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					   FCI’s Mandate
• The Food Corporation of India was set up on
  14th Jan. 1965 by an Act of Parliament. Its
  Primary Objectives are as follows :
  – To provide the farmers remunerative prices.
  – To make foodgrains available at reasonable
    prices, particularly to the vulnerable section of
    the society and
  – To maintain buffer stocks as a measure of
    Food Security
  – To intervene in the market for price
    stabilisation.
          Growth of Operations

                 2003-2004
37.3 Million   29.95 Million   44.5 Million    27.1 Million
  Tonnes           tonnes         tonnes          tonnes



 14 times       43 times       5.5 times      45 times


Procurement     Movement       Distribution     Storage
 2.6 Million    0.7 Million     8.2 Million    Capacity
    tonnes         tonnes         tonnes      0.6 Million
                               (Including        tonnes
                1965-66          Imports)
  % SHARE OF FCI & STATE
 AGENCIES IN PROCUREMENT
STATE   WHEAT( % SHARE)        RICE (% SHARE)
        FCI     ST. AG.   FCI           ST. AG.
PB.     28        72      35              65
HR      17        83      41              59
UP      Neg      100      31              69
RAJ     67        33       -               -
MP      13        87      50              50
UTTR    10        90      50              50
AP       -         -      97               3
CHG      -         -      28              72
ORI      -         -      98               2
TOTAL   22        78      53              47
5 MAJOR WHEAT PROCURING STATES




                 PUNJAB-55%, HARYANA-30%,
                    UTTAR PRADESH-10%,
                   MADHYA PRADESH-2% &
                       RAJASTHAN-2%


           WHEAT DEFICIT STATES- 23
7 MAJOR RICE PROCURING STATES

              PUNJAB-40%, HARYANA-7%, UP-10%,
              WB-3%,CHHATTISGARH-9%, AP-22%,
                        ORISSA-7%




               RICE DEFICIT STATES- 18

                 RICE POTENTIAL STATES – 3
             BIHAR, TAMILNADU AND KARNATAKA
  STATUS OF PRODUCTION,
PROCUREMENT AND OFFTAKE

1. PUNJAB,   HARYANA   ARE   SURPLUS
   STATES.

2. SEVEN    STATES     NAMELY      UP,
   UTTRANCHAL, ORISSA, WB, MP, AP AND
   CHATTISGARH REQUIRE SOME EFFORTS
   IN    PROCUREMENT      TO     MEET
   SUBSTANTIAL PART OF THEIR ANNUAL
   REQUIREMENTS.
  STATUS OF PRODUCTION,
PROCUREMENT AND OFFTAKE
3. FIVE   STATES   NAMELY    BIHAR,
   JHARKHAND, RAJASTHAN, KARNATKA
   AND MAHARASHTRA REQUIRE SERIOUS
   EFFORTS TO MEET PART OF THEIR
   REQUIREMENTS.

4. SEVEN    STATES   NAMELY    ASSAM,
   NAGALAND, KERALA, TRIPURA, GUJRAT,
   J&K AND HP REQUIRE EXTRAORDINARY
   EFFORTS TO MEET PART OF THEIR
   REQUIREMENTS.
  STATUS OF PRODUCTION,
PROCUREMENT AND OFFTAKE

3. SEVEN STATES NAMELY GOA,
   SIKKIM, DELHI, ARUNACHAL,
   MIZORAM,         MANIPUR,
   MEGHALAYA        PRODUCE
   NEGLIGIBLE     QTY.   OF
   FOODGRAINS.
    ASSUMPTIONS

IN THE FOLLOWING SLIDES FIGs. OF
POSSIBLE PROC. , BENEFIT TO
STATES     ARE    BASED       ON
ASSUMPTIONS GIVEN BELOW:
       ASSUMPTIONS
1. PROCUREMENT IS ASSUMED TO BE 20%
   (NATIONAL AVERAGE) OF THE TOTAL
   PRODUCTION OF THE STATE .

2. THE PRODUCTION IS AVERAGE OF LAST
   TWO YEARS.

3. THE TAXES LIKELY TO BE EARNED BY
   STATE GOVTs. @ 10% OF THE ADDITIONAL
   PROCUREMENT DONE.
 SEVEN STATES WHERE SOME EFFORTS ARE
        REQUIRED TO MEET THEIR
         ANNUAL REQUIREMENTS

               1. UTTAR PRADESH
                          Internal                      Additional
           Average                            Cost of   Income to
          Production/ Procurement/            Freight
Commodity                                                  State
           (Offtake) (Provided by FCI)
                                               (Rs.)
           ( in Lakh MT)   ( in Lakh MT)                  (Rs.)

                                 17
              245
WHEAT                           (15)
              (32)
                           50   Rakes/Month
                                              70 CR.    90 CR.
              105                20
 RICE
              (12)               (--)
  SEVEN STATES WHERE SOME EFFORTS ARE
         REQUIRED TO MEET THEIR
          ANNUAL REQUIREMENTS

                  2. UTTARANCHAL
           Average        Internal                    Additional
                                            Cost of   Income to
          Production/ Procurement/          Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                             (Rs.)
           ( in Lakh MT)    ( in Lakh MT)               (Rs.)

                                 1
                7
WHEAT                           (1)
               (2)
                           4 Rakes/Month
                                            2 CR.     6 CR.
                6                3
 RICE
               (1)              (--)
SEVEN STATES WHERE SOME EFFORTS
   ARE REQUIRED TO MEET THEIR
     ANNUAL REQUIREMENTS

             3. ANDHRA PRADESH
           Average        Internal                    Additional
                                            Cost of   Income to
          Production/ Procurement/          Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                             (Rs.)
           ( in Lakh MT)    ( in Lakh MT)               (Rs.)

                               --
               --
WHEAT                        (Neg)
             (Neg)
                           1 Rake/Month
                                            2 CR.     8 CR.
               93              40*
 RICE                          (--)
              (36)
                           *POTENTIAL 72
 SEVEN STATES WHERE SOME EFFORTS
    ARE REQUIRED TO MEET THEIR
      ANNUAL REQUIREMENTS

                4. CHHATTISGARH
           Average        Internal
                                            Cost of   Additional
          Production/ Procurement/          Freight   Income to
Commodity
           (Offtake) (Provided by FCI)
                                             (Rs.)       State
           ( in Lakh MT)    ( in Lakh MT)

                               Neg
              Neg
WHEAT                          (2)
              (2)
                           8 Rakes/Month
                                            10 CR.    8 CR.
               38               19
 RICE
             (Neg)              (--)
 SEVEN STATES WHERE SOME EFFORTS ARE
        REQUIRED TO MEET THEIR
         ANNUAL REQUIREMENTS

                           5. ORISSA
           Average        Internal                     Additional
                                             Cost of   Income to
          Production/ Procurement/           Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                              (Rs.)
           ( in Lakh MT)     ( in Lakh MT)                (Rs.)
                                  --
                --
WHEAT                            (2)
               (2)
                           8 Rakes/Month
                                             67 CR.    41 CR.
               52                14
 RICE                            (4)
              (18)         15 Rakes/Month
 SEVEN STATES WHERE SOME EFFORTS ARE
        REQUIRED TO MEET THEIR
         ANNUAL REQUIREMENTS
                   6. WEST BENGAL
                                                       Additional
           Average        Internal                     Income to
                                             Cost of
          Production/ Procurement/           Freight      State
Commodity
           (Offtake) (Provided by FCI)                   (Rs.)
                                              (Rs.)
           ( in Lakh MT)    ( in Lakh MT)



                9               --
WHEAT                          (12)
              (12)
                           46 Rakes/Month
                                            178 CR.    85 CR.
              148                9
 RICE                           (9)
              (18)
                           34 Rakes/month
 EIGHT STATES WHERE SOME EFFORTS ARE
        REQUIRED TO MEET THEIR
         ANNUAL REQUIREMENTS
              7. MADHYA PRADESH
           Average        Internal                     Additional
                                             Cost of   Income to
          Production/ Procurement/           Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                              (Rs.)
           ( in Lakh MT)    ( in Lakh MT)                (Rs.)

               52                3
WHEAT                          (16)
              (19)
                           61 Rakes/Month
                                            102 CR.    74 CR.
               13                1
 RICE                           (3)
               (4)
                           11 Rakes/Month
 SEVEN STATES WHERE SOME EFFORTS ARE
        REQUIRED TO MEET THEIR
         ANNUAL REQUIREMENTS
States           Additional quantity         Freight saved       Additional Income
                 which can be procured                           to State
                 (in lakh tonnes)

                   Wheat        Rice         (Rs.Crores)         (Rs.Crores)
Uttar Pradesh           15               -                  77                 90 Cr.
Uttranchal                 1             -                   2                  6 Cr.

Orissa                     -             5                  48                 41 Cr.
West Bengal                2             9                  60                 85 Cr.

Andhra Pradesh             -             1                   9                  8 Cr.

Chattisgarh                -             1                   8                  8 Cr.

Madhya Pradesh             9             2                  67                 74 Cr.

Total                   27             18                  271                 312 Cr
 SEVEN STATES WHERE SOME EFFORTS ARE
        REQUIRED TO MEET THEIR
         ANNUAL REQUIREMENTS
     SUMMARY FOR STATES OF SOME EFFORTS
     UTTAR PRADESH, UTTARANCHAL, A.P, CHG.
     ORISSA, WEST BENGAL, MADHYA PRADESH
           Average        Internal                      Additional
                                              Cost of   Income to
          Production/ Procurement/            Freight
Commodity
           (Offtake) (Provided by FCI)                     State
                                               (Rs.)
           ( in Lakh MT)     ( in Lakh MT)                (Rs.)

              313                21
WHEAT                           (45)
              (66)
                           170 Rakes/Month
                                             416 CR. 312 CR.
              324                51
 RICE                           (16)
              (53)
                           60 Rakes/Month
FIVE STATES WHERE SERIOUS EFFORTS ARE
        REQUIRED TO MEET THEIR
      PART ANNUAL REQUIREMENTS
                           1. BIHAR
           Average        Internal                    Additional
                                            Cost of   Income to
          Production/ Procurement/          Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                             (Rs.)
           ( in Lakh MT)    ( in Lakh MT)               (Rs.)

               43              Neg
WHEAT                          (9)
               (9)
                           33 Rakes/Month
                                            82 CR.    72 CR.
               51                3
 RICE                           (3)
               (5)
                           11 Rakes/Month
FIVE STATES WHERE SERIOUS EFFORTS ARE
        REQUIRED TO MEET THEIR
      PART ANNUAL REQUIREMENTS
                     2. JHARKHAND
           Average        Internal                    Additional
                                            Cost of   Income to
          Production/ Procurement/          Freight
Commodity
           (Offtake) (Provided by FCI)                  State
                                             (Rs.)
           ( in Lakh MT)    ( in Lakh MT)                (Rs.)

                1              Neg
WHEAT                          (3)
               (3)
                           11 Rakes/Month
                                            48 CR.    28 CR.
               20              Neg
 RICE                          (3)
               (3)
                           11 Rakes/Month
FIVE STATES WHERE SERIOUS EFFORTS ARE
        REQUIRED TO MEET THEIR
      PART ANNUAL REQUIREMENTS
                      3. KARNATAKA
             Average        Internal                     Additional
                                               Cost of   Income to
            Production/ Procurement/           Freight
Commodity
             (Offtake) (Provided by FCI)                    State
                                                (Rs.)
            ( in Lakh MT)     ( in Lakh MT)                (Rs.)

                 2                 --
WHEAT                             (4)
                (4)
                            15 Rakes/Month
                                              357 CR.    59 CR.
                27                --
  RICE                           (27)
               (27)
                            100 Rakes/Month
FIVE STATES WHERE SERIOUS EFFORTS ARE
        REQUIRED TO MEET THEIR
      PART ANNUAL REQUIREMENTS
                 4. MAHARASHTRA
           Average        Internal                     Additional
                                             Cost of   Income to
          Production/ Procurement/           Freight
Commodity
           (Offtake) (Provided by FCI)                    State
                                              (Rs.)
           ( in Lakh MT)    ( in Lakh MT)                (Rs.)

               10              Neg
WHEAT                          (18)
              (18)
                           68 Rakes/Month
                                            226 CR.    37 CR.
               22                3
 RICE                           (8)
              (11)
                           30 Rakes/Month
    FIVE STATES WHERE SERIOUS
  EFFORTS ARE REQUIRED TO MEET
 THEIR PART ANNUAL REQUIREMENTS
                   5. RAJASTHAN
             Average        Internal                    Additional
                                              Cost of   Income to
            Production/ Procurement/          Freight
Commodity
             (Offtake) (Provided by FCI)                   State
                                               (Rs.)
            ( in Lakh MT)    ( in Lakh MT)                (Rs.)

                56                4
WHEAT                           (25)
               (29)
                            90 Rakes/Mont
                                             100 CR.    63 CR.
                 --               --
  RICE
                (--)             (--)
TOTAL FOR FIVE STATES OF SERIOUS EFFORTS
      BIHAR, JHARKHAND, RAJASTHAN
        KARNATKA, MAHARASHTRA

           Average        Internal                      Additional
                                              Cost of   Income to
          Production/ Procurement/            Freight
Commodity
           (Offtake) (Provided by FCI)                    State
                                               (Rs.)
           ( in Lakh MT)     ( in Lakh MT)                (Rs.)

              112                 3
WHEAT                           (63)
              (66)
                           239 Rakes/Month
                                             836 CR. 259 CR.
              120                6
 RICE                           (41)
              (46)
                           155 Rakes/Month
FIVE STATES WHERE SERIOUS EFFORTS ARE
 REQUIRED TO MEET THEIR ANNUAL PART
            REQUIREMENTS

State         Additional quantity       Freight      Additional
              which can be              Saved        Income to
              procured (in lakh                        State
              tonnes)
               Wheat        Rice            (Rs.)      (Rs.)

Bihar              9.0              3       62 Cr.              72 Cr.

Jharkhand          0.2              3       26 Cr.              28 Cr.

Rajasthan         10.0              -       42 Cr.              63 Cr.

Karnataka          0.2              7       83 Cr.              59 Cr.

Maharashtra        2.0              3       43 Cr.              37 Cr.

Total             21.4             16      256 Cr.             259 Cr.
  SEVEN STATES WHERE EXTRAORDINARY
  EFFORTS ARE REQUIRED TO MEET THEIR
          PART REQUIREMENTS
   1-3. ASSAM, NAGALAND & TRIPURA
             Average        Internal                    Additional
                                              Cost of   Income to
            Production/ Procurement/          Freight
Commodity
             (Offtake) (Provided by FCI)                  State
                                               (Rs)
            ( in Lakh MT)    ( in Lakh MT)                (Rs.)

                 1                --
WHEAT                            (4)
                (4)
                            15 Rakes/month
                                             225 CR.    75 CR.
                47              Neg
  RICE                          (20)
               (20)
                            76 Rakes/Month
  SEVEN STATES WHERE EXTRAORDINARY
  EFFORTS ARE REQUIRED TO MEET THEIR
          PART REQUIREMENTS

                            4. KERALA
             Average        Internal                     Additional
                                               Cost of   Income to
            Production/ Procurement/           Freight
Commodity
             (Offtake) (Provided by FCI)                   State
                                                (Rs.)
            ( in Lakh MT)     ( in Lakh MT)                (Rs.)

                 --                --
WHEAT                             (2)
                (2)
                             7 Rakes/Month
                                              120 CR.    12 CR.
                 7                 --
  RICE                            (7)
                (7)
                             26 Rakes/Month
  SEVEN STATES WHERE EXTRAORDINARY
  EFFORTS ARE REQUIRED TO MEET THEIR
          PART REQUIREMENTS
                      5. GUJARAT
             Average        Internal                   Revenue Loss
                                             Cost of
            Production/ Procurement/         Freight     by State
Commodity
             (Offtake) (Provided by FCI)
                                              (Rs.)       (Rs.)
            ( in Lakh MT)    ( in Lakh MT)


                10                --
WHEAT                            (6)
                (6)
                            22 Rakes/month
                                             51 CR.     32 CR.
                 8                --
  RICE                           (2)
                (2)
                            7 Rakes/Month
 SEVEN STATES WHERE EXTRAORDINARY
 EFFORTS ARE REQUIRED TO MEET THEIR
         PART REQUIREMENTS
               6. JAMMU & KASHMIR
           Average        Internal                    Additional
                                            Cost of   Income to
          Production/ Procurement/          Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                             (Rs.)
           ( in Lakh MT)    ( in Lakh MT)               (Rs.)

                3                --
WHEAT                           (2)
               (2)
                           7 Rakes/Month
                                            10 CR.    12 CR.
                4                --
 RICE                           (4)
               (4)
                           15 Rakes/Month
  SEVEN STATES WHERE EXTRAORDINARY
  EFFORTS ARE REQUIRED TO MEET THEIR
          PART REQUIREMENTS

            7. HIMACHAL PRADESH
           Average        Internal                    Additional
                                            Cost of   Income to
          Production/ Procurement/          Freight
Commodity
           (Offtake) (Provided by FCI)                   State
                                             (Rs.)
           ( in Lakh MT)    ( in Lakh MT)               (Rs.)

                6              Neg
WHEAT                          (2)
               (1)
                           7 Rakes/Month
                                            1 CR.     8 CR.
                1              Neg
 RICE                          (2)
               (2)
                           7 Rakes/Month
        SUMMARY FOR SEVEN STATES OF
          EXTRA ORDINARY EFFORTS
 ASSAM, NAGALAND, TRIPURA , KERALA, GUJARAT,
     JAMMU & KASHMIR, HIMACHAL PRADESH

                                                        Additional
           Average        Internal            Cost of   Income to
          Production/ Procurement/                         State
Commodity                                     Freight
           (Offtake) (Provided by FCI)                    (Rs.)
           ( in Lakh MT)                       (Rs.)
                             ( in Lakh MT)



               20                --
WHEAT                           (16)
              (15)
                           61 Rakes/Month
                                             407 CR.    139CR.
               58                --
 RICE                           (35)
              (35)
                           132 Rakes/Month
  SEVEN STATES WHERE EXTRAORDINARY
  EFFORTS ARE REQUIRED TO MEET THEIR
          PART REQUIREMENTS
States     Additional quantity         Freight         Additional Income
           which can be procured       saved                   to
           (in lakh tonnes)
                                                              State

           Wheat         Rice          (Rs.)           (Rs.)
ASSAM              0.2           9.0       86 Cr.                 75 Cr.
NAGALAND
TRIPURA
Kerala               -           1.5       20 Cr.                 12 Cr.
Gujarat            2.0           2.0       25 Cr.                 32 Cr.
Jammu &            0.6           1.0           3 Cr.              12 Cr.
Kashmir
Himachal           1.0           0.2           1 Cr.               8 Cr.
Pradesh
Total              3.8          13.7      135 Cr.                139 Cr.
     GRAND TOTAL OF ALL STATES

 CATEGORY     Additional quantity      Freight   Additional Income
                which can be           saved             to
              procured (in lakh
                                                        State
                    tonnes)
              Wheat        Rice         (Rs.)          (Rs.)
  SOME              27            16   271 Cr.        312 Cr.
 EFFORTS
    (7)

 SERIOUS            22            16   256 Cr.        259 Cr.
 EFFORTS
    (5)
EXTRAORDIN            4           14   135 Cr.        139 Cr.
ARY EFFORTS
     (7)
   Total            53            46   662 Cr.        710Cr.
    REASONS FOR LOW
     PROCUREMENT
1. LACK OF AWARENESS OF BENEFITS
   ACCRUING TO THE FARMER AND STATE
   EXCHEQUER.

2. LACK OF MANDIS & OTHER
   INFRASTRUCTURE.

3. PROCUREMENT INCENTIVES
   CONSIDERED UNATTRACTIVE.
          ACTION PLAN
•   STRENGTHEN               POLITICAL/
    ADMINISTRATIVE INTERACTION.
•   STATES MUST CONSIDER THE FACT THAT
    THEY ARE INDEED LOSING 710 CR. BY
    WAY OF INCOME FROM TAXES ON
    PROCUREMENT OF GRAIN.
•   IN ADDITION THE STATES ARE LOSING
    ADVANTAGE ON SECONDARY ACTIVITY
    GENERATED      BY    PROCUREMENT
    OPERATIONS.
         ACTION PLAN
•   CONCERNED STATES MUST BUILD UP
    INFRASTRUCTURE SUCH AS MANDIS,
    PROCUREMENT CENTRES ETC WITH THE
    HELP OF NGOs, COOPERATIVES AND
    SCHEMES AVAILABLE FROM CENTRAL
    GOVERNMENT.
•   REFORMS IN AGRICULTURE SECTOR
    SHOULD BE UNDERTAKEN ON PRIORITY.
•   INCREASE     THE     SHARE     OF
    PROCUREMENT IN THE CENTRAL POOL.
                    CORPORATE OFFICE


                     ZONAL OFFICES (5)


                  REGIONAL OFFICE (23)

              FCI DISTRICT OFFICES(173)


                 DEPOTS (Incl.CAP) – 1559

With over 2200 offices, it makes FCI one of the largest networked
company in India.

				
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