MANUAL-X (Scheme for distribution of subsidized imported edible oils) by 74BvJ1


									MANUAL-X (Scheme for distribution of subsidized imported edible oils)

                                               Government of India
                            Ministry of Consumer Affairs, Food and Public Distribution
                                        Deptt. Of Food & Public Distribution
                              Directorate of Vanaspati, Vegetable Oils & Fats

The manner of execution of subsidy programmes, including the amounts allocated and the details of
beneficiaries of such programmes.

                         In order to provide relief to consumers from rising prices especially to BPL households
and to augment availability of edible oils in the country, a scheme for distribution of subsidized imported edible
oils through States/Uts has been implemented by Government since 2008 for distribution of edible oils to ration
card holders with a subsidy of Rs. 15 /- Kg. The scheme was extended in 2009-10 and in 2010-11 and further
period upto 30-9-2011. During 2008-09, 12 states distributed 3.6 Lakh tons of edible oils and 18 States/Uts was
allocated about 9.08 Lakh tons of edible oils during 2009-10 and 2010-11. Nine States have been allocated about
3.24 Lakh tons of edible oils from April, 2011 to September, 2011. The scheme has been extended for further
period upto 30.9.2012.So far, eight states have been allocated total quantity of about 6.82 lakh tons of edible
oils for period from October,2011 to September,2012.The details of States and allocation of edible oils are listed

  States           PSU             Name of the Oil   Quantity of oil allocated   Quantity    of    oil  allocated
                                                     April,2011 to               October,2011toSeptember,2012(In
                                                     September,2011(In MT)       MT) as on 01.06.2012
  Maharasthra    STC               RBD   Palmolein   87740.00                    174000.00
  Goa            STC               RBD   Palmolein   3650.00                     ---
  Uttar Pradesh STC                RBD   Palmolein   8000.00                     ---
  Andhra Pradesh MMTC              RBD   Palmolein   93500.00                    252000.00
  Gujarat        MMTC              RBD   Palmolein   12000.00                    18000.00
  Dadar & Nagar MMTC               RBD   Palmolein   ---                         360.00
  Tamil Nadu     PEC               RBD Palmolein     90000.00                    213600.00
  Himachal       PEC               Crude             9000.00                     18000.00
  Pradesh                          Degummed
                                   Soyabean Oil
  Lakshdweep       PEC             RBD Palmolein     60.00                       ---
  West Bengal      NAFED           RBD Palmolein     20000.00                    ---
  Rajasthan        NCCF            RBD Palmolein     ---                         5000.00 (oct,11 to March,12)
  Mizoram          NCCF/NAFED      RBD Palmolein     ---                         1300.00
  Total            ---             ---               323950.00                   682260.00

1.   The Scheme for distribution of subsidized edible oil would be restricted to
     imported edible oils. PSUs may import refined palmolein/soyabean oil for
     the initial two months to facilitate implementation of the Scheme without
     delay and thereafter crude palm/soya oil may also be imported.

2.   PSUs viz. PEC, MMTC, STC, NAFED and NCCF will import edible oils
     under the Scheme and STC will coordinate with other PSUs in all the
     matters relating the import, refining and supplying the packed edible oils to
     the State Governments.

3.   The subsidy will be Rs.15/- per kg. of imported edible oils. The subsidy
     would be given to the designated PSUs directly by the Government of

4.   The PSUs would supply the subsidized oil to State Governments/UTs who
     will supply the oil to ration card holders.     The maximum quantity so
     distributed by State Governments will not exceed 1 litre of edible oil per
     ration card/family per month.     They may distribute the subsidized oil
     through PDS shops/other outlets as decided by them. They may restrict
     the distribution to BPL families or cover APL families as well, depending
     upon the availability and the distribution logistics.      It would be the
     responsibility of the State Government to ensure that the oil is not
     diverted/leaked and the targeted consumers get it.

5.   The State Governments would decide the price at which the oil would be
     sold to the ration card holders. The State Governments will pass on the
     entire subsidy to the ration card holders.

6.   The refined oil would be packed in packets of 1litre/1/2 litre as desired
     by the State Governments with a label mentioning that it is subsidized by
     the Government of India alongwith other relevant details.
7.   The State Governments/UTs would place their demands, restricted to
     allocation made by the Govt. of India, with the PSUs and lift the stocks
     within the time agreed upon. The State Governments would take delivery
     of the packed refined oil from the PSU delivery point/packing centre. The
     State Governments will sign agreements with the PSUs and provide
     advance payment or bank guarantees to the PSUs for the oil to be
     contracted by them. The States will inform the PSUs from time to time the
     maximum price at which edible oil may be contracted. Contracting will be
     done by the PSUs as per their monthly requirements indicated by the
     States. The State Governments will reimburse the PSUs all the actual
     costs of oil contracted as mentioned in para 8. The State Governments
     will have to pay the PSUs any losses that are incurred by the PSUs if they
     do not take the oil imported for them as per the agreements signed by
     them with the PSUs.

8.   The State Governments would be charged the entire cost of import upto
     packing, including charges incurred by PSUs such as port charges,
     transport charges, charges, trading margin, interest, refining and packing
     charges, storage charges, etc. minus the subsidy @ Rs.15/- per kg. The
     cost of transportation from the packing centre/distribution centre and all
     other costs will also be borne by the States/UTs concerned. The PSUs
     will intimate the modalities for payment and other financial transactions to
     the State Governments.

9.   Administrative costs including the trading margin of PSUs and distribution
     may be subsumed in the cost and a flat Rs. 15/- per Kg. subsidy may be
10.   The subsidies from GOI will be restricted to a total of 10 lakh tons of edible
      oil under this Scheme during financial year.

11.   The edible oil will be allocated by the Department of Food & Public
      Distribution to the States taking into account the BPL households in the
      State, the quantity requested for allocation under this Scheme by the
      States, efficient distribution mechanism put in place by the State
      Government for this purpose and prompt offtake of subsidized edible oil by
      the states.

12.   In case of States not making arrangements for lifting the allocated edible
      oil within one month of allocation, the allocation to such States may be
      cancelled and the quantity shall be reallocated to other States.

13.   The states shall give monthly statement to the Government of India
      mentioning the:
             a.            Quantity ordered for import by them;
             b.            Quantity lifted by them;
             c.            Quantity distributed through PDS/other outlets; and
             d.            Price at which such oil has been distributed.

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