food grain management in india

8/7/2019 FOOD GRAIN MANAGEMENT IN INDIA

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FOOD GRAIN MANAGEMENT IN INDIA

PRESENTED BY:-

RICHA SHARMA

09MB-29


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OVERVIEW

Food grain management in INDIA is all about- Procurement, Storage &Distribution of food grains in the country.

The focus is on the attainment and maintaining self-sufficiency in

foodgrains to achieve food security.

In 1965 - to disseminate high-yielding varieties and ensure low-pricedfood to consumers led to the creation of the Food Corporation of India(FCI) and the Agricultural Prices Commission (APC).

The government follows a dual pricing policy -

procurement price at which it would purchase grains from farmers,

ration price (lower than the retail price) at which it would sell limitedquantities of grains as entitlement to households through Fair PriceShops (FPS).


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The instruments for food management are-

MSP(Minimum Support Price)

CIP(Central Issue Price)

The TPDS( Targeted Public Distribution System)operation

since ,1997-food grains management by State Govt.

Food stocks are maintained by Govt for-

Meeting the prescribed min. Buffer stock norms for food

security.

Monthly release of food grains through PDS.


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OBJECTIVES

Procurement of food grain from farmers atremunerative prices.

The procurement price is set by- the Commission forAgricultural Costs and Prices (CACP)

Based on considerations of cost of production

a fair return to land and family labour of the farmers

A system of open-ended procurement FCI is obligated to buy all the grains that farmers offer to sell

at the prescribed procurement price as long as the grainsmeet a certain quality standard .

The foodgrains stocks procured by the FCI consist of

operational stocks and buffer stocks.


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The operational stocks are used for distribution through

the Public Distribution System (PDS) and for variouswelfare schemes.

Each year, the Food Corporation purchases roughly 15-

20% of India's wheat production and 12-15% of its rice

production.

Foodgrains are being provided for various employment

programs such as the Food-for-Work programme, National

Rural Employment programme (NREP), the Rural Labour

Employment Guarantee programme (RLEGP), theJawahar Rozgar Yojana (JRY), etc.


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Distribution of food grains to the

consumers.The food grains are procured from the producers atminimum support prices and distributed among theconsumers, at uniform prices, all over the country.

The PDS has been able to check black marketing andhoarding of essential food grains.

The govt. runs AAY(ANTYODAYA ANNA YOJANA)

issue rice and wheat at the rate of Rs. 3/- per Kg. And Rs. 2/-per Kg., respectively to BPL families.

The validity period for lifting of allocated foodgrains under

TPDS is 50 days for each allocation month .


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Open Market Sale Scheme (OMSS), under which 30 lakh

tonnes of foodgrains have been allocated to state

governments for sale to retail consumers.

various welfare schemes-

Mid-Day-Meal, Nutrition Programme, SC/ST/OBC Hostels,

Welfare Institutions & Hostels, Annapurna, Sampoorn

Gramin Rozgar Yojna (SGRY), National Food for Work

Programme.

Maintenance of food buffers for

food security and price stability. to maintain the supply of food grains throughout the

year and also to maintain the supply in the event of

unforeseen circumstances.

to stabilize prices.


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Price policy

Production incentives,

remunerative prices-minimum

support prices.

Consumer protection-subsidised

ration prices

Procurement

Price stabilization- buffer stocks

Supplying welfare programs-

operational stock

Distribution system

Supplies to consumers- fairprice shops

FOOD GRAIN MANAGEMENT SYSTEM IN INDIA


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FOOD GRAIN MANAGEMENT

POLICIES IN INDIA

The overall objective of the foodgrains management policies in

India since the mid-1960s-

(i) ensure a reasonable support price which will induce farmers to

adopt improved methods of cultivation for increasing production

(ii) ensure that consumer prices do not rise unduly.

(iii) avoid excessive price fluctuations and reduce the disparity ofprices between States.

(iv) build up sizeable buffer stocks of wheat and rice from imports

and internal procurement


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POLICIES TO FACILITATE PRICE STABILIZATION

PROGRAMS

Monopoly Control Over International Trade,1965

to keep administrative control over the use of scarceforeign currency reserves to monitor and regulate food

imports.

Restrictions on Movement of Foodgrain ,1941

preventing hoarding and building stocks for

distribution in major urban centres.

India enforces movement restrictions in selected stateson the ground of preventing smuggling to neighbouringcountries.


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Restrictions on Private Storage

a more direct and deliberate policy -under the Essential

Commodities Act 1955, which set specific limits on the levelof foodgrains stock a trader can have at any given point in

time.

Restrictions on ProcessingThe restrictions on sales of milled rice in India started under

the Rice Milling Industry Act 1958.

to increase procurement for governments buffer stocking and

distribution through ration channels


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FOOD GRAIN MANAGEMENT :A

CONTINUING CHALLENGE Storage facility is poor-(in 2008-09) ,total= 913.23 LT of food grains were

stored & still need of additional 120 LT of storage.

Over 11,700 tonnes of foodgrains worth Rs 6.86 crore were found

"damaged" in government godowns.

excess stockholding by the government- foodgrain stock much higher

than the buffer stocking norm.

Unable to maintain additional strategic buffer for key commodities for

past 3 years.

Supply chain management suffers max. Inefficiency, cumulative wastage

is estimated to be 9.8% of agriculture component of GDP.

PDS is no longer able to stabilise prices effectively.


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The Diversification Challenge -Indian farm outputhas been diversifying away from cereals and towards high

value crop and livestock products.

Poor lifting of foodgrains by state latest only 12%of total

wheat allocated was lifted by them under open market sale

scheme

Farmland diversion from agriculture to non-agri. use.

Lack of uniformity of taxes on food produce in different partsof India.


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HOW TOOVECOME

Additional storage capacity should be created.

Modern warehouse construction- To dispose off surplus andun-storage worthy godowns and introduce concepts ofmechanized handling in the conventional godowns

Focus on PPP to improve effectiveness in farm sector .

Private marketing should be strengthened through reform ofthe Agricultural Produce Marketing Committees (APMC)Act.

Farmland should not be diverted for non-agricultural use,and food crop-cultivating land should not be diverted for non-

food crops.


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TPDS- to reintroduce as universal PDS

benefit as cash assistance

flexibility in formulating alternative local food security

schemes by state govt.

Essential Commodities Act (ECA )amendment needed for

large scale corp. Investment.

Permitting direct purchases from farmers.- giving farmers a

direct access to markets by eliminating the middlemen

wherever possible.

Strengthening the food distribution system to reach the poor

more effectively- alternative delivery mechanisms, for

example, grain banks.


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automatic and transparent policy of variable tariffs on both

agricultural imports and exports linked to the deviation of spotinternational prices from their long run trends-for stabilisation

of prices in an open economy.

To ensure adequate buffer for meeting requirements under

TPDS & Other Welfare Schemes.

Open market operations are vital for price stabilisation,

There should be a stable and predictable policy regarding open

market sales.


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THANK

YOU

food grain management in india

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