FOOD CORPORATION OF INDIA

Functions and Activities of FCIPrepared and Presented by- RAVI SHANKAR VERMA

(2015A126MBA)DEPT. OF BUSINESS

MANAGEMENTCCSHAU

IntroductionThe Food Corporation of India was setup under the Food Corporation's Act 1964 , in order to fulfill following objectives of the Food Policy:1. Effective price support operations for safeguarding the interests of the

farmers.2. Distribution of food grains throughout the country for public

distribution system.3. Maintaining satisfactory level of operational and buffer stocks of food

grains to ensure National Food Security4. Regulate market price to provide food grains to consumers at a reliable

price.

Since its inception, FCI has played a significant role in India's success in transforming the crisis management oriented food security into a stable security system.

Headquarters

Zonal Office (North)

Zonal Office (North-east)

Zonal Office (south)

Zonal Office (west)

Zonal Office (East)

Delhi Region

Haryana Region

HP Region

J &K Region

Punjab Region

Rajasthan Region

ZTI UP Region

Uttara khand Region

Organizational Structure

Objectives of FCI1. To provide farmers remunerative prices2. To make food grains available at reasonable prices, particularly to vulnerable section of the society.3.To maintain buffer stocks as measure of Food Security4.To intervene in market for price stabilization

FUNCTIONIt is the duty of FCI India to create various warehouses for the storage of the food grains. Food corporation of India is providing food grains in a wider range covering all the sectionsof the society at an affordable price. FCI India is running the following functions:-

It entirely focuses on supporting the

farmers in providing the food grains to

large number of public in a more well and efficient way for today and

tomorrow

Food is the basic need which

constitutes the requirement of

the human being.

It comes under the Food corporation of India Functions to preserve and store the large

quantity of food grains and

spreading it over the large and vast

areas

To arrange the transport

facilities to produce

agricultural seeds, manures and fertilizers

from warehouses.

OTHER’S FUNCTION•It is the function of FCI India to distribute and supply food grains through rations shops which comes under Food corporation of India act.

• Food corporation of India Functions for the betterment of the society considering large masses.

•Food corporation of India Functions the sale of food grains and its movement mainly depends on the rail being a deficit country.

Continued function…

Movement plays a very important role in the working of FCI as well as in fulfilling the objectives of Food Policy and National Food Security Act.

FCI undertakes movement of food grains in order to : •Evacuate stocks from surplus regions•Meet the requirements of deficit regions•Create buffer stocks in deficit regions 

•The FCI pays the farmers at a price that is already fixed by the government which is called Minimum Support Price(MSP). MSP is announced by the government every year before the sowing season. Therefore, the announcement of the price helps farmers to plan their agricultural activity and increase production.

Continued function…

•The FCI pays the farmers at a price that is already fixed by the government which is called Minimum Support Price(MSP). MSP is announced by the government every year before the sowing season. Therefore, the announcement of the price helps farmers to plan their agricultural activity and increase production.

Marketing Year Paddy Wheat Jowar (Maldandi)

Jowar (Hybrid)

Bajra Ragi Maize Barley

Common Grade 'A'

2010-11 1000 1030 1100 900 880 880 965 880 750

2011-12 1080 1110 Rs.1120/- (+Rs.50/- as bonus)

1000 980 980 1050 980 780

2012-13 1250 1280 1285 1520 1500 1175 1500 1175 980

2013-14 1310 1345 1350 1520 1500 1250 1500 1310 980

2014-15 1360 1400 1400 1550 1530 1250 1550 1310 1100

2015-16 1410 1450 1450 1590 1570 1275 1650 1325 1150

2016-17 1525 1225

Minimum Support Price of Wheat and Paddy: [Rs. Per Quintal]

ProcurementThe Government policy of procurement of Food grains has broad objectives of

ensuring MSP to the farmers and availability of food grains to the weaker sections at affordable prices. It also ensures effective market intervention thereby keeping the prices under check and also adding to the overall food security of the country.

Policy and SystemGovernment agencies undertake MSP operation at mandis/ temporary

purchase centres/aggregation points. Location and number of purchase centres to be opened are decided in consultation with /by the State governments.

SYSTEMS OF PROCUREMENT

Wheat- FCI undertakes

direct procurement in non-DCP states

Ricea) Custom Milled (CMR)

andb) Levy rice.

Coarse grainsprocured by the

State governments for

central pool

RICE WHEAT S.No. State W.e.f S.No. State W.e.f1. Andaman & Nicobar 2003-04 12. Bihar 2014-152. Andhra Pradesh 2012-13 13. Chhattisgarh 2001-023. Bihar 2013-14 14. Gujarat 2004-054. Chhattisgarh 2001-02 15. Madhya Pradesh 1999-20005. Karnataka 2002-03 16. Rajasthan(1 revenue district

Alwar only)2013-14

6. Kerala 2004-05 17. Uttarakhand 2003-047. Madhya Pradesh 2007-08 18. West Bengal 2010-118. Odisha 2003-04 19. Punjab (to the extent of its

requirement of 8.69 LMT)2014-15

9. Tamilnadu 2002-03 10. Telangana 2013-14 10. Uttarakhand 2002-03 11. West Bengal 1997-98

AS ON DATE THE FOLLOWING STATES ARE PROCURING RICE/WHEAT UNDER DCP SYSTEM

Storage & ContractThe storage function assumes paramount importance in organization such as Food Corporation of India because of its requirement to hold huge inventory of foodgrains over a significant period of time. Storage plan of FCI is primarily to meet the storage requirement for holding stocks to meet the requirements of Public Distribution System and Other Welfare Schemes undertaken by the Government of India.

New Godowns are being constructed by FCI mainly through Private Participation under Private Entrepreneurs Guarantee Scheme. FCI is also augmenting and modernizing its storage capacity in the form of silos through Public Private Partnership

As on Capacity with FCI Storage Capacity Other Agency

Total

01-04-2011 512268 38182 897450

01-04-2012 512268 476440 988708

01-04-2013 512268 465594 977862

01-04-2014 512268 328646 840914

01-04-2015 512268 332409 844677

STORAGE CAPACITY FOR CENTRAL POOL STOCKS FOR THE LAST FIVE YEARS

FinanceThe functions of Finance and Accounts division is primarily maintenance of

Accounts and preparation of annual reports, preparation of Budget Estimates, claim subsidy from Government of India, Funds Management, Taxation, Debt collection and Financial evaluation of commercial proposals.

Year Subsidy (Rs.in crore) Sales Proceed (Rs. in crore)

Total turnover (Rs. in crore)

2011-12 68,697 26,686 95,383

2012-13 80,563 39,849 1,20,412

2013-14 89,492 38,357 1,27,849

2014-15(RE) 1,02,476 31,527 1,34,003

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