PLANNINNG COLLIQUIAM, SPA, JNAFAU DISTRIBUTIONAL INFRASTRUCTURE FOR IMPLEMENTATION OF FOOD SECURITY ACT PRESENTED BY: GROUP-6 10011BA009-HIMABINDU 10011BA015-LAKSHMI

PLANNINNG COLLIQUIAM, SPA, JNAFAU

DISTRIBUTIONAL INFRASTRUCTURE FOR IMPLEMENTATION OF FOOD

SECURITY ACT

PRESENTED BY:GROUP-610011BA009-HIMABINDU10011BA015-LAKSHMI PRASANNA10011BA018-MANISHANKAR10011BA026-PRASANNA LAXMI10011BA031-SATHISHWAR10011BA037-THARUN

UNDER THE GUIDENCE OF:MRS.PHANISREEMS.SHRUTHIDHAR

PLANNING COLLOQUIUM

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DEPARMENT OF URBAN & REGIONAL PLANNING

PLANNINNG COLLIQUIAM, SPA, JNAFAU 2

Overview It is to discuss on the importance of food security in the context of our nation and discuss about the distributional infrastructure which is the major contributor for the implementation of the act successfully.

The presentation is also intended to emphasize the infrastructural needs of the state with respect to the implementation of the food security act


What Is Food Security??

Food security is a situation that exists when all people, at all times, have

Physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.

Food security prevails if both food supply and demand are sufficient to cover food requirements on a continuous and stable basisFood insecurity prevails if, at any time(occasionally, repeatedly or permanently), food supply or demand fall short of requirements

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GLOBAL SCENARIO (Food and agricultural organisation(FAO))

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1/3rd of the world’s hungry live in India

836 million Indians survive on less than Rs.20 a day

Hunger remains the no.1 cause of deaths in the world

There are 820 million chronically hungry people in the world


Existing scenario in India India ranked 10th largest Economy of world on nominal GDP basis and 3rd largest on economy on PPP basis But India has………….. 29% of the 872.9 million undernourished people (FAO) 49% of the world’s underweight children (WHO) 34% of the world’s stunted children (WHO) Over 46% undernourished children (WHO) India is ranked 67 way below neighboring countries like China, Nepal & Pakistan in 2011 Global Hunger Index by the IFPRI.

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UNICEF studies reveal maximum under-nutrition in the five Indian states:

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Madhya Pradesh, Uttar Pradesh, Bihar, Rajasthan, and Orissa.


BACKGROUND TO FOOD SECURITY IN INDIA

In 2001, Jaipur it was observed that 5 kms outside the city, Food Corporation of India (FCI) godowns were overflowing with grains kept outside. Fermented by rain, it was rotting. 5 kms from the godowns was a village where the people were eating in rotation, classically called “rotation eating” where some members of the family eat on one day and the remaining persons eat on the other day. In 2001, 60 million tonnes were in FCI godowns, whereas buffer stock required were 20 million tonnes. The Government had 40 million tonnes above the buffer stock and people were dying of starvation. On that simple proposition the PUCL in Rajasthan filed a case, which came to the Supreme Court.

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Contd…

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The Supreme Court Case (April 16, 2001) - People Union for Civil Liberties(Rajasthan) submitted a “writ petition”:Starvation deaths becoming National Phenomenon while there is surplus stock of food grains in government godowns.Does right to life mean that people who are starving are too poor to buy food grains free of cost by State from the surplus stock lying with the State particularly when it is lying unused and rotting? Does the right to life under Article 21 of the Constitution of India include the right to food? Does the right to food which has been upheld by the apex Court imply that the State has a duty to provide food especially in situations of drought to people who are drought effected and are not in a position to purchase food?


FOOD SECURITY NORMS IN INDIA

Court affirms the right to food as necessary to uphold Article 21 of the Constitution of India, which guarantees the fundamental right to “life with human dignity”•Closed PDS shops to be re-opened within one week•Food Corporation of India (FCI) was ordered to prevent wastage•States given the responsibility over implementation of schemes

Employment Assurance SchemeMid-day Meal SchemeIntegrated Child Development SchemeNational Benefit Maternity Scheme for BPL pregnant womenNational Old Age Pension Scheme - destitute persons over 65 yearsAnnapurna SchemeAntyodaya Anna YojanaNational Family Benefit Scheme Public Distribution Scheme for BPL & APL families 9


PROGRESS SO FAR2001: Constitutional Court recognizes right to food in the People’s Union for Civil Liberties (PUCL) case, transforming policy choices

into enforceable rights

2005 : Adopts its National Rural Employment Guarantee Act and the

Right to Information Act

2009: India is developing a National

Food Security Act

2011: Food Security Bill cleared by Cabinet January, 2013: NFSB

cleared by a parliamentary committee

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Main features of food security actThe work of identification of eligible households has been left to the states.Pregnant women and lactating mothers entitled to nutritious meals and maternity benefit of at least Rs.6,000 for six months.The central government will provide funds to states in case of short supply of food grain.The current food grain allocation of the states will be protected by the central government.The state governments will provide food security allowance to the beneficiaries in case of non-supply of food grain.Public distribution system to be reformed.The eldest woman in the household, 18 years or above, will be the head of the household for the issue of the ration card.There will be state and district level redress mechanisms.

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PHYSICAL AVAILABILITY OF FOOD

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Crop 2011-12 2012-13

Rice 105.31 104.22

Wheat 94.88 93.62

Coarse cereals 42.04 39.52

Total cereals 242.23 237.3618

Pulses 17.09 18.00Total food grains 259.32 255.36

Oilseeds 29.79 30.72Sugar 24.60 26.00Vegetables 156.325 156.445

Fruits 76.42 79.40

Milk 127.9 133.7

Source:-RBI Hand Book on India Economy 2011-12


PERCAPITA AVAILABILITY 2012-13

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Commodity Per capita availability Minimum per capita requirement

Total cereals 528.70 400

Pulses 46.78 80

Total food grains 568.79 480

Oil 39.73 30

Sugar 54.79 20

Vegetables 348.47 300

Fruits 176.86 150

Milk 297.81 300

Source:-National Institute of Nutrition, Hyderabad


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Annual food grain requirement for implementing the NFSA is estimated at 610LMT

Out of this proposed 61 million tonnes of food grains, our 8.24 crore of targeted people

require only 494.4LMT and rest shall be for other institutional arrangements.

In year 2011-12 FCI procured 663.5 LMT of Food grains

and off take was 562.8LMT.

The stock at the end of the period was 534.4LMT.

610LMT can be met easily.

Contd…

“70% of rice & 80% wheat is procured from Punjab, AP,

Chhattisgarh, UP, Haryana & MP.

This requires huge funds to erect infrastructure, man

power and transport.

Expected Cost of transport, leakage is up to 40.4 % of

the production cost.

It is alleged that Rs 2,07,000 cr is siphoned by

middlemen and rats destroy 35% food stuff.Source: CAG


The total loss of food grains, as a result, in the last three years and in the first

quarter of the current financial year accounted for Rs 2,030.90 crore.

The government needs to strengthen back-end infrastructure before

implementing the food security law in the country.

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India’s Food Security System

Buffer Stock

Public Distribution System

Food Security

System of India

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How the Public Distribution System works:

Farmers or Producers

States

Fair Price Shops

F.C.I (maintains

Buffer Stocks)

Grains MSP

Allocates Grains

Central Issue Price

C.I.P Distributes Grains

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OVERVIEW OF DISTRIBUTIONFCI

PROCURES GRAINS FROM FARMERS

STATE CIVIL SUPPLIES LIFTS GRAINS FROM FCI AS PER THE

ALLOTMENTWAREHOUSE CORPORATION PROVIDES GODOWNS


PROCUREMENTFor the year 2011-2012Procurement-633.36Allocation-709Offtake-563Requirement for

2012-2013 is 615LMT2013-2014 is 625LMT2014-2015 is 634LMT2015-2016 is 644LMT2016-2017 is 654LMT

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Procurement details:FCI-9%Npn DCP-45%DCP-25%Pvt millers-22%Food subsidy by GOI:2011-2012: FCI-59,525 State’s-14,845

STORAGE MANAGEMENT2011-12 Storage Capacity LMT

FCI 156.40

CWC 100.89

SWC 234.61

Total 491.86

2011-12 In LMT

Procurement(paddy and wheat) 633.36

Storage capacity 491.86

Gap 141.5

Open storage(outside of Godowns) 87.86

87.86 LMT is lying outside the godowns


Andhra Pradesh GOI has informed the AP state govt it would only provide food security to

60.98% of poor people in rural areas and 41.14% of poor people in urban areas in AP, largely due to the disparity in calculation of the poor in the state.

Our state reported a huge drop in poverty statistics released by the National Statistics Organisation (NSO),“

"The Planning Commission also said there was a 20% drop in poverty in Andhra Pradesh by 2012.“While the NSO figures put poverty levels in the state at 9.2% the civil supplies department says more than 95% of the population of Andhra Pradesh is not in a position to buy food grains in the open market, without officially certifying them as those living Below Poverty Line (BPL).

According to state civil supplies department:Total households: 2.08 croreTotal ration cards for BPL: 2.01 crTotal beneficiaries: (cards*avg household)=8.04 cr

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Civil supplies corporation

At present the state supplies 4 kg rice per person per monthRs. 1 per kg. But when the Food Security Bill comes into play, it would have to supply 5 kg to every person each month, that too at Rs 3 per kg.Under the Food Security Bill,

35 kg of rice at Rs 3 per kg for 8.05 crore population, Centre will supply food grains to only 4.56 crore population,

The state has to spend an additional Rs 2,500 crore to implement the Food Security Act in Andhra Pradeshsince it has to supply rice to an additional 3.4 crore people, if they go by their calculations.

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GOI

FOOD CORPORATION OF INDIA

GoAp PROCUREMENT FROM FARMERS, MILLERS at MSP.

APSCSCL

MLS POINTS

Fair price shops

FCI GODOWNS

Consumer

STATE GODOWNS

STRUCTURAL FRAMEWORK OF THE FCI & CIVIL SUPPLIES

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TRANSPORTATION

Stage I• The transportation of stocks from

FCI/Factories to MLS Points is called Stage-I transportation

• which is being undertaken through the District-wise Transport Contractors appointed separately for food-grains(PPP modes )

Stage II• The transportation from MLS Point to the

door step of the F.P. Shop Dealer is called Stage-II transportation

• which is being undertaken through Corporation Vehicles and Stage-II contractors appointed by the Collectors on approval of the rates by Head Office(PPP modes)

• In some Districts, direct lifting of food-grains is also being undertaken from certain FCI godowns to FP Shops within a radius of 25 KMs. by avoiding Stage-I transportation and handling charges.

• In Metropolitan areas of Twin Cities, rationed area of Ranga Reddy District, Vijayawada and Visakhapatnam, FP Shop Dealers themselves are directly lifting the stocks from MLS Points.

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Andhra Pradesh State Civil Supplies Corporation Ltd. is the responsibility of the Corporation to undertake transportation, storage and delivery of the stocks under PDS at the door steps of the Fair Price Shop Dealers.


ANALYSIS ON STORAGE SPACE

Existing godown space of MLS point: 3.20 LMTAdditional hired space for storage: 3.04 LMTTotal space available: 6.24 LMTAdditional amount of space required for storage for allotments of food security act: 1.50 LMTDistrict level space estimated : 6521 MTPer district an average of 6000 MT storage space has to be created in order to address the implementation of food security act successfully


OBSERVATIONS• Addition of nine items at affordable prizes by the govt of AP is a

positive move.• The no. of bogus cards in Andhra Pradesh are too high because of

which 95% of population is projected to be BPL.• Measure of Strengthening of food advisory committees.• MSP is given to the farmers with a prompt payment within 3 days.• 10 districts have decentralised procurements.


By computerizing paddy procurement under PDS, the Government of Chhattisgarh Enhance transparency in operations to mitigate leakages and diversion of funds Improve the delivery mechanism so PDS commodities reach the target population Involve citizens in the monitoring process to enhance accountability

The project has Digitised 1532 paddy procurement centres 50 storage centres of Marketing Federation (MARKFED) 100 Civil Supplies Corporation distribution centres 35 FCI rice receiving centres. Five servers are maintained at the National Informatics Centre (NIC),

Chhattisgarh State Centre for hosting all concerned applications and

managing the entire database.

ProcurementCHHATTISGARH MODEL


Computerization of Fair Prices Shops (FPS) .

“Doorstep delivery” was started wherein GPS-enabled transport

vehicles .

Mobile based applications including SMS alerts for about food grains

lifted from godowns and their delivery at ration shops.

Information pertaining to beneficiaries was made public.

Painting houses with color codes signifying kind of cards held

The list of BPL households was displayed at Panchayath offices too.

centralized monitoring and grievance redressal mechanism in the form

of a functioning helpline and access to information regarding PDS.

PDS in CHHATTISGARH


SERVERCentralized food department server

STEP 3: Chip enabled ration card When swiped into a point device, all details of a beneficiary.Handouts a receipt .

STEP 4:DESTINATION

consumer

STEP 1:Food being loaded lorries Lories are painted with bright yellow so that they could be easily loaded .

STEP 2:Fair price shops use GPRS credit card swipe machine.Receipt Chargeable device is used if connectivity is temporarily un available


COMPARISON BETWEEN CHHATTISGARH FOOD SECURITY & NFSB

Chhattisgarh food security 2012 National food security bill 2013

Food grain entitlementsAntyodaya and prority (per households)General

35 kg food grain at Rs 1 & 2/Kg

2 kg iodized salt2 kg black gram at Rs 5/kg(tribal)2 kg pulses at Rs 10/ kg(tribal)15 kg food grain at RS 15/kg

5 kg per person per month

35 kg food grain per householdNo provision of noon food grain item

Type of entitelments

Only on household basis Antyodaya only on household basisAll others on per person basis

Antyodaya Include vulnerable group Only poorest of poor

Destitutes and homeless

Free meal No provision

PDS reform Use IT and SMS services Deliver to doorstep of PDS. No IT services yet announced

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Comparison to Chhattisgarh to National food security


CASE STUDY OF HYDERABAD

The AP CIVIL SUPPLIES CORPORATION has classified the

Hyderabad into 9 circles and it has got 9 godowns respectively.oCIRCLE1. L.B.NAGARoCIRCLE2. BANDLAGUDAoCIRCLE3. BAHADURPURAoCIRCLE4. VSToCIRCLE5. LANGARHOUSEoCIRCLE6. VSToCIRCLE7. SANATHNAGARoCIRCLE8. MUSHEERABAD

oCIRCLE9. MUSHEERABAD There are 2 FCI godowns at Charlapalley & Sanathnagar

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OBSERVATIONS

Addition of nine items at affordable prizes by the govt of AP is a positive move

The no. of bogus cards in andhra pradesh are too high because of which 95% of population is projected to be BPL

Measure of Strengthening of food advisory committes MSP is given to the farmers with a prompt payment within 3 days 10 districts have decentralised procurements


CASE STUDY OF HYDERABAD

The AP CIVIL SUPPLIES CORPORATION has classified the Hyderabad into 9 circles and it has got 9 godowns

respectively.CIRCLE1. L.B.NAGARCIRCLE2. BANDLAGUDACIRCLE3. BAHADURPURACIRCLE4. VSTCIRCLE5. LANGARHOUSECIRCLE6. VSTCIRCLE7. SANATHNAGARCIRCLE8. MUSHEERABADCIRCLE9. MUSHEERABAD

There are 2 FCI godowns at Charlapalley & Sanathnagar

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CIRCLE-8 SCENARIO

There are 108 rationshops under circle-8 musheerabadThere are a total of 70,275 benefeciariesThe capacity of the godown is 120 MtsThe godown runs efficiently on the rotational basisBut an additional allocation of even 20 Mts could impact the functioning of the godown badlyRent: 88,000 per month

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CIRCLE-4

THE GODOWN CAPACITY- 75MTSCONDITION: POOR(Proposal for reconstruction of the nizam’s reign storage godown )No aeration to the godown which can spoil the stockThere is a loss of stock due to damages and improper maintenance of the godown

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OBSERVATIONS

The existing godowns are serving the PDS but not at a perfect paceLack of sufficient staff at the godownsLess no. of hamalies (6- 10 hamalies per godown)Lack of facilities to the staff as well as hamaliesNo proper fire systemsNo proper ventilation and aeration to the godowns


Few practical suggestions for effective implementation of Food Security bill….

A way forward….36

• Construction of scientific warehouses

• Truck tracking systems

• Efficient rotation + Additional storage facilities

• SMS alerts• Fire safety systems• Vigilance rotation • Regulations and law

to be strengthened


Construction of Scientific Warehousing and Logistics Parks

Modern scientific warehouses and multi-modal Logistic parks will have to be developed by the government . These Warehouses and Logistic Parks will need to be connected by Rail, Road, Waterways and Air. Lot of planning and design will need to be done, keeping in mind the future storage and connectivity requirement.Green warehouses will need to be built which will consume very little electricity for internal lighting and air circulation. Existing facilities up-gradation will need to be undertaken to get more out of the existing setupa. Optimal space utilization, movement of units within the warehouses and parks, parking and dispatch bays setup, super flat flooring for vertical space utilization. Assigning space for different warehouse activities, warehouse safety etc. will require intrinsic planning.

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??????????????

Will the PDS serve up to the mark or will there be an alternative for PDS i.e., can we propose any PPP models??Will the government be able to invest in scientific warehouse construction??Can the govt hire vehicles for the distribution system instead of contractors??Can the Indian railways meet the demand of rail rakes for Inter and Intra state transportation??What criteria is to be chosen for issuing of food grains under Food Security Act??

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“There are people in the world so hungry, that God cannot appear to them except in the form of bread.”Mahatma Gandhi (1869-1948)

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THANK YOU

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Documents

PLANNINNG COLLIQUIAM, SPA, JNAFAU DISTRIBUTIONAL INFRASTRUCTURE FOR IMPLEMENTATION OF FOOD SECURITY ACT PRESENTED BY: GROUP-6 10011BA009-HIMABINDU 10011BA015-LAKSHMI