs) issued by thewarehouses registered under this Act would help farmers to seek loan from banks against NWRs to avoid distress sale

II


of agricultural produce. Itwill also be beneficial for a number of other stakeholders such as banks, financial institutions,insurance companies, trade, commodities exchanges as well as consumers.

1.11 MANAGEMENT OF SUGAR ,'0'

Management of the sugar industry and management of s~gar for public distribution is done by the Department ofFood and Public Distribution. Sugar Development Fund is the main instrument through which financial assistance isprovided to the sugar industry for modernization and expansion of the existing mills, for bringing about varietalimprovement and development in the cane grown in the area of the sugar factories, for projects of bagasse basedcogeneration of power and for production of ethanol. The activities in relation to sugar broadly cover: '

• Regulation of the industry through the Directorate of Sugar & Vegetable Oils;• Fixation of statutory minimum/fair and remunerative prices of sugarcane payable by sugar factories;• Development and regulation of sugar industry (including training in the field of sugar technology);• Administration of subsidy on sugar;• Administration of Sugar Development Fund; and• Training and Research.

1.12 LEVY SUGAR PRICE EQUALIZATION FUND:

The Levy Sugar Price Equalization Fund Act, 1976 (as amended in 1984) has been enforced from 0l.04.l976to recover the excess realization (ER) on account of sale of levy sugar price at higher prices than notified, as per ordersof the High Court/Supreme Court to various litigant sugar mills. Whenever the Judgment is in favor of D.O.I., therecovery of the Government dues is affected under the provisions of the LSPEF Act.

1.13 MANAGEMENT OF EDIBLE OILS:

The Directorate of Sugar and Vegetable Oils under the Department of Food & Public Distribution seeks tocoordinate management of edible oils in the country through a multi-pronged strategy, namely, (i) assessment of the


domestic demand for edible oils and its availability from domestic sources. Mismatch of demand and supply is metthrough import of edible oils so as to maintain their prices at reasonable level; (ii) It also closely monitors prices ofedible oils both in the domestic and in the international market and initiate necessary policy measures whenevernecessary. The DSVO is staffed with qualified technical people who assist the Ministry in the coordinatedmanagement of Vegetable Oils particularly relating to production / availability and monitoring of prices.

1.14 FUNCTIONS:

The Directorate of Sugar and Vegetable Oils carries out the mandate of the Department through the following:-

(I) Monitoring of domestic and international prices of edible oils on a day-today basis, preparing periodicestimates of domestic production, imports and availability of edible oils, and recommending correctivemeasures.

(2) Implementing Regulatory Order "Vegetable Oil Products Production and Availability (Regulation)Order'2011" issued under the Essential Commodities Act, 1955.

******

3-379 Dept!.of F& PD/2015

t 10Outcome Budget 2016-17, Department of Food & Public Distribution

Chapter- II

FINANCIAL OUTLAYS 2016-2017, PROJECTED PHYSICAL OUTPUTS AND PROJECTED OUTCOMES

This chapter gives the details of the financial outlays, plan and non-plan, for 2016-17, projected physical outputsand projected/budgeted outcomes for non-plan and plan schemes of the Department of Food & Public Distribution. Itsmain objective is to establish a correspondence between financial outlays and projected outcomes.

NON-PLAN (~ in crores)SI. Name of Objective! Outlay 2016-17 Quantifiable! Projected Processes! RemarksNo Scheme! Outcome Non- Plan Comple- Deliverable! Outcomes Timeliness

Programme Summary Plan Budget . mentary Physical[Major Head] Budget Extra- Outputs

BudgetaryResources

1 2 "'I 4(i) 4(ii) 4(iii) 5 6 7 8.)

1 Secretariat - General 51.85 - - - - ContinuousEconomic AdministrationServices[MH 3451]

2. National Sugar General 23.99 - - Civil and - Continuous MajorInstitute, Administration electrical for general expenditure isKanpur & works administrati on construction(including Modernization relating to ve works to beDepartmental and technology the develop- expenditure. executedCanteen) upgradation of the ment of However, through CPWD(MH 2408 and laboratory and infra- funds will who have to4408) office. structure be released follow their

\ capacities on request prescribedand fromCPWD procedure such

'.


103334.61

augmenting for as tendering ofR&D modernizati financial bidsfacilities. on work. for

constructionworks etc.

"3. Food Subsidy

549.26 lakh To ensure foodtonnes of security for thefood grains poorer sectionsIS to be of the societydistributed by sale ofduring subsidized2016-17 for foodgrains.which totalestimatedsubsidyrequirementis ~ 129943

Foodsubsidy IS

released toFCI in everyquarter In

advance tothe extent of95% ofsubsidy due.

Offtake offoodgrains mayvary based onconsumerdemand andCentral IssuePrice. Theeconormc costmay alsochangedepending onMSP,procurementincidentals andother elementsof cost.

(i) Subsidy payable To meet theto Food differenceCorporation ofIndia (FeI) andothers onfoodgrainstransactions[MH 2408]

between theeconomic cost offoodgrains andtheir salesrealization atsubsidized pricesi.e. Central IssuePrice (CIP) forTargeted PublicDistributionSystem (TPDS)and other welfareschemes,includingprovisions forimplementationof National FoodSecurity Act,2013.

crores.


Security2013.

Act,

(ii) Subsidy payable To meet the 27000to State difference

(iii)

on decentralized economic cost ofprocurement of foodgrains andfoodgrains their sales[MH 2408J realization at

subsidized prices(CIP) for TPDSand other welfareschemes,includingprovisions forimplementationof National Food

Governments

Sugar subsidypayable to FCIand others onaccount of levysugar, import ofsugar etc.[MH 2408J

between the

The objective IS

to reimbursesubsidy to theStateslUTs @ ~18.50 per Kg,limited to thequantity based ontheir existingallocations, whichis require toprocure sugarfrom the openmarket through atransparentsystem and tomake sugaravailable In the

4500

- 145 lakh To ensure food Food Offtake oftonnes of security for the subsidy IS foodgrains mayfoodgrains poorer sections released to vary based onis to be of the society DCP States consumerdistributed by sale of In every demand andduring subsidized quarter and Central Issue2016-17 for foodgrains. advance to Price. Thewhich total the extent of economic costestimated 90% of may alsosubsidy subsidy due. changerequirement depending onis ~ 33000 MSP,crores. procurement

incidentals andother elementsof cost.

2659016 Availability of The Central The CentralMT sugar is sugar for the Government Government intotal annual poorer sections IS April, 2013 hasquota of all of the society reimbursing decontrolledStates / UTs at the existing subsidy to the sugarin the retail issue States/U'Ts, sector partiallyCountry. pnce through limited to by removingHowever, at Public the quantity the levypresent only Distribution based on obligation on30 States / System. their sugar mills andUTs are existing doing awayparticipating allocations. with thein the With a view regulatedscheme to ease out release

the financial mechanism onburden of open marketthe States, it sale of sugar.

'..

13d 2016 D fF d&P su D' ibOutcome Bu Iget -17, epartment 0 00 u IC istn ution

PDS at the has been Prior to it,existing retail decided to sugar millsissue price i.e. ~ ':'"-, release were mandated13.50 per Kg advance to supply 10%

subsidy to of theirStates who production to. approach for meet the Publicthe same. -c- Distribution

System (PDS)demand. Sugarmills are nowfree to selltheir entireproduction asper theircommercialprudence.

(iv) Ways and Ways and Means 10000.00 - - - - Continuous This IS beingMeans Advance Advance would provided atpayable to FCI be provided to average[MH 6408] FCI for the interest rate for

additional 364 days T-requirement and Bills frombe adjusted In 2010-11.future installmentof Food Subsidy .to FCI during thesame financialyear.

4. Assistance to In compliance to 2500.00 - - Delivery To ensure 75% of Only thoseState/VIs for Section 22(4)(d) and delivery of Central States/ VTsmeeting of National Food distribution foodgrains assistance in will be eligibleexpenditure on Security Act of upto door step advance in a for financialintra-state (NFSA), 2013, foodgrains of Fair Price year and assistance

movement, Central IS to under Shops (FPSs) balance which havehandling of provide central NFSA. and viability of 25% next implementedfoodgrains and assistance to FPSs. year on the the NationalFair Price Shop State and UTs for basis of Food Security(FPS) dealers' meeting receipt of Act, 2013.margin under expenditure on requisite.National Food intra-state informationSecurity Act movement, from2013 (NFSA) handling of State(MH 2408, foodgrains and Government3601,3602) margms paid to

fair price shopdealers, fordistribution offoodgrains.

5. Subsidy for Stabilization of 567.01 - - The scheme, Pending claims Subsidy will (The Schemeimported edible the Edible oil concurred of CPSUs be released ceased onoils for prices by by the amounting to to 3 CPSUs 30/09/2013).distribution providing a Ministry of ~567.01 crores for finalthrough States / subsidy of ~ 15/- Finance, on account settlementUTs per kg. to Central envisaged imported of theirGovernments PSUs (CPSUs) an import up edible oils will claims.(MH 2408) importing edible to 10 lakh -be settled

oils which were tons of which will be(past liabilities) handed over to edible oils. remain unpaid

States / UTs for as on the closedistribution to ofFY 2015-16.ration cardholders.

6. Development of Sugar Industry6.01 Transfer to To provide funds 2000.00 - - - - The Cess The Sugar Cess

Sugar for payment from collected IS Act, 1982Development SDF to sugar first gets empowers the


"',

ucome unge - , ep; mento 00 u lC IS n u Ion

Fund (SDF) factories under credited In Central

(Inter Account various sugar Consolidate Government to

Transfer) sector subsidy d Fund of collect Cess for

(MH 2408) schemes / loan India (CFI) the purpose of

schemes, and IS the Sugar

expenditure on transferred Development

which are finally to SDF Fund Act by

met out from account as the way of

SDF. per the excise duty onrequirement all sugarof the products.Departmentof Food &PD with thepnorapproval ofParliament.

Scheme financed from SDF6.02 Financial assistance to Sugar

Undertakings/other expenditure ofSDF (MH 2408)

(i) Administration To administer the 20.60 - - - To provide Continuous Recovery of

of Sugar Sugar assistance/ monitoring Sugar

Development Development concessional of Sugar Development. Fund (SDF). Fund, loans for the Developme dues will also

disbursement of development nt Fund, depend on

funds to sugar of Sugar submission performance of

factories and industry and of half the loanee mill

recovery of SDF incidental yearly and generation

loans. matters and report on of sufficient

o t B d t 2016 17 D art15

fF d & P bf D· t ib f

..


6.03 Loan for For facilitating 150.00Modernization / the rehabilitation,Rehabilitation modernizationof Sugar Mills. and expansion of[MH 6860] crushing capacity

of sugar industry.

(ii) Grant-in-aid for To promotedevelopment of research &Sugar Industry development of

any aspect ofsugar industryaimmg atincreasing sugarcane production.

.

1.00

monitoring of performance surplus forthe loans & of the payment of therecovery. loanee mills dues.

Qualifying Continuousphysicaloutput ofResearch IS

not feasible

Grants aregiven toDepartmentofScientific&IndustrialResearch,ResearchInstitutions/University/IndianCouncil ofagriculturalResearch.Increase In Increasecrushing sugarcapacity by production,18337.50 improvementtonnes In sugarcrushed per recovery andday (TCD) reduction In

cost ofproduction.

Utilization ofbudgetdepends uponresearchproposalreceived,approval ofExpertcommittees/Government& submissionof requireddocuments byconcernedinstitutions.

In Receipt of Achievementapplications of targets isand sanction dependent onof loan is a receipt of validcontinuous and completeprocess applicationsthroughout from sugarthe year. factories forThe modernization,applications rehabilitationare first and expansion,scrutinized which mayby the Sub vary from yearCommittee to year.

t..

r.

,


6.04

Government Governmentand on its for caneacceptance; development,the approval which mayof the SDF vary from yearloan is to year.~---+-------------+--------------+-------1-------+---------1-----------~----------~ ~~~~ ~issued. The Achievementloan IS of targets IS

disbursed dependent on(1) on receipt of validsigning of and completeTripartite applicationsAgreement from sugarbetween factories forsugar agasse basedfactory, cogenerationIFCIINCDC power projects,and which mayGovernment vary from year

I--:--:---+-:::--------=--+=-----:-----::--+-:--:~-+----+----+----_::__l_:____---____! of India, (2) I-t:....::.o_,y~e..:..:ar:...:..__ ----16.06 Loan for To improve the 125.00 - - Increase In Improvement On Achievement

production of economic capacity for In economic furnishing of targets IS

Anhydrous viability of sugar production viability of of adequate dependent onAlcohol/mills. is 373.03 sugar mills and security on receipt of valid

6.05

Loan to sugarmills for canedevelopment[MH 6860].

Development ofsugarcane in thearea where sugarfactory IS

situated.

Loan to Sugar To improve theMills for econormcbagasse based viability of sugarcogeneration mill andpower projects efficiently utilize[MH 6860]. bagasse produced

by the sugarmills.

4-379 Oeptt. of F & PO/2015

200.00

75.00 - Increase In Increase in and Achievementproduction production of thereafter by of targets IS

by 63.66 sugarcane and the Standing dependent onlakh tonnes. productivity as Committee. receipt of valid

well as Recommend and completedecrease In ations of the applicationscost of Standing from sugarproduction of Committee factories andcane. are placed concerned

before the State

ImprovementIn econorrucviability ofsugar mills andutilization ofby-productgeneratedwhileproducingsugar.

18utcome u ge - , epartmen 0 00 u IC istn ution

Ethanol from Kilo liters utilization of SDF loan by and completealcohol per day by-product the sugar applications[MH 6860] (KLPD) generated factory. from sugar

while The process factories forproducing time, production ofsugar. therefore, Anhydrous

cannot be Alcohol /envisaged. Ethanol which

may vary fromyear to year.

6.07 Scheme for For providing 800.00 - - - It would help As provided Processing ofExtending financial sugar mills to III clause-4 claims dependsFinancial assistance in the pay cane pnce of the on furnishingAssistance to form of interest arrears to sugar notification of completessugar free loans worth cane farmers. dated documents byundertakings ~ 6600 crore for 03.01.14 of the nodal(SEFASU), additional SEFASU, Bank.2014 working capital to 2014, the

sugar mills for Departmentclearance of cane will releaseprice arrears. the interest

subventionamount onquarterlybasis III

advance tothe nodalbank asappointedby DFS.The amountfrom 3rdquarteronwards

-----

o B d t 2016 17 D t fF d&P sn D· ·b

/ 19utcome u [get - , epartment 0 00 u IC istn ution

shall bereleased asadvancesubject tofurnishingof disburse-mentparticularsas well asinterestearned bythe bank forthe quarterproceedingthe lastquarter toDFPD. Theinterestearned onthe interestsubventionadvanceshall beadjusted In

the quarterlyinstallmentfrom 3rdquarteronwards.

6.08 Incentive on In order to 30.00 - - For the It would help The Processing of

Marketing and encourage sugar sugar season sugar mills to settlement claims depends

Promotion factories to 2014-15 the pay cane pnce of claims on furnishing

Services of Raw diversify their incentive including cane for the said of complete

Sugar produce of shall be price arrears to season shall documents by

o B d 2016 17 D fF d& P br D' 'b

Subvention on used for paymentScheme for of cane pnceextending soft arrears of farmersloan to sugar for the sugarmills, 2015 season 2014-15

relating to theFair andRemunerativePrice (FRP) ofsugarcane fixed

Production.

6.09 Interest

traditional whitesugar into rawsugar for export,the Governmentnotified anotherscheme allowingincentives formarketing andpromotionservices for rawsugar productiontargeted forexport marketduring the sugar Iseasons 2013-14~nd 2?14-15. The Imcentrveavailable underthe Scheme shallbe utilized by thesugar mills formaking paymentto the farmers.The loan is to be 202.50

20Outcome Budget 2016-17,Department of Food & Public Distribution

available for sugarcane be the nodal bank.a fixed farmers. prioritizedquantity of on the basis14 lakh of the datemetrictones.

of export incase ofdirect rawsugar exportand in caseof raw sugarsupplyrefineriesagainstinvalidationof theiradvanceauthorization, it shall befrom thedate ofdeemedexport.

As provided It would help Thein clause 4 sugar mills to Departmentof the pay cane pnce has toGazette arrears to release thenotification sugarcane interestno. 1(5) farmers for the subvention12015-S.P.-I sugar season amount ondated 2014-15. quarterly23.06.2015. basis In

advance tothe nodal

Processing ofclaims dependson furnishingof completedocuments bythe nodal bank.

21utcome u iget - , epartment 0 00 u IC istn ution

by the Central bank asGovernment for appointedthat sugar season. by DFS.

The firsttranche ofinterestsubventionwas torelease mOctober,. 2015followed by2nd, 3rd,and 4thtranchesrespectively I

I in January, II 20.16, April,2016 and. July, 2016 .

6.10 Production 950.01 - - The It would As per Processing ofsubsidy to production benefit about scheme subsidy billsSugar Mills to subsidy @ 40 lakh depends onoffset cost of ~4.50 per farmers furnishing thecane and quintal of associated with completefacilitate timely cane more than 500 documents bypayment of crushed will sugar mills the sugar mills.cane price dues be provided operating inof farmers for the country.

estimated255 millionMT of cane.This willhelp sugar

o B d 2016 17 D fF d & P bI" D· ·b

,mills toreduce thefinancialburden andhelp farmersto clear thecane dues intime.

7. Establishment! Other expenditure ofFood, Storage and Warehousing(MH 2408)

(i) Directorate of General 8.04 - - - -Sugar & AdministrationVegetable Oils

(ii) Indian Grain General 5.07 - - 1. Long AppliedStorage Administration Term research andManagement & Training developmentResearch Courses / activities on.Institute Short Term storage and

Training preservation ofCourses foodgrains(No. of besidescourses - 15 developingand No. of code ofTrainees- practices for360 foodgrains2. Analysis storage,of foodgrain monitoring ofsamples foodgrains(500) for samples forphysical physicalquality qualityparameters. parameters,

22Outcome Budget 2016-17 Department of Food & Public Distribution

23

•

utcome u lget - , epartment 0 00 u IC ISn u Ion3. pesticideMonitoring residue,of food mycotoxingrams contaminationsamples and conducting(150) for trainingpesticide courses onresidue. scientific4. storage,Monitoring preservationof food and inspectiongrams of foodgrainssamples to the pest(75) for controlmycotoxin operators andcontaminati officials of theon. State

Governments& theiragenciesengaged inprocurement,storage anddistribution offoodgrains.

(iii) Quality Control General 8.74 - - Inspection Monitoring of Continuous

Cells Administration of 960 the quality ofFood Central PoolStorage foodgrains.Depot Investigation

of thecomplaintsreceived fromState Govts,

o B d 2016 17 D fF d & P bf D· t ib lti

utcome u tget 16-17, Department 0 00 u IC istn utionMPs, VIPs,Media andConsumers etcabout qualityof Central Poolfoodgrainsbeingprocured,stored anddistributed bythe Govt.(iv) Central Grain 1. Laying down 0.05 - - 1700 - ContinuousAnalysis quality standards samples to

Laboratory for procurement be analyzed.(CGAL) of Kharif and .

Rabi foodgrainsfor Central Poolbeforecommencementof the respective Iseason.2. Classificationof rice/paddyvarieties receivedfrom StateGovernment toGrade 'A' andCommon forfixation ofprocurement and. .Issue pnces.3. Assessment ofthe quality offoodgrains that

o 24B d 20 fF d & P bI" O· ib

..,

r

o t25

t fF d & P bli D· t ib fB d t 2016 17 D rtucome uLge - , epa men 0 00 u IC IS n u IOnare imported orexported onCentral Poolaccount IIIrelation to thecontractualspecifications.4. Analysis offoodgrainsamples received

~-

from vanoussources.

Contribution to Contribution 0.34 - - - - ContinuousInternational towards India'sSugar Council membership of

InternationalSugar Council

(vi) Contribution to Contribution 0.30 - - - - ContinuousInternational towards India'sGrain Council membership of

InternationalGrain Council



PLAN (~ in crores),.

SI. Name of Objectivel Outlay 2016-17 Quantifiable Projected Processes I Remarks INo. Schemel Outcome Non- Plan Comple- IDeliverables Outcomes Timeliness Risk Factor

Programme IPlan Budget mentary IPhysicalBudget Extra- OutputsBudgetary

Resources.8. Warehousing 1. Increasing credit - 18.00 - 1. New rules and 1. Establishing Continues

Development flow In the farm regulations, standards,and sector. replacing the provideRegulatory 2. Enhancing existing ones, for assurance toAuthority fiduciary trust of discharge of market[MH 2408] Banks and trade in different participants and

warehouse receipts functions facilitate quickand make them entrusted to registration ofnegotiable WDRA to large number ofinstruments enhance warehouses(NWR). fiduciary trust of while3. Easy financing Banks and trade simultaneouslyby Banks against in NWRs. protectingNWRs. interest of4. Increasing rural depositors Iliquidity by farmers.popularizing theuse ofNWRs. 2. Organization 2'. Providing an5. Encouraging Design and efficient humanscientific Human resource base towarehousing of Resources for man WDRA andgoods. WDRA. discharge6. Facilitating the functions underdevelopment of the the Act.

27

.,

utcome u get - , epartment 0 00 u IC istn utionwarehousing sector.

- 7. Promoting 3. Financial 3. Charging user-shorter and more Business Model fees forefficient supply of forWDRA. providing itsgoods. eNWR8. Enhancing repositoryrewards for grading services, andand quality of provide a portiondeposited of the revenuescommodities. to WDRA to be

self-sufficient inlong run.

4. Establishment 4. Electronifica-of Online Portal tion of NWRs toand e-NWR reduce chancesrepository(ies) to of fraud andcreate an duplication ofecosystem of receipts, multipleelectronic NWRs finances against. to cover entire same receipt andlife-cycle from . . themcreasmgthe issue to the credibility ofdischarge NWRs so as toincluding pledge enhance theby Banks. fiduciary trust of

Lenders andDepositors andto promote theuse of NWRs ntrade and otherrelatedtransactions.

o B d 2016 17 D fF d&P sn D· ·b

5. National 5. ProvidingSurvey on betterWarehousing m informationIndia. about .

warehouses andwarehouseservice prodders(WSPs).

6. Awareness 6. Popularisa-programmes for tion of NWRs,farmers and Capacityothers users of building ofNWRs; training wareshouseman.of warehousemanager;National andRegionalconference forstakeholders.

7. Inspection of 7. To ensureWarehouses. underlying goods

are secure.9. Strengthening of PDS Operations9.01 Strengthening of PDS and Capacity

building

(i) Financial The objective of the 0.50 An assessment Ongoing Based on Theassistance to Scheme is to create of the publicity the utilization ofStateslNER awareness amongst cum awareness proposals funds underfor the TPDS campaign in received this Scheme is



Evaluation,Monitoring& ResearchInFoodgrainsManagementandStrengthening of PDS(ProfessionalServices).(M. H. 3456)

0.85

tangible terms is from the dependent onnot possible as States, submission ofthis Scheme Funds/Gran proposal bycomponent is ts are the Statesintended as an released by (including NEeffective, subtle, the Region).sustained and Departmentintensive As perawareness revisedcampaign, guidelines,impact of which Departmentcould result in itself canthose utilized upbeneficiaries to 20 %claiming their fundsdue from the earmarkedration shops. for the said

purpose.

'..

Generating beneficiaries andawareness general Public onamongst TPDS so that thereTPDS is a public pressurebeneficiaries on the machineryabout their for accountabilityentitlement In their working.and redressal This cannot,mechanism however, be(M.H. 2552, assessed in tangible3456, & terms.3601

(ii) Evaluating the-impact of the TPDSon the targetbeneficiaries and toplug loopholes In

its implementation.

Concurrent It will enable the TheEvaluation study Department and amounton Targeted StateslUTs to will bePublic assess the areas used forDistribution where further. conductingSystem and the streamlining and theNational Food strengthening of evaluationSecurity Act, TPDS may be studies2013. necessary. under the

schemewithin theprescribedtimeschedule asper terms

The releasesto agencieswill be subjectto finalizationof selection ofagencies forconductingevaluationstudy.


&conditions.

(iii) Evaluation, The scheme - 0.25 - A number of FinancialMonitoring component aims at persons/ officials assistance IS& Research strengthening and are to be trained; released to thein upgrading the skills seminars/ StatelUTFoodgrains of personnel conferences to Governments toManagement engaged m the be organized. conduct trainingand functioning and programmes/Strengthenin implementation of workshopsg of PDS- Targeted Public /seminars/conferTraining. Distribution System ences for(M.H. 3601 and National Food functionaries of& 3602) Security Act, 2013. the State Food &

One week The releasesfor training to StatelUTand 1-2 Govts anddays for FCI will besemmar, asperguidelinesof thescheme.

subject toappropriateproposalsreceived fromStatelUT

Besides, Govts. andthree days FCI andtraining timely

Civil Supplies programme submission ofDepartment and IS being utilizationState agencies conducted certificates forlike State Civil for officials past releases.Supplies and MasterCorporations, TrainersConsumer nominatedCooperatives, by thethe District and StateslUTsBlock level etc.officers engaged throughm the Public IFS,Distribution of Gurgaon.essentialcommodities,members ofVigilanceCommittees atvarious levels,

members ofPanchayati RajInstitutions(PRIs) and urbanlocal bodies, FairPrice ShopOwners etc. Tosuccessfullyimplement theNFSA, 2013,trainingprogrammes arealso conductedfor Master

ITrainers andother officials ofthe States/UTsthrough FoodCorporation ofIndia (FCI)'sInstitute of FoodSecurity,Gurgaon.

9.02 Computerizat Scheme aims at end - 75.00 - Component-I, of Digitization of The work Funds of ~

ion of TPDS to end the scheme beneficiary and of 305.74 crore

Operations computerization of compnses other databases digitization have already(M.H.2552, Targeted Public activities namely will ensure de- of ration been released

. 3456, 3601 Distribution System digitization of duplication of cards/benef to theand 3602) (TPDS) operations ration bogus ration iciary StateslUTs as

in all StateslUTs. cardslbeneficiary cards and database first/secondand other cleaning up of has been installmentsdatabases, databases which completed of the Centralcomputerization will enable III 35 share to meetof supply-chain correct StateslUTs. the


32utcome u iget - , epartmen 0 00 u IC istn ution

management, identification of Online expendituresetting up of beneficiaries and allocation ontransparency better targeting IS being implementatioportal and of food subsidy; done in 21 n ofgrievance computerization statesIUTs .. Component -Iredressal of supply-chain Computeriz of the schememechanisms. management ation of during 2012-

would ensure supply- 13, 2013-14,timely chain has 2014-15 andavailability of been 2015-16.foodgrains to the completedbeneficiaries at In 12FPS level, check State s/U'Tsleakages/diversio andns, etc; setting gnevanceup of redressaltransparency mechanismportal, grievance has beenredressal established. mechanisms, etc. III 36will introduce States/U'Ts.transparency andpublicaccountability inimplementationofTPDS.

9.03 Strengthen- The objective of the - 2.00 - a) Opening of - - Once the labsing of Scheme IS to new QCCs; are upgradedQuality strengthen quality Three offices at IdevelopedControl control network Chennai, foodgrainMechanism independent of FCI, Guwahati and samples at(MH-2408) to monitor quality Patna have been 180 Yearly IGMRI Hapuraspects of operationalised will befoodgrains during during 2015-16. analyzed as

o B d 2016 17 D t fF d&P bI" D' ib


procurement,storage anddistributionthroughout theCountry beside,upgradation of lab& traininginfrastructure atIGMRI, Hapur asalso capacitybuilding for skillupgradation ofState Governmentofficials engaged infoodgrainmanagement.

Inspection offood storagedepots nos.b) Upgradationof laboratoriesat IGMRIHapur-Theinfrastructure ofphysicochemical lab hasbeen upgradedby renovatingthe building andprocedure forpurchase ofphysic- chemicalequipmentsthrough e-tenderhas beencompleted,besides, aconsultant fromNational Instituteof Plant HealthManagement,(NIPHM),Hyderabad hasbeen engaged fordevelopingpesticide andmycotoxinanalysis lab atIGMRI, Hapur.c) Capacity

per national &internationalstandards.



0.12

Yearly

(i)Consultancy, Training & Research9.04Consultancy To provide regular -for research/ alerts and earlymonitoring in warning on possibledomestic/glo increase in prices ofbal markets essentialforfoodgrains

commodities

buildingprogramme-i) Traininginfrastructure hasbeen developedii) Two daystrainingprogramme forState Govt.officials byQCCsNo. of training 38 YearlyprogramNo. of trainees 1330

Provision of Formulation of Continuesregular market policy measuresalerts and early and interventionwarmng on for managementlikely increase of of food policy.pnces offoodgrains

(ii) e-govemance Transparency'efficiency III

working ofDepartment

and -thethe

0.28 (i) Upgradationof LAN System.(ii)Implementationof e-office anddevelopment ofinfrastructure forimplementationof e-office.

More efficient-working of theDepartment

9.05 Assistance to Constitution of-StateslUTs State Foodfor non- Commissions in all

Acquisitionnon-buildingassets such

of To ensure Release of Only thosemonitoring and funds on States/U'Ts

as evaluation of the basis of will be

1.00


furniture, office implementation submission eligible forequipment, of National Food of financialcomputers etc. Security Act, proposals assistance

2013 by State by the which haveFood States/UTs. constitutedCommissions. the State Food

Commission,as perprovistons ofthe NationalFood SecurityAct. 2013 onan exclusivebasis.Centralassistancewould bereleased basedon costestimates/proposalsreceived fromStates/UTs.

building StateslUTs, asassets for provided III theState Food National FoodCommissions Security Act, 2013,[M.H.3601] to monitor and

evaluate theimplementation ofthe Act.Assistance toState/UT for nonbuilding assets forState FoodCommission

of Acquisition The physicalof land and financial

Creationadditional

& Construction of-I storage godownsparticularly III

North EasternStates includingSikkim

The physicaltargets to beachieved by FCIduring the year isestimated to be242730 MTs III

52.00StorageGodowns-

10.

targets can beachievedprovided thesuitable landIS madeavailable bythe respectiveState Govts.timely,

storage capacity throughof 242730 MTs State Govt.

Constructionagencies ofCentre/

Constructionof Godownsby FCI/StateGovts.(M.H. 2552,4552)

III the countryparticularly III

NE Regionincluding Sikkimand new

to procurementthis States

the countryparticularly NERegion.However,achieve

State(PSUs)1through

,target total Public finalization ofestimated Tender executing/requirement of March constructingfund for the year 2017 andIS ~250.09 FinalizationCrores. of Railway

siding byRailwaysagency



IEBR SCHEMES

S. Name of Objective/ Outlays 2016-17 Quantifiable/ Projected Processes/ RemarksNo Scheme Outcome (~ in crore) Deliverables/ Outcomes Timeline /Risk Factor

/Programme 4 (i) 4 (ii) 4 (iii) Physical OutputsNon Plan Comple-Plan Budget mentary

Budget Budget1 2 3 4 5 6 7 8 9 10

1 Construction Augmentation of - - 153.82 Creation of Increased 31.03.2017 -of warehousing storage capacity Scientificwarehouses/ capacity. of 1.42 Lakh MT WarehousingGodowns by in the States of Capacitycwe Odisha,including cost Chhattisgarh,of land Rajasthan, UP,

West Bengal,Andhra Pd.,Kerala, Punjab,Gujarat and Goa.

2 Integrated Enhancing - - 36.22 - - 31.03.2017 -Business efficiency of CWCManagementSolution(lBMS)TOTAL - • - 190.04

******


CHAPTER-III

REFORM MEASURES AND POLICY INITIATIVES:

3.1 This chapter deals with the reform measures and policy initiatives taken by the Department and how they relateto the intermediate outputs and final outcomes. The Department regularly monitors implementation of its policies andintroduces necessary reform measures towards achievement of its objectives. Some major recent initiatives are givenbelow:

FOOD MANAGEMENT:

3.2 National Food Security Act, 2013

Government of India enacted the National Food Security Act, 2013 on 10th September, 2013 with the objectiveto provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity ofquality food at affordable prices to people to live a life with dignity. The Act provides for coverage of upto 75% of therural population and upto 50% of the urban population for receiving subsidized foodgrains under Targeted PublicDistribution System (TPDS), thus covering about two-thirds of the population. The eligible persons will be entitled toreceive 5 Kg of foodgrains per person per month at subsidized prices of ~ 3/211 per Kg for rice/wheat/coarse grains.The existing Antyodaya Anna Yojana (AAY) households, which constitute the poorest of the poor, will continue toreceive 35 Kg of foodgrains per household per month.

The Act also has a special focus on the nutritional support to women and children. Besides meal to pregnantwomen and lactating mothers during pregnancy and six months after the child birth, such women will also be entitled toreceive maternity benefit of not less than ~ 6,000. Children upto 14 years of age will be entitled to nutritious meals asper the prescribed nutritional standards. In case of non-supply of entitled foodgrains or meals, the beneficiaries willreceive food security allowance.


The Act also contains provisions for setting up of grievance redressal mechanism at the District and State levels.Separate provisions have also been made in the Act for ensuring transparency and accountability. The Act also containsmeasures for reforms in TPDS, to be undertaken progressively by Central and State Governments. These reforms interalia include doorstep delivery of foodgrains to the TPDS outlets, application of information and communicationtechnology tools, diversification of commodities distributed under the Public Distribution System over a period of timeetc.

3.3 In order to ensure adequate availability of wheat and rice in central pool, to keep a check on the open marketprices, to augment the domestic availability of wheat and rice and to ensure food security, the Central Government hastaken following steps for prudent management of foodgrains stocks:-

(a) Steps have been taken to maximize procurement of wheat and rice and MSP of wheat and paddy has beenincreased successively. The MSP of wheat for RMS 2015-16 was fixed at ~ 1450/- per quintal and for KMS 2015-16,MSP of Common paddy has been fixed at ~ 1410/- per quintal & MSP of Grade 'A' paddy has been fixed at ~ 1450/per quintal.

(b) State Governments, particularly of Decentralized Procurement (DCP) States are encouraged to maximizeprocurement of wheat and rice by taking up procurement of wheat and paddy from fanners by State Agencies.

(c) Strategic reserves of 5 million tons of foodgrains (rice-2 million tons and wheat-3 million tons) over theexisting buffer norms has been maintain to be used in extreme situations.

(d) Sale of wheat and rice was undertaken through open market sales scheme (OMSS)(Domestic) so as to checkinflationary trend in food security.

(e) Central Issue Prises (CIPs) of rice and wheat have not been revised since July, 2002.

40OutcomeBudget 2016-17, Department of Food & Public Distribution

3.4 CONSTRUCTION OF SILOS PRIVATE ENTREPRENEURS GUARANTEE (PEG) SCHEME FORCREATION OF ADDITIONAL STORAGE CAPACITY:

Private Entrepreneurs Guarantee (PEG) Scheme

Higher MSP coupled with better outreach led to higher procurement in the past few years. Procurement, in the•

last few years, has touched new heights given the remunerative MSPs coupled with better operational outreach. As aresult, central pool stock had increased from 196.38 lakh MTs as on 0l.04.2008 to a peak level of 823.17 lakh MTs ason 01.06.2012. The position of stocks in the central pool as on 0l.06.2015 was 568.34 lakh MT. To meet the shortterm peak requirements of storage capacity, FCI resorts to short-term hiring of covered godowns as well as storage offoodgrains under Cover & Plinth (CAP). CAP is also a scientific method for storage of foodgrains. Hence, necessitywas felt to augment the storage capacity for foodgrains.

Storage capacity, Covered and Covered and Plinth (CAP) available with Food Corporation of India is 359.25lakh MTs as on 31.12.2015. Storage capacities, both Covered and CAP, available with State agencies for Central Poolstock of foodgrains is 452.84 Lakh MTs. As a result, total of about 812.09 Lakh tonnes of storage capacity is availablefor storage of Central Pool stock of foodgrains which stood at 364.77 Lakh MTs as on 31.12.2015

The Department is implementing a scheme, namely Private Entrepreneurs Guarantee (PEG) Scheme, foraugmenting the storage capacity in the form of covered godowns and to reduce the dependence on CAP storage.

Under the PEG Scheme, which was launched in 2008, godowns are constructed in PPP mode through privateparties, as well as various agencies in Public Sector for guaranteed hiring by FCI.

Storage capacity available with FCI is concentrated mainly in the procuring hub located in the NorthernZone. The Northern Zone has about 67% of the total available storage capacity, the Southern Zone has about 14%,Western Zone has about 11%, Eastern Zone has only about 7% and North-Eastern Zone has less than 1% of the


total available storage capacity. As stated above, around 69% of the storage capacity is concentrated in 7 majorprocuring States i.e. Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, Telangana, Madhya Pradesh andChhattisgarh, while about 7% storage capacity is available in the four newly emerging procuring States of Bihar,Odisha, Jharkhand and West Bengal. As Government of India has initiated an ambitious programme of extension ofgreen revolution to Eastern States, this has assumed greater importance.

With a view to overcome storage crunch and ensure safe storage of foodgrains across the country Government isimplementing the Private Entrepreneurs Guarantee (PEG) Scheme for construction of storage godowns through privateentrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Assessmentof additional storage space needs under the scheme is based on the overall procurement/consumption and the storagespace already available. Capacity augmentation through PEG and Plan scheme is given utmost importance by Ministryof Consumer Affairs, Food & Public Distribution.

Locations for construction of godowns was identified by the FCI on the basis of recommendations of State LevelCommittees (SLCs) to meet the storage gaps. For consuming areas, the storage gap is assessed on the basis of 4months requirement of PDS and OWS while for procuring states the storage gap has been assessed based on the higheststock levels in the last three years, and keeping in view the potential of procurement.

..

Under the PEG scheme, FCI gives a guarantee of 10 years to private investors and 9 years to CWC/SWCs/StateAgencies. A capacity of 202.22 Lakh MTs as on 31.12.2015 has been approved for construction of godowns in 20states, out of which a capacity of 151.20 Lakh MTs has been sanctioned for construction. A capacity of 131.66 lakh MThas been completed and a capacity of 14.96 lakh MT is under construction.

.. 3.5 SILOS

FCI has plans to modernize its storage facilities by construction of modern steel Silos on a PPP mode. SteelSilo storage with bulk handling facility is highly mechanized and modernized way of storing of foodgrains in

7-379 Deptt.of F& PD/2015.


bulk. It ensures better preservation of foodgrains and enhances its shelf life. If foodgrains are stored in Silos andtransported in bulk, losses due to theft, pilferage and transportation would be negligible compared to foodgrainsstorage in bags in conventional warehouses. Further since land availability in existing FCI godowns is scarce, itwould be prudent to shift to storage of foodgrains in Silos as it requires approximately 1I3rd land as compared toconventional storage warehouses. Moreover, Silos can be operated round the clock which would bring inflexibility and would improve overall efficiency. As such, construction of Silos and utilization of Silos for storingand transportation of foodgrains in bulk would be beneficial to the nation as a whole besides also creating anefficient

RFQ was floated for construction of silo at 6 locations VIZ. Narela, Changsari, Sahnewal, Kotkapura,Whitefield and Katihar. 21 applications have been received and evaluation has been completed. FCI has identified6 locations viz. Changsari(Assam), Narela (Delhi), Sahnewal (Punjab), Kotkapura (Punjab), Katihar (Bihar) andWhitefield (Karnataka) where land is available with rail siding in existing premises. Department of Economic Affairs(DEA) has conveyed in-principle approval of Empowered Institution for 3 projects at Katihar, Whitefield & Kotkapura.RFP has been floated for Whitefield, Kotkapura & Katihar. Proposal for 3 more projects at Changsari (Assam), Narela(Delhi) and Sahnewal (Punjab) have also been approved for VGF and RFP is to be floated shortly.

3.6 AUGMENTATION OF STORAGE CAPACITY UNDER PLAN SCHEME:

The Department is implementing projects under Plan Schemes for construction of storage godowns. Inaddition, DFPD has been requesting the state governments to create intermediate storage capacities at BlocklTalukalevel to store foodgrains collected from FCI depots, for further distribution to fair price shops. This is necessary toimprove the supply chain logistics for TPDS. While construction of intermediate god owns is the responsibility of thestate governments, plan funds are provided as Grant-in-Aid also to governments of the NE states and J&K for thispurpose, considering their difficult geographical conditions.


Under the Plan Scheme, funds are released to the FCI in the form of equity for land acquisition and forconstruction of storage godowns, and related infrastructure like railway sidings, electrification, installation ofweighbridge, etc.

The following is the Plan outlay for XII Five Year Plan.

(.

Sl Head Estimated Unspent balance Outlay in 12thCost of 11thPlan Plan(Rs crore) (Rs crore) (Rs crore)

1 Construction of godowns by FCI at 37 locations in the NE 509.76 51.20 458.56(2,92,730 MT).

2 Construction of godowns by FCI at 9 locations in 4 other states 72.14 16.06 56.08(76,220 MT).

'" Grant-in-Aid to NE states for intermediate storage at 74 locations. 14.36 0.00 15.36.)

4 Grant-in-Aid to J&K for intermediate storage at 1 location. 11.00 0.00

Total 597.26 67.26 530.00Table 3.01

Physical and Financial Achievements by FCr during 2012-13,2013-14,2014-15 and 2015-16 are as below:-

Year North East Region Other States Total (NE+Other States)Physical Financial Physical Financial Physical Financial(In MT) (Rs in crore) (In MT) (Rs in crore) (In MT) In Rs Crore

2012-13 2,910 27.72 1,160 2.64 4,070 30.36

2013-14 2,500 30.94 20,000 11.02 22,500 41.96

2014-15 43,480 76.48 - 0.99 43,480 77.47

2015-16 19,170 43.00 - 0.00 19,170 43.00

Total 68,060 178.14 21,160 14.65 89,220 192.79Table 3.02


The detailed budgetary status under RE 2015-16 and BE 2016-17 for requirement of funds under Plan schemes is as perthe following:-

Head and Scheme BE 2015-16 RE 2015-16 BE 2016-17

4408.02.190.04.01.54 10.00 - -- Release of Equity to FCI for construction of storagegodowns by FeI (areas other than NE Region)

4552.00.126.01.01.54 75.00 68.39 50.00- Release of Equity to FeI for Projects/Schemes for NorthEastern States including Sikkim

2552.00.308.02.00.35 5.00 11.61 2.00- Grants in Aid to State Governments of North East Regionincluding Sikkim

Grand Total 90.00 80.00 52.00

(Rs in Crore)

Table 3.03


..The details of quarter-wise targets for various projects of FCI in NE Region under iz" Five Year Plan during

2015-16 is as follows:-

State Noof Capacity to be Actual Expenditure Estimated EstimatedProjects created during 2015-16 expenditure expenditure

(In MT) (As on date) for 2015-16 for 2016-17

Assam 9 177000 10.33 32.40 86.00

Arunachal Pradesh 10 17230 2.50 13.49 5.10

Manipur 8 30410 - 14.80 33.75

Meghalaya 3 10000 - 6.30 3.50

Mizoram 1 15000 - - 32.75., Nagaland 2 14590 3.04 10.04 4.00

Sikkim 1 3500 - - 5.00

Tripura 2 25000 - 5.15 32.5

Total 36 292730 15.87(*) 82.18 (*) 202.60 (#)

(Figures in Crore)

Table 3.04

(*)N.B.: For the year 2015-16, an allocation of ~ 68.39 crore in RE 2015-16 has since been made by the Ministry out ofwhich, an equity of ~43.00 crore as on 31112/2015 has been released by the Ministry. The expenditure incurred upto 2nd Quarterwas ~ 15.87Crore.

(#) Only ~ 50.00 crore has been allocated by the Ministry in BE 2016-17 as per ceiling provided by the Ministry ofFinance.


3.7 USE OF INNOVATIONS/NEW TECHNOLOGIES FOR CURBING LEAKAGES/DIVERSION OFFOODGRAINS MEANT FOR TPDS:

The following Scheme components are proposed to be continued during the IthFive Year Plan.

i) TPDS- TrainingIn order to successfully implement the National Food Security Act, 2013 and the TPDS, training programmes arebeing conducted for officials and Master Trainers of the States/UTs through Food Corporation of India (FCI)'sInstitution of Food Security, Gurgaon.

ii) Concurrent Evaluation Study on TPDSTo evaluate the impact of the TPDS on the target beneficiaries and to plug loopholes in implementation of

TPDS, an evaluation study on functioning of TPDS in six select States i.e. Assam, Bihar, Chhattisgarh, Karnataka,Uttar Pradesh and West Bengal has been got conducted through National Council of Applied Economic Research(NCAER). NCAER had submitted its report in September, 2015 which has been sent to the States concerned for takingnecessary remedial measures to remove deficiencies noticed in the functioning ofTPDS.


With a view to address certain shortcomings in functioning of TPDS and bring transparency in the TPDS, theGovernment has approved Component-I of Plan Scheme on End-to-end Computerization of TPDS Operations forimplementation during 12th Five Year Plan period. Component-I of the Scheme comprises activities, namely,digitization of ration cards/beneficiary and other databases, computerization of supply-chain management, setting up oftransparency portal and grievance redressal mechanism. Besides bringing transparency in the TPDS, the scheme isexpected to curb leakages and diversion of foodgrains. ~ 305.74 crore have already been released to 30 States/UTs asfirst/second installment of the Central share to meet the expenditure on implementation of Component-I of the schemeduring 2012-13,2013-14,2014-15 and 2015-16 (31.12.2015). The work of digitization of ration cards/beneficiarydatabase has been completed in 35 States/UTs. Computerization of supply-chain has been completed in 12 states/UTsAndhra Pradesh, Bihar, Chhattisgarh, Delhi, Goa, Gujarat, Karnataka, Madhya Pradesh, Odisha, Tamil Nadu,

..

..


Telengana & Tripura. Online allocation is being done by 21 States/UTs. Grievance redressal mechanism has beenestablished in all States/UTs. To eliminate leakages, 2 models have been suggested to states/UTs under Direct BenefitTransfer i.e. Direct Cash Transfer and Automation of Fair Price Shops (FPSs). UTs of Chandigarh and Puducherryhave started direct cash transfer to beneficiaries w.e.f. September, 2015. Fair Price Shop (FPS) automation involvesissuance of foodgrains to beneficiary after his/her successful authentication using Aadhaar at the FPS using Point ofSale (PoS) device/mobile terminal. DoF&PD had issued guidelines on FPS automation (including technicalspecifications for PoS device) in November, 2014 to all States/UTs which were updated in May 2015. Government hasapproved ~ 17/-qtl. Towards purchase and operations of the PoS device at FPS for automation under National FoodSecurity Act (NFSA), 2013. Relevant Rules (Assistance to State Governments) under NFS Act have been notified on17-08-2015 and conveyed to the States/UTs. So far, more than 79000 FPSs are automated across the country.

3.9 REVISION OF BUFFER NORMS:

Government of India has revised the buffer norms of foodgrains for the central pool (now food grains stocking

norms in central pool) from January, 2015.

The objectives of the Buffer Stocking Policy are:-

(i) To meet the prescribed Minimum Buffer Stock norms for food security,(ii) For monthly releases of foodgrains for supply through the PDS/Welfare Schemes,(iii) To meet emergency situations arising out of unexpected crop failure, natural disasters etc. and(iv) For market intervention to augment supply so as to help moderate the open market prices .

.3.10 ACQUISITION ANDDISTRIBUTIONCOST OF FOOD GRAINS:

A study for recommending the principles for fixation of procurement incidentals/economic cost of foodgrains)

was entrusted to % Chief Adviser (Cost), M/o Finance which is the specialized body for conducting these types ofstudies. Recommendations of the CAC have been received. CAC has been given another study to recommend state wise


normative cost of procurement incidentals in respect of each State which will be treated as final. CAC has still not beenable to complete the study owing to non-receipt of required data/information from State Governments.

3.11 REQUIREMENT FOR REGISTRATION OF WAREHOUSES:The WDRA is registering the warehouses that wish to issue NWR. Some of the important requirements for

registrations of warehouses are: ."1. The warehouses should be constructed as per Bureau of Indian Standards (BIS). Accreditation agencies have

some discretion in relaxing the specifications without compromising storage worthiness of warehouses.11. The warehouses should be storage worthy for different goods to be stored.111. The warehouses should be equipped with all necessary equipment/instruments for weighing, handling, sampling,

grading, fire fighting and insect-pest management.IV. The warehouses should have positive networth certified by a Chartered Accountant or credit worthiness

certificate from a scheduled bank for individual warehouse or for its organization.v. The warehouses should have adequate trained staff with expertise and knowledge for the scientific storage of

goods to be stored in the warehouses.VI. The warehouses should have adequate security arrangements.Vll. Any other requirement prescribed by the Authority.

3.12 ADVANTAGES OF REGISTERED WAREHOUSES WITH THE AUTHORITY:

(a)

(b)(c)(d)

Advantage of the registered warehouses with the authority are:Can issue negotiable warehouse receipts on which farmers / depositors may be able to seek loan more easilyfrom banks on better terms.Will follow norms / requirements prescribed by the WDRA, which would encourage scientific storage.Will have only trained warehousemen.Will mention quality standards/grades of the commodities stored in their warehouses on the NegotiableWarehouse Receipt.

...


3.13 ACTIVITIES INITIATED BY THE WAREHOUSING DEVELOPMENT AND REGULATORYAUTHORITY (WDRA):

1. Appointment of Accreditation Agencies: The warehouses are accredited by the approved accreditationagencies prior to their registration with the WDRA to ensure that basic requirements of scientific storage of agriculturaland other commodities are fully met by these warehouses. The WDRA has engaged 14 accreditation agencies.

2. Notification of Agricultural Commodities: The Authority has notified 123 agricultural commodities includingcereals, pulses, oilseeds, vegetable oils, spices, edible nuts and miscellaneous items like rubber, tobacco, tea coffee andmakhana for issuing NWRs. 26 horticultural commodities have also been approved for issuance of NWRs by coldstorages.

3. Registration of Warehouses: 1072 warehouses of CWC, SWCs, PACSs and private organizations have beenregisteredwith the Authority till 24.02.2014.

4. Integration of PACs with NWR: The WDRA has taken initiative to integrate the Primary AgriculturalCooperative Societies (PACs) warehouses under the negotiable warehouse receipt system so that small and marginalfarmers may get benefited from this scheme. Beginning has been made fromNizamabad district of Andhra Pradesh andabout 253 warehouses of PACs in Andhra Pradesh, Tamilnadu and Karnataka have been registered. NABARD and itsconsultancy organization NABCONS are playing very important role in this field.

5. Introduction of NWR System in cold storages: The WDRA in consultation with the National HorticultureMission (NHM) and National Horticulture Board (NHB) has introduced negotiable warehouse receipt system in coldstorages so that the growers/fanners producing horticultural produce may store these commodities in cold storages andmay avail the benefits of loan on NWRs issued by the registered cold storages. 26 horticulture commodities such asPotato, Dehydrated Onion, Garlic, Ginger, Turmeric, Apple and Resins etc. have also been notified for issuing NWRs.Basic requirements for accreditation of cold storages have been finalized by a Committee appointed by Govt. of Indiaunder the chairmanship of MD, National Horticulture Board.

. 8-379 Deptt.of F& PD/2015

50OutcomeBudget2016-17, Departmentof Food& PublicDistribution

6. Transformation Plan of the WDRA

The WDRA, in association with the Department of Food & Public Distribution, the Department of EconomicAffairs and the National Institute of Public Finance & Policy (NIPFP), has undertaken a transformational plan toinvigorate the warehousing sector and significantly improve post-harvest lending to farmers against negotiablewarehouse receipts. The budget speech 2014-15 of the Finance Minister contains a para on the transformation plan ofthe WDRA, which is reproduced below:

'Para 127.As part of strengthening the regulatory framework for commodity markets, the WarehouseDevelopment and Regulatory Authority (WD&RA) has begun a transformation plan to invigorate the warehousingsector and significantly improve post-harvest lending to farmers against negotiable warehouse receipts. This plan willbe implemented with vigor.'

7. Based on the features of the market, some of the problems observed in the present regime are:

• Inadequate regulation of quality of warehousing: There are no legally mandated requirements regardingperformance standards, minimum networth, etc.

• Lack of risk absorption capacity: Market entities transacting in warehouse receipts are not certain of the"ability of the warehousing service provider to indemnify against losses.

• Low deterrence for offences: Warehousing service providers do not face strict and credible enforcementaction.

8. Building a large, high-quality, liquid market for NWRs will benefit all those directly involved in the agriculturalsector. However, the role of an agency like WDRA that is working close to the ground must have a narrowly definedfocus.

9. The transformation plan envisages a complete revamp of the WDRA' s functioning. Key points of focus include thefollowing:


1. Re-writing the existing rules and regulations with a focus towards building NWRs as credible instrumentsof trade. This will require a shift towards risk-based regulation, lowering compliance costs, creation of arating system for warehouses, the creation of information repositories and the electronification/dematerialisation ofNWRs under the present Warehousing Development Regulatory Authority Act 2007;

11. Licensing! engaging repository(ies) for issuance of eNWR. This will ensure the real time issuance ofNWRs and regulating and monitoring the warehousing market, thereby enhancing the credibility ofNWR.

111. Building organisational capability within WDRA to effectively regulate the NWR market. This willrequire strengthening the WDRA, creating IT-based internal processes and systems, creating monitoringand surveillance tools, and staff capacity building; and

IV. Conducting market surveys and studies to generate information about the warehousing sector. Thesesurveys and studies are proposed to be conducted annually by WDRA to enable evidence-basedregulation, and to disseminate greater information relating to the warehousing sector.

10. The Government of India have approved a budget outlay of \ 44.90 crore for implementation of thetransformation plan over the years 2014-15. 2015-16 and 2016-17.

3.14 CURRENT STATUS OF IMPLEMENTATION OF THE TRANSFORMATION PLAN

I. Concept note for framing of new regulations for registration of warehouses drafted. To be implemented by March,2016

• The concept Note for framing of new regulations for registration of warehouses was placed on the WDRAswebsite on 22.06.2015, for inviting the comments of all stakeholders viz. depositors, warehouse owners likeCWC/ SWC/ PACS, WSPS, commodity exchange and the lenders.

• Consultation workshops were held with all the stakeholders on 02.09.2015,08.09.2015 & 14.09.2015 and theircomments received.

• Based on the inputs, draft of new rules and regulations for the registration of warehouses is under preparation.


• The draft regulations will be submitted to the Ministry for approval after due consultation with advisorycommittee as required under the Act.

II. WDRA plans to shift to e-NWR by engaging repository (ies) by the end of2016-17.

• An agency has been selected and action is being taken to award the contract to the successful bidder

• The primary consultant is expected to be in position by early April, 2016.).

• The primary consultant will design the RFP for engaging the IT consultant and further engaging Repository (ies)for e-NWR issuance, IT platform for online warehouse registration, monitoring platform, etc.

III. Concept paper on Electronic NWR regulations has been drafted and under examination.

• The draft EWR regulations are under discussions with NIPFP.

• The consultation with the stakeholders will be done before finalization for the electronic issuance ofNWRs.

• The final draft of e-NWR regulations will be submitted to the Ministry for approval.

IV. Qualitative survey on warehousing completed. To be utilized for drafting regulations.

• The NIPFP has completed the qualitative survey on warehousing and after series of discussions, the final reporthas been submitted. The WDRA has accepted the report and published on the WDRAs website. The finding ofthe qualitative survey are being used for framing the rules and regulations of the registration of warehouse, eNWRs, inspections, grading and audit of warehouses etc.

V. Quantitative survey on warehousing is underway. The draft first report has been submitted by TNS in February,2016.

3.15 TRAINING AND AWARENESS PROGRAMME:

..,

(a) Regional conferences: Regional Conferences in association with FICCI, ASSOCHAM, PHD Chamber, CAITand IFC have been organised by the WDRA at New Delhi, Bangalore, Thiruvananthapuram, Chandigarh, Mumbai,

53Outcome Budget 2016-17, Department of Food & PublicDistribution

Bhopal, Kolkata, Nagpur, Gandhinagar, Lucknow and Chennai to create awareness about the negotiable warehousereceipt system in the country.

(b) Training and awareness programme for farmers: Awareness programmes for fanners are being organized by theWDRA.

(c) Training for warehouse managers: Ten training programmes during 2014-15 for warehouse managers ofCWC, SWCs, PACs and private warehouses have been organized at Rajasthan, Tamilnade and Andhra Pradesh.

3.16 PLAN COMPONENT "STRENGTHENING OF QUALITY CONTROL MECHANISM" UNDER S&RDIVISION DURING 12TH FIVE YEAR PLAN.

A plan component "Strengthening of Quality Control Mechanism" has been included with two ongoing Plan!,

Schemes (Strengthening of PDS & Capacity Building and Quality Control Consultancies and Research) which weremerged on the advice of planning commission. An amount of ~ 23.30 Crore was approved for this plan componentduring the lih Five Year Plan. An amount of ~ 5.00 crore in BE and ~ 3.50 crore in RE has been earmarked forfinancial year 2015-16. An amount of ~ 2.00 crores has been projected for 2016-17.

There are three sub-components; (a) opening up of 7 new Quality Control Cells to augment the quality controlmechanism, (b) upgradation ofIGMRI Laboratories, and (c) capacity building for skill up gradation.

(A) Opening up of 7 new Quality Control Cells: 7 new Quality Control Cells were proposed at Guwahati, Patna,Chandigarh, Jammu, Jaipur, Chennai and Ahmedabad. QCC offices at Patna, Chennai and Guwahati have beenoperationalised in 2015-16, Feasibility for opening of other four QCCs is being explored. New QCCs to augmentquality control activities with creation of 15 posts of Assistant Director and revival of 14 posts of Technical Officerwere approved. However, in view of ban on creation of new posts, one Assistant Director and one Technical Officerfrom existing non-plan strength have been posted at each new Cell opened and targeted work has already been startedfrom 15tApril, 2015.


(B) Upgradation of Laboratory at IGMRI, Hapur: To ensure that the Central Pool foodgrains meet the qualityspecifications, it is imperative to regularly analyse the Central Pool stocks for prescribed uniform specifications and forthe presence of pesticide residues, mycotoxin contamination, uric acid, etc. In order to strengthen the Laboratories atIGMRI Hapur, the infrastructure of physico- chemical lab has been upgraded by renovating the building and procuringof physico chemical equipments, A consultant from National Institute of Plant Health Management, (NIPHM),Hyderabad has been engaged for developing pesticide and mycotoxin analysis lab at IGMRI, Hapur for which e-tenderprocedure has been completed and supply order has been issued.

(C) Capacity Building: In view of the shortage of technically qualified staff with the State Government agenciesengaged in procurement, storage and distribution of foodgrains and Government encouraging the decentralizedprocurement scheme under which State Governments and their agencies procure, store and distribute the foodgrainsdirectly without involvement ofFCI, the training requirements for the staff of the State Governments and their agenciesis need of the hour. Further, IGMRI Hapur with apex level training facilities is envisaged to be a Centre of Excellencefor training on post harvest management of foodgrains under this sub plan component.

Quality Control Cells, existing as well as newly opened impart short term trainings to the State Governmentofficers / officials on scientific storage, inspection and quality control of foodgrains. Quality control cell conducted 14training programmes for490 State Government officials and 32 training programmes for 1120 State Governmentofficials during 2013-14 and 2014-15 respectively. 38 trainings for 1330 persons are proposed to be conducted during2015-16 and 24 trainings for 840 officials have been conducted upto December, 2015. Training infrastructure ofIGMRIHapur has been upgraded to make it a centre of excellence for capacity building in post harvest management of foodgrains with the help of Central Warehousing Corporation (CWC).

Out of ~ 5.00 crores budgetary allocation for 2015-16, an amount of ~2.25 crores has been incurred up toDecember, 2015. The supply orders of ~ l.16 crore have been issued on 24.1l.2015 with the concurrence oflFD to thefirms for procurement of laboratory equipments for pesticide residue and mycotoxin contamination analysis offoodgrains. E-tender for small equipments worth of about ~ 92.00 lakhs has also been completed. An amount of~ 2.00 crores has been projected as budgetary outlay for 2016-17.


SUGAR MANAGEMENT:

3.17 GENERAL:...

Sugar is an essential commodity under the Essential Commodities Act, 1955 (herein referred to as the EC Act,1955).The EC Act, 1955, as amended from time to time, has been enacted to provide for, in the interest of general publicfor the control of production, supply and distribution of and trade and commerce of essential commodities. Thus, being acontrolled commodity, sugar sector activities including establishment of sugar mills as well as the procurement of basicraw material i.e. sugarcane are regulated, in one form or the other, through various control orders issued under theEssential Commodities Act, 1955.

India is the second largest producer of sugar even though sugar production in India has been cyclic in nature.Every 2-3 years of high sugar production are followed by 2-3 years of low sugar production. From the sugar season 2010-l l onwards the country could consistently achieve sugar production more than the domestic requirements and could alsogenerate surpluses for export, earning valuable foreign exchange in the process. Industry has also been encouraged todiversify its activity towards production of raw sugar targeted for export market. As such, it appears that the amplitude ofyear to year fluctuations in sugar production has diminished.

3.18 PRODUCTION OF SUGAR:

The sugar accounting is reckoned on the sugar season basis, which is in the time frame of October to September.Season-wise production of sugar, since 2010-11 is given below:-

•

(Qt . in lakh tons)Sugar Season Production of Sugar

2010-11 243.50

2011-12 263.432012-13 251.83*

2013-14(P) 245.542014-15(P) 284.63

2015-16(Estimated) 260.00(P) - Provisional Table 3.05

* - Excludes 6.76 lakh tons of sugar produced from imported raw sugar.

3.19 CONSUMPTION OF SUGAR:


As per various estimates, the share of bulk consumers in the sugar consumption basket ranges from 60-65%. Therest of the consumption is by individual households. The per-capita consumption is estimated at 20.3 Kg./annum for2014-15 last sugar season.

The basic parameter for estimating the domestic consumption was the quantum of levy and non-levy sugarreleased by the Government, periodically on a quota based system upto 2012-13 sugar season. Thereafter, on therecommendations of Dr. C. Rangarajan Committee, the sugar industry has been partially decontrolled and the levyobligation on sugar mills has been done away with for sugar produced after September, 2012 and the regulatory releasemechanism on open market sale of sugar has also been dispensed with. As such, estimated consumption would now bearrived on the basis of actual dispatches of sugar reported by the mills through on-line module. The details are asunder:-

Sugar Season Consumption2012-13 230.002013-14 243.00

2014-15(p) 256.00

(Qty in Lakh Tons)

Table 3.06(P) Provisional

3.20 CLOSINGSTOCKOF SUGAR:

The estimated closing stocks at the end of each sugar season from 2010-11 to 2014-15 are as under:-

Sugar Season Closing Stock at the endof the season

2010-11 58.192011-12 66.96

(Qty. in lakh tons)

utcome u 1get - epar2012-13 91.09

2013-14(P) 72.13*2014-15(P) 90.00

o B d 2016 17 D57

tment of Food & Public Distribution

Table 3.07(P) - Provisional(*) - Excludes 0.60 Lac tons unmarketable BISS IBrown sugar

3.21 SUGARCANE PRICING POLICY:

With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009 and the concept of StatutoryMinimum Price (SMP) of sugarcane was replaced with the 'Fair and Remunerative Price (FRP)' of sugarcane for 2009-10 and subsequent sugar seasons. The cane price announced by the Central Government is decided on the basis of therecommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting the State Governmentsand associations of sugar industry. The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixationof fair and remunerative price of sugarcane having regard to the following factors:-

!

a) cost of production of sugarcane;b) return to the growers from alternative crops and the general trend of prices of agricultural

commodities;c) availability of sugar to consumers at a fair price;d) price at which sugar produced from sugarcane is sold by sugar producers;e) recovery of sugar from sugarcane;f) *the realization made from sale of by-products viz. molasses, bagasse and press mud or their

imputed value;(* inserted vide notification dated 29.12. 2008)

g) **reasonable margins for the growers of sugarcane on account of risk and profits(**inserted vide notification dated 22.10.2009)

9-379 Dept!.of F& PD/2015


3.22 EXPORT OF SUGAR:

Till 15.1.1997, the export of sugar were being carried out under the provisions of the Sugar Export PromotionAct, 1958, through the notified export agencies, viz. Indian Sugar & General Industry Export Import Corporation Ltd.(ISGIEIC) and State Trading Corporation ofIndia Ltd. (STC).

Through an Ordinance, the Sugar Export Promotion Act, 1958, was repealed w.e.f. 15th January, 1997 and thusthe export of sugar was de-canalized. Under decimalized regime, the export of sugar was being carried out through theagricultural and Processed Food Products Export Development Authority (APEDA), under Ministry of Commerce.Thereafter, the sugar export was undertaken by the various sugar mills/merchant exporters, after obtaining the exportrelease orders from the Directorate of Sugar & Vegetable Oils.

During the surplus phase of 2006-07 and 2007-08 sugar seasons, the sugar exports were permitted withoutrelease orders vide notification dated 31.07.2007. Subsequently, the necessity of obtaining release orders werereintroduced from 01.01.2009, as country entered the down swing phase of sugar production.

During 2010-11 & 2011-12 sugar seasons (till May, 2012), in view of the surpluses over domestic consumption,exports of sugar were permitted under OGL at the strength of release orders.

Thereafter, the Government vide Notification No. 1059(E) dated 11.05.2012 has again dispensed with therequirement of export release orders. The export of sugar is now free without any restriction.

As per information published by DGCIS, Kolkata, the export/import of sugar from sugar season 2005-06 to2014-15 given below:

Export of Sugar

Sugar Season (Oct-S(~et) Quantity (In lakh MTs)2005-06 15.0392006-07 24.902007-08 58.232008-09 2.165


2009-10 2.3712010-11 28.142011-12 36.7352012-13 12.022013-14 26.85

2014-15 (P) 24.32Table 3.08

(P)- Provisional

3.23 EXPORT ASSISTANCE SCHEME

A. Scheme for export of sugar made between 21-06-2002 and 18-08-2004.

The Central Government vide its Notifications dated 2l.6.2002 and 19.1l.2003 decided to defray the expenditureon internal transport and freight charges and payment of neutralization of ocean freight charges and handling andmarketing charges respectively to the sugar factories on export shipment of domestically manufactured sugar with a viewto promoting sugar export and liquidating surplus sugar stocks available with the sugar factories. Defraying ofexpenditure on export shipment of the sugar was made effective for exports made with effect from 21.6.2002 up toexports made till 18.8.2004 in pursuance of release orders issued up to 20.6.2004 with validity of two months, and oceanfreight and handling and marketing charges being given as below:-

(i) Ocean freight Charges @ ~ 350 per MT is admissible to those sugar factories who exported their sugar by seaon or after 14-02-2003 and up to 18-08-2004.

(ii) Handling & Marketing charges @ ~500 per MT is admissible to those sugar factories who exported theirsugar by sea on or after 03-10-2003 and up to 18-08-2004.

B. Scheme for export of sugar made between 19-04-2007 and 30-09-2008.In order to enable sugar mills to pay cane price to sugarcane farmers, the Government announced on 19-04-2007 a

scheme for giving financial assistance to sugar factories for export of sugar made between 19-4-2007 to 18-04-2008,which was later extended to 30-09-2008 under Govt. Order dated 28-03-2008.


The new export assistance scheme covers payment of internal transport and freight charges including ocean freightand handling and marketing charges at a flat rate of ~ 1350 per tonne for sugar mills located in coastal states and ~ 1450per tonne for sugar mills located in non-coastal states. Number of claims settled and assistance paid to the sugar millunder the above schemes of the Central Government since 2003-04 is given as under:-.

The allocation and utilization of funds and number of claims settled under (i) re-imbursement of internal transportand freight charges; (ii) payment of ocean freight charges; and (iii) handling and marketing charges under old schemeduring and under new scheme for the relevant period from 2003-04 to 2015-16 (upto 31.12.2015) are given below:-

Internal Transport and Ocean freight and Internal Transport &Sanctioned freight charges handling & marketing freight charges under Total Expenditure

Year Budget (BE) (Old Scheme) charges(Old Scheme) Rule 20 A (New Scheme) (In Crore)(~ in Crore) No. of Actual Exp, No. of claims Actual Exp, No. of Actual Exp. No. of Actual Expclaims

(~ in Crore) settled (~ in Crore) claims(~ in Crore) claims

(~ in Crore)settled settled settled2003-04 50.00 418 31.86 I --- I --- --- --- 1 418 31.862004-05 125.00 392 46.09 --- --- --- --- i 392 46.09 !2005-06 90.00 44 5.88 270 31.56 --- --- 314 37.442006-07 50.00 38 7.94 94 13.02 --- --- 132 20.962007-08 150.00 26 3.40 60 7.00 124 69.92 210 80.322008-09 285.00 --- --- 3 0.74 459 284.26 462 285.002009-10 285.00 --- --- 2 0.60 441 284.40 443 285.002010-11 200.00 --- --- --- --- 268 146.81 268 146.81(RE 150Crore)2011-12 50 Crore --- --- --- --- 41 15 41 15(RE 15Crore)2012-13 25 Crore --- --- I 0.57 10 4.21 11 4.78(RE 5 Crore)2013-14 0.01 Crore --- --- --- --- --- --- --- ---2014-15 0.01 Crore --- --- --- --- --- --- --- ---2015-16 0.01 Crore --- --- --- --- --- --- --- ---(l!Qto31.12.15)

Total 918 95.17 430 53.49 1343 804.6 2691 953.26

..,

..

Table 3.09


C. The Government on 28.02.2014 has notified a scheme allowing incentive for marketing and promotionservices for raw sugar production targeted for export market for a quantity of 40 lakh MT during 2013-14 and 2014-15sugar seasons. The incentive amount was increased to ~ 4000 per MT for export of raw sugar during 2014-15 sugarseason subject to ceiling of 14 lakh MT. The incentive available under the scheme is to be utilized by the sugar mills formaking payment to the farmers. About 7.69 lakh MT of raw sugar has been covered under the scheme during 2013-14sugar season and about 5.30 lakh MT of raw sugar export is estimated to be covered under scheme during 2014-15sugar season. Availability and utilization of funds is given as under: -

Financial Qty of raw sugar B.E. R.E Actual RemarksYear exported (in Lakh MT) (~ In Cr.) (~ In Cr.) Expenditure

(~in Cr.)2014-15 7.68 - 200 183.87 Unutilized fund returned2015-16 5.30 (Estimated) - IOO( 1stBatch) 99.67 The funds will be utilized by end

100 (2IldBatch) of the current financial year.Total 400 283.54

Table 3.10

3.24 LEVY SUGAR PRICE EQULIZATION FUND:

The Levy Sugar Price Equalization Fund Act, 1976 (as amended in 1984) has been enforced from 1.4.1976 torecover the excess realization (ER) on account of sale of levy sugar price at higher prices than notified, as per orders ofthe High Court/Supreme Court to various litigant sugar mills. Whenever the Judgment is in favor of U.O.!, the recoveryof the Government dues is effected under the provision of the LSPEF Act.

oj

During the current financial year 2015-2016 (upto 31.12.2015) no recovery has been made. This is against therevised budgeted target of ~2 Crore. In the year 2014-2015, an amount of ~3.52 Crore was recovered and remitted to thesaid Fund.


3.25 IMPORT OF SUGAR:

Import if sugar which was placed under Open General License (OGL) with zero duty in March,1994, continuedwith zero duty upto 27.04.1998. The Government imposed basic customs duty of 5% and a countervailing duty of~ 850.00 per tone on imported sugar with effect from 28.4.1998. The basic custom duty was increased from 5% to 20%w.e.f. 14.1.1999 in addition to the countervailing duty. In the Union Budget for the year1999-2000, duty on importedsugar was further increased from 20% to 25% with surcharge of 10%. The customs duty on imports of sugar was againincreased to 40% on 30.12.1999 and 60% on 09.02.2000 along with continuance of countervailing duty ifRs, 950/- perton (w.e.f.01.03.2008) plus 3% education cess.

Sugar production in the sugar season 2008-09 has been declined and in order to augment the domestic stock ofsugar, the Central Government has allowed import of raw sugar under advance Authorization Scheme by sugar mills atzero duty from 17.02.2009up to 30.09.2009 and import of raw sugar at zero duty under Open General Licence (OGL)w.e.f. 17.04.2009 which was continued till 30.06.20012 thereafter, a moderate duty of 10% re-imposed w.e.f.13.07.2012 which was subsequently increased to 15% w.e.f. 08.07.2013 and thereafter from 15% to 25% with effectfrom 20.08.2014. Further, the 'import duty increased from 25% to 40% w.e.f. 30.04.2015. Thereafter, there had beenhardly any import of sugar under OGL.

IMPORT OF SUGAR(in MT)

Sugar Season Qty. imported **2005-06 0.072006-07 0.0052007-08 0.0042008-09 24.47***2009-10 41.80***

to

2010-11 3.65

2011-12 1.886

2012-13 17.12

2013-14 10.788

2014-15(P) 12.814

63Outcome Budget 2016-17. Department of Food & Public Distribution

<It,

Table 3.11

** As per Data furnished by DoeIS Kolkata.

*** As reported by Department of Revenue.

(P) - provisional

3.26 DE-REGULATION OF SUGAR SECTOR:

The Central Government considered the recommendations of the Dr. C. Rangarajan committee on de-regulation ofsugar sector and decided to do away with levy obligation on sugar mills for sugar produced after September, 2012 anddispense with the regulated release mechanism on open market sale of sugar. The recommendations of the Committeerelating to cane Area Reservation, Minimum Distance Criteria and adoption of the cane Price Formula have been left tothe State Governments for adoption and implementation, as considered appropriate by them.

3.27 SUGAR SUBSIDY:

Under existing system, to make sugar available in the PDS at the existing retail issue price, the StateGovernmentiUT administrations are required to procure it from the open market through a transparent system. TheCentral Government is reimbursing subsidy to the States/UT's @ ~ 18.50per kg, limited to the quantity based on theirexisting allocations. Further, with a view to ease out the financial burden of the State Governments, the Governmenthas decided to release advance subsidy to all State Governments who approach the Central Government for the same.


The Central Govt. vide order date ih Feb,2015 has given liberty to the State Governmentsl UT Administrationsto either absorb the additional cost, if any, on account of handling transportation and dealer's commission or pass it onthe consumers by including it in the Retail Issue Price (RIP).

The new system of open market procurement by States/UTs and seeking reimbursement from the Departmenthas been adopted by 30 States/UTs. During the financial year 2015-16, an amount of ~ 3488.48 crores (including~ 677.49 Crores to FCI) has been released to States/UTs upto 31.12.2015 against BE of ~ 4500 Crore.

3.28 BUDGETESTIMATES FOR FY 2016-17:

Under the existing scheme, the Statesl UTs are entitled for a fixed subsidy of ~ 18.50 per kg limited to thequantity based on their existing allocation. The total annual quota of the States IUTs including festival quota in thecountry is 2659016 MT. At present, six states are not participating in the sugar subsidy scheme. Therefore, the annualrequirement of sugar subsidy @ Rs 18.50 per kg in respect of 30 participating States/UTs in the scheme works out to~ 4000 crores. Further, funds are also required by FCl on account of deficit in the SPEF AIC as the States/U'Ts mayclaim the differential levy amount. The funds requirement by FCI for payments to State Govt. has be taken as Rs 500crores. The total requirement of funds under BE for FY. 2015-16 is ~ 4500 crores.

3.29 PROFILE OF THE SUGARINDUSTRY:

Sugar industry is an agro-based industry that impacts rural livelihoods of about 60 million sugarcane fanner andabout 6 lakh workers directly employed in sugar mills,. Employment is also generated in various ancillary activitiesrelating to transport, trade servicing of machinery and supply of agriculture inputs. India is the second largest producerof sugar in the world after Brazil and is also the largest consumer. Today Indian sugar industry's annual output is worthapproximately ~ 90,000 crores.

There are 715 installed sugar factories in the country as on 31.12.2015, with sufficient crushing capacity toproduce around 330 lakh MT of sugar. The capacity of sugar mills is, by and large, in the range of 2500 TCD-5000TCD, increasingly expending and going even beyond 10000 TCD.

..


Two standalone refineries have also been established in the country in the coastal belt of Gujarat and WestBengal which produce refined sugar mainly from imported raw sugar as also from indigenously produced raw sugar.The sector wise break-up of sugar mills in the country is as given below:-

S.No. Sector Number of factories1. Co-operative 3262. Private 3463. Public 43

Total 715*Table 3.12

"Includes each of one refinery in West Bengal & Gujarat.

3.30 INSTALLED SUGAR MILLS IN THE COUNTRY:

There are 715 installed sugar factories in the country as on 31.12.2015, with sufficient crushing capacity toproduce around 330 lakh MT of sugar. The capacity of sugar mills is, by and large, in the range of 2500 TCD-5000TCD, increasingly expendjng and going even beyond IOOOOTCD.Two standalone refineries have also beenestablished in the country in the coastal belt of Gujarat and West Bengal which produce refined sugar mainly fromimported raw sugar as also from indigenously produced raw sugar. The sector wise break-up of sugar mills in thecountry is as given below:-

S.No. Sector Number of factories1. Co-operative 3262. Private 346,., Public 43.).

Total 715*Table 3.13

"Includes each refinery in West Bengal & Gujarat.

10-379 Deptt, of F & PD/2015


3.31 ETHANOL BLENDED PETROL PROGRAMME (EBP PROGRAMME): •

Ethanol is an agro-based product, basically produced from the by-product of the sugar industry, viz. Molasses. Inthe years of surplus production of sugarcane, when the sugar prices are depressed, the sugar industry is unable to paycane price to the farmers. This is mainly due to surplus production of sugar. The ethanol blended petrol programme,besides lowering pollution levels, is expected to provide another outlet for ethanol use, thus insuring utilization ofmolasses produced as a by- product during manufacture of sugar. This would improve the reserve stream of the sugar

mills.

It has been decided by the Government that 5% mandatory ethanol blending with petrol should be implementedacross the country and procurement price of ethanol will be decided between Oil Marketing Companies and suppliers ofethanol. This is expected to generate revenue for sugar mills enabling them to avoid building up of cane price arrears. Afew policy for supply of ethanol for EBP has been introduced which offers a remunerative price and 6 months the entireethanol supply chain.

3.32 SUGAR DEVELOPMENT FUND:

Under the Sugar Cess Act, 1982, a cess @ ~14.00 per quintal upto 31.12.2007, @ ~15.00 per quintal from01.01.2008 and @~ 24.00 per quintal w.e.f from 01.03.2008 is being collected on all sugar produced and sold by anysugar factory within India,

The Sugar Development Fund Act, 1982, provides that an amount equivalent to the proceeds of the duty of exciselevied and cotlected under the Sugar Cess Act, 1982 reduced by the cost of collection as determined by the CentralGovernment, together with any money received, by the Central Government for purpose of this Act, shall after dueappropriation made by Parliament by law, be credited to the Sugar Development Fund (SDF).

During the period from 1982-83 to 2015-16. (upto 30.11.2015) Net Cess amount of ~8785.75 crore have beencollected. Out of this, upto 30.11.2015, ~7606 crore have been transferred to the Sugar Development Fund and as per


approved appropriations ~ 12453Al crore were disbursed for the development of sugar industry upto 31.12.2015 as perprovisions contained in Sugar Development Fund Act, 1982 as amended from time to time.

Under the Sugar Development Fund Act 1982, the Fund can be utilized by the Government ofIndia for the following:

a) Making loans for facilitating the rehabilitation and modernization of any sugar factory.

b) Making loans for the undertaking of any scheme for development of sugarcane in the area in which any

sugar factory is situated.

c) Making loans to any sugar factory to implement a project of bagasse-based co-generation of power.

d) Making loans to a sugar factory for production of anhydrous alcohol or ethanol.

e) Making grants for the purpose of carrying out any research project aimed at the promotion and

development of any aspect of sugar industry.

f) Defraying expenditure on internal transport and freight charges on export shipment of sugar.

g) Defraying expenditure for the purpose of building up and maintenance of buffer stock with a view to

stabilizing price of sugar.

h) Defraying expenditure for the purpose of financial assistance to sugar factories towards interest on loans

given in terms of any scheme approved by the Central Government from time to time.

i) Defraying expenditure on marketing and promotion service for raw sugar production.

j) Defraying expenditure on Interest subvention on scheme for extending soft loan to sugar mills.

k) Defraying any other expenditure for the purpose of the Act.


Sugar Development Fund is an important source of funds for providing loans at concessional rate to sugarfactories to modernize and expand their capacity and utilize the by-products like bagasse and molasses to improverevenue generation and their viability.

Upto 3l.12.20 15, the amount disbursed to various sugar mills for various schemes during financial year 2015-20 16(upto 31.12.2015) is as follows:-

Sl. Name of Scheme AmountNo. disbursed1. Admn. of SugarDevelopment Fund 13.752. Loan to sugar factories for modernization! rehabilitation of plant and machinery, including expansion of 50.08

crushing capacity" Loans to sugar factories for sugar cane development 12.73.).

4. Loans to sugar factories for bagasse based cogeneration power projects 29.715. Loans to sugar factories for production of ethanol from anhydrous alcohol/alcohol from molasses 16.896. Reimbursement of Internal Transport & freight to sugar factory on export shipment and payment of other 0.00

permissible claim7. Subsidy maintenance of Buffer Stock of Sugar 1.048. Scheme for Extending Financial Assistance to Sugar undertaking 2007 0.009. Scheme for Extending Financial Assistance to Sugar undertaking 2014 600.6010. Grant-in-Aid for development of sugar industries 0.0811. Incentive on marketing and promotion of raw sugar production 99.6712. Interest on subvention on scheme for extending soft loan to sugar mill, 2015 100.00

Total 924.55

(~ in Crores)

"',

Table 3.14During the financial year 2015-2016 (upto 30.11.2015) an amount of ~ 378.81 crore has been recovered from various sugar mills from the

outstanding recoverable dues ofSDF loans.


3.33 E-GOVERNANCE INITIATIVES:

The Directorate of Sugar, Department of Food and Public Distribution in order to improve and systemize the datamanagement system in sugar sector, has developed a web based platform (esugar.nic.in/sugar pll) for onlinesubmission of inputs by sugar mills on monthly basis. This has helped the Government to take prompt and informedpolicy decisions for better management of sugar sector. The new system also provides transparency in the datamanagement of the sugar mills as well as Government's working. The portal also provides window for onlineconnectivity with the State Governments for getting inputs regarding production, stocks, utilization of levy sugar forPDS, Cane price arrears of sugar mills on fortnightly basis etc.

3.34 NATIONAL SUGAR INSTITUTE, KANPUR:

National Sugar Institute, Kanpur is the premier Institute, providing technical training in the disciplines of SugarTechnology. Sugar Engineering. Alcohol Technology & other allied branches. During Academic Session 2015-16, 211students were admitted in various courses conducted by the Institute. A new course namely "Certificate Course inIndustrial Instrumentation & Process Automation" is proposed to be introduced w.e.f. Academic Session 2016-17.

The Institute undertakes research on problems of Sugar industry, Alcohol & Allied industry, By-product utilizationetc. On the basis of findings; research work carried out by different divisions of the Institute, Twenty two nos. researchpapers were presented I published I sent for publication by the faculty members of Institute in Indian & InternationalSugar Journals on various topic which includes energy conservation, bagasse gasification, by-products utilisation forvalue addition, enhancement of productivity of sugar & ethanol units during the year 2015-16 (for the period April2015 to December 2015).

The Institute's team of experts visited factories to investigate the problems referred & rendered for technical advi~eon payment of prescribed fees. Side by side, technical assistance was also provided to the sugar factory, distilleries &other sugar related organisation on different technical matters against payment of schedule charges. Institute alsorendered technical assistance to the Central & various State Governments on various matters concerning sugar & allied


industry. During the period April 2015 to December 2015, the technical consultancy was provided to Thirty nine Sugar& Allied units.

3.35 THE NEW SYSTEM FOR DISTRIBUTION OF SUGAR IN THE PUBLIC DISTRIBUTION SYSTEM(PDS):

The Central Government has decontrolled the sugar sector partially by removing the levy obligation on sugar millsand doing away with the regulated release mechanism on open market sale of sugar. Prior to it, sugar mills weremandated to supply 10% of their production to meet the Public Distribution System (PDS) demand. Sugar mills are nowfree to sell their entire production as per their commercial prudence. However, under the new dispensation, to make sugaravailable in the PDS at the existing retail issue price of ~ 13.50 per kg, the State Governments/UT administrations havebeen asked to procure it from the open market through a transparent system. The Central Government would reimbursethe States/U'I''s @ ~ 18.50 per kg, limited to the quantity based on their existing allocations. Further, with a view to easeout the financial burden of the State Governments. the Government has decided to release advance subsidy for the firstquarter to all State Governments who approach the Central Government for the same.

"

3.36 EXCISE DUTY LOAN

The Government on 03.01.2014 has notified a Scheme viz. Scheme for Extending Financial Assistance to SugarUndertakings (SEFASU-14) for providing financial assistance in the form of interest free loans worth ~ 6600 crores foradditional workingcapital to sugar mills for clearance of cane price arrears. Interest burden estimated at ~ 2303.77 croresover next five years would be borne by the Central Government through Sugar Development Fund. The loan will beutilized by the sugar mills for clearance of cane price arrears of previous sugar seasons and timely settlement of cane priceof current sugar season relating to the Fair and Remunerative Price (FRP) fixed by the Central Government to thesugarcane farmers. ....'


MANAGMENET OF EDIBLE OILS

3.37 IMPORT POLICY ONEDIBLE OILS:In order to harmonise the interest of farmers, processors and consumers, and at the same time regulate the import

of edible oils to the extent possible, Government reviews the duty structure on edible oils from time to time. Thecustoms duty on import of crude edible oils was revised from 7.5% to 12.5% and import duty on refined edible oils wasrevised from 15%to 20% w.e.f.l7.09.2015

Export of edible oils had been banned w.e.f. l7.03.2008. However, w.e.f. 05.02.2013, castor oil, coconut oil fromElectronic Data Interchange (EDI) ports and through notified Land Custom Stations, edible oils produced from minorforest produce and organic edible oils have been exempted from the prohibition on export of edible oils. Export ofedible oils has been permitted in branded consumer packs of upto 5 kg, subject to a minimum Export Price of USD 900per MTw.e.f. 06.02.2015. Export of Rice Bran Oil in bulk has been exempted from the ban w.e.f. 06.08.2015.

3.38 PRICES OF EDIBLE OILS:There is an ever-increasing gap between demand and supply of edible oils in the country. Imports of edible oils

have been allowed/ facilitated to make this item of mass consumption easily available to consumers at reasonableprices. Import duty on edible oils is revised from time to time to ensure un-interrupted supply of this commodity to the

consumer.

Wholesale prices of major edible oils during the last Financial Year (2014·15) have been under control. Due toinsufficient and untimely rains there had been a decrease in the production of oilseeds, especially mustard seed,resulting in an increase in the prices of mustard oil during the festival season in the months of November- December

2015.

3.39 INTERNATIONAL COOPERATION:India is associated with a number of international agencies working in the field of food related matters. These

include World Food Programme (WFP), SAARC Food,Bank, Food and Agriculture Organisation (FA0), International'


Grains Council (IGC) and International Sugar Organisation (ISO) etc. Interface of Department of Food & PublicDistribution with these organizations is handled in International Cooperation(IC) Section of the Department.

3.40 WORLDFOOD PROGRAMME:

Allocation of food grains(Rice & Wheat) under the Country Programme Action Plan(CPAP) 2008-2012 signedbetween the Government of India and the United Nations World Food Programme(WFP) was made have been made byDepartment of Food & Public Distribution at BPL issue prices for the development schemes to be utilized in variousWFP assisted projects in India during 2008-2011. A total quantity of 1,65,065 tonnes of foodgrains have beenallocated during these periods.

.,.

3.41 WFP'S COUNTRYSTRATEGIC PLAN (CSP) 2015-18

The new Country Strategic Plan (CSP) 2015-2018 has been signed between the UN World Food Programme(UNWFP) and Government of India under Department of Agriculture & Cooperation. Department of Food & P.O. hasbeen made the nodal department for the strategic priority area under Component: I: Support state Governments tobuild a scalable implementation approach that enhances the effectiveness and efficiency of the National FoodSecurity Act for its implementation.

Under this plan, WFP is now focused around providing technical assistance in a new role than the earlierCountry Programme Action Plan(CPAP) 2008-2012. The main focus of WFP is on supporting the Govt. of India tomake significant and measurable progress in order to contribute to the following two objectives:-

(i) ensuring access to safe; nutritious and sufficient food for all people all year round

(ii) ensuring ending malnutrition according to internationally agreed targets, with a focus on stunting andwasting for children under 5 years of age, and addressing the nutritional needs' of adolescent girls,pregnant and lactating women, and older persons.

Supporting the Government of India to advance these objectives, WFP will work with the Government at theNational and State level and collaborate with UN agencies including FAO and UNICEF within the United Nations


Development Action Framework (UNDAF). In this regard, 4 strategic priority areas have been identified to achievethe Outcomes during 2015-2018. Strategic Outcome-I: The efficiency of food based national safety-nets isimproved to support the efforts of the Government of India to deliver the Zero Hunger and National FoodSecurity Act targets, is one of these areas to be implemented by Deptt. of Food and P.D. among other lineMinistries/Departments.

During 2015 WFP has set under its Annual Work Plan 2015, Component-I: Support state Governments tobuild a scalable implementation approach that enhances the effectiveness and efficiency of the National FoodSecurity Act concerning this Department for implementation. The following are the expected CSP Outputs in thisarea:-

• TPDS ration distributed to the right beneficiaries in right quantity and quality in the WFP supportedStates;

• Enhanced nutritional contents of food safety-net schemes under NFSA;

• An operational model for e-vouchers developed and implemented.

WFP through the Annual Work Plan, 2015 under CSP-I proposed support for beneficiary identification andenrolment/digitization in State Govts. especially in Odisha and Kerala and implementation ofTPDS reforms.

3.42 SAARC FOOD BANK:

In pursuance of the decision taken in the 14thSAARC Summit held in New Delhi on April 3-4, 2007, the Headsof States of South Asian Association for Regional Cooperation(SAARC) countries have signed the Agreement toestablish the SAARC Food Bank. The Food Bank will supplement national efforts to provide food security to thepeople of the region. The agreement on Establishing the SAARC Food Bank has since been ratified by the President ofIndia on 1ih April, 2007. As per this agreement, SAARC Food Bank shall have a reserve of foodgrains to bemaintained by each member states consisting of either wheat or rice, or a combination of both as assessed share of thecountry.

11-379 Deptt.of F& PD/2015


India's initial assessed share in the reserve was 1,53,200 MTs out ofa total share of2,43,000 MTs. The assessedshare is presently kept as 3,06,400 MTs out of a total share of 4,86,000 MTs. The quantum of reserve have been kept indifferent strategic locations in the designated Godowns of Food Corporation of India (FCI). Joint Secretary(lC),Department of Food & Public Distribution has been designated as Member of SAARC Food Bank Board to representIndia. The Board has considered and agreed to the proposal to designate the Central Grain Analysis Laboratory(CGAL), New Delhi as the regional reference laboratory for SAARC Food Bank.

. The 8th SAARC Food Bank Board (SFB) meeting has been held on 2-3 September, 2015 at Male, Maldives.India represented the meeting at the level Joint Secretary(IC) in the department in the capacity of Member, SAARCFood Bank Board. The meeting inter-alia discussed matters relating to the development of the SAARC Food SecurityInformation System (SFSIS), formulation of the guidelines and storage methods, practices and quality controlmeasures, foodgrains scenario in South Asia and lowering the threshold limit for withdrawing foodgrains from foodbank etc.

3.43 FOOD ANDAGRICULTURAL ORGANISATION (FAO) and World Food Security (CFS):-

Food and Agricultural Organization (FAO) is one of the largest specialized agencies in the UN System foundedin 1945 with a mandate to raise levels of nutrition and standard of living by improving agricultural productivity andliving conditions of rural population. The Committee on World Food Security (CFS) serves as a forum in the UnitedNations System for review and follow-up of policies concerning world food security, including food production,physical and economic access to food. India is a member to both FAO and CFS. Committee on World Food Security(CFS) monitors the progress of implementation of the WFS Plan of Action.

The 42nd Session of the Committee on World Food Security(CFS) held at FAO Headquarters in Rome, Italyfrom iz" .is" October, 2015 has been attended by a delegation led ;by Ms. Vrinda Sarup, Secretary, Department ofFood & P.D. and Shri Vimlendra Sharan, Minister (Agriculture), Embassy of India, Rome. Deliberation on thefollowing issues have been made during the Session:-

..

(i) CFS and the Sustainable Development Goal Challenge(ii) State of Food Insecurity in the World(SOFI), 2015-11-09

(iii)(iv)(v)(vi)(vi)

II, (vii)(viii)(ix)


Policy Round Table on Water for Food Security and NutritionFramework for Action for Food Security and Nutrition in Protracted CrisisFood Security and Nutrition in the Post 2015 Development Agenda: Goals, Action and OutcomesEnhancing Regional Food Supply System and Processes to improve NutritionNational Multi Stakeholder Approaches and Experiences to improve Nutrition.The Global Strategic Framework for Food Security and NutritionOutcomes of High Level Forum on Connecting small holders to marketsCFS and its role in advancing Nutrition

3.44 G-20 MATTERS:

A Steering Committee has been constituted in the Department of Agriculture & Cooperation under theChairmanship of Secretary (A&C) to oversee the development, follow-up action on the initiative declared in Ministerialdeclaration endorsed at G-20 Agriculture Ministers meeting held in June, 2011. The Committee is comprised ofrepresentatives from different line Ministries. Deptt. of Food & P.O. has been made the Nodal Department for (i) RapidResponse Forum and (ii) Emergency Humanitarian Food Reserves. Besides, this Department has been included as amember of Agricultural Marketing Information System (AMIS) under the Nodal authority of Deptt. of Agriculture &Coop. to carry out different mandate as considered appropriate.

3.45 INTERNATIONAL GRAINS COUNCIL (IGC):

India is a member of the International Grains Council (IGC) an intergovernmental forum of exporting andimporting countries for co-operation in wheat and coarse grain matters which was previously known as InternationalWheat Council up to 1995. It administers the Grains Trade Convention 1995. The IGC Secretariat, based in Londonsince 1949, also services the Food Aid Committee, established under the Food Aid Convention. International GrainsAgreement comprises of Grains Trade Convention (GTC) and Food Aid Convention (FAC). India is a signatory to theInternational Grains Agreement (IGA) 1995 and its Grain Trade Convention (GTC) 1995 which is effective from l "July 1995. IGC have two types of members-Importing Members and Exporting Members. India has been included in


the category of Exporting members in July, 2003 and represented in the meetings/session of the Council held from timeto time. Besides, this Department also participates in other meetings of IGC like Market Conditions Committeemeetings and Executive Committee meetings. Department of Food & P.D. pays India's Annual membershipcontribution to the Council.

3.46 VISITS OF FOREIGN DIGNITARIES OF OTHER COUNTRIES:

In order to strengthen the bi-Iateral relations especially in the Food & Agriculture Sectors, foreign dignitaries atthe level of Foreign Ministers, Ambassadors and high level business executives of the countries concerned visits thisDepartment to have a delegation level talks with Hon'ble Ministers, Secretary & other officers of this Department.

3.47 TRAINING PROGRAMMES ETC.

Training is one of the effective and tested tools for performance enhancement as well as upgradation ofknowledge and skills of the personnel. Organizational motivation and morale, as reflected in the attitudes andadministrative culture, are rendered through relevant and sharply focused effective training programmes. Officials ofthis Department have been nominated from time to time to attend training programmes under domestic & foreignfunding schemes of Department of Personnel & Training conducted in various institutes/universities abroad. Besides,officers/delegation of the level of Under Secretary and above of this Department have also been deputed abroad forundertaking official study tours and to attend International Conferences/Seminar/meetings of Internationalorganizations like Food & Agriculture Organisation(F AO), International Grains Council(IGC), International SugarOrganisation(ISO) & for matters related with SAARC Food Bank.

Following is a list showing training programme attended by officers of this Department during 2015 (upto 30-11-2015):-

Purpose of the Training Name of the OfficerTo attend the customized training programme on "Negotiations for Public Leaders" at Shri Prabhas Kumar Jha, SS & FA,University of California, Barke1ey(UCB), USA from 1 -12 June, 2015 Department of Food & P.D.

To attend customized training programme on "Leadership & Strategic Thinking" at Ms. Vrinda Sarup, Secretary,Cambridge University, London, U.K. scheduled on 5-10 July, 2015 Department of Food& P.O.To attend short-term training programme on "Structuring and Negotiating Legal Shri Manoj Kumar Gupta, Director,Agreements for Public-Private Partnership Concessions and Contracts" at Institute of Department of Food& P.O.Public-Private Pminership(IP3), Washington DC from 14-25 September, 2015


Table 3.15

" 3.48 BUDGETARY ALLOCATION AND UTILISATION:

Two budgetary non-plan heads are being operated in IC Section i.e. 345l.47.0 l.12- Foreign Travel Expenses and2408.02.00.32- Contribution to International Grains Council.

Regarding budgetary provision under Foreign Travel Head, a sum of ~42.00 lakh under B.E.-20 15-16 has beenprovided under this head. A sum of ~ 17.54 lakh has actually been spent as on date leaving a sum of ~24.46 lakh tospend during the remaining period from December, 2015 to March, 2016 of the F.Y.

Regarding budgetary provision on heads for contribution to IGC, provision of ~ 30.00 lakh was made underB.E.2015-16. Out of ~30.00 lakh, a sum of ~26,63,772/- has 'actually been spent as on date for making full and finalpayment of India's membership contribution of GBP 27417 for the current financial year. The unutilized sum of~ 3,36,228/- has been surrendered with budget at RE .

*****


CHAPTER- IV

REVIEW OF PAST PERFORMANCE:

4.1 This Chapter deals with the review of past performance in terms of targets. The analysis gives scheme-wisephysical performance with reasons for variations. Scope and objectives of individual programmes and schemes havebeen given along with their targets and achievement under the sub-headings 'Food Management', 'Management ofSugar' and 'Management of Edible Oil's.

4.2 FOOD MANAGEMENT:

Government undertakes to purchase all wheat and paddy of prescribed specifications offered on sale by thefarmers at the notified Minimum Support Price, thereby ensuring them a stable market for their produce. Non Basmatirice is procured for the Central Pool under the statutory levy system imposed by the State Government in exercise ofpowers conferred on them under the Essential Commodities Act, 1955. In view of increase in direct procurement fromthe farmers over the years coupled with comfortable central pool rice stock position, initially it was decided byGovernment that starting from the KharifMarketing Season (KMS) 2013-14, levy percentage in all the States/UTs maynot be allowed to exceed 25%. However, in view of administrative difficulties expressed by the State Governments, thedecision to limit levy percentage to 25% has been deferred for one year.

4.3 DECENTRALIZED PROCUREMENT OF FOODGRAINS SCHEME: ..The scheme of Decentralized Procurement of foodgrains was introduced by the Government in 1997-98 with a

view to effecting savings in the form of reduction in the outgo of food subsidy, enhancing the efficiency of procurementand PDS and encouraging local procurement to the maximum extent thereby extending the benefits of MSP to localfarmers. Under the decentralized procurement scheme, the State Government itself undertakes direct purchase of paddyand wheat including procurement of levy rice on behalf of Government of India. Purchase centres are opened by theState Governments and their agencies as per their requirements.


4.4 The Central Government undertakes to meet the entire expenditure incurred by the State Governments on theprocurement operations as per the approved costing. The Central Government also monitors the quality of foodgrainsprocured under the scheme and reviews the arrangements made to ensure that the procurement operations are carriedout smoothly. The State Governments/UTs undertaking Decentralised Procurement Scheme are as under:-

S.No Name of the State Procurement of foodgrains

1. West Bengal Rice/Wheat

2. Madhya Pradesh Wheat/Rice,.., Chhattisgarh Rice/Wheat.).

4. Uttarakhand Rice/Wheat

5. Andaman& Nicobar Islands Rice

i 6. Odisha Rice

7. Tamil Nadu Rice

8. Gujarat Wheat

9. Karnataka Rice

10. Kerala Rice

11. Andhra Pradesh Rice

12. Bihar Rice/ Wheat

13. Rajasthan (Alwar only) Wheat

14. Punjab Wheat (For NFSA obligation)

15. Telangana Rice(9 Districts in process)

Table 4.01


4.5 The procurement of wheat and rice in the States which have adopted decentralized procurement during thelast five years has been as under:-

Marketing Year Wheat Rice2011-12 51.12 123.632012-13 87.89 123.592013-14 63.62 110.202014-15 70.96 188.172015-16 73.86* 17.87*

(in lakh tonnes)

Table 4.02

*FCI figures as on 04.12.2015

4.6, PROCUREMENT OF RICE:

The procurement of rice for Central Pool (including paddy in terms of rice) since 2009-10 is given below:Procurement of Rice for Central Pool

( Kharif Marketing Season: October-September)

ProcurementYear FCI State Agencies Total2009-10 101.73 218.61 320.342010-11 119.70 222.09 341.792011-12 91.10 259.31 350.60

(Figures in lakh tonnes) ';.

••

,2012-13 70.33 270.11 340.442013-14 60.62 257.83 318.452014-15* 23.95 297.70 321.652015-16* 4.71 135.90 140.61

81Outcome Budget 2016-17 Department of Food& Public Distribution

Table 4.03*Position as on 1.12.2015

4.7 For the year 2015-16, procurement of rice is in progress and is estimated to be 300.00 lakh tonnes. The State-wise percentage of the procurement of rice to the Central Pool during 2015-16 and 2014-15 is given below:

PROCUREMENT OF RICE INCLUDING (PADDY IN TERMS OF RICE) DURING KMS 2015-16 ANDCORRESPONDING POSITION DURING KMS 2014-15 FOR THE CENTRAL POOLTotal procurement during KMS 2015-16 = 146.15 LAKH TONNES (As on 7.12.2015)Total procurement during KMS 2014-15 = 114.87 LAKH TONNES (As on 7.12.2015)

State KMS 2015-16 KMS 2014-15Quantity procured % of Quantity Quantity % of Quantity(in lakh tonnes) procured to total procured in lakh procured to Total

procurement tonnes procurement made bymade by all States all States

Andhra Pradesh 2.88 1.97 0.19 0.16Chhattisgarh 6.16 4.21 0.10 0.08Haryana 28.54 19.52 19.92 17.34Madhya Pradesh 1.05 0.71 1.11 0.96Maharashtra 0.18 0.12 0.18 0.15Odisha 0 0 0 0Punjab 93.43 63.92 77.61 67.56Tamil Nadu 0.39 0.26 0.02 0.01Uttar Pradesh 0.70 0.47 0 0

12-379 Deptt.of F& PD/2015

,Uttarakhand 1.76 1.20 0.95 0.82Total 135.09 92.43 100.08 87.12Others 11.06 7.56 14.79 12.87Grand Total 146.15 100.00 114.87 100.00


Table 4.04

# Procurement figures ofKMS 2015-16 as per FCI's report dated 7.12.2015.@ Figures of procurement ofKMS 2014-15 in corresponding period as on 7.12.2015.

4.8 The State-wise procurement of wheat during the Rabi Marketing Season during the last 5 years is given below:(In Lakh Tonnes)

State 2011-12 2012-13 2013-14 2014-15 2015-16

Haryana 68.28 86.65 58.73 64.95 67.78

M.P. 49.65 84.93 63.55 70.94 73.09

Punjab 109.57 128.34 108.97 116.41 103.44

Rajasthan 13.03 19.64 12.68 21.58 13.00

U.P. 34.61 50.63 06.83 06.28 22.67

Others 7.19 11.29 0.16 0.07 0.9

All India 283.35 381.48 250.92 280.23 280.88

Table 4.05

4.9 The State-wise procurement of wheat during 2015-16 is given below:

Procurement of Wheat during 2015-16 Rabi Marketing SeasonTotal Quantity Procured=280.88 Lakh Tonnes

Quantity Procured (In lakh tonnes) % of Quantity ProcuredStates by State agencies to

FCI State Agencies Total Total Procurement madeby all States

Haryana 0 67.78 67.78 24.13M.P. 0 73.09 73.09 26.02

Punjab 18.48 84.96 103.44 36.82Rajasthan 9.50 3.50 13.00 4.62U.P. 1.64 21.03 22.67 8.07Total 29.62 250.36 279.98 99.67Others 0.22 0.68 0.9 0.32Grand Total 29.84 251.04 280.88 100.00


Table 4.06

4.10 Foodgrains are procured at the Minimum Support Price (MSP) fixed by the Government. The MSP forCommon and Grade 'A' paddy was fixed at ~ 1410/- and ~ 1450/- per quintal respectively for the 2015-16 KharifMarketing Season (October - September). The MSP of wheat was fixed at ~ 1450/-per quintal for the Rabi MarketingSeason 2015-16. MSP of wheat has been fixed at ~ 1450/- per quintal for RMS 2015-16. The comparative MSP ofwheat and paddy since 2007-2008 to 2015-2016(marketing seasons) is given below:

Year Wheat ! PaddyYear(MSP+Bol1us) COl11l11on+Bonus I Grade A+Bonus,RMS 2007-08 750$(+ 100)=850 KMS 2007-08 645%(+ 100)=745 675%( + 100)=775RMS 2008-09 1000 KMS 2008-09 850* (+50)= 900 880*(+50)=930RMS 2009-10 1080 KMS 2009-10 950* *(+50)=1000 980**(+50)=1030RMS 2010-1 I 1100 KMS 2010-11 1000 1030RMS 201 1-12 1170/\ (1120+50) KMS 201 1-12 1080 1110RMS 2012-13 1285 KMS 2012-13 1250 1280RMS 2013-14 1350 KMS 2013-14 1310 1345RMS 2014-15 1400 KMS 2014-15 1360 1400RMS2015-16 1450 KMS 2015-16 1410 1450

(~ per quintal)

Table 4.07


An incentive bonus of ~ 40 per quintal approved for paddy procured till 31.3.2007. Later the applicability of bonusextended upto 30.9.2007 for the States of Andhra Pradesh, Tamil Nadu, Orissa, West Bengal and Chhattisgarh and for Bihar and

Kerala upto 31.5.2007. '.$ An incentive bonus of ~ 100 per quintal over and above the MSP was also given during the entire RMS 2007-08.%An incentive bonus of ~ lOOperquintal over and above the MSP was also given during the entireKMS 2007-08. In KMS 2007-08, MSP was further increased to ~ 850 and ~ 880 per quintal for Common and Grade 'A'

varieties of paddy w.e.f. 24.6.2008.* An incentive bonus of ~ 50 per quintal over and above the MSP was also given during the entire KMS 2008-09.** An incentive bonus of ~ 50 per quintal over and above the MSP was given during entire KMS 2009-10./\ An incentive bonus of ~ 50 per quintal of wheat over and above the MSP was given during RMS 2011-12.

4.11 DISTRIBUTION OF FOODGRAINS:

The following table shows the offtake of rice and wheat under TPDS during the financial years 2011-12 to 2015-16 (uptoNovember, 2015).

SchemesOfftake of Foodgrains (Rice +Wheat) from Central Pool

(In lakh tons)

2011-12 2012-13 2013-14 2014-15 2015-16 (upto Nov., 15)

TPDS of which* 431.020 448.757 445.269 474.15 382.82

BPL* 173.030 179.615 ·162.065 96.12 75.34

APL* 160.900 168.987 156.393 105.25 83.87

Antyodaya (AAY)* 97.090 100.155 126.810 56.39 40.88

AAY/ Priority --- --- --- 183.50 164.06

Tide Over --- --- --- 4.61 3.01

Special Adhoc 72.080 44.012 16.835 21.57 14.41

1501174 Poorest District 6.470 21.779 0.033 ---

Offtake against allocation made at Eco. Cost! MSP rate --- --- 5.173 6.72 1.25

Welfare Schemes 41.183 43.525 43.891 41.25 24.97

85utcome u get - , epartment 0 00 u lC IS n ution

Open Market Sale 12.030 69.681 62.839 41.96 26.55Export 0.986 30.709 24.289 0.40 0Total 563.769 658.463 598.328 559.45 435.45

o B d 2016 17 D fF d & P bI" D· t ·b

Table 4.08

Note:- the above offtake figures are as per the report prepared by FCI. Under TPDS offtake is against the allocation upto Dec, 2015.

*Revised by FCr for 2013-14

4.12 ALLOCATION OF FOOD GRAINS UNDER TPDS:

With a view to make receipt of foodgrains under TPDS, Government of India has enacted NFSA which hascome into force w.e.f. 5-7-2013. The Act provides for coverage of upto 75% of the rural population and upto 50% ofthe urban population for receiving subsidized foodgrains under Targeted Public Distribution System(TPDS), thuscovering about two-third of the population. The eligible persons identified by the StateslUTs will be entitled to receive5 kgs of foodgrains per person per month at subsidized prices of ~ 3/211 per kg for rice/wheat/coarsegrains. Theexisting Antyodaya Anna Yojana (AAY) households, which constitute the poorest of the poor, will receive 35 kgs offoodgrains per household per month.

The States/UTs which have not implemented the Act are receiving foodgrains under existing TPDS which isbased on March, 2000 population estimates of Registrar General of India and 1993-94 poverty estimates of erstwhilePlanning Commission under which foodgrains (including additional allocations) are allocated @35 kg per family permonth for AAY and BPL families and @ 15-35 kg per family per month for APL families.

So far only 25 State/UTs Governments i.e Andhra Pradesh, Assam, Bihar, Chhattisgarh, NeT of Delhi, Goa,Haryana, Himachal Pradesh, lharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Sikkim,Talangana, Tripura, Uttar Pradesh, Uttrakhand, West Bengal, Chandigarh, Lakshadweep, Pudducherry and Daman &Diu have implemented NFSA and revised monthly allocation of foodgrains under NFSA has been made to theseStates/UTs. Rest of the 11 States/UTs continue to get foodgrains under TPDS for AAY, BPL and APL families on thebasis 1993-94 poverty estimates of Planning Commission and March 2000 population estates ofRGI.


Under existing TPDS, the Government has so far made a provisional allocation of 278.25 lakh tons to 25StateslUTs who have implemented NFSA and 216.64 lakh tons of foodgrains to the reaming 11 States UTs during thecurrent year. Further, an additional quantity of 52.18 lakh tons of foodgrains have also been allocated during the currentyear for Below Poverty Line (BPL) and Above Poverty Line (APL) families in the States/UTs where NFSA has notbeen implemented. In additional 11.14 lakh tons of foodgrains have been allocated to the States for festival, calamitiesand additional TPDS requirement etc, and 51.97 lakh tons have been allocated under Other Welfare Schemes (OWS)for 2015-16 so far. Thus, during the current year, Government has so far made a provisional allocation of 610.08 lakhtons for TPDS, OWS, festivals relief etc.

•

4.13 BUFFER STOCKING POLICY OF FOODGRAINS:

The objectives of the Buffer Stocking Policy are :-

(i) To meet the prescribed Minimum Buffer Stock norms for food security,(ii) For monthly releases of foodgrains for supply through the PDS/Welfare Schemes,(iii) To meet emergency situations arising out of unexpected crop failure, natural disasters etc. and(iv) . For market intervention to augment supply so as to help moderate the open market prices.

EXISTING BUFFER NORMS(from January, 2016)

(In lakh tons)Wheat Rice Total

1st April 74.60 135.80 210.401st July 275.80 135.40 411.201st October 205.20 102.50 307.701st January 138.00 76.10 214.10

Table 4.09

Includes Food Security Reserve of 30 lakh tons of wheat from 1.7.2008 onwards and 20 lakh tons of rice from 1.1.2009 onwards.~ I


4.14 STOCK POSITION IN THE CENTRAL POOL:

The stock offoodgrains in the Central Pool as on 1.1.2016 was 365.76 lakh tons which comprised of 126.891akh tons ofRice and 237.88 lakh tons of Wheat and 0.99 lakh tons of coarsegrains. The total stock of foodgrains in the Central Pool vis-a-visfoodgrain stocking norms since 1.1.2012was as follows:

AS ON WHEAT RIC E TOTAL

Actual stock Minimum Actual stock Minimum Actual stock MinimumFOODGRAIN FOODGRAIN FOODGRAIN

STOCKING NORMS STOCKING NORMS STOCKING NORMS

1.1.2012 256.76 112 297.18 138 553.94 250

1.4.2012 199.52 70 333.50 142 533.02 212

1.7.2012 498.08 201 307.08 118 805.16 319

1.10.2012 431.53 140 233.73 72 665.26 212

1.1.2013 343.83 112 322.21 138 666.04 250

1.4.2013 242.07 70 354.68 142 596.75 212

1.7.2013 423.97 201 315.08 118 739.05 319

1.10.2013 361.00 140 190.33 72 551.33 212

1.1.2014 280.47 112 146.98 138 427.45 250

1.4.2014 178.34 70 202.78 142 381.12 212

1.7.2014 398.01 201 212.36 118 610.37 319

1.10.2014 322.63 140 154.22 72 476.85 212

1.1.2015 251.13 138.00 117.43 76.10 368.56 214.10

1.4.2015 172.21 74.60 170.94 135.80 343.15 210.40

1.7.2015 386.80 275.80 158.95 135.40 545.75 411.20

1.10.2015 324.50 205.20 125.78 102.50 450.28 307.70

1.1.2016 237.88 138.00 126.89 76.10 364.77 214.10

(In lakh tons)

),I;!I

Table 4.10Includes Strategic Reserve of 30 lakh tons of wheat and 20 lakh tons of rice.


4.15 The Government reviews on monthly basis, the position of foodgrain stocks held in the Central Pool by FCI andthe State Governments and their agencies. The stock of rice and wheat in the Central Pool is sufficient to meet therequirement under Targeted Public Distribution System (TPDS) and Welfare Schemes during 2015-16.

..

4.16 REVISION OF FOODGRAIN STOCKING NORMS (EARLIER CALLED BUFFER NORMS):

Government of India has revised the foodgrain stocking norms for the central pool (Earlier called Buffer Norms) from Jan,2015 as under.

Fig. In lakh MTAs on Operational Stock Strategic Reserve Grand Total

Rice Wheat Total Rice Wheat1stApril 115.80 44.60 160.40 20.00 30.00 210.401st July 115.40 245.80 361.20 20.00 30.00 411.201st October 82.50 175.20 257.70 20.00 30.00 307.701st January 56.10 108.00 164.10 20.00 30.00 214.10

Table 4.11

4.17 PUBLICITY-CUM-AWARENESS.:_A publicity-cum-awareness campaign has been undertaken amongst the TPDS beneficiaries, functionaries of the

State Governments and the general public for increasing their awareness/sensitivity about functioning of TPDS. Anamount of ~ 50.00 lakhs under Plan scheme was provided in the budget of the Department of Food and PublicDistribution for 20 15-16. ~ 0.80 lakh and ~ 12.00 lakh were sanctioned to State Government of Meghalaya & StateGovernment of Uttar Pradesh respectively & ~ 0.30 lakh (~ 29137/-) was released for Advertisement of specificationof Point of Sale Device (POS) and ~ 0.80 lakh (~ 79800/-) was sanctioned to M/s Indian Agribusiness Systems Pvt.

..,


Ltd for publication of newsletter 'Khadya Suraksha' for the quarter January to March, 2015 under the Scheme. As ofnow, total ~ 13.90 lakh has been released under the Scheme.

4.18 FOOD SUBSIDY:

Food subsidy is provided in the Budget of the Department of Food and Public Distribution to meet the differencebetween Economic Cost of foodgrains and their sales realization at Central Issue Price (CIP) fixed for TPDS and otherwelfare schemes. In addition, the Central Government also procures foodgrains for meeting the requirements of bufferstock. Hence, part of the food subsidy also goes towards meeting the carrying cost of buffer stock.

2. Since 2004-05, the Minimum Support Price (MSP) of wheat has increased from ~ 630 per quintal to ~ 1450 perquintal in RMS 2015-16. Similarly, MSP plus bonus of paddy (Common) has increased from ~ 560 per quintal to~ 1410 per quintal in KMS 2015-16. However, the CIP of wheat and rice for AAY, BPL and APL families has notbeen revised since 2002. As a result, the gap between Economic Cost and CIPs has been increasing and food subsidyincurred by the Government has risen substantially.

3. The subsidy is provided to FCI, which is the main instrument of the Government of India for procurement anddistribution of wheat and rice under TPDS and other welfare schemes and for maintaining the buffer stock offoodgrains as a measure of food subsidy.

This apart, 15 States/UTs, namely, Andhra Pradesh, A&N Islands, Bihar, Chhattisgarh, Gujarat, Kerala,Karnataka, Madhya Pradesh, Punjab, Odisha, Rajasthan, Telangana, Tamil Nadu, Uttarakhand, West Bengal haveadopted the DCP Scheme and have undertaken the responsibility of not only procuring food grains from within theState but also distributing the same to the targeted population under TPDS and other welfare schemes. Under thisScheme of Decentralised Procurement, State-specific economic cost is determined by the Government of India and thedifference between the economic cost so fixed and the Central Issue Price is passed on to the State as Food Subsidy.

13-379 Oeptt.of F & PO/2015


4. The year-wise break-up of subsidy released for distribution of subsidized food grains and maintenance of bufferstocks during the last seven years and current financial year to FCl and the States operating the Decentralised Scheme isas under:

Year Subsidy releasedFeI States Total

2009-10 46867.14 11375.31 58242.452010-11 50729.56 12200.00 62929.562011-12 59525.90 12845.00 72370.902012-13 71980.00 12574.00 84554.002013-14 75500.02 14240.00 89740.022014-15 91995.35 21175.81 113171.162015-16* 87000.00 20075.85 107075.85

Table 4.12*As on 27.01.2016

4.19 ECONOMIC COSTOF RICE ANDWHEAT:

The FCl and state agencies are reimbursed the difference between the economic cost of foodgrains and the issueprice. The economic cost of foodgrains is directly related to MSP and bonus, incidence of taxation and levies, incidentalexpenses on acquisition and distribution of foodgrains.

u oees per QUintaYear 05-06 06-07 07-08 08-09 09-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

(U/A) (RE) (BE)Rice $Procurement 39.12 193.66 214.91 226.87 288.60 313.09 350.00 383.76 463.53 594.72 493.37 541.21IncidentalsDistribution Cost 272.37 289.58 297.82 280.76 184.92 223.49 260.74 287.28 389.97 497.42 532.62 586.18Economic Cost $ 1339.69 1391.18 1549.86 1740.73 1820.07 1983.1I 2122.94 2304.87 2615.51 2943.58 3093.73 3266.70WheatProcurement 171.20 180.15 164.02 179.62 206.88 212.38 235.68 263.35 286.41 346.57 360.54 381.15Incidentals

(R I)

\

91

Economic CostDistribution Cost

$ Weighted average of Common and Grade' A' rice taken together

For Rice, from 2006-07, in the procurement incidentals weightage of levy rice incidentals is also being taken.

4.20 CONSTRUCTION OF STORAGE GODOWNS BY FCI:

The Department is implementing projects under Plan Schemes for construction of storage godowns. Inaddition, DFPD has been requesting the state governments to create intermediate storage capacities at BlockiTalukalevel to store foodgrains collected from FCI depots, for further distribution to fair price shops. This is necessary toimprove the supply chain logistics for TPDS. While construction of intermediate godowns is the responsibility of thestate governments, plan funds are provided as Grant-in-Aid also to governments of the NE states and J&K for thispurpose, considering their difficult geographical conditions.


The following is the Plan outlay for XII Five Year Plan.

Sl Head Estimated Unspent Outlay inCost balance of 12thPlan (Rs(Rs crore) 11th Plan crore)

(Rs crore)1 Construction of godowns by FCI at 37 509.76 51.20 458.56

locations in the NE (2,92,730 MT).

2 Construction of godowns by FCI at 9 72.14 16.06 56.08locations in 4 other states (76,220 MT).

'"' Grant-in-Aid to NE states for intermediate 14.36 0.00.)

storage at 74 locations. 15.36

4 Grant-in-Aid to J&K for intermediate storage 1.00 0.00at 1 location.

Total 597.26 67.26 530.00


Table 4.14

Physical and Financial Achievements by FCI during 2012-13, 2013-14, 2014-15 and 2015-16 are as below:-


2012-13 2,910 27.72 1,160 2.64 4,070 30.362013-14 2,500 30.94 20,000 11.02 22,500 41.962014-15 43,480 76.48 - 0.99 43,480 77.472015-16 19,170 43.00 - 0.00 19,170 43.00Total 68,060 178.14 21,160 14.65 89,220 192.79

Table 4.15

/,


The detailed budgetary status under RE 2015-16 and BE 2016-17 for requirement of funds under Plan schemes is as per thefollowing:-

(Rs in Crore)

Head and Scheme BE 2015-16 RE 2015-16 BE 2016-17

4408.02.190.04.01.54 10.00 - -- Release of Equity to FCI for construction of storagegodowns by FeI (areas other than NE Region)

4552.00.126.01.01.54 75.00 68.39 50.00- Release of Equity to FCI for Projects/Schemes forNorth Eastern States including Sikkim

2552.00.308.02.00.35 5.00 11.61 2.00- Grants in Aid to State Governments of North EastRegion including Sikkim

Grand Total 90.00 80.00 52.00

Table 4.16

The details of quarter-wise targets for various projects of FCI in NE Region under 12th Five Year Plan during 2015-16 is asfollows:-

State No of Capacity to Actual Estimated EstimatedProjects be created Expenditure expenditure expenditure

(In MT) during 2015- for 2015-16 for 2016-1716(As on date)

Assam 9 177000 10.33 32.40 86.00Arunachal 10 17230 2.50 13.49 5.10PradeshManipur 8 30410 - 14.80 33.75

(Figures in Crore)

Meghalaya "'I 10000 6.30 3.50.) -Mizoram 1 15000 - - 32.75Nagaland 2 14590 3.04 10.04 4.00Sikkim 1 3500 - - 5.00Tripura 2 25000 - 5.15 32.5Total= 36 292730 15.87(*) 82.18 202.60#


Table 4.17

(*) N.B.: For the year 2015-16, an allocation of ~ 75.00 crore has been made under BE 2015-16 (reduced to ~ 68.39 under RE2015-16) out of which, an equity of ~ 43.00 crore as on 31112/2015 has been released by the Ministry. The expenditure incurredupto 3rd Quarter was ~ 24.07 Crore.

# Only ~ 50.00 crore has been allocated by the Ministry in BE 2016-17 as per ceiling provided by the Ministry of Finance.


In October, 2012, Government approved Component -I of the Plan Scheme of End-to-end Computerization ofTPDS Operations comprising activities, namely, digitization of ration cards/beneficiary and other databases,computerization of supply-chain management, setting up of transparency portal and grievance redressal mechanisms forimplementation in all States/UTs during lih Five Year Plan (2012-17) on cost-sharing basis with a total outlay of ~884.07 crore out of which, Government of India's share is ~489.37 crore and the States/UTs share is Rs 394.70 crore.National Informatics Centre (NIC) is the technical partner in this project. Under the scheme, ~41.69 crore werereleased in 2012-13, ~ 184.20 crore were released in 2013-14, ~ 33.81 crore were released in 2014-15, ~ 52.41 crorehave been released during 2015-16 (31.01.2016). Andhra Pradesh, Chhattisgarh, Delhi, Gujarat, Goa, Karnataka,Madhya Pradesh, Puducherry and Telangana have completed Component-I of the scheme whereas other States/UTshave also made significant progress in this direction. Efforts are being made by the Department to expedite theimplementation of the project by holding regular meetings, workshops, video-conferences, etc. with States/UTs. FurtherCash Transfer Scheme has been implemented in 2 UTs of Chandigarh and Puducherry w.e.f. September, 2015. Asregards component-II of the scheme i.e. FPS automation, more than 79000 FPSs have been automated across thecountry.

..


4.22 STRENGTHENING OF PDS & CAPACITY BUILDING:

(a) TPDS - Training

In the n" Five Year Plan (2007-12), against an outlay of ~ 2.50 crore, an expenditure of ~ 2.50 crore had beenincurred. 24 States & UTs, namely, Mizoram, Rajasthan, Orissa, Madhya Pradesh, Manipur, Goa, Haryana, AndhraPradesh, Tripura, Sikkim, Kerala, Bihar, Tamil Nadu, Himachal Pradesh, Maharashtra, West Bengal, Punjab, J&K,A&N Islands, Gujarat, Assam, Karnataka, Uttar Pradesh and Meghalaya have availed of funding under this component.Under the scheme, around 449 training programmes were organized wherein approximately 26640 persons have beentrained during the 11th Five Year Plan.

In 1th Five Year Plan (2012-2017), the status of expenditure incurred under the Scheme from 2012-13 to 2015-16 (up to so"November, 2015) is as under:

Financial Year B.E. R.E. Actual Expenditure Name of agency/State/UT to whom fund released2012-13 0.50 0.50 0.50 State GOYt. of Tamil Nadu and Chhattisgarh2013-14 0.62 0.4203 0.3846 State GOYt. of Gujarat, Nagaland, Chhattisgarh and Food Corporation of

India (FCI).2014-15 0.87 0.51 0.25785 State GOYt. of Mizoram, Puducherry, Sikkim and Food Corporation of

India (FCI).2015-16 0.25 0.24 0.20 State GOYt. of Madhya Pradesh and Food Corporation ofIndia (FeI).

(up to 22.02.16)

(Figures in crore)

Table 4.18

From 2012-13 to 2015-16 (upto 22.02.2016), 299 training programmes/workshops have been conducted andwherein approximately 5709 officials have been trained.

(b) Evaluation, Monitoring & Research


Concurrent evaluation study on TPDS was conducted in 26 States/UTs by National Council of AppliedEconomic Research (NCAER) (2006-09) and Indian Institute of Public Administration (IIPA) (2007-11). NCAER andIIPA submitted final reports of the study carried out by them in twelve States and fourteen States respectively, whichhave been accepted by the Government. Copies of the reports have been sent to the State/UT Governments concernedfor taking necessary remedial measures to remove the deficiencies noticed in the functioning of TPDS, includingleakages and diversion of foodgrains, inclusion/exclusion errors, and so on.

.,.

In the lih Five Year Plan, an evaluation study on functioning of TPDS in six select States i.e. Assam, Bihar,Chhattisgarh, Karnataka, Uttar Pradesh and West Bengal was awarded to National Council of Applied EconomicResearch (NCAER) in March, 2014 with a total cost of ~ 93,03,408/-. NCAER had submitted its report in September,2015 which has been sent to the States concerned for taking necessary remedial measures to remove deficienciesnoticed in the functioning ofTPDS.

In iz" Five Year Plan (2012-2017), the status of expenditure incurred under the Scheme from 2012-13 to 2015-16 (up to 30th November, 2015) is as under:

Financial Year B.E. R.E. Actual Expenditure Name of agency to whom fund released2012-13 0.40 0.00 0.00 Agency could not be finalized2013-14 0.62 0.31 0.31 National Council of Applied Economic Research

(NCAER)2014-15 0.63 0.4343 0.43424 National Council of Applied Economic Research

(NCAER)2015-16 0.90 0.70 0.18606 NCAER

(upto 22.2.2016)

(Figures in crore)

..

Table 4.19


4.23 POST HARVEST OPERATION:

1. Indian Grain Storage Management & Research Institute (IGMRI)

I, The Indian Grain Storage Management & Research Institute (IGMRI), functioning under the direct control ofDepartment of Food & Public Distribution is engaged in Research & Development activities on storage andpreservation of foodgrains. IGMRI is located at Hapur (UP) with its two field stations at Hyderabad (AP) and Ludhiana(PB).

The targets and achievements ofIGMRI during 2014-15,2015-16 and proposed for 2016-17are as under:-

y.

Item ofWork 2014-2015 2015-16 2016-17

Continuing Scheme Target Achievement Target Achievement Proposed(upto Dec Target2015)

LTTC/STTC 15 15 15 12 15Training (No. of courses)

a. Analysis of food grains samples 500 500 500 404 500for physical quality parameters.

Otherb. Monitoring of food grams 150 151 150 131 150

activitiessamples for pesticideresidue.c. Monitoring of food grams 75 76 75 61 75samples for mycotoxincontaminati on.

Table 4.20

I.

14-379 Dept!.of F& PD/2015


ii). Quality Control Cells (QCC)

The Quality Control Cells situated at New Delhi, Kolkata, Hyderabad, Bangalore, Bhopal, Bhubaneswar,Lucknow, Pune, Chennai, Guwahati and Patna are monitoring the quality of foodgrains at the time of procurement,storage and distribution. These cells also ensure that guidelines/ instructions issued by the Government from time totime about scientific storage and preservation of foodgrains are followed by FCI, CWC, SWC and State agencies.

The targets and achievements of the Quality Control Cells during 2014-15, 2015-16 and target proposed for2016-17 are as under: -

s. Item of work 2014-15 2015-16 2016-17No (Proposed)

Tar. Ach. Tar. Ach.(up to TarDec. 2015)

1. Inspection of Food Storage Depots 930 954 1140 810 1140

2 Training Programmes under Plan Scheme 32 32 38 24 38

Table 4.21

2. Central Grain Analysis Laboratory (CGAL)

The main function of CGAL is to, lay down quality standards for procurement of Kharif and Rabi foodgrainsbeing procured for Central Pool stock keeping in view the interest of producers, consumers and the provisions under theFood Safety and Standards Act. In addition, it also carries out classification of rice/paddy varieties for fixation ofprocurement and issue prices, assessment of the quality of foodgrains that are imported or exported under Central Poolaccount in relation to the contractual specifications and assessment of the quality of foodgrain samples brought byinspecting officers of Quality Control Cell, New Delhi and other senior officers.

.,


This lab has also been designated as referral lab in case of disputes in acceptance of Custom Milled Riceconsignments between FCI and State agencies/rice millers. Achievements of the Central Grain Analysis Laboratoryduring 2014-15,2015-16 and target proposed for 2016-17 are as under: -

S. Item of work 2014-15 2015-16 2016-17

No(Proposed)

Tar. Ach. Tar. Ach.(up to TarDec. 2015)

1. Analysis of foodgrain samples for physical quality parameters 1900 848

2 Analysis of foodgrain samples for protein determination 1700325 1700

398 17003 Analysis of wheat samples for falling number/hardness index 660 79

4 Analysis of wheat samples for Uric Acid determination - 26

Total 1700 2885 1700 1351 1700Table 4.22

4.24 MANAGEMENT OF SUGAR

PAYMENT FROM SUGAR DEVELOPMENT FUND

Subsidy for Maintenance of Buffer Stock of Sugar:

•The objective of the scheme is to give subsidy to the sugar mill to enable them to liquidate the sugarcane price arrears.

The table below indicates the performance for 2014-15 and 2015-16 (up to 31.12.2015)

Performance in 2014-15 Performance in 2015-16(up to 31.12.2015)

Target Achievement Target Achievement

Physical I Financial Physical I Financial Physical I Financial Physical I Financial

22 cases I 5.00 crore 23 cases I 4.94 crore 8 cases I 3.00 crore 4 cases I 1.04 crore.Table 4.23


4.25 PAYMENT OF INTERNAL TRANSPORT AND FREIGHT CHARGES, OCEAN FREIGHT ANDHANDLING &MARKETING CHARGES ON EXPORT SHIPMENT OF SUGAR:-

The Central Government vide its Notifications dated 21.6.2002 and 19.11.2003 decided to defray theexpenditure on internal transport and freight charges and payment of neutralization of ocean freight charges andhandling and marketing charges respectively to the sugar factories on export shipment of domestically manufacturedsugar with a view to promoting sugar export and liquidating surplus sugar stocks available with the sugar factories.Defraying of expenditure on export shipment of the sugar was made effective for exports made with effect from21.6.2002 upto exports made till 18.8.2004 in pursuance of release orders issued upto 20.6.2004 with validity of twomonths.

4.26 The Government has announced new export assistance on export of sugar by sugar mills for exports made on orafter 19.4.2007 for one year. which was later extended to 30-09-2008 under Govt. order dated 28-03-2008..The newexport assistance cover payment of internal transport and freight charges including ocean freight and handling andmarketing charges at a flat rate of ~ 1350 per tonne for sugar mills located in coastal states and ~ 1450 per tonne forsugar mills located in non-coastal states. The procedural details etc. for new export incentives have been notified on7th November,2007 by amending SDF Rules with insertion of rule 20 A therein.

•

.,


The past performance and physical target & achievement during the financial year 2008-09, 2009-2010, 2010-2011,2011-12,2012-13,2013-14,2014-15 and 2015-16(upto 31.12.2015) are given below:-

.,.'

---,

(~ in Crore)

YearTarget Achievement Reason for variation

Physical Financial Physical Financial

2008-09 700 285 462 285 Target has been Achieved.

Nos. of claim Nos. of claim

2009-10 700 285 443 285 Target has been Achieved.Nos. of claim Nos. of claim

2010-11 300 150 268 146.81 Target could not be achieved due to non-furnishing of

Nos. of claim Nos. of claim requisite information/proper documents by theconcerned sugar mills.

2011-12 50 15 41 15 Target has been AchievedNos . of claim Nos. of claim

2012-13 20 10 10 4.78 Target could not be achieved due to non-furnishing of

Nos. of claim Nos. of claim requisite information/proper documents by the concernedsugarmills.

2013-14 Nos. of claim .01 NIL NIL Target could not be achieved due to non-furnishing of

NIL requisite information/proper documents by theconcerned sugar mills.

2014-15 NIL 0.01 NIL NIL -

2015-16 NIL 0.01 NIL NIL -(31.12.15) Table-4.24


4.27 SCHEME FOR EXTENDING FINANCIAL ASSISTANCE TO SUGAR UNDERTAKINGS, 2014:

Remarks i Performance in i

2014-15Performance in

2015-16(upto 31.12.15)

The Government on 03.01.2014 has notified a Scheme viz. Scheme for Extending 703.77Financial Assistance to Sugar Undertakings (SEFASU-14) for providing financial assistance crorein the form of interest free loans worth ~ 6600 crores for additional working capital to sugarmills for clearance of cane price arrears. Interest burden estimated at ~ 2303.77 crores overnext five years would be borne by the Central Government through Sugar Development Fund.The loan will be utilized by the sugar mills for clearance of cane price an-ears of previoussugar seasons and timely settlement of cane price of current sugar season relating to the Fairand Remunerative Price (FRP) fixed by the Central Government to the sugarcane farmers.

600.60crore

Table 4.25

4.28 INCENTIVE ON MARKETING AND PROMOTION SERVICES OF RAW SUGAR PRODUCTION

Remarks Performance in Performance in2014-15 2015-16

(upto 31.12.15)In order to encourage sugar factories to diversify their produce of traditional white sugar 183.87 99.67

into raw sugar for export, the Government notified another scheme allowing incentives for crore croremarketing and promotion services for raw sugar production targeted for export market duringthe sugar seasons 2013-14 and 2014-15. The incentive available under the Scheme shall beutilized by the sugar mills for making payment to the farmers.

Table 4.26


4.29 LOANS FOR REHABILITATION/ MODERNIZATION OF SUGAR INDUSTRY:

The object of the scheme is to facilitate the rehabilitation. modernization and expansion of crushing capacity of sugarindustries.

The table below indicates the performance for 2014-15 and 2015-2016 (upto 31.12.2015):

Performance 2014-15 Performance 2015-16Targets Achievements Reasons for Targets Achievements Reasons for

variation (upto 31.12.2015) variationPhysical Financial Physical Financial Physical Financial Physical Financial

- 200 Increased 200 Target - 150.00 Increased 50.08 Target likely tocrushing achieved. crushing be achievedcapacity by capacity by upto24450 tonnes. 4000 tonnes. 31.03.2016.

(~ in crore)

Table 4.27

4.30 LOANS TO !SUGARMILLS FOR CANE DEVELOPMENT:

The objective of the scheme is the development of sugarcane in the area where sugar factory is situated. The table belowindicates the performance for 2014-15 and 2015-2016 (upto 31.12.2015):

(~ in crores)Performance 2014-15 Performance 2015-2016

Targets Achievements Reasons for Targets Achievements Reasons forvariation (upto 31.12.2015) variation

Physical Financial Physical Financial Physical Financial Physical Financial- 72.92 Increased 72.92 - - 30.74 Increased 12.73 Target likely to be

production by production by achieved upto61.895 lakh 14.791akh 31.03.2016tonnes tonnes

Table 4.28


4.31 LOANS TO SUGAR FACTORIES FOR BAGASSE BASED COGENERATION POWER PROJECT

The objective of the scheme is to improve the economic viability of sugar mill and efficiently utilized bagasse producedby the sugar mills. The table below indicates the performance for 2014-15 and 2015-2016 (upto 31.12.2015):

Performance 2014-2015 Performance 2015-2016Targets Achievements Reasons Targets Achievements Reasons for

for (upto 31.12.2015) variationPhysical Financial Physical Financial variation Physical Financial Physical Financial- 46.45 Increased by 46.45 - - 200 Increased by 29.71 Target

52.50 Mega 39.75 Mega likely to beWatt (MW) Watt (MW) of achievedof electricity electricity uptogeneration generation 31.03.2016

(~ in crores)

Table 4.29

4.32 LOANS TO SUGAR FACTORIES FOR PRODUCTION OF ANHYDROUS ALCOHOL OR ETHANOLFROM ALCOHOL.

The objective of the scheme is to improve the economic viability of sugar mills. The table below indicates the performance for2014-2015 and 2015-16 (upto 31.12.2015):

Performance 2014-15 Performance 2015-16Targets Achievements Reasons Targets Achievements Reasons for

for (upto 31.12.2015) variationPhysical Financial Physical Financial variation Physical Financial Physical Financial- 77.07 Increased by for 77.07 Target - 76.83 Increased by for 16.89 Target likely to

production IS achieved production is 200 be achieved230 Kilolitres Kilolitres per uptoper day(KLPD day(KLPD) 31.03.2016.

(~ in crores)•

Table 4.30


4.33 LEVY SUGAR PRICE EQUALIZATION FUND: -

During the current financial year 2015-16 (upto 31.12.2015). no recovery has been made against revised budgeted targetof ~ 2 crore fixed for the financial year 2015-16.

Years Target Amount Achievement Amount(In crore) (In crore)

2005-2006 ~ 5.00 ~ 6.842006-2007 ~ 5.00 ~ 6.382007-2008 ~ 5.00 ~ 9.042008-2009 ~ 2.00 ~ 2.962009-2010 ~ 5.00 ~ 12.642010-2011 ~ 10.00 ~ 4.972011-2012 ~ 7.00 ~ 15.632012-2013 ~ 6.00 ~ 9.262013-2014 ~ 6.00 ~ 6.362014-2015 ~ 4.00 ~ 3.52

2015-2016 (upto 31.12.15) ~ 2.00 ~ 0.00Table No. 4.31

4.34 TRAINING AND RESEARCH INSTITUTE - NSI, KANPUR

The National Sugar Institute, Kanpur is a subordinate establishment of the Ministry of Consumer Affairs, Food &Public Distribution engaged in providing technical education in various branches of Sugar Technology, SugarEngineering, Alcohol technology and other allied branches. The Institute has a Farm & Experimental Sugar Factory fortraining of the students of various courses. The overview of budget provisions of National Sugar Institute, Kanpur is asunder:

(~ in Lakhs) BE 2014-15 RE 2014-15 BE 2015-16 I RE 2015-16 BE 2016-17*....................._ ....._. .................................. _ .•.••••....•.........-.......... -- .........................PLAN 250.00 250.00 250.00 350.00 i 0.00............................_ .............._.NON-PLAN 1726.00 1677.70 I 1856.00 1809.00 2399.00

Table 4.32

15-379 Dept!. of F & PD/2015


* From the financial year 2016-17, provision of Plan expenditure has been shifted under Non-plan expenditure as per instructionsof Ministry of Finance.

The Non-Plan Expenditure is meant for meeting Administrative Expenses of the Institute & Hostels. Expenditurerelated to Experimental Sugar Factory & Farm is also met from this budget.

Plan provision is intended to meet the expenditure; mainly on civil & electrical works relating to the development ofinfrastructure capacities & augmenting of R&D facilities; such as renovation of research laboratories & procurementof additional equipments for laboratories etc.

The brief particulars regarding number of research schemes undertaken, number of students trained etc. during theperiod from 2013-14 onwards are given below:

..

:2013-14 2014-15 T 2015-16

...........

RESEARCH SCHEMES (in Hand) Nil 01 02

NO. OF STUDENTS TRAINED 197 214 211Table 4.33

Work on applied research on different topics has also been carried-out in different divisions either through theresearch scholars or by the staff.

The Budget provision (Plan and Non-Plan) includes:

a). Expenditure on establishment of the Institute includes Experimental Sugar Factory and Farm. The present staffposition (as on l" December 2015) is as given in the Table here under:

SANCTIONED STRENGTH EXISTING STRENGTH

GROUP-A 53 31

GROUP - B (Gazetted) 06 03......_.

GROUP - B (Non-Gazetted) 13 05GROUP - C ( Min. & Non-Min) 123 62GROUP - C (MTS) 112 72TOTAL 307 173

Table 4.34


b). Expenditure on hiring of professionals for academic & other services,c). Purchase of laboratory equipments (Glass-ware & chemicals etc.),d). Operational expenses for Experimental Sugar Factory,e). Expenditure for maintenance of Agricultural Farm,f). Expenditure on research work & organising various other technical activities e.g. Seminar /Refresher Course etc.g). Expenditure on maintenance and repairs of administrative, residential and non-residential building.h). Misc. office expenditure e.g. payment of telephone /electricity bills, office stationery, furniture & fixture etc.

4.35 INTERNATIONAL COOPERATION

Contribution to International Grain Council:

.,.

India is a member of the International Grains Council (IGC) which was previously known as International WheatCouncil up to 1995 and is an intergovernmental forum of exporting and importing countries for co-operation in wheatand coarse grain matters. It administers the Grains Trade Convention 1995. The IGC Secretariat, based in London since1949, also services the Food Aid Committee, established under the Food Aid Convention. International GrainsAgreement comprises of Grains Trade Convention (GTC) and Food Aid Convention (FAC). India is a signatory to theInternational Grains Agreement (IGA) 1995 and its Grain Trade Convention (GTC) 1995 which is effective from 1stJuly 1995. IGC have two types of members-Importing Members and Exporting Members. India has been included inthe category of Exporting members in July, 2003 and represented in the meetings/session of the Council held from timeto time. Besides, this Department also participates in other meetings of IGC like Market Conditions Committeemeetings and Executive Committee meetings. India being a member of the International Grains Council, thisDepartment pays the annual membership contribution to the Council.

4.36 India being a member of the International Grains Council, this Department pays the annual membershipcontribution to International Grains Council. For the fiscal year 2015-16, a sum of ~ 26,63,772/- has been paid towardsIndia's membership contribution to IGC.

*******


CHAPTER- VFINANCIAL REVIEW

This chapter on financial review covers overall trends in expenditure vis-a-vis Budget Estimates and Revised Estimates since 2014-15.Data has been segregated scheme wise and object head wise. Position of outstanding utilization certificates has also been brought out.

A-Programme/ BE 2014-15 RE 2014-15 Actual BE 2015-16 RE 2015-16 Actual upto BE 2016-17Activity wise 2014-15 (31.12.2015)*Classification

Plan Non- Plan Non- Plan Non- Plan Non- Plan Non- Plan Non- Plan Non-Plan Plan Plan Plan Plan Plan Plan

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15ESTABLISHMENT EXPENDITURE OF SECRETARIAT & FOOD, STORAGE AND WAREHOUSING1. Secretariat - 0.00 39.87 0.00 38.79 0.00 37.87 0.00 42.22 0.00 42.20 0.00 32.49 0.00 51.85Economic Services2. Directorate of 0.00 7.12 0.00 7.09 0.00 6.74 0.00 7.20 0.00 6.50 0.00 4.72 0.00 8.04Sugar & VegetableOils #3. National Sugar 2.50 17.26 2.50 16.78 2.33 16.23 2.50 18.56 3.50 18.09 0.00 12.08 0.00 23.99Institute, Kanpur

4. Indian Grain 0.00 3.82 0.00 3.53 0.00 3.14 0.00 4.12 0.00 3.92 0.00 2.45 0.00 5.07StorageManagement andResearch Institute5. Central Grain 0.00 0.02 0.00 0.02 0.00 0.01 0.00 0.02 0.00 0.02 0.00 0.00 0.00 0.05AnalysisLaboratory6. Quality Control 0.00 8.13 0.00 7.38 0.00 7.01 0.00 8.24 0.00 6.87 0.00 5.22 0.00 8.74CellFOOD MANAGEMENT7. Food Subsidy to 0.00 92000.00 0.00 97000.00 0.00 91995.35 0.00 97000.00 0.00 112000.00 0.00 87000.00 0.00 103334.61FCI

( ~ in crores) ,.

•8. Food Subsidy to ! 0.00 I 18500.00 0.00 21175.81 0.00 21175.81 0.00 22919.00 0.00 22919.00 0.00 18419.01 i 0.00 I. 27000.00States on I

! Decentralized IIIIj

iI i !!

Ii Procurement i I : 1 I

9. Ways and Means! 0.00 i 10000.00 ! 0.00 ]0000.00 O.OO! ]0000.00 i 0.00 10000.00 0.00 20000.00 I 0.00 i 10000.00 : 0.00 10000.00 Iadvance payable to I

I

FC}10. Subsidy for 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 150.00 0.00 150.00 0.00 567.01Imported EdibleOils - PastLiabilities11. Central 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.79 0.00 0.00 0.00 2500.00assistance toStates/UTs formeetingexpenditure onintra-state -movement,handling offood grains and FPSdealers marginunder NFSA(Grants-in-aid-General)SUGAR MANAGEMENT12. Sugar Subsidy 0.00 4500.00 0.00 4500.00 0.00 4500.00 0.00 4500.00 0.00 4500.00 0.00 3488.48 0.00 4500.00to FCI / States

13. Transfer to 0.00 250.00 0.00 250.00 0.00 250.00 0.00 500.00 0.00 750.00 0.00 750.00 0.00 2000.00SugarDevelopment Fund(SDF)

Scheme Financed from SDF14. Administration 0.00 20.50 0.00 20.48 0.00 20.47 0.00 20.54 0.00 20.54 0.00 13.87 0.00 20.60ofSDF


u come u ge - , epa mento 00 u IC IS n U IOn

115. Grants-in-aid 0.00 2.00 0.00 i 0.84 0.00 I 0.75 0.00 2.00 0.00 I 0.80 I 0.00 I 0.08,

0.00 i I

! 1.00 II for Development of

II I ! I! Sugar Industry

II , I

I i I I i i i I0.00 1 0.00 . 3.00 ! I

.._--"16. Subsidy for 5.00 ; 5.00 ! 0.00 ! 4.94 0.00 3.00 0.00 : 0.00 i 1.04 0.00 : 0.00 .

I, I I I i imaintenance of 1 I I

buffer stock of I I

sugar17. Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00of InternalTransport & freightcharges to sugarfactory on exportshipment andpayment of otherl'_ermissible claims18. Scheme for 0.00 100.00 0.00 703.77 0.00 703.77 0.00 800.00 0.00 800.00 0.00 600.61 0.00 800.00ExtendingFinancialAssistance to SugarUndertakings, 201419. Incentive on 0.00 0.00 0.00 200.00 0.00 183.87 0.00 0.00 0.00 200.00 0.00 99.67 0.00 30.00Marketing andPromotion Servicesfor Raw SugarProduction20. Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 202.50 0.00 100.00 0.00 202.50subvention onscheme forextending soft loanto sugar mills, 201521.Production 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 950.01Subsidy to SugarMills to offset costof cane and

o t B d t 2016 17 D rt110

t fF d & P bli D' t 'b ti

/I

facilitate I timely I I I ! !

I I! ~

hf II

I I ! I IIpayment cane i i I 1 I iI

I; I I I

price dttes to 1 I!

I II , ! i iIifarmers . I i I I I 1

;

Lo~ns_.

22. for 0.00 150.00 0.00 ! 200.00 0.00 200.00 0.00 150.00 0.00 150.00 : 0.00 50.09 I 0.00 150.00 I

Rehabilitation /Modernization ofSugar Mills23. Loans to Sugar 0.00 75.00 0.00 75.00 0.00 72.93 0.00 75.00 0.00 30.74 0.00 12.73 0.00 75.00Mills for CaneDevelopment24. Loans to sugar 0.00 200.00 0.00 46.45 0.00 46.45 0.00 200.00 0.00 200.00 0.00 29.71 0.00 200.00factories forbagasse basedcogenerationpower project25. Loans to sugar 0.00 75.00 0.00 75.00 0.00 77.07 0.00 75.00 0.00 76.83 0.00 16.89 0.00 125.00 .factories forproduction ofanhydrous alcoholor ethanol fromalcoholINTERNATIONAL COOPERATION26. Contribution to 0.00 0.32 0.00 0.32 0.00 0.31 0.00 0.34 0.00 0.34 0.00 0.00 0.00 0.34International SugarCouncil

,~ -

27. Contribution to 0.00 0.30 0.00 0.28 0.00 0.28 0.00 0.30 0.00 0.27 0.00 0.27 .).~

International GrainCouncil

STRENGTHENING OF PDS OPERATIONS28. Consultancy,Training andResearch 1.50 0.00 1.65 0.00 1.43 0.00 0.85 0.00 0.85 0.00 0.18 0.00 0.40 0.00

111Outcome Budget 2016-1 7. Department of Food & Public Distribution

Outcome Budget 2016-17, Department of Food & Public Distribution29. End - to - end ! 12850 ! 0.00 ; 35.00 0.00 ! 33.08 0.00 ! 80.00 0.00 60.00 0.00 46.981 0.00 : 75.0q: 0.00Computerization of I !

I I !

TPDS operations "

i I!

i 30. Strengthening [ It I

!of PDS and !

Capacity Building !

A- Training 0.87 0.00 0.51 0.00 0.26 0.00 0.25 0.00 0.24 0.00 0.20 0.00 0.25 0.00B-Financial 1.00 0.00 0.56 0.00 0.16 0.00 0.50 0.00 0.46 0.00 0.14 0.00 0.50 0.00Assistance toStates/ UTs forgeneratingawareness amongstTPDS beneficiariesabout theirentitlement andredressalmechanismC- Evaluation, 0.63 0.00 0.43 0.00 0.43 0.00 0.90 0.00 0.70 0.00 0.18 0.00 0.85 0.00Monitoring andResearch inFoodgrainManagement andStrengthening ofPDS (Consultancy-ProfessionalServices)31. Assistance to 1.00 0.00 0.20 0.00 0.00 0.00 2.00 0.00 0.75 0.00 0.00 0.00 1.00 0.00States/ UTs forproviding non-building assets toState FoodCommission

•

0.00 3.50 I

I

0.00 i

I2.72 i

I

113Outcome Budget 2016-17, Department of Food & Public Distribution0.00 I 5.00 0.00 3.50 . O.OO! 2.241- -O~OO--2:00 1- -0.0032. Strengthening I' 5.00'

of Quality ControlMechanism ,

I AUTONOMOUS BODY33. Warehousing 8.00 0.00 13.81 I 0.00 I 13.81 0.00 30.00 0.00 15.00 0.00 : 3.00 0.00 18.00 0.00 IDevelopment andRegulatoryAuthoritySTORAGE AND GODOWNSState Governments34. Construction of 5.00 0.00 5.00 0.00 5.00 0.00 5.00 0.00 11.61 0.00 4.00 0.00 2.00 0.00Food Storage in NERegion by StateGovernments(Grants for creationof capital assets)Food CorporationoLlndia35. Construction of 176.00 0.00 86.84 0.00 86.83 0.00 85.00 0.00 68.39 0.00 43.00 0.00 50.00 0.00Storage GodownsbyFCI (Investment)Total Grant 330.00 125954.34 150.00 134326.54 146.05 129303.00 212.00 136325.55 165.00 162084.41 99.92 120789.41 150.00 152554.11Deduct Recovery 0.00 -627.50 0.00 -1326.54 -5.48 -1321.86 0.00 -1325.55 0.00 -1684.41 -34.52 -562.50 0.00 -2554.11Less Repayment 0.00 10000.00 0.00 10000.00 0.00 10000.00 0.00 10000.00 0.00 20000.00 0.00 0.00 0.00 10000.00(Ways & Meansadvance)Net 330.00 115326.84 150.00 123000.00 140.57 117981.14 212.00 125000.00 165.00 140400.00 65.40 120226.91 150.00 140000.00

* Actual Expenditure as on 31.12.2015show above does not includes, authorization issued till then.

# Figures for FY2014-15in respect of earlier Directorate of Sugar &Directorate of Vanaspati, Vegetable Oils and Fats have been clubbedtogether.

16-379 Deptt.of F& PDI2015


Olr-,

'Ico<0

FINANCIAL REVIEW----- ------------------------~----.--- ~--.--.----.---~--.-~---~--.--.-------.-- ..-..-----..-- .._._-_.._---------------j

(~ in crore) ... 'B. OBJECT-WISE BE 2014-15 RE2014-15 Actual 2014-15 I BE2015-16 I RE 2015-16 Actual 2015-16 BE2016-17I

-CLASSIFICATION I(upto31.12.2015)*

Plan Non- Plan Non- Plan Non- Plan Non- Plan Non- Plan Non- Plan Non-Plan Plan Plan Plan Plan Plan Plan

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

01 Salaries - 58.43 - 56.21 - 54.80 - 61.83 - 59.44 - 46.61 - 75.37

02Wages - 1.25 - 1.27 - 1.25 - 1.39 - 1.53 - 0.98 - 1.98

03 Overtime - 0.23 - 0.22 - 0.16 - 0.23 - 0.08 - 0.02 - 0.12Allowance06 Medical Treatment - 1.34 - 1.42 - 1.24 - 1.46 - 1.48 - 0.76 - 1.58

11 Domestic Travel - 1.73 - 1.45 - 1.22 - 1.73 - 1.71 - 1.01 - 1.81Expenses12 Foreign Travel - 0.65 - 0.35 - 0.29 - 0.42 - 0.42 - 0.22 - 0.50Expenses13 Office Expenses 1.14 7.49 1.00 7.69 - 7.48 1.78 7.60 1.60 7.46 - 5.10 1.10 7.72

14 Rent, Rates and - 0.65 - 0.65 - 0.65 - 0.71 - 0.72 - 0.63 - 0.72Taxes16 Publications - 0.33 - 0.20 - 0.18 - 0.34 - 0.20 - 0.16 - 0.34

20 Other - 1.06 - 1.10 - 1.03 - 1.30 - 1.27 - 0.87 - 1.35AdministrativeExpenses21 Supplies & - 0.51 - 0.46 - 0.45 - 0.51 - 0.51 - 0.23 - 0.55Materials

•

",-.;o~-n

-

..


~--------------------.- .• -.------ --.---- -.---. - .. --. - T-- - .. - - .--.--- --·r-··--··--:-- --- --- ..---.----- - .---.- .4;~~:~~t:~~k'&__~.--L ~::._:~_;t ~06! __ :.~:!_o~ __ ~~~ ... o"~l __~.:; ._o.oIl _:'~J~121_~.::- - -- -

I

~,.~_____~_______~_, ____ .___ t- ._----_- r------ f---- _'__ ____;__-------- . r--------: ~------ --------_ ...

i 28 Professional ! 5.63 i 0.34 3.43 0.34 2.51 i 0.29 . 4.33 0.37 3.40 • 0.37 0.70 0.19' 3.3;, 0.47I

; I I I

Services \ i i31 Grants-in-aid- 129.44 2.00 43.32 0.84 42.47 0.751104.42 2.00 \ 69.03 I 3.59 46.79 0.08 87.20 2501.00

!I

General32 Contributions - 0.62 - 0.60 - 0.59 - 0.64 - 0.61 - 0.27 - 0.64

33 Subsidies - 115105.00 - 123584.58 - 118563.74 - 125222.01 - 140774.50 - 109858.80 - 137384.13

34 Scholarships / - 0.06 - 0.03 - 0.01 - 0.03 - 0.03 - 0.01 - 0.04

Stipend35 Grants for creation 5.00 - 5.00 - 5.00 - 5.00 - 11.61 - 4.00 - 2.00 -of capital assets36 Grants-in-aid- 3.79 - 2.70 - 2.70 - 3.00 - 3.00 - 3.00 - 3.83 -Salaries50 Other Charges 6.75 20.17 5.40 20.16 4.39 20.14 6.10 20.23 4.60 20.22 2.42 13.60 2.40 21.14

53 Major Works 2.25 - 2.25 - 2.08 - 2.25 - 3.25 - - - - 1.60

54 Investments 176.00 - 86.84 - 86.84 - 85.00 - 68.39 - 43.00 - 50.00 -

55 Loans and - 10500.00 - 10396.45 - 10396.45 - 10500.00 - 20457.57 - 10109.42 - 10550.00

Advances63 Inter-Account - 250.00 - 250.00 - 250.00 - 500.00 - 750.00 - 750.00 - 2000.00

TransferTotal 330.00 125954.34 150.00 134326.54 146.05 129303.00 212.00 136325.55 165.00 162084.41 99.92 120789.39 150.00 152554.11

*Actuai Expenditure as on 31.12.2015shown above does not includes authorization, issued till then.

116Outcome Budget 2016- t 7. Department of Food& Public Distribution

,---_ .._.__._... _--_"--

.--~-. ------------- --_-_FINANCIAL REVIEW. (~ in crore)c. YEAR-WISE BE RE Actual I Percentage PercentageExpenditure

expenditure with expenditure withTrendsreference to BE reference to RE

Plan Non-Plan Plan Non- Plan Non-Plan Plan Non- Plan Non-PlanPlan Plan1 2 3 4 5 6 7 8 9 10 112013-14 259.00 101469.64 200.00 103406.17 194.07 103404.16 74.93 101.90 97.03 100.00

2014-15 330.00 125954.34 150.00 134326.54 146.05 129303.00 42.25 102.65 97.36 96.262015-16 212.00 136325.55 165.00 162084.41 99.92 120789.39 47.13 88.60 60.55 74.522016-17 150.00 152554.11

* Expenditure upto 31st Dec, 2015

•

I

117Outcome Budget 2016-17. Department of Food & Public Distrihution

Review of the position of unspent balances and position regarding liquidation of pending utilization certificates for the 3rd quarterending from Oct-Dec, 2015

Department of Food & Public Distribution

SI. Name of the Scheme I Unspent Unspent Unspent Amount of Amount of Amount ofNo.balances as balances balances UCs UCs UCs

on as on as on pending as pending as pending as01.04.2014 01.04.2015 31.12.2015 on on on

01.04.2014 01.04.2015 31.12.20151 2 3 4 5 6 7 8I Strengthening of PDS and Capacity Buildings (Financial (Plan) 2.08 1.65 1.47 2.08 1.65 1.47Assistance to States for curbing leakages diversion,Evaluation, Monitoring and research and Training)

2 'Constructions of Godowns' and "Purchase of (Plan) 16.48 9.03 3.58 16.48 9.03 3.58Vans/Trucks".3 Computerization ofTPDS operations. (Plan) 223.96 255.66 255.15 40.44 223.26 144.774 Village Grain Bank Scheme (Plan) 22.35 20.57 2.91 22.35 20.57 2.915 Strengthening of PDS operations (Plan) 1.65 0.84 0.19 1.65 0.84 0.196 Warehousing Development and Regulatory Authority (Plan) 0.79 9.11 8.24 0.79 9.11 8.247 Strengthening of godowns (Plan) 24.96 45.90 64.73 24.96 45.90 64.738 Integrated Information System for Foodgrains (Plan) 7.96 7.96 5.16 7.96 7.96 5.16Management

9 Smart Card based delivery ofTPDS Commodities. (Non-Plan) 26.10 26.10 26.10 26.10 26.10 26.1010 Sugar Development Fund (NonPlan) 187.47 203.26 108.49 15.04 41.20 48.07

TOTAL Plan 300.23 350.72 341.43 116.71 318.32 231.05TOTAL Non Plan 213.57 229.36 134.59 41.14 67.30 74.17GRAND TOTAL 513.80 580.08 476.02 157.85 385.62 305.22

(~ in crore)

******

118Outcome Budget ~Ol 6-17. Department of Food & Public Distribution

CHAPTER-VI

6.1 REVIEW OF PUBLIC SECTOR UNDERTAKI!\iCS:This chapter deals with the review of performance of the 1'0110\\ ing three public sector undertakings under the

administrative control of the Department ofFood and Public Distribution: -1. Food Corporation of India2. Central Warehousing Corporation3. Hindustan Vegetable Oil Corporation Ltd.

6.2 FOOD CORPORATION OF INDIA:The Food Corporation ofIndia (FCI) is the nodal agency of the Government of India responsible for executing

food policies of the Central Government. The functions of FCI primarily consist of purchase, procurement at MinimumSupport Price (MSP) from fanners, storage, movement / transportation, distribution and sale of foodgrains on behalf ofthe Central Government.

6.3 ORGANIZATIONAL SET-UP:The Food Corporation of India co-ordinates its functions through a country-wide network of offices with

Headquarters at New Delhi and 5 Zonal Offices, 24 Regional Offices, 1 Special Regional Office at Imphal covering thepolitical State of Manipur, 1 Port office at Kandla and 162 District Offices.

6.4 STAFF IN POSITION:

The Category-wise staff position for the quarter ending 30.09.2015 is as under:CATEGORY SANCTIONED STRENGTH MEN IN POSITIONCatezorv-I 1111 792Category-II 6221 4362Category-III 27270 12934Category-Tv 2380 3782

Total 36982 21870*Table 6.01

*Men-in-position (MIP) includes employees working against Watch & Ward posts for which sanctioned strength is under review.


6.5 CAPITAL STRUCTURE:

.. The uuthorized/subscrib, ..d capital or Fe! i.-: ~IS under:-_.

; IAs on As on As on As on

31.03.2013 31.03.2014 310.3.2015 31.12.2015

Authorised Capital 3500.00 3500.00 3500.00 3500.00

Subscribed Capital

(i)working capital 1484.00 1484.00 1484.00 1484.00

(ii)Const. of Godowns& Silos * * 1078.31 1081.31 1168.15 1211.15

(iii) IISFM Project 96.74 96.74 96.74 96.74

(iv) Others 13.90 13.90 13.90 13.90

Total 2672.95 2675.95 2762.79 2805.79

* * Equity release for NE during the year 19.28 NIL 71.84 43.00

(~ in Crores )

Table 6.02

6.6 AUDIT & ACCOUNTS:

The responsibility of auditing of the accounts of the Food Corporation of India rests with the Comptroller andAuditor General of India (C&AG). The Accounts of the Corporation for the year 2013-14 have been laid before bothHouses of Parliament during the month ofMay'2015. The accounts for 2014'-15have been approved by the Board in itsmeeting held on 04.11.2015. The Accounts were submitted to the C&AG for audit on 05.11.2015. C&AG audit hasbeen completed on 09.12.2015.


C&AG is likely to issue final audit report in January,2016.Audited Accounts and Audit Report will be approvedby the Board in February. 2016.Printed Accounts will be sent to the Ministry for onward submission to both the Housesof Parliament in March. 2016.

'.The turnover of the Corporation for the last six years is given below:

(~ In Crores)Year Purchases Sales Subsidy on Total

Food Grains2009-10 62731.10 23320.38 42873.11 128924.592010-11 73324.71 25566.58 56394.42 155285.712011-12 87888.64 26686.92 68697.06 183272.622012-13 101923.28 39849.73 80563.18 222336.192013-14 103947.80 38356.90 89492.14 231796.842014-15 106804.l2 29757.01 105007.03 241568.16(ProvisionallUnaudited)

•

Table 6.03

6.7 PROCUREMENT:

Wheat ProcurementDuring RMS 2015-16, total procurement of wheat for the central pool was 280.88 lakh MT as against 280.23

lakh MT during RMS 2014-15. The Region wise procurement of wheat in last two Marketing Seasons is as under:

Sl. No. STATES/UTs Rabi Marketing Season2014-15 2015-16

1 Bihar 0.00 0.002 Gujarat 0.00 0.733 Haryana 64.95 67.784 H.P. 0.00 0.005 J&K 0.00 0.00

(Fig. in Lakh MT)

..

6 M.P. 70.94 73.097 Punjab 116.41 103.448 Rajasthan 21.59 13.009 Uttarakhand 0.01 0.0410 UP 6.28 22.6711 Chandigarh 0.05 0.1112 Delhi· 0.00 0.0213 West Bengal 0.00 0.0014 Maharashtra 0.00 0.00

TOTAL 280.23 280.88


Table 6.04

Itmay be seen from the above that Punjab, Haryana, Madhya Pradesh & Uttar Pradesh have accounted for morethan 95% of the total procurement of wheat during RMS 2015-16.

Paddy Procurement

The total quantity of paddy procurement during KMS 2015-16 is 330.37 (as on 1.1.2016) as against 425.06 lakhMT of paddy procured during previous KMS 2014-15.

Total Rice Procurement (including paddy in terms of rice)

The total procurement of rice during KMS 2014-15 for Central Pool was 321.65 lakh MT as against 318.45 lakhMT of rice (including paddy in terms of rice) during KMS 2013-14.

..KMS 2015-16 has commenced from I" Oct, 2015. Upto 1.1.2016, 189.66 lakh MT rice (including paddy in

terms of rice) has been procured by Govt. agencies including FCI.

17-379 Dept!.of F& PD/2015


The Region-wise procurement of rice for last two and current Marketing Season is as under:(Quantity in Lakh MT)

Iar--e-

SI.No. STATES/UTs 2013-14 2014-15 2015-161 A.P. 37.38 35.96 9.82

--2 Telangana 43.53 35.04 8.863 Assam 0.00 0.15 0.004 Bihar 9.42 16.14 0.095 Chandigarh 0.12 0.10 0.166 Chhattisgarh 42.90 34.23 23.107 Haryana 24.06 20.15 28.548 Jharkhand 0.00 0.06 0.019 l&K 0.00 0.00 0.0610 Karnataka 0.00 0.88 0.0011 Kerala 3.59 3.74 1.1012 M.P. 10.45 8.07 5.6113 Maharashtra 1.61 1.99 0.6114 Odisha 28.00 34.87 5.67

_ ..--

15 Puducherry 0.00 0.00 0.0016 Punjab 81.06 77.86 93.4917 Rajasthan 0.00 0.00 0.0018 Tamil Nadu 6.84 10.51 0.41

-19 U.P. 11.27 16.98 8.7020 Uttrakhand 4.63 4.65 2.6121 West Bengal 13.59 20.32 0.8222 Others 0.00 0.00 0.00

Total 318.45 321.70 189.66

...

Table 6.05


"" Procurement of Levy Rice

The procurement of levy rice by FCI & State Govt. for the central pool during KMS 2014-15 was 36.80 lakh MTas against 80.07 lakh MT of levy rice received during KMS 2013-14. Further, GOI vide letter No. 6(1)/2007-Py.lIIdated 20.02.2015 has issued directions for abolition of levy on rice w.e.f.01.10.2015.

,.,

Paddy and Rice procurement during KMS 2014-15 and KMS 2015-16

Region-wise procurement of paddy and receipt of levy rice and CMR during KMS 2014-15 is as under:

KMS 2014-15

IIIII

Sl.No. States/UTs Paddy Levy CMR Total ActualRice Received

1. A.P. 42.19 7.69 28.16 35.852. Telangana 24.32 18.75 16.11 34.863. Assam 0.23 0.00 0.15 0.154. Bihar 24.09 0.00 16.13 16.135. Chandigarh 0.15 0.00 0.10 0.106. Chattisgarh 51.08 0.00 34.21 34.217. Haryana 30.07 0.00 19.87 19.878. Jharkhand 0.02 0.00 0.02 0.029. J&K 0.00 0.00 0.00 0.0010. Karnataka 1.31 0.00 0.00 0.0011. Kerala 5.50 0.00 3.73 3.7312. M.P. 12.04 0.00 7.68 7.6813. Maharashtra 2.97 0.00 1.80 1,.8014. Odisha 52.03 0.01 33.14 33.1515. Pucucherry 0.00 0.00 0.00 0.0016. Punjab 116.21 0.00 77.56 77.56

(Quantity in Lakh MT)

,17. Rajasthan 0.00 0.00 0.00 0.0018. Tamil Nadu 15.69 0.00 10.42 10.4219. U.P. 18.18 4.80 12.17 16.9720. Uttarkhand 6.12 0.55 4.11 4.6621. West Bengal 22.86 5.00 15.27 20.27

Total 425.06 36.80 280.63 317.43


'.Table 6.06

Region-wise procurement of paddy and receipt of CMR during current KMS 2015-16 (upto 31.12.2015) is asunder:

KMS 2015-16

SI.No..o. STATES/UTs Paddy CMR Total Rice1 A.P. 14.66 5.39 5.392 Telangana 13.22 2.31 2.313 Assam 0.00 0.00 0.004 Bihar 0.13 0.00 0.005 Chandigarh 0.24 0.09 0.096 Chhattisgarh 36.87 7.77 7.777 Haryana 42.77 10.63 10.638 lharkhand 0.01 0.00 0.009 l&K 0.09 0.00 0.0010 Karnataka 0.00 0.00 0.0011 Kerala 1.61 0.80 0.8012 M.P. 11.47 0.00 0.0013 Maharashtra ' 0.91 0.01 0.0114 Odisha 8.45 0.53 0.5315 Puducherry 0.00 0.00 0.0016 Punjab 143.39 24.84 24.84

(Quantity in Lakh MT)

•

utcome u Iget - , epartment 0 00 u17 Rajasthan 0.00 0.00 0.00

18 Tamil Nadu 0.61 0.00 0.00

19 U.P. 38.11 6.08 6.08

20 Uttrakhand 7.37 1.58 1.58

21 West Bengal 1.21 0.00 0.00

22 Others 9.25

Total 330.37 60.03 60.03

o B d 2016 17 D125

f F d & P blic Distribution

Table 6.07Procurement of Coarse Grains

In the States of Maharashtra, Karnataka, Madhya Pradesh, Chhattisgarh and Andhra Pradesh, the State Govt.and their agencies undertook the procurement of coarse grains.

The Region-wise procurement of coarse grain during last two Marketing Seasons is as under:

REGION 2013-14 - 2014-15

Jowar Bajra Maized Ragi Jowar Bajra Maize Ragi

Maharashtra 85 - 95555 - 5867 - 1619 -Chattisgarh - - 2587 - - - - -M.P. 2 - 86573 - 1643 - 301842 -A.P. - - 27918 - - - 4945 -Telengana - - 288904 - - - 6438 -Kamataka 4 - 713807 14788 6839 - - 135955Bihar - - 722 - - - - -Total 91 - 1216066 14788 14349 - 314844 135955

(Quantity in MT)

Table 6.08


MSP of Wheat, Paddy & Coarse grain

As per the Ministry's letter No. 5(1O)/2010-Py.I dated 16.09.2012 and O.M. No. 011IFUD/005/142453 dated30.08.2011, FCI is making payment to farmers through electronic mode/cheques in all States excepting the State ofPunjab and Haryana where payment to farmers is made through KatchaArhtiyas.

..

MSP of wheat during RMS 2014-15 and 2015-16 is as under:

Commodity RMS 2014-15 RMS 2015-16Wheat 1400 1450

(~ per quintal)

Table 6.09

MSP of paddy &coarse grains during KMS 2014-15 and KMS 2015-16 is as under:

per quin aCommodity KMS 2014-15 KMS 2015-16Paddy - Common ~ 1360/- ~ 1410/-Paddy - Grade' A' ~ 1400/- ~ 1450/-]owar - Hybrid ~ 1530/- ~ 1570/-]owar - Maldandi ~ 1550/- ~ 1590/-Bajra ~ 1250/- .~ 1275/-Maize ~. 1310/- ~ 1325/-Ragi ~ 1550/- ~ 1650/-

(~ . t 1)

Table 6.10Projection of wheat Procurement upto 31.03.2016

Based on trend of wheat procurement during last three years, about 3.50 lakhMT wheat is likely to be procuredin RMS 2016-17 in M.P. Region upto 31.03.2016.


Projection of Rice Procurement upto 31.03.2016

..Based on trend of rice procurement (including paddy in terms of rice) during last three years, Region-wise rice

(including paddy in terms of rice) projected to be procured during KMS 2015-16 is as under:(Fig in Lakh MT)

S.No. STATES/UTs KMS 2015-16

Projection upto 31.03.2016

1 A.P. 20.00

2 Telangana 16.00

3 Assam 0.06

4 Bihar 9.31

5 Chandigarh 0.11

6 Chhattisgarh 44.97

7 Delhi 0.00

8 Gujarat 0.00

9 Haryana 29.00

10 H.P. 0.00

11 Jharkhand 0.45

]2 I&K 0.01

13 Karnataka 0.48

14 Kerala 1.68

15 M.P. 9.14

16 Maharashtra 1.44

17 Nagaland 0.00

18 Odisha 22.76

19 Pondicherry 0.00

20 Punjab 81.48

21 Rajasthan 0.00

22 Tamilnadu 3.73

23 U.P. 21.00

24 Uttrakhand 4.12

25 West Bengal 10.20

Total 275.94


Table 6.11Out of this, 189.661akh MT rice (including unmilled paddy in terms of rice) has already been procured during KMS 2015-

16 for Central Pool upto 31.12.2015.

6.8 STOCK MANAGEMENT

The stock holding under central pool as on 01.01.2016 is 364.77 lakh MT (rice 126.89 lakh MT; wheat 237.88lakh MT). In addition, 199.04 lakh MT paddy is also available in central pool.

The Crop Year-wise percentage of issuable stock in central pool as on 01.01.2016 is as under:

igures III a s

Crop Year Wheat Rice%age of stocks %age of stocks

2015-16 48.26 46.452014-15 50.59 53.142013-14 01.14 00.38

(F" . I kh MT )

"

utcome u get - , epartme2012-13* 00.01 O~:Q)Total 100 100

o B d 2016 17 D129

nt of Food & Public Distribution

Table 6.12

* Stock of crop year 2012-13 covered under lCAR study

Remark: The stock exclude stocks in transit, BRL/Upgradable/Non-issuable/"C&D' category wheat and "D" category rice.

6.9 PROCUREMENT OF COARSEGRAINS:

In the States of Andhra Pradesh, Telangana, Haryana, Maharashtra, Karnataka, Madhya Pradesh andChhattisgarh, the State Government and their agencies undertook the procurement of coarsegrains. The State wisedetails of procurement of coarsegrains during last two Marketing Seasons and current marketing season are as under:

KHARIF MARKETING SEASON 2014-15

STATE JOWAR BAJRA MAIZE RAGI TOTALAndhra Pradesh 0 0 4945 0 4945

Telangana 0 0 6438 0 6438Chandigarh 0 0 0 0 0

Delhi 0 0 0 0 0Haryana 0 0 0 0 0

Madhya Pradesh 5867 0 1619 0 7486Maharashtra 1643 0 301842 0 303485Karnataka 6839 0 0 135955 142794Punjab 0 0 0 0 0Total 14349 0 314844 135955 465148

Figure in tonnes

Table 6.13

18-379 Oeptt.of F& PO/2015


KHARIF MARKETING SEASON 2015-16 Figure in tonnes ....

STATE JOWAR BAJRA MAIZE RAGI TOTAL

Andhra Pradesh 0 0 0 0 0

Telangana 0 0 0 0 0

Chattisgarh 0 0 0 0 0

Delhi 0 0 0 0 0

Haryana 0 5053 0 0 5053

Madhya Pradesh 4665 0 13496 0 18161

Maharashtra 7440 0 8 0 7448

.Karnataka 0 0 0 0 0

Punjab 0 0 0 0 0

Total 12105 5053 13504 0 30662Table 6.14

6.10 TARGETED PUBLIC DISTRIBUTION SYSTEM (TPDS):

(i) The TPDS is operated under the joint responsibility of Central Government and StateslUTs. While the CentralGovernment makes allocation of foodgrains, the distribution of foodgrains under TPDS and Other WelfareSchemes (OWS) to the targeted beneficiaries is made by the StatelUT Governments and their agencies. FCIensures adequate foodgrains stocks at all its base depots throughout the country for TPDS and OWS.

."


",,-

(ii) The offtake of wheat and rice under TPDS and all other welfare schemes of Government of India during the year2015-16(Upto November, 2015) was as under:

.. Name of scheme Category In Lakh tons2015-16 (Upto November, 2015)Wheat Rice Total

TPDS APL 45.90 37.97 83.87BPL 17.48 57.85 75.34ANTYODAYA 7.39 33.49 40.88AAY/ Priority 90.86 73.19 164.06Tide Over 1.92 1.10 3.01TOTAL 163.56 203.60 367.16

SPECIALADHOC 4.19 10.22 14.41Offtake against allocation made at Eco. Cost!MSP rate 0.65 0.60 1.25"

~---ALL OTHER SCHEMES* 34.22 18.42 52.64

GRAND TOTAL 202.62 232.84 435.45(*) All other welfare schemes included Mid Day Meal, Nutrition Programme, Welfare Institutionsand Hostels, Relief Works, Annapurna, WFP, NPAG, Open Market sale, Exports etc.Under TPDS offtake is against the allocation upto December, 2015.

Table 6.15

-I


The estimated offtake of wheat and rice for the period 01.01.2016 to 31.03.2016 i,$ as under:(In Lakh MT)/(Provisional)

'...

Name of Category 2015-2016scheme Wheat Rice Total(a)TPDS APL 6.70 5.31 12.01

APL Addl. 2.90 0.62 3.52BPL 4.89 9.39 14.28BPL Addl. 1.33 2.41 3.74ANTYODAYA 1.95 6.15 8.1NFSA 37.93 44.58 82.51Other than NFSA 0.95 0.82 1.77TOTAL "TPDS 56.65 69.28 125.93

(b) Addl. Allocations for relief/flood & Festivals etc. 0.02 5.43 5.45(c) OTHERWELFARE SCHEMES (OWS) 3.51 0.13 3.64(d) OMSS(D) 40.00 0.13 40.13GRAND TOTAL 100.18 74.97 175.15

..

Table 6.16

Note: (l) Offtake includes stocks lifted by the State Govt. from the stocks procured under decentralised procurementscheme (DCP).(2) other Welfare Schemes include Mid Day Meal, Nutrition Programme, Welfare Institutions and SC/ST/OBCHostels, Annapurna and DefencelBSF /CRPF.(3) Offtake under TPDS/OWS/OMSS(D) is estimated for January to March 2016, as per the allotment receivedtill date from Ministry and current trend of offtake during 2015-16.

(iii) In North Eastern States, difficulties are faced in maintaining adequate level of foodgrains stocks due totopographical constraints and natural calamities. The induction of stocks in the North-Eastern States is a perpetual


problem which gets acute during the monsoons due to breaches in roads, landslides, cloud burst and washing away ofbridges in the Region etc. FCI is taking all possible steps to induct as much stocks as possible with a view to meet themonthly allocations in North Eastern States. Besides, the law and order problems, the constraints of the Railways tocarry the required number of rakes on daily basis for the North Eastern States is also another limiting factor.

(iv) The State-wise issue of foodgrains under all the schemes during the year 2015-16 (upto 31.12.2015) and thecomparative position of the corresponding period during the year 2014-15 and estimated offtake for 2015-16 in NE, States are as under:

(In Lakh MTs)

State . Wheat

Actual Actual Estimated Total Estimated

2014-15 2015-16 2015-16 2015-16upto upto (01.01.16 to upto

31.12.14 31.12.15 31.03.16) 31.03.16

Assam 3.82 4.02 0.61 4.63Arunachal 0.00 0.00 0.00 lln~.~lV'ITs)Tripura 0.23 0.22 0.06 0.28Manipur 0.18 0.28 0.09 0.37Nagaland 0.23 0.30 0.09 0.39 'Mizoram 0.08 0.07 0.02 0.09Meghalaya 0.17 0.23 0.07 0.30·<rotal 4.71 5.12 0.95 6.06

Table 6.17

I ~


(In Lakh MTs)

State RiceActual Actual Estimated TotalEstimated

2014-15 2015-16 2015-16 2015-16upto up to (01.01.16 to upto

31.12.14 31.12.15 31.03.16) 31.03.16

Assam 13.95 11.13 4.48 15.61Arunachal 0.90 0.86 0.28 1.14

Tripura 2.69 2.14 0.67 2.81Manipur 1.56 1.37 0.79 2.16Nagaland 1.22 0.98 0.26 1.24Mizoram 1.07 0.55 0.18 0.73Meghalaya 1.61 1.45 0.46 1.91

Total 23.00 18.48 7.13 25.61

Table 6.18

In North East Region, the total offtake of wheat during 2015-16 (upto 31.12.2015) has increased from 4.71 LakhMT to 5.12 Lakh MT and in case of rice it has decreased from 23.00 Lakh MT to 18.48 Lakh MT, as compared to thecorresponding period in the last year.

(v) The comparative stock position of foodgrain in the North Eastern Region as on 01.01.2015 and 01.01.2016 is asunder:

As on Wheat Rice Total01.01.2015 0.64 2.79 3.4301.01.2016 0.53 2.39 2.92

(In lakh MT)

Table 6.19


The stocks as on 01.01.2016in respect of wheat & rice has decreased by 0.11 lakh MTand 0.40 Lakh MT,respectively, when compared to the stock position as on 01.01.2015 in the NE Region.

(vi) Further, the month-wise estimated offtake of foodgrains in respect of NE Region for the remaining period of2015-16 is as under:

Period Wheat Rice Total

January 2016 0.32 2.38 3.29

February 2016 0.32 2.38 3.29

March 2016 0.31 2.37 3.29

Total 0.95 7.13 9.87

(Figs in lakh tonnes)

Table 6.20

Offtake is estimated for January to March 2016, based on the allotment received till date from Ministry. It ispresumed that balance allotment would be lifted 100%& OMSS (D) is as per current trend of sale.

6.11 IMPORT & EXPORT

There has been neither export nor import of foodgrains during 2015-16 (till 31.12.2015). FCI carries outexport/import of foodgrains on Govt. of India directives and as of now, there is no direction from the Ministryregarding export/import of foodgrains from Central Pool.

6.12 AIDTOMYANMARGovernment of Indiahas donated 100MT rice to Myanmar for flood affected areas near Indian Borders out of

Central Pool Stocks during 2015-16.


6.13 QUALITY CONTROL

The Quality Control (QC) wing of FCI is entrusted with enormous task of procurement & preservation offoodgrains. The foodgrains are procured as per laid down specifications of Govt. of India and inspected regularlyduring storage to monitor the quality. Representative samples of the stocks are drawn for physical analysis to ensurewhether the quality standard meets the parameters of laid down Specifications of Govt. of India and Food Safety &Standard Authority of India (FSSAI). This is done through a network of2133 laboratories (ason01.01.2016)throughoutthe country. The laboratories at Headquarters, IFS Gurgaon, Zonal, Regional, District & Depots levels are equipped tocarry out physical analysis of the foodgrains.

The senior Q.C. Officers undertake frequent visits to the procurement & storage points to inspect the quality offoodgrain stocks and advise QC staff on the spot to ensure procurement of foodgrains conforming to specifications andits maintenance during storage at all levels. Appropriate action is also initiated against defaulters, if any, in order totighten the supervisory arrangement and fixing responsibilities on all found responsible for procurement of stocksbeyond laid down parameters. Long terms/short term training is held for QC staffs on procurement and preservation offoodgrain management.

Periodical disinfestation measures are undertaken i.e. prophylactic and curative treatments is given to the stockswith the permitted insecticides to ensure the health of the grains so that it is preserved in the highest category possible.Preventive measures are also undertaken to control rodents, birds and pest infestation by appropriate measures.

The stocks of foodgrains strictly conforming to FSSAI norms are issued under TPDS and OWS to various StateGovernments by adopting joint sampling system scrupulously.

Non-Issuable (Damaged) Foodgrains and its Disposal

Foodgrains which do not conform to FSSAI norms and further cannot be reconditioned for normal issue areconsidered 'Non-Issuable'. Damage to the stock may occur in the Covered/CAP storage or in transit. 1


The non-issuable foodgrains classified under various categories are disposed off as per procedure. Freshallocations and sale of non-issuable foodgrains held by the FeI and State Agencies is made only to bonafide registeredparties to avoid circulation of non-issuable foodgrains into the market. Executive Directors (Zone) & General Managers(Region) are vested with full power for disposal of Non-Issuable foodgrains.

The major quantity got damaged due natural calamities such as cyclone (Andhra Pradesh Region) and rain (UP,TN, Kerela and Gujrat Region). Some quantity of foodgrain stocksalso gets damaged due to prolonged storage, intransit damage etc.

The break-up of damaged foodgrains accrued during 2015-16 (upto 01.01.2016) is under: .

Reasons for damage Quantity (in MT)Quality complaints 323Prolonged storage 24Negligence 79Cyclone 2039Railhead damage 13Rain 101Transit damage 317CAP damage 2Others 29Total 2927

Table 6.21

A quantity of 4320 tonnes of non-issuable foodgrains has been disposed off during 2015-16 (from April, 2015 toDecember, 2015).

New Initiatives

• The BOD has' approved the Model Tender Form (MTF) for engagement of service provider for quality.assurance and checking during receipt, preservation, maintenance, despatches and issue of foodgrains in

19-379 £)pott of F II. PD/?(l1;


designated FCI godowns. Currently tenders have been floated by Chhattisgarh, Maharashtra, Gujrat, AndhraPradesh and Tamil Nadu.

• Procurement of pulses has started from KMS 2015-16 (Tur and Urad). Necessary directions has been given toInstitute of Food Security, Gurgaon, to arrange training programme for Officers/Officials for smoothprocurement, storage, preservation and liquidation of pulses.

• As huge quantity of wheat has been procured under relaxed specification (URS) during RMS 2015-16 invarious wheat procuring States, a study on "Shelf-life of wheat procured under relaxed specifications" iscurrently being done by IGMRI Hapur to evaluate the quality of procured wheat during RMS 2015-16 andfurther drawing priority for issuance.

\ -,~

As per recommendations ofHLC andsubsequent decision taken by Govt. of India, FCI has drawn a roadmap for'strengthening its quality control infrastructure and modernization of laboratories. In this track, FCI has approachedreputed Govt. Institutes and private parties for evolving and field testing of mechanized devices for quality checking ofnee.

6.14 STORAGE OF FOODGRAINSAND AUGMENTATION OFSTORAGE CAPACITY:1Procurement, in the last few years, has touched new heights given remunerative MSPs coupled with better

operational outreach. As a result, Central Pool Stocks had increased from 196.38 lakh MTs as on 01.04.2008 to a peaklevel 823.17 lakh MTs as on 01.06.2012. The position of stocks in the Central Pool as on 01.01.2016 was 237.47 lakhMTs. To meet the short-term peak requirements of storage capacity, FCI resorts to short-term hiring of coveredgodowns as well as storage of foodgrains under Cover& Plinth (CAP). CAP is also a scientific method for storage offoodgrains.

Total storage capacity available with Food Corporation of India is 359.25 lakh"MTs as on 31.12.2015. Storagecapacities, both Covered and CAP, available with State agencies for Central Pool stock of foodgrains is 452.84 LakhMTs. As a result, total of about 812.09 Lakh tonnes of storage capacity is available for storage of Central Pool stock offoodgrains which stood at 364.77 Lakh MTs as on 31.12.2015. The detailed statement is as follows:-


..

- (Fig. inLMT as on 31.12.2015)State Total Storage Capacity with FCI (Owned/Hired) Total Storage Capacity Grand Total

Covered CAP Total with State AgenciesOwned Hired Owned Hired Covered CAP Covered CAP Covered CAP

Bihar 3.66 2.6 I 0 6.26 1 3.45 - 9.71 IJharkhand 0.67 1.65 0.05 0 2.32 0.05 - - 2.32 0.05Orissa 3.12 2.41 0 0 5.53 - 6.16 - 11.69 -

West Bengal 8.5 1.15 0.51 0 9.65 0.51 6.49 - 16.14 0.51Assam 2.7 1.05 0 0 3.75 - 2.27 - 6.02 -

Arunachal Pd 0.18 0.04 0 0 0.22 - 0.11 - 0.33 -Meghalaya 0.14 0.14 0 0 0.28 - - - 0.28 -Mizoram 0.25 0 0 0 0.25 - 0.42 - 0.67 -Tripura 0.29 0.07 0 0 0.36 - 0.48 - 0.84 -Manipur 0.28 0.04 0 0 0.32 - - - 0.32 -Nagaland 0.21 0.13 0 0 0.34 - - - 0.34 -Delhi 3.36 0 0.31 0 3.36 0.31 - - 3.36 0.31

Haryana 7.68 41.99 3.33 0 49.67 3.33 30.99 30.53 80.66 33.86Himachal Pd. 0.19 0.3 0 0 0.49 - - - 0.49 -

l&K 1.03 1.36 0.1 0 2.39 0.1 - - 2.39 0.1Punjab 22.24 79.28 7.31 0.1 101.52 7.41 42.42. 100.44 143.94 107.85

Rajasthan 7.06 10.42 1.85 0 17.48 1.85 5.78 0.19 23.26 2.04Uttar Pradesh 14.95 29.51 5.19 0 44.46 5.19 14.12 - 58.58 5.19Uttarakhand 0.66 0.98 0.21 0 1.64 0.21 1.86 - 3.5 0.21

Andhra Pradesh 7.36 4.91 1.6 0 12.27 1.6 12.88 - 25.15 1.6Telangana 5.37 3.35 1.02 0 8.72 1.02 12.27 - 20.99 1.02Kerala 5.29 0.05 0.21 0 5.34 0.21 0.97 - 6.3 I 0.21

Kamataka 3.81 3.7 1.36 0 7.51 1.36 20.36 0.41 27.87 1.77Tamilnadu 6.24 4.67 0.31 0 10.91 0.31 5.71 - 16.62 0.31Gujarat 5 1.89 0.27 0 6.89 0.27 2.06 - 8.95 0.27

Maharashtra 8.85 10.69 1.02 0 19.54 1.02Goa 0.15 0.05 0 0 0.2 - 11.18 - 30.92 1.02

Madhya Pradesh 3.37 0.05 0.36 0 3.42 0.36 111.6 14.28 115.02 14.64Chhattisgarh 5.12 2.92 0.01 0 8.04 om 15.41 - 23.45 0.01

Total 127.73 205.4 26.02 0.1 333.13 26.12 306.99 145.85 640.12 171.97333.13 26.12 359.25 452.84 812.09

... '4

Table 6.22


Storage capacity available with FCI is concentrated mainly in the procuring hub located in the NorthernZone: The Northern Zone has about 67% of the total available storage capacity, the Southern Zone has about 14%,Western Zone has about 11%, Eastern Zone has about 7% and North-Eastern Zone has 1% of the total availablestorage capacity. As stated above, around 69% of the storage capacity is concentrated in 7 major procuring Statesi.e. Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, Telangana, Madhya Pradesh and Chhattisgarh, while about7% storage capacity is available in the four newly emerging procuring States of Bihar, Odisha, Jharkhand and WestBengal. Capacity enhancement as per requirement is taking place through PPP mode through creation of€onventional godowns as well as steel silos.

PEG Scheme for construction of godowns

To overcome storage constraints and ensure safe stocking of food grains across the country, Government isimplementing the Private Entrepreneurs Guarantee (PEG) Scheme for construction of storage godowns in PPP throughprivate entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Assessmentof additional storage capacities required under the scheme is base3d on the overall procurement/consumption and the storagespace already available.

Under the PEG scheme, FCI gives a guarantee of 10 years to private investors and 9 years to CWC/SWCs/StateAgencies. A capacity of 151.20Lakh MTs has been sanctioned for construction of PEG godowns in 20 states. A capacity of'131.66 lakh MT has been completed and a capacity of 14.96 lakh MT is under construction upto 31/12/2015. State-wisestatus report of the Scheme is given is below.-

(Fig. in MT as on 31.12.2015)SI. Capacity Capacity Capacity taken

Capacity under Capacity for which

No. State sanctioned/ construction construction work is

allottedcompleted over yet to start

1 Andhra Pradesh 1,12,800 87,800 87,800 25,000 0

2 Bihar 5,25,000 1,45,000 80,000 2,60,000 1,20,000

3 Chhattisgarh 5,42,230 4,92,390 4,92,390 49,840 0

•

ucome uige - , ep men 0 00 u IC IS r4 Gujarat 50,000 49,800 49,800 0 200

5 Haryana 34,93,309 34,56,629 33,67,779 16,680 20,000

6 Himachal Pradesh 24,170 24,170 19,170 0 0

7 Jammu & Kashmir 2,94,010 1,27,180 1,27,180 1,20,160 46,670

8 Jharkhand 2,53,000 1,13,000 1,13,000 30,000 1,10,000

9 Karnataka 2,41,440 2,04,770 2,04,770 36,670 0

10 Kerala 5,000 5,000 5,000 0 0

11 Madhya Pradesh 15,55,060 11,71,690 6,20,890 3,83,370 0

12 Maharashtra 5,64,527 5,64,527 5,39,527 0 0

13 Odisha 3,70,000 2,79,500 2,59,500 45,500 45,000

14 Punjab 45,08,858 44,15,225 43,55,225 78,270 15,363

15 Rajasthan 2,50,000 2,20,000 1,63,000 15,000 15,000

16 Tamilnadu 2,50,000 1,60,000 1,40,000 75,000 15,000

17 Telangana 3,19,000 2,69,000 2,38,000 50,000

18 Uttarakhand 0 0 0 0 0

19 Uttar Pradesh 15,51,127 12,33,127 12,23,127 3,18,000 0

20 West Bengal 2,10,180 1,46,770 81,500 43,010 20,400

Total 1,51,19,711 1,31,65,578 1,21,67,658 14,96,500 4,57,633

141o t B d t201617 Dartt fF d&P br D· tibution

Table 6.23

During 2015-16, the target of FCI for capacity construction was 3.00 Lakh MT. A Capacity of 4.65 Lakh MThas been completed upto 31.12.2015 and additional capacity of 1.25 Lakh MT is likely to be completed upto March2016. The state-wise storage capacity created under PEG scheme in 2015-16 is as follows:-

STATE-WISE STORAGE CAPACITY CREATED UNDER PEG SCHEME IN 2015-16 (UPTO 31.12.2015)T' (Capacity in Lakh MT)

Sl.no State Achievement1 Andhra Pradesh 0.002 Bihar 0.15

utcome u [get - , epartme3 . Chhattisgarh 0.424 Gujarat 0.005 Haryana 0.006 Himachal Pradesh 0.007 Jammu & Kashmir 0.008 Jharkhand 0.139 Karnataka 0.0010 Kerala 0.0011 Madhya Pradesh 1.4912 Maharashtra 0.0013 Odisha 0.3014 Punjab 1.2515 Rajasthan 0.0016 Tamilnadu 0.0517 Telengana 0.0018 Uttar Pradesh 0.0019 Uttarakhand 0.2020 West Bengal 0.66

Total 4.65

o B d 2016 17 D142

nt of Food & Public Distribution

'"

Table 6.24

Silos - Scientific Storage of Food Grains.

Steel Silo' storage with bulk handling facility is highly mechanized and modernized way of storing offoodgrains in bulk. It ensures better preservation of foodgrains and enhances its shelf life. If foodgrains are storedin Silos and transported in bulk, losses due to theft, pilferage and transportation would be negligible compared tofoodgrains storage in bags in conventional warehouses. Further since land availability in existing FCI godowns isscarce, it would be prudent to shift to storage of foodgrains in Silos as it requires approximately 1/3rd land ascompared to conventional storage warehouses. Moreover, Silos can be operated round the clock which wouldbring in flexibility and would improve overall efficiency. As such, construction of Silos and utilization of Silos

,./


for storing and transportation of foodgrains in bulk would be beneficial to the nation as a whole besides alsocreating an efficient Food Supply Chain Management System. Accordingly FCI has plans to modernize its storagefacilities by construction of modern steel Silos on a PPP mode.

At present, FCI has steel silos of 5.5 LMT capacity being operated in PPP mode. The capacities of Silos inthe Base and Field Dpots in two circuits are as given belowc-

Circuit-I Circuit-IILocation . Storage size Location Storage sizeBase Depot Moga (Pb) 2,00,000 MTs Base Depot 2,00,000 MTs

Kaithal (Hr)Field Depot Field DepotChennai (TN) 25,000 MTs Navi Mumbai 50,000

Coimbatore 25,000 MTs Hooghly (WB) 25,000 MTsBangalore (KNK) 25,000 MTs

Table 6.25

It is proposed to augment Silo capacity in the country in phases as follows:

,.

Year Selection of Silo Operator Silo Completion(LMT) (LMT)

2016-17 36.25 LMT (Phase - 1) 5LMT.2017-18 29.00 LMT (Phase - 2) 15 LMT2018-19 34.75 LMT (Phase - 3) 30LMT2019-20 - 30LMT2020-21 - 20 LMTTotal 100 LMT 100 LMT

Table 6.26


Construction will be done in PPP mode through FCI, State Governments and other agency like CWC. Ithas also been proposed to get the study conducted by independent experts prior to proceeding with construction ofSilos in phase 2 and phase 3.

Accordingly, FCI has already floated tenders (RFQ) for construction of Silos through PPP mode for total 1.5Lakh MT capacity at 6 locations viz. Narela, Changsari, Katihar, Whitefield, Sahnewal and Kotkapura on 23.04.2015.Request for proposal (RFP) has been floated on 11.12.2015 for Katihar, Kotkapura& Whitefield after getting inprinciple approval for VGF grant from Empowered Institution of DEA. RFP for remaining three locations will befloated soon.

Plan Scheme for construction of storage godowns:

Augmentation of Storage Capacity in the North East Region (including Sikkim):

The Department is creating storage capacity in the NE Regions under the Plan Schemes "Construction ofstorage godowns". While finalizing the scheme for 11th Five Year Plan, it was decided to expand the scope of theScheme to States like Himachal Pradesh, Jharkhand, Bihar, Odisha, West Bengal, Chhattisgarh, Maharshtra andLakhadweep for the purpose of construction of godowns.

In addition, DFPD has been requesting the state governments to create intermediate storage capacities atBlockiTaluka level to store foodgrains collected from FCI depots, for further distribution to fair price shops. This isnecessary to improve the supply chain logistics for TPDS. While construction of intermediate godowns is- theresponsibility of the state governments, plan funds are provided as Grant-in-Aid also to governments of the NE statesand 1&K for this purpose, considering their difficult geographical conditions.



The followingis the Plan outlay for XIIth Five Year Plan.

Sl Head Estimated Unspent Outlay inCost balance of 12th Plan

(Rs crore) 11th Plan (Rs crore)(Rs crore)

1 Construction of godowns by FCI at 37 509.76 51.20 458.56locations in the NE (2,92,730 MT).

2 Construction of godowns by FCI at 9 72.14 16.06 56.08locations in 4 other states (76,220 MT).

3 Grant-in-Aid to NE states for intermediate 14.36 0.00 15.36storage at 74 locations.

4 Grant-in-Aid to J&K for intermediate 1.00 0.00 1.00storage at 1 location.

Total 597.26 67.26 530.00Table 6.27

Physical and Financial Achievements by FCl during 2012-13, 2013-14,2014-15 and 2015-16 are as below:-


2012-13 2,910 27.72 1,160 2.64 4,070 30.36

2013-14 2,500 30.94 20,000 11.02 22,500 41.962014-15 43,480 76.48 - 0.99 43,480 77.472015-16 19,170 43.00 - 0.00 19,170 43.00Total 68,060 178.14 21,160 14.65 89,220 192.79

Table 6.28

Total 75 projects of capacity 78,055 MT were sanctioned for construction of intermediate storage godownsusing Grants-in-Aid in the North Eastern States and Jammu & Kashmir. As on 31112/2015, capacity of 54,855 hasbeen completed.

20-379 Deptt.of F & PD/2015

146. Outcome Budget 2016-17, Department of Food & PublicDistribution

In addition, hiring of storage capacities is done by FCI wherever required and maximum utilization was made ofexisting capacities. The storage capacity available with FCI and the percentage utilisation during last five years is asunder:

Position as Covered CAP Grand %ageon Owned Hired Total Owned Hired Total Total utilization

30.06.2011 129.91 167.75 297.66 26.36 8.50 34.86 332.52 91%30.06.2012 130.03 195.64 325.67 26.36 12.35 38.71 364.38 97%30.06.2013 12.9.96 225.23 355.19 26.37 10.23 36.60 391.79 84%30.06.2014 130.09 224.03 354.12 26.38 6.90 33.28 387.40 82%30.06.2015 127.40 217.90 345.30 26.02 1.68 27.70 373.00 82%

(FiguresinLakhMT)

Table6.29

6.15 VIGILANCE & SECURITY:

The Vigilance Division in Headquarters is headed by the Executive Director (Vig.)/CVO, who is assisted byGeneral Manager (Vig.)/ Deputy General Manager (Vig.) and Asstt. General Manager (Vig.) along with Managers(Vig.) and supporting staff. Similar vigilance set-up exists in the Zones/Regions. In Zones, Vigilance Division isheaded by General Manager(Vigilance & Security) who is assisted by Deputy General Manager(Vig.) / Asstt.General Manager (Vig.), Managers(Vig.) and supporting staff. General Manager (Vigilance) functions directly underthe Executive Director (Zone). Similarly in the Regions, depending upon the staff strength and work load, VigilanceUnit is headed by Deputy General Manager (V&S) or Asstt. General Manager(V&S) and assisted by Managers &supporting staff.

The functions of Vigilance Division are both punitive as well as preventive. During the course of surprisechecks/ regular checks, whenever irregularities come to the notice of Vigilance Division, necessary steps to punishdelinquent staff are taken by the concerned unit i.e. in respect of Category-IV by the District Offices, for Category-IIIby Regional Offices, for Category-II by Zonal Offices, for Category-I by Headquarters. For preventive vigilance, time


to time surprise checks/regular checks are carried out and based on the observations of these squads, operativeDivisions are advised to put in place instructions/circulars to plug loopholes in procedure so as to minimize/eliminatescope of manipulation by unscrupulous stakeholders.

During the period from 1st April, 2015 to JIst December 2015, 763 vigilance cases were initiated and 802vigilance cases were disposed off.

In order to minimize the storage and transit losses and to ensure the quality of foodgrains , 6014 regular and2027 surprise inspections were conducted by various vigilance units of FCI during 2015-16 (upto 31.12.2015), some ofthem resulting into vigilance cases .

.In order to effectively carry out objectives of FCI and curb the instances of corruption, following preventive

measures aimed to reduce the scope for corruption! irregularities/ frauds are being taken:

Preventive Vigilancemeasures in respect of Procurement:

.,

(i) In order to eliminate subjectivity in the physical and visual analysis of quality parameters in respect of rice,each refraction was pictorially depicted and introduced to the field functionaries of FCI and put up in publicdomain.

(ii) The process of appeal and grievance redressal mechanism was reviewed and instructions circulated by QCDivision, FCI Hqrs on 31.03.2015

(iii) Emphasis is being laid on introduction of Good Laboratory Practices in respect of QC labs.(iv) Emphasis on introduction of identity-blind/coding system, for fair analysis of QC samples of food grains is laid

and instructions have been issued accordingly .(v) By making senior management functionaries responsible for effective supervision &control in QC functions,

incidents ofBRL food grains have come down considerably.


Preventive Vigilance measures in respect of Storage and Contracts

(i) Ensuring that the terms & conditions of tender notice are not designed to block wider participation of bidderswhich is aimed at getting benefit of competitive bidding to FCI.

(ii) Modifications were suggested in Model Tender Forms so as to simplify pre-qualification conditions, increasecompetition and to provide security for performance in the form of Bank Guarantees.

(iii) Introducing a system of monitoring of QPV, APV and Zero Balance PV by Vigilance Division. Randomscrutiny of QPV/APV reports is done during the inspections by Vigilance Squads. Instructions on QPV/APVwere issued vide FCI Hqrs Circular 99/2013.

(iv) The list of sensitive districts have been comprehensively reviewed and revised.

Preventive Vigilance measures in respect of Transportation/ Movement

(i) Prescribing proper management of records.(ii) E-tendering and tender results are published in web-site of FCI.(iii) Stringent penalty of recovery from contractors introduced to deter manipulation/losses.(iv) Prescribing inspections by Sr. officers in case of SL/TL exceeding pre-determined levels.(v) Provision for Independent Consignment Certification Squad (lCCS) at the time of loading and unloading of

foodgrains moved through railways.(vi) Provision for electronic weighbridges at all depots with periodic calibration.(vii) Installation ofCCTV cameras in godowns.

(i)(ii)

Preventive Vigilance measures in respect of Distribution

For assuring consumer satisfaction, circulars have been issued by QC division, Hqrs on Quality Assurance.The Corporation is also in the process of introducing automation in storage and handling. Bids have beeninvited for building, operating and maintaining modem silos with high degree of automation. This willreduce contact points as well as discretion of the Corporation officials in the depots.


(iii) In addition, a comprehensive on-line depot manag~ment system is proposed to be implemented. This willhelp improve and automate record keeping as well as provide real-time information about activities in thegodowns as well as bring in transparency in day-to-day operations.FCI has also introduced e-payment system for almost all transactions in the Corporation.(iv)

Security

Security of FCr s men and material is managed through its own Watch & Ward as well as through outsourcingof Ex-Servicemen, State Home Guards & Police Force personnel.. At certain vulnerable depots, the security of foodgrains is manned by the StateArmed Police.

Security surveillance through installation of CCTV Cameras & integrated security surveillance system ( Securitygadget with man power) has been completed at 58 and 07 FCI designated depots inthe financial year 2013-14 & 2014-15 respectively, for effective security surveillance to minimize theft, pilferage etc.

In addition to the above, installation of CCTV cameras in all the FCI owned depots (excluding the depots wheresuch facilities already exist) is underway. Further instruction has been issued for engagement of SAP/CISF in 18vulnerable locations to ensure proper security safety of stocks.

In order to prevent occurrence of fire, the depot/ office are provided with adequate fire-fighting equipment andall the ZOs/ ROs have certified the proper functioning of fire-fighting equipment.

A total of 559 Security inspections at various levels were conducted from 01.01.2015 to 31.12.2015.

The Security Division at Hqrs monitors cases of theft! fire/ pilferage intimated by Regions and issue directionswhenever required.


Statement showing the security inspection conducted w.e.f. 01.01.2015 to 31.12.2015 is given below:SI.No. Name of the Region Security Inspection1. Headquarters 002. ZonaIOffice(North) 013. Delhi 034. Harvana 165. Puniab 676. Raiasthan 347. Dehradun (Uttrakhand) 018. Lucknow (UP) 359. Jammu (J&K) 0010. Shimla (Himachal Pradesh) 0611. ZonaIOffice(South) 1512. Hvderabad (Andhra Pradesh) 0513. Tamil Nadu(Chennai) 1914. Benzaluru (Karnataka) 0015. Trivandrum (Kerala) 0516. ZonaIOffice(West) 1317. R.O. Mumbai 0318. Raipuri Chhatishgarh) 5119. Bhopal (M.P) 5020. Ahmedabad 2421. Zonal Office(East) 3422: R.OIEast) 1023. Patna (Bihar) 8224. Ranchi 0725. Bhubneshwar 7026. Zonal Office(NE) 0027. ShiIIong 0028. Dimpur (N&M) 0029. Arunachal Pd 00.30. Assam (Guwahati) . 08

Total 559Table 6.30


6.16 TRANSPORT OF FOODGRAINS:

Movement of food grains is undertaken in order to evacuate stocks from surplus Regions, to meet therequirements of deficit regions and also to create buffer stocks in deficit Regions. A quantity of 45 to 50 million tonnesof food grains are transported by FCI across the country in a year. Movement of food grain is undertaken by rail, roadand riverine systems, singularly or in combination. More than 90% of the movement of stocks is undertaken by rail(covering an average lead of 1500 KMs), rest is moved by road. A small quantity is also moved by ocean vessels toLakshadweep and Andaman &Nicobar Islands and through coastal shipping and riverine movement to KeralaiTripura.

FCI is major customer of Indian Railways. Annual freight being paid, at present, is around ~ 7,000 crore apartfrom other charges levied by Indian Railways. Rail freight is about 5% & 6% of the economic cost of rice and wheat,respectively.

The All India movement of foodgrgains, and movement Ex. N0l1h during the period from April, 2015 toDecember, 2015 and projected movement from January, 2016 to March, 2016 is as under:

2015-16(Provisional)(Fig in lakh MT)

All India Movement Movement Ex. North

Rail & Road Inter & Intra Rail & Road Inter & Intra

Rail Road Total Inter Intra Total Rail Road Total Inter Intra Total

April,15 to240.49 40.63 247.34 33.78 20.80 7.75 188.68281.12 281.12 167.88 188.68 180.93

Dectember,15 (Actual)

January, 2016 to

March'2016 85.87 13.14 99.01 86.21 12.80 99.01 59.93 6.54 66.47 62.5 3.97 66.47

(Projection)

Total 326.36 53.77 380.13 333.55 46.58 380.13 227.81 27.34 255.15 243.43 11.72 255.15

.,

Table 6.31


During 2015-16 there is 19% and 22% decrease in All India Movement of foodgrains and ex-North Movementrespectively compared to 2014-15 for the same period. Accordingly projected Movement of foodgrains for the periodJanuary, 2016 to March, 2016 has been prepared.

The movement of foodgrains during 2014-15 is as under:2014-15

Month All India movement Movement Ex. NorthRail & Road Inter & Intra Rail & Road Inter & Intra

Rail Road Total Inter Intra Total Rail Road Total Inter Intra TotalApril, 2014 toDecember,14 (Actual) 303.32 41.58 344.9 303.04 41.86 344.9 219.73 22 241.73 230.95 10.78 241.73January, 2015 toMarch,15 (Actual)* 106.oI 16.22 122.23 106.43 15.8 122.23 76.83 8.38 85.21 80.12 5.09 85.21

Total 409.33 57.8 467.13 409.47 57.66 467.13 296.56 30.38 326.94 311.07 15.87 326.94

(Figures in lakh MT)

Table 6.32*Including export Position

All India movement (Inter + Intra by Rail and Road) w.e.f. April, 2015 to December, 2015 is given below:

Sl. Month Food grains (Wheat +Rice)No.1. April,15 27.382. May,15 30.123. June, 15 29.264. July,15 34.535. August, 15 34.196. September,15 31.847. October, 15 28.028. November, 15 30.229. December, 15 35.56

Total 281.12

(Fig. in lakh MT)

•

Table 6.33


The position of inter State inflow outflow by rail and road during 2014-15 and 2015-16 is given below:(Provisional)

INTER STATE INFLOW OUTFLOW BY RAIL & ROAD(Figures in lakhMT)

2014-15 2015-16_1UJ!_toDecember)REGION

WHEAT' RICE TOTAL WHEAT RICE TOTAL WHEAT RICE TOTAL WHEAT RICE TOTALPUNJAB '0 0 0 97.68 124.13 221.81 0 0 0 67.88 59.96 127.85HARYANA 0 0 0 55.33 32.16 87.49 0 0 0 40.82 11.04 51.86U.P 33.15 29.58 62.73 0 0 0 18.15 12.56 30.72 0 0 0

UCL 3.15 0.01 3.16 0 1.78 1.78 2.48 0.06 2.54 0 1.21 1.21

J&K 3.94 6.63 10.57 0 0 0 2.23 5.86 8.09 0 0 0

H.P 3.54 2.22 5.76 0 0 0 2.66 1.51 4.17 0 0 0

DELHI 7.62 1.02 8.64 0 0 0 3.6 0.78 4.38 0 0 0

RAJ 9.58 0.42 10 0 0 0 10.55 0.31 10.86 0 0 0

TOTAL 60.98 39.88 100.86 153.01 158.07 311.08 39.67 21.08 60.75 108.71 72.21 180.92

MAHA 29.99 22.74 52.73 0 0 0 20.89 15.09 35.98 0 0 0

M.P 0 0.07 0.07 28.95 0.11 29.06 0 0 0 16.01 0 16.01

CHG I.I 0 I.I 0 23.86 23.86 0.4 0 0.4 0 19.35 19.35

GUJ 16.62 8.31 . 24.93 0 0 0 13.4 2.44 15.84 0 0 0

GOA 0.18 0.52 0.7 0 0 0 0 0 0 0 0 0

TOTAL 47.89 31.64 79.53 28.95 23.97 52.92 34.69 17.53 52.22 16.01 19.35 35.36

T.N 0.91 38.46 39.37 0 0 0 1.8 23.03 24.83 0 0 0

KNK 9.12 26.24 35.36 0 0 0 5.12 16.7 21.82 0 0 0KERALA 324 11.73 14.97 0 0 0 2.04 7.03 9.07 0 0 0A.P 1.81 0 1.81 0.15 34.32 49.32 0.64 0 0.64 0 20.75 20.75TOTAL 15.08 76.43 91.51 0.15 34.32 49.32 9.59 46.76 56.35 0 20.75 20.75

ORISSA 4.94 0.03 4.97 0 11.01 11.01 2.84 0.01 2.85 0 10.31 10.31

JHK 0.24 12.75 12.99 0 0 0 0.77 8.93 9.7 0 0 0W.B 25.21 10.23 35.44 0 0 0 17.39 0.97 18.36 0 0 0BIHAR 20.69 25.53 46.22 0 0 0 14.97 9.6 24.57 0 0 0

N.E. 7.08 30.88 37.96 0 0 0 4.81 17.74 22.55 0 0 0

TOTAL 58.16 79.42 137.58 0 11.01 11.01 40.77 37.25 78.02 0 10.31 10.31

G.TOTAL 182.11 227.37 409.48 182.11 227.37 409.48 124.72 122.62 247.34 124.72 122.62 247.34

Table 6.34

21-379 Deptt.of F & PD/2015


~I

I..

Month Wise Movement by Rail and Road Ex Punjab & Haryana during 2015-16 (upto December 2015) is given below:

FIg. In MT)

STATEMENT SHOWING MONTH WISE MOVEMENT BY RAIL AND ROADEX PUNJAB & HARYANA DURING 2015-16.

2015-16 2015-16EX.PUNJAB EX.HARYANA

MONTH Wheat Rice TOTAL Wheat Rice TOTAL

April,15 4.35 6.09 10.44 3.60 1.76 5.36May,15 6.09 7.16 -1-3.25 5.55 1.15 6.7June,15 8.46 6.94 15.40 1.37 0.26 1.63July,15 9.58 7.36 16.94 4.08 0.86 4.94August,15 8.68 7.33 16.01 5.00 0.73 5.73Sept,15 7.80 8.39 16.19 5.38 0.38 5.76Oct, 15 6.09 7.33 13.42 4.89 0.61 5.50

. Nov, 15 8.08 4.32 12.40 5.69 1.95 7.64

Dec, 15 8.76 5.04 13.80 5.26 3.33 8.59

Total 67.89 59.96 127.85 40.82 11.03 51.85

(Fi . lakh

Table 6.35

Significant achievements in Movement of Foodgrains

• FCI is undertaking multi-model transportation of rice involving coastal shipping and road movement from.designated depots of Andhra Pradesh to designated depots in Kerala. The operations were started in March 2014and 110531MTs food grains have been transported by FCI during 2014-15. In 2015-16 (Upto 7th January 2016)14585MT has been moved since September 2015

..

• Movement of foodgrains to South Assam, Manipur, Mizoram & Tripura was a herculean task due totransshipment of Foodgrains at Lumding due to MG route from Lumding to South Assam, Tripura and Manipur.


Railway started the gauge conversion from Lumding to South Assam, Tripura and Manipur in October 2014.Due to gauge conversion, supply of foodgrains got affected to these routes.

• During the gauge conversion, induction of food grains to Tripura was also made through riverine route passingthrough Bangladesh as an alternative mode. Initially 9942 MT of foodgrains was moved Ex-AP to Tripura viaAshuganj(Bangladesh). Subsequently foodgrainswere also moved Ex-Kolkata to Tripura viaAshuganj(Bangladesh) and 9691 MT was moved Ex-Kolkata to Tripura.

• In phase-I, gauge conversion of Lumding-Badarpur section has been completed by 31st March 2015. Salchapraand Bihara railheads in South Assam have been declared operational by railways w.e.f 25.03.2015 and20.07.2015 respectively, from where induction of foodgrains by road is being done to South Assam, ManipurMizoram, Tripura.

Phase-II of gauge conversion by railways had begun in October 2015 and in most likely to be completed by 31stMarch 2016. With completion of this phase, Tripura and Manipur win be connected directly by broad gauge Railwaynetwork.

6.17 ENGINEERING

Storage Construction Programme

For the year 2015-16, it has been planned to augment storage capacity by 82550 MT with a financial target of82.18 crores. During 2015-16 (upto 31.12.2015) godowns of storage capacity of 19170 MT have been completed andan expenditure of ~ 23.78 crores has been incurred. At 13 locations construction of godown of 63380 MT in progressas giv.ingbelow:

Location/ No. of Name of Targeted Capacity Capacity underState Centres Centre Capacity Realized ProgressAssam 03 Changsari 25,000 9,170 15830

Bindukuri 20,000 10,000 10000

(Fig.inMT)

utcome u tget - , epartment 0 00 u. Karimganj 5,000 - 5000

Arunachal 05 Yingkiong 640 - 640Khuppa 640 - 640Lohit 3,340 - 3340Tawang 1,670 - 1670Bomdilla 3,340 - 3340

Manipur 02 Churachandpur 2,500 - 2500Thoubal 2500 - 2500

Nagaland 02 Kohima 4590 - 4590Dimapur 8330 - 8330

Tripura 01 Kumarghat 5000 - 5000

Total 13 82,550 19,170 63,380

o B d 2016 17 D156

f F d & P blic Distribution

Table 6.36

All efforts are being made to ensure that all physical and financial targets are met fully in the current financialyear.

In States other than North East, targeted capacity for financial year 2015-16 is 10000 MT with expenditure of~ 15.00 crore. The work of 5000 MT capacity godown at Angadipuram is presently in progress. The .land acquisitionprocess in Himachal Pradesh for a capacity of 11220MT at 5 locations (4200MT-Mandi, 2240 MT - Palampur, 1640MT - Nahan, 640 MT - Recongpeo, 2500MT - Kangra), and in Goa 20000 MT is in progress. It is proposed toconstruct 10,000 MT capacity godown at West Hill in Kerala within the existing depot. An expenditure of ~ 0.16crores has been incurred upto 31.12.2015.

6.18 SWACHHBHARATCAMPAIGN,

As a part of Swacch Bharat Campaign initiated by Hon'ble Prime Minister of India, it is targeted to provide 150no. of Female Lavatory blocks in FCI own depots in 2015-16.

..


Under Corporate Social Responsibility and Sustainable Development (CSR&SD), besides female lavatories asstated above, it is proposed to provide labour sheds in 150 FCI depots and safe drinking water facilities in 75 FCIowned depots.

As per MoU between FCI and Ministry of CAF & PD, it has been planned to transform 50 existing depots intoModel Depots. A FeI depot having cumulative weightage of 90% or more is termed as model depot. Weightage ofdepot is assessed by 22 parameters based on functional utility which includes profile roof sheeting, CC road, properflooring, weighbridge, proper office block, electrification, CCTV, signage, Solar Panel, toilet, labor shed, safe drinkingwater facilities etc. /

)

Office Building

During current year 8 office buildings are being constructed at a total cost of ~ 62.31 crores.

The present status is as under:

r

Sl.No. Location Estimated cost (in crores)

1. Distt. Office Mohalil Punjab Preliminary estimate under process.

2. Distt. Office Bhatina/ Punjab Preliminary estimate under process..

3. Distt. Office KotalRajasthan 1.35 (Under progress)

4. Distt. Office GandhidharnlGujarat With held

5. Regional Office, PatnalBihar 17.00

6. ZO/RO/ZTI GuwahatilAssam 21.02

7. R.O. Shillong/Meghalaya 9.69 (under progress)

8. Distt. Office Thanjavur/Tamilnadu 2.41(Under progress)

Table 6.37

')

6.19 TRAINING


The Food Corporation of India has its own Training Institute, the Institute of Food Security (lFS) at Gurgaon(Haryana). The Institute imparts training to officers and officials in various disciplines relevant to FCI operations i.e.Depot Management, Quality Control, Industrial Relations, Administration, Computer, Vigilance, FinancialManagement, Financial Accounting Package, Rajbhasha Hindi, Internal Audit etc. and also conducts ManagementDevelopment Programmes. IFS also imparts Induction Training to newly recruited Management Trainees. TheManagement has envisaged OrientationlInduction Training Programme for Officers/Officials to keep them abreast onthe operational/functional activities of the Corporation in the grass root level. The major achievements of IFS during theperiod 2015-16 (up to 31.12.2015) are as under:

• 49 training programmes involving 1119 In-service officers/officials have been conducted.• IFS has also conducted 02 training programme on National Food Security Act, 2013 as per directions of

MOCAF&PD - 55 officers trained.• Induction Training Programme (Batch-I, II, III, IV & V) impartedibeing imparted to 205 newly recruited

Management Trainees at the level of Manager at various cadres ofFCI at IFS, Gurgaon.

In addition to the training at IFS, officers of FCI have also been nominated for various specialized/managementdevelopment programmes in professional Institutes of repute viz. Middle Level Vigilance courses, CBI AcademyGZB; Management Programme in Public Policy, ISB Hyderabad/ Mohali; GST Seminar, SCOPE; ImprovingEnterprise performance, India Infrastructure publishing Pvt Ltd; Risk Based IA for effective management control atOoty, ICWAI; Managing IT Projects 11M,Ahmedabad; Workshop on SRD for PWDS at New Delhi, IPA; Internationalconference for CAs, ICAI; Conduct of Table top exercise on Disaster Management; NDMA Bhawan; ContractLabourlEPF programmes, Labour Law Reporter; International Workshop' on Governance of State Owned Enterprises(SOEs); National Convention on Risk Management, Institute of Directors. These programmes include diverse subjectshaving relevance to the functioning of FC!. In all 25 officers/officials have so far been nominated in 13 specializedprogrammes for the period 2015-16.


In order to keep pace with the changing environment in view of globalization and liberalization policy of GOI, 3senior level management officers were also deputed abroad to attend various training/conferences.

In addition to the training efforts at the Corporate level, training programmes are also conducted at various Zonal. Training Institutes (ZTls) located at Noida, Mumbai, Kolkata, Guwahati and Chennai. These ZTls mostly impart inservice training to Cat. III officials within the Zone apart from conducting Induction Training for newly recruited Cat.III Staff. At Zonal level 1046 and 1991 employees have been imparted In-service and Induction Training respectively.

Thus, 4389 officers/officials have been trained in the Corporation for the period 2015-16.

FCI also extended internship/training to approximately 115 students from various recognized Universities andProfessional Institutes.

6.20 SC/STEMPLOYEES IN FCI

Statement showing the representation ofSCs/STs in services ofFCI as on 30.09.2015 is as under:

CATEGORY Sanctioned Total No. of No.ofSC No.ofSTStrength .Employees

CaU 1111 792 201 106CaUl 6221 4362 939 690CaUII 27270 12934 2751 1200Cat.lV (Excluding Safaiwala) 2380 3728 1270 484CaUV (Safaiwala) 0 54 25 1Grand Total 36982 21870 5186 2481

.... Table 6.38


6.21 COMPUTERIZATION IN FOOD CORPORATION OF INDIA

Implementation of e-Tenderingle-Procurement

FCI took a decision to switch over to e-Tendering (under NIC's Central Public Procurement (CPP) portal) incompliance of the guidelines issued by Government of India, to switch over to e-Tendering for tenders of value of ~ 5Lakhs and above. Accordingly, the implementation of e-tendering was initiated in all FCI offices, with specificdirections to completely switch over to e-Tendering by 31.01.2014. The concerned FCI offices have switched over to eTendering completely.

6.22 INTEGRATED INFORMATION SYSTEMFOR FOOD GRAINSMANAGEMENT (IISFM)

Government had sanctioned "Integrated Information System for Food Grains Management" (IISFM) Project inthe io" Five Year Plan, with a total estimate cost of ~ 96.74 Crore, in August,2003, to put in place an on-line MIS forstock position in any FCI Depot, at any given point of time. The IISFM project has been successfully implemented inall FCI Depots, including the depots under North East Zone, covering all seven North Eastern States.

A) District Stock AccountingModule (DISFM/District Module)

NIC, in 2005, developed District Information System for Food Grain Management (DISFM), an onlineapplication, to enable the FCI Districts to enter the fortnightly stock position, to fulfill FCl's reporting needs. This is aweb based MIS system, working through the central server located at NIC. All FCI Zonal offices, Regional offices,District Offices and Headquarter can generate fortnight stock position and off-take MIS reports, along with StatelUTwise reports through this application. DISFM is fully functional in all FCI District Offices.

B) IISFM Rapid Reporting Service (IRRS)

•IISFM Rapid Reporting Service (IIRS) application for reporting information related to receipt, issues, dispatchesof various commodities of food grain stock for all FCI depots (owned and hired) has been stabilized with almost 90%depots reporting up-to-date data, on any given day.


Various reports, on stocks position and off-take data, depot capacity utilization etc., are generated through thisweb-based application and used at all levels of FCI offices. Based on the feedback from various stake-holder of theproject, several modifications have been made in the application from time to time and a few additional reports are alsobeing generated to make the IRRS reports more comprehensive and need based.

The stock information in IRRS has been made viewable to the general public by NIC on the PDS portal and onIISFM site (http://egrains.nic.in).Alink for PDS portal has also been provided on the FCI Website, under the News &Updates Column (http://fciweb.nic.inlnews/view/@15) and under stocks details Sections (http://fciweb.nic.inlstocksview/14).

C) IRRS in DCPIMajor Procuring States

IRRS application has also been extended to the 7 DCP/Major procuring States to capture Central Pool stockposition and off-take information. Among the identified seven DCP States, namely Chhattisgarh, Karnataka, MP,Odisha, Tamil Nadu, Haryana and Uttar Pradesh, where hardware has been supplied under the IISFM project, IRRS hasalready been implemented by Odisha, Tamil Nadu, Chhattisgarh, Madhya Pradesh and Karnataka with varying degreesof success. The other major procuring States viz. Haryana and Uttar Pradesh are continuously being pursed andencouraged to use IRRS to report the central pool stock information available with them.

6.23 Release Order Module (Under Implementation)

NIC submitted a Detailed Project Report (DPR) for development of the Release Order (RO) module, which willgenerate computerized Release Orders and record RO-wise lifting. After long deliberations, it was decided to linkweighbridge, FAP applications and the Release Order Module. The consolidated feedback of FCI on the DPR wasprovided to NIC for incorporation in the kelease Order Module

·For initiating the study for RO Module, the developer has conducted field study at four (4) FCI sites, viz. D.O.Sanathnagar, D.O. Warangal, D.O. Tarnaka (A.P. Region)& D.O Mayapuri (Delhi Region).

22-379 Deptt.of F & PD/2015


An Internal User Group (lUG) has also been constituted with officers from all concerned Operating Divisions inFCI. This group is coordinating with NIC and the vendor to facilitate the development and implementation of the ROmodule.

The developer has provided the Weigh Bridge linked Input Screens and the process flow of the R.O. Moduleapplication which have been finalized for further development of the module. Finalization of data sharing methodologybetween RO Module and FAP is under process.

lUG Members have reviewed the SRS Document (Version 1.6) and have submitted the report regardingfinalization of SRS Document (version 1.6). The SRS Document has been approved and NICSI has been requested toexpedite the development work.

6.24 Depot Online System

For automation of depot operations, FCI is implementing the Depot Online System, which seeks to automate allthe operations at the depot level and eliminate usage of manual registers by capturing data online at source and on a realtime basis.

The key objectives of the project are the following:

1) Standardization and automation of depot level processes2) Efficiency improvement in management of food grains storage and distribution3) Enablement of real time monitoring of operations4) A Linear Programming Model integrated with FOIS of railways for efficient movement operations5) Timely data reporting6) Improvement in end-to-end operational visibility for informed decision making7) Effective planning and optimization of administrative work

\

...'


The expected benefits are mentioned below:

1) Integrated view of end to end processes, use of workflow, notification and alerts2) Seamless connection between depots and district/regional offices ofFCI3) Capture data at source and in real time through Handheld Devices, reduce redundancy4) Integrate with weigh bridge to read data automatically5) Standardize and improve current processes to increase efficiency6) Free up manpower from laborious data collation and report preparation7) Leverage IT as decision support systems to handle dynamic nature of business8) KPI driven dashboard for the top management9) Integrate with various stake holder communityIO)Alignwith 'Digital India' vision of the Government

A Detailed Project Report (DPR) for the nation-wide roll-out of the project, was prepared by MisPricewaterhouseCooper Pvt. Ltd. (PwC) (the Consulting Agency), capturing the functional as well as systemicrequirements for implementing the project.

For the development & Implementation of Depot Online System in FCI, Mis RICOH India Limited has beenappointed as System Integrator. The Letter for Award of Contract was issued to the said vendor on 14th Aug20I5.System Integrator (SI, i.e. Mis Ricoh India Limited) has started the development work. Live demonstrations ofthe modules are being conducted by the SI, for instant feedback and approvals from the process owners of FCI. ProjectExecution Committee meetings are being convened on a weekly basis, to review the progress of the project and providedirections.

It is planned that the application will be initially rolled out in pilot depots (at least one from each FCI region,during Oct-Dec'I5) and subsequently in all FCI depots (Dec'I5 onwards). Stabilization of the application is planned tobe achieved by March' 2016.


The SI has provided the initial version of the application & accordingly, the User Acceptance Testing (UAT) of -,the Depot Online application is being conducted at FCI HQ & the Pre- Pilot depots. Training at Pre- Pilot and PilotDepots has-been started by the System Integrator.

6.25 PROGUREMENT MONITORING SYSTEM (PMS)

Procurement Monitoring System (PMS) was developed by NIC, in compliance to JS (P&FCI) letter dated l"July, 2013, with an objective to monitor the progress of procurement of wheat/rice

The Paddy/Rice (KMS) Module was rolled out on 01stOctober 2013 for the KMS 2013 -14 and Wheat (RMS)Module was rolled out on 24thMarch 2014 for the RMS 2014 - 15.

As the State agencies of Punjab, Haryana and Telangana States were ready to feed their own data from RMS2015 -16, their user IDs / passwords were created in the PMS. But due to non-feeding of data by some State agencies, ithas been subsequently decided by JS (P & FCI) in the meeting dated 21.07.2015 that FCI District Offices will feed theprocurement data for both FCI and State Agencies henceforth across India.

6.26 LANIWAN RESTRUCTURING AND BANDWIDTH UP-GRADATION

To keep up with the increasing demands of web based IT applications, FCI has upgraded/revamped the existingLAN/WAN infrastructure. This has been accomplished through the following:

a) Bandwidth Up-Gradation

FCI has established network bandwidth of 34 Mbps for HQ, 10Mbps for ZOs & ROs and 4 Mbps for sensitiveDOs and 2 Mbps for other DOs through BSNL. Point to point lease line connectivity has been provided between FCIoffices up to district level and the corresponding NIC offices.

b) LAN/WAN Restructuring

The existin~ LAN/WAN infrastructure in the FCI offices upto district level, has been restructured with latestactive (routers, switches etc.) and passive network items, which is IPv6 Compliant.

Video Conferencing

165Outcome Budget 2016-17, Department,of Food & Public Distribution

To leverage the sound bandwidth and network connectivity setup under the restructuring of LAN/WAN, project,FCI is also implementing/upgrading the Video Conferencing facility at FCI up to District office level.

Video Conferencing has been made operational at FCI Headquarter, all Zonal offices, all Regional offices exceptRO Shillong ana 110 District offices. Remaining offices are expected to have video conferencing facility by January2016.

Cyber Security Policy

The 'Cyber Security Policy' has been finalized and approved by the BoD, FCI on 31.07.2014 and has beencirculated to all concerned for compliance.

6.27 AADHAR ENABL~D BIOMETRIC ATTENDANCE SYSTEM (AEBAS)

Food Corporation of India has been registered at centralized attendance portal viz. http://fci.attendance.gov.inand AEBAS has been successfully implemented in FCI HQ with effect from 01.01.2015. For the proper functioning ofthe Aadhar Enabled Biometric Attendance System (AEBAS), registration of all FCI employees & FCI offices on saidportal, i.e. www.fci.aitendace.gov.in, is under process. As on 23.1 0.20 15, 2288 FCI employees have already beenregistered on central attendance portal.

6.28 SPORTS AND CULTURAL ACTIVITIES

o Notable achievements of the FCI sportspersons (event-wise) during 2015-16 (upto 31.12.2015) are given as under:

SI.No. Name of the Tournaments FCIs Position1. BADMINDON - All India Inter Institutional Badminton Third place (Men Singles)

Tournament held at Dehradun from 28-31 July, 2015. Second Place (Men Doubles)Second Place (Team Event)

2. TABLE TENNIS - 45tn All India Inter Institutional Third Place (Women's Team)Table-Tennis Championship held at Indoor Stadium, New Third place (Mixed Double)

utcome u get - , epartment 0 00 u lCDelhi from July zs" - 2na August, 2015 Third Place (Women's Double)

3. HOCKEY - Sf. National Hockey Tournament held at ParticipatedPune from 16thto 28thApril, 2015.

4. FOOTBALL - All India Public Sector Football ParticipatedTournament org., by CCL at Burla/Sambalpur (Orissa)from 20th- zs" April, 2015.

5. CRICKET - All India Coromandal King Moin-UL- ParticipatedDowlah Gold Cup Cricket Tournament held at Hyderabadfrom l" to 15thSeptember, 2015.

6. 68tn Man's & Women's National Weightlifting Participated (Men's)Championship at Patiala from 25_29thDecember, 2015.

a B d 2016 17 D166

f F d & P sn Distribution-

Table 6.39

Keeping in view the infrastructure facilities available at various places, the following calendar of sports &cultural competition was decided after detail deliberation:

Event Host Unit VenueTentative date/month

FCI Inter Zonal Football Tournament South Zone Allepy/Munnar (Kerala)December, 2015.

FCI Inter Zonal Badminton & Table NE NE(Zone)Tennis (M&W) Tournament Venue and date to be decidedFCI Inter Zonal Cricket Tournament North Zone Venue to be decided March, 2016FCI Inter Zonal Cultural Competition NE Zone Guwahati

Ilth& 12thJanuary, 2016FCI Inter Zonal Hockey Competition West Zone Mumbai (Maharashtra)

February, 2016All India Public Sector Cultural West Zone Goa (date to be decided)Competition (allocated by AIPSSPB)

)

I•

Table 6.40


6.29 WOMEN CELLIWOMEN EMPOWERMENT

(a) FCI follows the Government of India's policies and guidelines for empowerment of its women employees. TheCorporation functions on the principle of gender equality and no discrimination what-so-ever is made on this account,whether in postings or in decision-making.(b) Representation of women in Selection Committee and Department Committee for recruitment/promotion to allpost in FCI has been implemented vide Circular No.EP-02-2014-15 dated 07.08.2014.(c) Women employees are given special dispensation in transfer policy circulated vide Circular No.EP-03-2014-05dated 12.02.2014.(d) Besides women employees are provided protection against harassment at work places. In this behalf, pursuant tothe orders of Hon'ble Supreme Court of India dated 13.08.l997 in the matter ofVishakha&Ors Vis. State of Rajasthanand another judgement dated 26.04.2004, the Corporation has taken following initiatives to prevent and redressgrievances relating to sexual harassment of women at work places :-

(i) The guidelines set by the Hon'ble Supreme Court of India for prevention and to redress grievances onsexual harassment of women at work places have been given wide publicity in the Corporation forawareness of the employees.

The Complaint's Committee has been constituted which has been functioning in the Corporation to look into thecomplaints/grievances of women relating to sexual harassment in the offices of the Corporation.

'.(ii) The instructions have been issued to treat report of the Complaint's Committee as enquiry report which

will be binding upon the Disciplinary Authorities to initiate disciplinary proceedings against theemployees concerned under the provisions of Discipline & Appeal Regulations of FCI (Staff)Regulations, 1971.

(iii) The amendments in the Conduct Regulations of FCI (Staff) Regulations, 1971, incorporating a provisionof prohibition of sexual harassment of women at work places have been made, as indicated below:


Prohibition of sexual harassment of working women.

(l) No employees shall indulge in any act of sexual harassment of any woman at her work place.

(2) Every employee who is in-charge of a work place shall take appropriated steps to prevent sexualharassment to any woman at such work place.

Explanation:- For the purpose of this Regulation, "sexual harassment" includes unwelcome sexuallydetermined behaviour, whether directly or otherwise, such as :

(a) Physical contact and advances;(b) Demand or request for sexual favours;(c) Sexually coloured remarks;(d) Showing any pornography; or(e) Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature."-~

(iv) The provisions have been made in the Conduct Regulations of FCI (Staff) Regulations, 1971 to the effectthat:

(a) Every employee shall act in accordance with Govt. policies regarding age of marriage;(b) Sexual harassment of working women at work places would be prohibited.•iI

(v) The following acts have been included in the list of 'misconducts' under Conduct Regulations ofFCI (Staff)Regulations, 1971:

(a) Neglect of spouse and family is unbecoming of an employee of the corporation;/

(b) Bigamous marriage: (i) No employee can enter into or contract a marriage with a person having aspouse living.


(vi) Ministry of Law and Justice, Government of India, vide Gazette Notification No.18 dated 23.04.2013 notifiedthe "The Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013"(No.14 of 2013) in The Gazette of India, Extraordinary, Part II - Section I.This has been circulated by FeICircular No. EP-24-2015-05 dated 27.02.2015.

(vii) All the offices of FCI directed to constitute a Committee for dealing with the cases/reports of sexualharassment of women at work place. The Committee at Headquarter level is headed by a Senior level womenemployee viz. female Executive Director level officer with majority female members including a nomineefrom non - government organization committed to cause of women.

6.30 MARKET BORROWINGS:

Cash Credit Facility

The FCI is enjoying a Cash Credit facility of ~54,495 crore from a Consortium of 66 banks led by State Bank ofIndia against a single default guarantee of Government of India. The rate of interest charged to FCI Cash CreditAccount is determined as average base rate of top 5 leading banks of the Consortium having highest share plus apositive spread of 55 bps. The interest rate varies with any change in base rate of 5 major banks. The effective monthlycompounding interest rate charged by the bank from 01.04.2014 to 31.12.2014 is 10.83% p.a. and 10.73% p.a. from01.01.2015 onward.

6.31 SHORT TERM LOAN (STL)

As a measure to meet the short term requirement over and above the Cash Credit Limit, the FCI has the approvalof its Board of Directors to avail Short Term Loan (STL) frorr the scheduled Banks to the ·extentof ~ 30,000 croreduring the financial year 2015-16. The Corporation has availed ~ 47,215 crore through STL during2015-16 Out of this,an amount of ~ 39,345 crore has been repaid, leaving an outstanding balance of ~ 7,870 crore as on 31.12.2015. STLare availed from different banks at their respective quoted rate ranging from 9.20% to 10.00% which is less than theCCL interest cost. This has resulted in savings of ~ 65.04 crore during 2015-16 (upto 31.12.2015).

23-379 Oeptt.of F & PO/2015


6.32 ISSUE OF BONDSAs on 31.12.2015, total outstanding Long Term Government Guaranteed Bonds are of ~ 13,000.00 crore after

the redemption of Bonds worth ~ 3,121.00 crore as on 16.12.2015.No fresh bonds are issued in the 2015-16.

6.33 WAYS & MEANS ADVANCETo meet the temporary requirement of funds, Gol provided Fel a recoverable WMA of ~ 10,000 crore in the

year 2015-16 which carries an interest rate ,equivalent to average 364 days T. Bills rate and outstanding WMA shall berecovered by the Government in the last quarter ofFY 2015-16 from the last instalment of Food Subsidy schedule to bereceived in January'2016.

6.34 PHYSICAL AND FINANCIAL PERFORMANCE OF FOOD CORPORATION OF INDIA:Previous Year Current Year Next Financial year

2014-15 2015-16 (RE) 2016-17 (BE)Qty.(in Lakh Value Qty.(in Lakh Value Qty.(in Lakh Value

Tonnes) (in Cr) Tonnes) (in Cr) Tonnes) (in Cr)

I PHYSICAL ACHIEVEMENTA Procurement

(i) Wheat MSP Based 251.08 34769.71 245.34 35105.65 252.30 37728.68

(ii)Rice (Including paddy in rice terms) 231.65 47157.34 262.79 55844.75 262.99 57832.03

(iii)Sugar(iv)Other (Gunny, Stores and Spares) 3894.93 5267.62 6538.15

Total 482.73 85821.98 508.13 96218.02 515.29 102098.86

B Sales(i)wheat including Wheat Export 242.45 15320.10 275.16 18328.41 303.17 16362.15

(ii)Rice Including Rice Export 261.45 14432.29 262.44 13927.07 246.09 8802.98

(iii)Sugar (Ind. & Imported)(iv)Coarsegrains

Total 503.9 29752.39 537.6 32255.48 549.26 25165.13

,f;

ucome u ige - , ep. men 0 00 u IC ISn U IonII RESULT OF OPERATIONS

(a) Receipt 29752.39 32255.48 25165.13i) Sales and Other Incomeii) Subsidy for the year(a) (Consumer Subsidy) . 95904.99 108563.00 125318.00

Subsidy towards buffer carrying cost for theyear includingcarryover charges and others 8052.18 5085.00 9089.00iii) (a) Shortages reimbursable onregularisation 1035.03 907.00 995.00(b) Deficit on Sugar 0.00 0.00 0.00TOTAL ( i+ ii+ iii) (a» 134744.59 146810.48 160567.13

Previous Year Current Year Next Financial year2014-15 2015-16 (RE) 2016-17 (BE)

Qty.(in Lakh Value Qty.(in Lakh Value Qty.(in Lakh Value(b) Cost of Sales excluding interest and 126424.20 137638.35 151310.14( c) Depreciation 76.09 83.00 85.00(d) Interest 8244.30 9089.13 9171.99(e) Tax Provision(f) Balance amount realisable (a-(b+c+d+e)(g) Net Profit/Loss after taxation

III INVENTORIESRawmaterial stores and sparesi) Wheat 95.39 15940.21 65.19 11459 13.91 2576ii) Rice (incl. paddy in rice terms) 134.42 32920.46 131.49 33676 144.96 38857ii) Coarsegrains 0iv) Sugar (incl. imported) 0 0v) Othersvi) Gunny, Stores and spares 743.41 806.27 924.89vii) FertilizersTOTAL INVENTORIES 229.81 49604.08 196.68 45941.27 158.87 42357.89

IV RESOURCES AND APPLICATION OF FUNDSA Sources

o t B d t201617 D art171

t fF d & P br D· t ib f

utcome u lget - , epartment 0 00 u IC istn utio[Equity 2762.79 2837.79 3082.88ii)Reserves(Otherthandepreciationreserve)iii) Depreciation reserve 1143.52 1226.52 1311.52iv) Government of India Loanv) Bank Borrowings (incl. Bonds and short term Loan) 78108.93 84793.3 75765.06vi) Surplus in SPEF 0 0.00 0.00vii) Other LoansTOTAL 82015.24 88857.61 80159.46

o B d 2016 17 D172

f F d & P br D· ib n

Table 6.41

Previous Year Current Year Next Financial year2014-15 2015-16 (RE) 2016-17 (BE)

Qty.(in Lakh Value Qty.(in Lakh Value Qty.(in Lakh ValueTonnes) (in Cr) Tonnes) (in Cr) Tonnes) (in Cr)

B APPLICIATlONi) Fixed Assets (Including deposits forconstruction) 1820.77 2225.59 2748.52ii) Stock offoodgrains, Stores& Spares,Fertilizers 49604.08 45941.27 42357.89building materials and other commodityiii) Sy. Debtors 30590.39 40690.75 35053.05iv) Deficit in SPEFTOTAL 82015.24 88857.61 80159.46

V NET WORTH EMPLOYEDi) Net Worth (Equity) 2762.79 2837.79 3082.88ii) Capital employed 79252.45 86019.82 77076.58Total of (IV-A)RESULT OF CENTRAL

VI GOVERNMENT INVESTMENTInterest on Government LoanPERFORMANCE AND

VII EFFICIENCY INDICESTOTAL INVENTORIES TO SALES(QTY. TONNES) 45.61% 36.58% 28.92%

,

Table 6.42


6.35 REVIEW OF CENTRAL WAREHOUSING CORPORATION:

1. The Central Warehousing Corporation (CWC) was established on 2nd March, 1957 under the AgriculturalProduce (Development and Warehousing) Corporations Act, 1956, and commenced its operations during July,1957. The Agricultural Produce (Development and Warehousing) Corporations Act, 1956 was repealed andreplaced by the Warehousing Corporations Act, 1962. The main objective of the CWC is to provide scientificstorage facilities for agricultural inputs, produce and other notified commodities besides providing logisticsinfrastructure like.CFSs/ICDs, Land Customs Stations, Air Cargo Complexes, etc. for import-export cargo.

2. CWC is ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified organization. It is a Schedule' A'- Mini Ratna, Category- I organization.

3. As on l" November, 2015, CWC was operating 468 warehouses with an average storage capacity of 117.32lakh MT with average capacity utilization of 82%. The average capacity utilization during 2014-15 was 80%.ewc is the leading player in the Warehousing/Logistics business providing infrastructural facilities to adiversified group of clients including Government Departments, semi-Government agencies, autonomousbodies, cooperative institutions, business houses, multinational companies as well as farmers and traders.

4. Ever since its inception, CWC has been providing scientific storage facilities for storage of agricultural inputsand produce and notified commodities at reasonable cost. In order to cross-subsidize the agricultural sector andto sustain its operation, CWC has been diversifying into different areas. It made an entry into operation ofpublic bonded warehouses in the late seventies, when the CBEC, acknowledging the expertise of CWC in thefield of storage and warehousing, appointed it as a custodian for running Bonded Warehouses for storage ofimported dutiable·goods. CWC, as on l" September, 2015 was operating 57 Bonded Warehouses with a storagecapacity of 3.09 lakh MT. CWC also runs 4 Air Cargo Complexes with 7401 MT capacity (Chennai,Singanallur, Goa, IGI Airport) 31 Container Freight Stations (CFSs)/lnland Clearance Depots (ICDs) with astorage capacity of 14.76 lakh MT and 5 temperature controlled warehouses at Amritsar, Nimakmahal,Vandenmedu,Vashi, Virugambakkamwith 3984 MT capacity.

24-379 Deptt.of F& PD/2015


5. Against the authorized share capital of ~ 100.00 crore, the paid-up capital of the CWC is ~ 68.02 crore.CWC is not dependent upon any budgetary support from the Government and all its operations/constructionplans are met out of internal generation of resources.

6. The financial results of the Corporation for the past five years are as under:

(~ in crore)

Year Turnover Expenditure Profit Profit Dividend

Before Tax After Tax In lakh

Rate Amount (~ InLakh)

2011-12 1218.65 1059.53 159.12 100.46 40% 2718.96.2012-13 1406.70 1197.47 209.23 139.55 41% 2786.93

2013-14 1528.19 1271.72 256.47 161.05 48% 3262.75

2014-15 1561.83 1301.77 260.06 182.12 54% 3670.70

2015-16 891.00 747.34 143.66 94.82 - -(upto to 31.10.2015

Table 6.~3

7. CWC has been a consistently dividend paying PSU ever since its inception in 1957. The Corporation has sofar paid a total dividend of ~ 393.13 crore upto the financial year 2013-14 to its shareholders. An amount of~ 219.16 crore has been so far paid to the Central Govt. against ~ 37.42 crore invested by it in the share capitalofCWC. CWC has declared dividend @ 54% for the year 2014-15 as against 48% for the year 2013-14.

8. In order to encourage the fanning community and motivate them to avail public warehousing facilities, CWCoffers a rebate of 30% in the storage charge for stocks deposited by the farmers. A warehouse receipt, which isa negotiable instrument, is issued to the farmers, who can obtain credit on pledge of the same. In order to

,


educate the farming community on storage and preservation of stocks at farm level and reduce the avoidablestorage losses, CWC operates its Farmers Extension Service Scheme wherein the technical staff posted at itswarehouses visits the adjoining villages and trains the farmers for complete transfer of knowledge on postharvest technology. The scheme is presently in operation through 304 warehouses.

9. CWC has been providing disinfestation and pest control services for the benefit of farmers, traders, exporters,importers, shipping agents, etc. The facilities include disinfestation operations in railway coaches, pantry cars,aircrafts, hospitals, hotels and restaurants, export / import container fumigation, ship fumigation, etc. Therevenue under this activity has grown from ~2.49 crore in the year 2001-02 to ~ 19.70 crore in the year 2014-15.

'0

10.CWC is operating a truck terminal at the Land Customs Station (LCS) at Petrapole (West Bengal) on the IndoBangladesh Border for facilitating IMPEX trade through land route. Developed over 17.08 acre land, thisfacility is operating since 1999. During 2014-15, the facility handled 1.71 lakh Import/export trucks and earned~ 6.07 crore. During 2015-16 (upto l" November, 2015) the facility handled 129842 import/export trucks andearned ~ 4.00 crore.

11.As a diversified activity, CWC has been running container trains since 2007. It holds a Category- I license tooperate container trains on Pan India basis. It is, however, presently operating Container Rail Terminals (CRTs)at Loni (Delhi) and Kalamboli (Navi Mumbai) and running container trains between Loni-JN Port, LoniMundra and Loni -Pipavav sectors. During 2014-15, CWC operated 161 container trains, transported 16782TEUs and earned revenue of ~44.29 crores. During 2015-16 (upto 31st October, 2015) CWC operated 71Container trains, transported 7690 TEUs and earned revenue of ~ 24.13 crores.

12. Since April 2012, CWC is also operating the Cargo Terminal of the Integrated Check Post (ICP), Attari(Punjab) and facilitating IMPEX trade between India and Pakistan through land route. The management of theCargo terminal entrusted initially for a period of one year effective 9th April 2012 was extended for a furtherperiod of one year. During 2014-15 the CWC handled 79864 Export/Import trucks at this facility earning agross revenue of ~ 50.29 crore. The LPAI has since extended the MOA with CWC for a further period of three


years beyond 9th April 2014 for operating the Cargo terminal. During 2015-16 (upto so" Sept, 2015), CWChandled 30736 Export/Import trucks at this facility earning a gross revenue of ~ 17.68 crore.

13. Satisfied with the performance of CWC at ICP, Attari, the management of Cargo Terminal at the ICP, Agartala(Tripura) on Indo-Bangladesh border has also been assigned by LPAI to CWC initially for a period of one yearon similar terms and conditions of ICP, Attari. The Cargo. Terminals operations were commenced at ICP,Agartala on 21.11.2013. This facility handled 30480 ExportlImport trucks and earned a gross revenue of~7.15 crore during 2014-2015. During 2015-16 (upto 30th September, 2015) this facility handled 12113ImportlExport trucks with a gross revenue of ~ 3.02 crore.

14.CWC has contributed to the equity of 17 State Warehousing Corporations (SWCs). It has invested about~61.79 crore as on 31st October, 2015 in the equity of these SWCs. While CWC holds 50% share, theremaining 50% is held by the respective State Government.

15. As on 1stNovember, 2015, these SWCs were running 1710 warehouses with 293.11 lakh MT capacity andutilization of 83%.

16.The CWC has formed a 100% owned subsidiary company namely Central Railside Warehouse Company Ltd.(CRWC) for development and operation of Railside Warehousing Complexes (RWCs). CRWC wasincorporated on io" July, 2007 and received certificate for commencement of business on 24th July, 2007.CWC has subscribed ~ 40.56 crore as share capital of CRWC.

17.Corporation has planned for Construction of warehouses in the following states on different locations during the year2016-17:-

Item State MTs (Amount in Crore Rupees)Cost of Land 11.40Cost of Construction West Bengal 4400plus other capital expenditure

Odisha 16500Andhra 25000

)

I'

r

- utcome u tget - epa men 0 00,Kerala 10200Rajasthan 20500UP 6700Chhattisgarh 18900Gujarat 22600Maharashtra 15000. Goa 2600Sub Total 142400 134.56

Lorry Weigh Bridge 4.30Wooden Crates, Polly 3.56Pallets and PCC BlocksIBMS 36.22

TOTAL 190.04

177o B d 2016 17 D rt t f F d & Public Distribution

Table 6.44

18.Against the authorized capital of ~ 100.00 Crore, the paid- up capital of the CWC is ~ 68.02 crore and Networth ofCWC as on 31.3.2015 is ~ 1687.53 crore. The capital structure ofCWC is as under:

SN. Particulars Number of Issued & Called-up & Paid-upShares Subscribed

(~ In Lakh) (~ In Lakb)1 Central Government 374250 3742.50 3742.502 State Bank of India 175440 1754.40 1474.403 Other Scheduled Banks 142522 1425.22 1091.844 Co-operative Societies 1045 10.45 10.265 Cooperative Societies (disqualified 463 4.63 4.6

share holders)6 Insurance Companies including Life 51454 514.54 477.74

utcome u lget - , epartment 0 00 u lC 1StInsurance Corporation of India

7 RecognizedAssociations dealing in 71 0.71 0.71

Agricultural Produce8 Companies dealing in Agricultural 5 0.05 0.05

Produce etcTOTAL 745250 7452.50 6,802.10

o B d 2016 17 D178

fF d & P bI" D' ribution--If.

Table 6.45

6.36 REVIEW OF PAST PERFORMANCE (IEBR SCHEMES)

The physical target achieved during the year 2010-11,2011-12,2012-13, 20l3-14, 2014-15 was 1.45LMT, 2.09LMT, 2.35 LMT, 2.21 LMT, 1.79 LMT~and the target for the year 2015-16 and 2016-17 is 1.66 LMT and 1.42LMTrespectively. The corresponding .aetual/budgeted financial targets vis-it-vis achievements are given as under:

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Target AE Target AE Target AE Target AE RE AE BE30.11.15

Land plus 134.23 112.00 123.90 76.86 156.42 122.24 180.60 110.37 180.07 56.67 153.82

ConstructionContribution to 3.00 0.75 2.66 0.00 0.68 0.68 2.70 0.00 0.00 0.00 0.00

Share Capital ofSWCsIBMS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.77 0.00 36.22

TOTAL 137.23 112.75 126.56 76.86 157.10 122.92 183.30 110.37 180.84 56.67 190.04

(~ in Crore)

Table 6.46

IJ


6.37 CENTRAL RAILSIDE WAREHOUSE COMPANY LTD:

Central Railside Warehouse Company Limited, (CRWC) a 100% owned subsidiary of Central WarehousingCorporation (CWC) was formed for development of Railside Warehousing Complexes. The Company was incorporatedon 10thJuly, 2007. The paid up equity share capital of the company amounting to ~ 40.56 crore has been subscribed byCWC. Besides, CWC has also transferred 7 of its Railside Warehouses to CRWC.

The Railside Warehousing Complexes are being operated by CRWC at the following locations:(As on 31.3.2015)

Sl. No. NameofRWC Capacity (in MTl1. Whitefield, Bangalore 29,700 MT2. Shakurbasti, Delhi 19,330 MT3. Nishatpura, Bhopal 16,700 MT4. Sanathnagar, Hyderabad 13,225 MT5. Ghaziabad 12,200 MT6. Nasik Road 9,270 MT7. Alamnagar, Lucknow 15,500 MT8. Yamuna Bridge, Agra 18,200 MT9. Koodal Nagar, Madurai 12,000 MT10. Badnera, Amravati 17,000 MT11. Roza, Shahjaha1!Pur 18,400 MT12. Kandla, Gujarat 32,200 MT13. Korrukupet, Chennai 30,292 MT14. Hatia, Ranchi 12,800 MT15. Saswad Road, Pune 18,700 MT16 Dehri-on-Sone, Bihar 11,700 MT17 Dankuni, Kolkata 13,750 MT18. Mysore, Karnataka 12,500 MT19. Jogeshwari(Mumbai) 16,000 MT

TOTAL 3,29,467 MT

f .

Table 6.47

********

Documents

OUTCOME BUDGET - dfpd.gov.in