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CHAPTER I
AN OVERVIEW
General
Management of the Food Economy of the country is the primary
responsibility of the Ministry of Food. With a view to fulfilling this
responsibility, various activities such as procurement of foodgrains,
building up and maintenance of food stocks, their storage, movement and
delivery to the distributing agencies are undertaken. A close watch is kept
on production, stock and price level of foodgrains and efforts are made to
ensure their adequate availability at reasonable prices in different parts of
the country. The Ministry is also responsible for formulation of policies
concering the sugar sector and for the discharge of necessary regulatory and
promotional functions pertinent thereto.
Procurement
1.2 In keeping with the policy of providing price support for major
foodgrains, the Government continued to procure foodgrains conforming to
prescribed specifications offered by producers at the support prices or at
procurement prices, as the case may be. The price support operations for
wheat and paddy were undertaken by the Food Corporation of India and
various associated State agencies. Besides the price support operations for
wheat and paddy, rice was also procured under levy from rice millers. For
1992-93 marketing season, the procurement price of paddy (common) was
raised to Rs. 270 per quintal from Rs. 230 per quintal in the previous
marketing season. The procurement price for wheat was raised from Rs.
225 per quintal to Rs. 275 per quintal inclusive of Rs. 25/- Central bonus. In
addition, to encourage procurement, the states of Punjab, Haryana and
Rajasthan gave an additional bonus of Rs. 5 per quintal.
1.3 The procurement of rice for the Central Pool (including paddy in terms
of rice) during the 1991-92 marketing season (October 1991-September
1992) was 9.24 million tonnes as against 11.8 million tonnes during the
previous season. A quantity of 10.10 million tonnes had been procured as
on 12.3.93 during the 1992-93 marketing season.
1.4 Wheat procurement during the 1992-93 Rabi marketing season fell to
6.38 million tonnes as on 12.3.93 as against 7.75 million tonnes during
1991-92 as on 12.3.93.
Storage of Foodgrains
1.5 From the 1990-91 Rabi marketing season, FCI continued to be the nodal
agency for the procurement of Rabi and Kharif coarse grains throughout the
country, As per the policy of Government of India, free movement of wheat
and levy-free rice is permissible throughout the country.
1.6 With a view to provide effective price support to coarsegrain producing
farmers and to maximise procurement of coarsegrains during 1992-93
kharif marketing season, it was impressed upon State Governments/Union
Territory Administrations at the Kharif Conference held on 19.8.92
that,they should make all necessary arrangements for extending meaningful
price support to farmers including operating adequate number of purchase
centres. The MSP of kharif coarsegrains viz. jowar, bajra, ragi was raised to
Rs. 240/- per quintal and maize to Rs. 245/- per quintal for 1992-93 kharif
marketing season giving an increase of Rs. 35/per quintal over the
procurement price of Rs. 205/per quintal for jowar, bajra and ragi and Rs.
210/per quintal in case of maize. Some reports of distress sales have been
received from certain States but enquiries have revealed that the grains
offered did not conform to quality needs. As on 12.3.93 the procurement of
coarse cereals was 5.97 lakh tonnes during the kharif 1992-93 season
compared to negligible procurement during the previous kharif 1991-92
season.
Foodgrain Stock
1.7 The foodgrain stocks maintained by Public agencies stood at 14.18
million tonnes (provisional) as on 1.2.93 as against the stock of 14.45
million tonnes (provisional) on the same date last year.
Public Distribution
1.8 Supply of foodgrains for the P.D.S. during 1991 totalled 20.60 million
tonnes in view of the better position in the Central buffer stocks as against
16.01 million tonnes and 16.43 million tonnes during 1990 and 1989
respectively. Supply of foodgrains for public distribution during the
calendar year 1992 was 19.13 million tonnes (Provisional).
1.9 For the year 1992-93 a quantity of 12.0 lakh tonnes of foograins
(comprising 6.50 lakh-tonnes of wheat and 5.50 lakh tonnes of Rice) has
been earmarked for the Jawahar Rozgar Yojna and another 1. 1 5 lakh
tonnes of wheat has been set apart for additional support to the special
nutritional support programme for children & expectant/ nursing mothers,
being implemented by the Ministry of Women and Child Development.
1.10 The Scheme for distribution of foodgrains at specially subsidised rates
in the ITDP areas/tribal majority States launched towards the end of 1985
was continued till 30.5.92. With effect from 1.6.92 a new Scheme-the
Revamped Public Distribution System - was launched with the objective of
improving the lot of poor and vulnerable sections of society in tribal,
drought-prone, desert & hill areas. The total offtake of foodgrains under
RPDS during June-December, 1992 was about 22.3 lakh tonnes comprising
10.8 lakh tonnes of wheat and 11.5 lakh tonnes of rice.
The Central Issue Price for areas covered by .revamped PDS' stands at Rs.
387/- per quintal for common rice and Rs. 280/- per quintal for wheat w.e.f.
11.1.1993.
Issue Prices
1.11 The Central Issue price of rice for areas other than those coming under
the 'revamped PDS', has been fixed at Rs. 437 per quintal (for common
variety) w.e.f. 11.1.93 and of wheat Rs. 330 per quintal w.e.f. 11.1.93.
Movement
1.12 A quantity of 18.43 million tonnes of foodgrains was moved on
Government account in 1992 as compared to 18.71 million tonnes in 1990.
Storage
1.13 The Food Corporation of India, the Central Warehousing Corporation
and State Warehousing Corporations have together constructed additional
storage capacity of 3.14 lakh tonnes during 1 991 92.
Import
1.14 Due to fall in production and lower level of procurement in the
foodgrains during 1992-93, Government entered into contracts for the
import of about 29.90 lakh tonnes of wheat from Australia, Canada and
USA and of 2.15 lakh tonnes of rice from Vietnam, upto 31.12.92. These
measures were taken to correct the imbalance between demand and supply
to contain the open market prices and also to the maintain the supplies to
the Public Distribution System.
Sugar
1.15 The Ministry is also responsible for policies regarding sugar
production and prices. The general policy of partial control and dual pricing
remained unchanged. The ratio of levy to free sale sugar remained at 45 : 55
during the Sugar year 1991-92. In view of the larger carry over stocks of
both levy and free sale sugar on 1. 1 0.92, it has been changed to 40 : 60 for
the sugar year 1992-93.
1.16 Sugar production during sugar season 1991 92 reached an all-time
record level and was of the order of 13.28 million tonnes against 12.05
million tonnes in 1990-91. However, production of sugar during the sugar
year 1992-93 upto 31.1.93 has totalled 5.12 million tonnes as compared to
5.52 million tonnes during the corresponding period last year, on account of
reduced availability of cane in certain areas in the wake of drought/deficient
rainfall during the 1992 kharif season.
1.17 The monthly levy sugar allocation to State Governments had been
increased to 3.33 lakh tonnes with effect from May, 1990. A 5% ad-hoc
increase in the monthly allocation was also allowed from August, 1991 to
March 1992. The 5% ad-hoc additional allocation has been further allowed
upto June, 1993. An additional quantity of 1.00 lakh tonnes on account of
festivals was also released for public distribution. The release of free sale
sugar in the open market in the sugar season 1991-92 was 71.05 lakh tonnes
compared to 71.95 lakh tonnes in the 1990-91, sugar season.
1.18 With the upswing in sugar production in recent years the export of
sugar has been resumed. During 1990-91, the Government authorised an
export of 5.25 lakh tonnes of sugar comprising a commercial quota of 5
lakh tonnes and a preferential quota of 0.25 lakh tonnes. In 1991-92, a
further quantity of 2.71 lakh tonnes of sugar comprising 2.5 lakh tonnes by
way of commercial quota and, 0.21 lakh tonnes by way of preferential
quota was notified for export by the Indian Sugar and General Industry
Export Import Corporation Ltd. Besides this a decision has been taken to
export 20,000 tonnes of levy sugar to Nepal out of 1991-92 production.
Another quantity of 1 lakh tonnes of sugar out of the 1991-92 sugar seasons
production has also been notified for export of which 92,830 tonnes has
been permitted for delivery out of 199293 seasons's production.
Government have also decided to further export 2.19 lakh tonnes out of
1992-93 season's production, comprising 2.00 lakh tonnes as commercial
export to General Currency Area and 0. 1 9 lakh tonnes as preferential
quota to USA/EEC.
1.19 The licensed capacity as on 81.1 2.1 992 was 17.59 million tonnes
spread over 508 sugar mills.
1.20 Loans on soft terms for sugarcane development and
modernisation/rehabilitation of sugar factories are available from the Sugar
Development Fund. Loans amounting to Rs. 362.35 crores for sugarcane
development and Rs. 351.09 crores for modernisation/rehabilitation have
been sanctioned till 31.12.1992.
CHAPTER II
ORGANISATION & ADMINISTRATION
1. Organisation
1.1 The Ministry of Food continued to be under the charge of Shri Tarun Gogoi from 21.6.1991
to 17.1.93. Shri Kalp Nath Rai assumed charge as Minister of State w.e.f. 17.1.1993. Shri P.
Tripathy remained Food Secretary till 21st May, 1992 and Shri Tejendra Khanna assumed charge
as Food Secretary w.e.f. 25.5.1992.
2. Functions
2.1 The main functions of the Ministry are (i) formulation and implementation of national
policies on procurement, import, movement, distribution and stocking of foodgrains; (ii)
provision of storage facilities for the maintenance of Central Reserves of foodgrains and
promotion of scientifice storage; (iii) fixation of statutory minimum prices of sugarcane payable
by sugar factories, development and regulation of the sugar industry (including training in sugar
technology), fixation of price of levy sugar and its supply for PDS, and regulation of supply of
free sale sugar (iv) nutrition extension and development/popularisation of subsidiary protective
foods with a view to improving nutritional standards (v) entering into treaties and agreements
with foreign countries in regard to trade and commerce in foodgrains and certain foodstuffs.
2.2 In carrying out its various functions, the Ministry is assisted by its attached & subordinate
offices, namely the Directorate of Sugar, National Sugar Institute, Save Grain Campaign Offices,
Indian Grain Storage Institute and its Field Stations, Food & Nutrition Offices and two Public
Sector Undertak- ings, viz. the Food Corporation of India (FCI) and the Central Warehousing
Corporation (CWC).
2.3 The total strength of the Ministry, including its attached, and subordinate off ices, as on 1. 1.
1 993 was 2494 comprising 222 posts in Group A, 398 in Group B, 1090 in Group C, and 784 in
Group D. The details are given in Appendix-I.
3. O & M Activities
3.1 Besides the O&M work, Administrative Inspection of Sections/Desks, monitoring of the
progress of cases pending over one month and six months, and review of
Reports/Returns/Manuals, two special drives for recording, indexing, reviewing and weeding out
of files were conducted in the Ministry (proper) as well as its attached and subordinate offices
during 1992 and sizeable progresss achieved in this respect as a result of these drives.
3.2 An Annual Action Plan to implement Point No.20 (Responsive Administration) of T.P.P.,
1986 was drawn up and the progress of action reviewed at regular intervals. The work
measurement/ method studies undertaken during the year also include (i) simplification of
procedure for distribution of stationery; (ii) review of procedure of work handled in Movement
Division; (iii) review of staff strength in the Technical Division of the Directorate of Sugar by a
Study Group; and (iv) development of training manual for long term training courses imparted
by the Indian Grain Storage Institute. A Task Force has been constituted for simplification of
rules, procedures and forms etc. in use in different units of the Ministry. In addition, a Brochure
on fixation of levels of final disposal and channel of submission of cases handled by various
Sections/Desks etc. has been brought out during the year for use by all the Officers and staff of
the Ministry.
3.3 Outstanding Audit Inspection Reports
3.4 28 Audit Inspection Reports with 96 paras were outstanding as on 30.9.1992 as against 29
Audit Inspection Reports with 96 paragraphs outstanding as on 31.12.1991.
------------------------------------------------------------------------------
Description No. of Fresh Total No.of paras/ Balance
Inspect- recei- pende- reports as on
ion rep- pts ncy settled 1.10.1992
orts/ from
audit 1.1..92
paras to
pending 30.9.92
------------------------------------------------------------------------------
No.of 29 2 31 3 28
Inspection
Reports
No.of 96 1.5 111 15 96
Paragraphs
------------------------------------------------------------------------------
Concerted efforts are being made for settling the Outstanding Audit Inspection
Reports/Paragraphs.
4. Redressal of Public Grievances and Complaints
4.1 An officer of the rank of Joint Secretary functions as Director (Public Grievances) in the
Ministry. He has been vested with the powers to call for the files/papers from various Divisions
of the Ministry and its attached/subordinate offices connected with grievances pending for more
than three months and to take decisions thereon with the approval of the Secretary (Food). The
name of the Director (Public Grievances) has also been incorporated in the Delhi Telephone
Directory as well as Internal Telephone Directory for the convenience of the general public. A
grievance box is also placed at an easily accessible place near the entrance for receiving
grievances and complaints from members of the public.
4.2 A quarterly report regarding the public grievances received and disposed of is sent to the
Deptt. of Administrative Reforms & Public Griev- ances. The position for the period from Ist
January, 1992 to 31st December, 1992 is given below:-
------------------------------------------------------------------------------
Ministry FCI CWC
of
Food
------------------------------------------------------------------------------
1. No- of complaints brought Nil 18 5
forward as pending on
1.1.1992
2. No. of complaints received 64 32 8
from 1. 1. 1 992 to 31.12.1992
3. Total number of complaints 64 50 13
(1+2)
4. Complaints disposed of 64 31 5
5. Balance of complaints as Nil 19 8
on 31.12.1992
------------------------------------------------------------------------------
The above figures show that 78.74% of the grievances requiring attention during the period
under report, were disposed of.
5. Progressive use of Hindi
5.1 Efforts were continued to achieve the targets laid down in the annual programme prepared by
the Department of Official Language to promote the use of Hindi in the official work of the
Government of India. As far as possible, publicity material was issued in both Hindi and English,
besides regional languages. The offices of the FCI, CWC, Dte. of Sugar and Food & Nutrition
Board, New Delhi were inspected during the year to review the progress made in the use of
Hindi in these offices. The progress made in the use of Hindi in the Ministry, its attached and
subordinate offices and Public Sector Undertakings under its administrative control was
reviewed in the meetings of the Official Language Implementation Committee of the Ministry
held from time to time. During 1992-93, four meetings of the Official Language Implementa-
tion Committee were held. The members of the Second Sub-committee of the Committee of
Parliament on Official Language visited the Headquarters of Food Corporation of India and its
offices at Ahmedabad, Udaipur, Hyderabad, Shillong, Jaipur, Ujjain, Aizwal, Calcutta and
Guwahati as also the Headquarters of the Ministry.
5.2 During the year, 126 officers/employees of the Ministry took part in the workshops
conducted by the Ministry/Central Hindi Training Institute. 'Hindi Week' was also organised
from 14th Sept., 1992 and during this period Hindi Nibandh, Noting and Drafting in Hindi, Hindi
Stenography and Hindi Typewriting Comptitions were held with a view to creating
consciousness and accelerating the use of Hindi in the Ministry as also in its lower formations.
6. Computerisation
6.1 In 1986, the National Informatics Centre (NIC) established a Computer Centre to
computerise the activities of the Ministry of Food. Necessary hardware was installed and
software packages have been developed.
6.2 As per the Memorandum of Understanding signed between NIC & FCI in Oct., 1989, NIC
has been extending hardware, software and Computer Communications support for the FCI.
6.3 Following areas have been computerised by NIC for the Ministry of Food & the Food
Corporation of India.
- Procurement
- Movement
- Storage
- Stocks & Distribution
- Quality Control
- Cane Crushed & Recovery
- Cane price arrears
- Off-take, sales and despatches of sugar
- Levy & Freesale releases of Sugar
- Cash Flow Management/Payroll
6.4 The Satellite based Computer Communication newtork NICNET is being used to capture
field level data relating to procurement/movement/ stocks/imports etc. for the Food Corporation
of India. Food Corporation of India has also installed Four Micro-Earth stations at its
Headquarters in Delhi, Guwahati, Chandigarh and Hyderabad for data/message transmission
through NICNET.
6.5 Future Activities of the Computer Cell
- Modifications of the existing Software packages are being continuously carried out to meet
new/ changing demands of the users.
- Efforts to develop an on-line MIS covering key information modules, on a continuing basis.
- More extensive use of NICNET to transmit field level data on various applications for the Food
Corporation of India/Ministry of Food.
CHAPTER III
OD MANAGEMENT
main constituents of the Government's food management policy are procurement of foodgrains, storage, movement, public
ribution and the maintenance of buffer stocks. These and other related aspects of this policy, such as production, procurement an
e prices of food-grains, quality control, imports and exports, behaviour of market prices, etc. are discussed in the succeeding
graphs.
roduction
The rainfall during the South-West season (June to September) 1991 was quite erratic in its temporal and spatial distribution. Th
l precipi- tation between 1.6.1991 to 30.9.1991 was measured at 92% of the, long term average by IMD, as against 106% in the
vious year. The total rainfall, though normal from IMD's point of view, was less by 14% than the previous year's level and was al
ciated with two long dry spells- The first dry spell was from the middle of June to the 3rd week of July, resulting in the late on-s
monsoon in many parts and the second dry spell was from the middle of September to the first week of October, resulting in early
hdrawal of monsoon. The first dry spell adversely affected the sowings of kharif crops, particularly coverage of area under paddy
coarse cereals in the State of Bihar and Uttar Pradesh and coarse cereals in the States of Madhya Pradesh, Haryana and Rajastha
dry spell in the late south-west monsoon season and October resulted in withering of crops and shrivelling of grain, thus adverse
cting the yield of standing crops.
Also, during the post monsoon season and thereafter, the rainfall behaviour was observed to be abnormal. The number of
eorological sub- divisions having excess/normal rainfall during the post monsoon season (October to December 1991); winter
uary to February 1992) and premonsoon (March to May 1992) was only 11,14 and 8 respectively.
On account of erratic behaviour of rainfall during 1991-92, particularly during the south-west monsoon season, the production o
dgrains both in kharif and rabi seasons was adversely affected. The production of foodgrains during 199192 declined significantl
06 million Tonnes from As peak level of 176.39 million tonnes achieved during 1990-91, showing a fall of over 9 million tonne
decline was sharp in respect of kharif foodgrains which dipped to 91.42 million tonnes thereby showing a decrease of 8.1 % ove
ast year's production level of 99.44 million tonnes. The rabi foodgrains during 1991-92 were estimated at 75.64 million tonnes,
y 1.7% lower than the last year's production level of 76.95 million tonnes.
The table below gives the crop-wise production of foodgrains since 1983-84 :
Production of Foodgrains
(In million tonnes)
---------------------------------------------------------------------------
r Rice Wheat Coarse Total Total Total
Cereals Cereals Pulses Foodgrains
3-84 60.10 45.48 33.90 139.48 12.89 152.37
4-85 58.34 44.07 31.17 133.58 11.96 145.54
5-86 63.83 47.05 26.20 137.08 13.36 150.44
6-87 60.56 44.32 26.83 131.71 11.71 143.42
7-88 56.86 46.17 26.36 129.39 10.96 140.35
8-89 70.49 54.11 31.47 156.07 13.85 169.92
9-90 73.57 49.85 34.76 158.18 12.86 171.04
0-91 74.29 55.14 32.70 162.13 14.26 176.39
1-92 73.66 55.09 26.26 155.01 12.05 167.06
----------------------------------------------------------------------------
rospects for 1992-93
Rainfall Situation During 1992-93
The South-West monsoon in 1992 set in over Kerala on June 5, about 4 days later than its normal date and covered the entire
ntry by July 14. In the process of its north and westward movement, the onset of monsoon in 1992 was delayed almost everywhe
bout 5 to 12 days. In 1992, the monsoon was sluggish upto 8th July when only 9 meteorological sub- divisions, mostly in the
hern Peninsula, received normal to excess rainfall. Thereafter, the rainfall situation started improving continuously and at the en
season, i.e. 30th Sept., 1992, the cumulative rainfall was normal to excess in 30 out of 35 meteorological sub-divisions and 67%
districts.
The distribution of monsoon rainfall after the middle of July, 1992 over time and space was quite good throughout the country
ept in Bihar, East Uttar Pradesh and parts of Madhya Pradesh and Andhra Pradesh. Also, there was no prolonged break in the
fall activity after mid-July over most areas of the country. The total rainfall for the country as a whole during the southwest
nsoon season (June to Sept.) 1992 was 92% of the longterm average rainfall.
During the post monsoon season i.e. 1. 1 0. 1 992 to 9.12.1992, the cumulative rainfall was excess/ normal in 20 out of 35
eorological sub-divisions as against only 9 during the corresponding period last year.
oodgrains Production Prospects in 1992-93
The target of foodgrains production for 1992-93 has been fixed by the Planning Commission at 183.00 million tonnes. The crop-
e break-up is as under:
gets of Production of Foodgrains during agricultural year 1992-93.
(Million tonnes)
-----------------------------------------------------------
ps Kharif Rabi Total
-----------------------------------------------------------
e 68.75 8.50 77.25
at - 57.00 57.00
rse cereals 28.50 5.75 34.25
ses 6.00 8.50 14.50
-----------------------------------------------------------
al foodgrains 103.25 79.75 183.00
-----------------------------------------------------------
It is, as yet early to indicate the overall production of foodgrains during 1992-93 as the final estimates would fall due only after 3
y, 1993. The area coverage under kharif rice during this year is expected to go down becuase of the late onset of monsoon in vari
s of the country. Also, the deficient rains in Bihar, East Uttar Pradesh and parts of East Madhya Pradesh and Andhra Pradesh are
ly to have an adverse impact on rice productivity during kharif 1992. As a result, the production of kharif rice 1992 may register
ine. However, the prospects of kharif coarse cereals and kharif pulses have brightened during 1992 as the distribution of monsoo
fall over time and space after the middle of July, 1992 was quite good throughout the country. Taking these facts into considerat
otal kharif foodgrains production during 1992 may be around 1 00. 0 million tonnes, i.e. higher by about 8.6 million tonnes than
year's production level of 91.4 million tonnes.
During the post monsoon season so far, the rains have been relatively good in all the major rabi foodgrains growing States excep
ar. The temperature, which is ruling below the normal level in major rabi foodgrains growing areas of the country is also expecte
ave a good impact on crop growth. Though it is difficult at this stage to indicate the precise estimate of likely production of rabi
dgrains for 1992-93, if the rainfall and weather situation remains favourbale, a production level of about 76.0-77.0 million tonnes
be achieved.
From the above, it may be concluded that the total production of foodgrains during 1992-93 may be in the range of 176.0 to 177.
ion tonnes which would be around the earlier peak level of 176.39 million tonnes achieved during 1990- 91.
ood Management Policy
Procurement of foodgrains, storage, movement and distribution thereof through the Public Distribution System and the maintena
ational grain Reserve/buffer stocks are the main planks of the Food Management Policy. While this policy ensures the producers
unerative price for their produce, it has also helped through the years, in maintaining adequate supply of foodgrains to the
sumers at reasonable prices and afforded a sense of food security to the country.
ystem of Procurement
As per past practice, the procurement of wheat during 1991-92 and 1992-93 rabi marketing seasons (April-March) was carried o
er price support operations in the wheat surplus States in the country. Similarly, paddy was also purchased under price support
ng 1990-91 kharif marketing season (October-September). Besides this, rice was also procured through the statutory levy impos
arious State Governments on rice millers/dealers at an appropriate percentage of production, taking into consideration the
ditions prevailing in their states. A Table indicating the support prices of wheat and paddy for the last three years is given below:
Procurement Prices/Minimum Support Prices of Wheat & Paddy
(Rs. per quintal)
-------------------------------------------------------------------------------
i/Kharif Wheat Paddy
-----------------------------------------
keting Year All Common Fine Superfine
Verieties
-------------------------------------------------------------------------------
8-89 173.00 160-00 170.00 180.00
9-90 183.00 185.00 195.00 205.00
0-91 215.00 205.00 215.00 225.00
1-92 225.00 230.00 240.00 250.00
2-93 250.00 M.S.P- 270.00 280.00 290.00
25.00 Central bonus
5.00 State bonus (Punjab, Haryana and Rajasthan)
------
280.00
3-94 330.00 (Including Central bonus of Rs.25/- per quintal).
-------------------------------------------------------------------------------
As per the policy of Government of India, free movement of wheat and levy-free rice is permissible throughout the country. The
present no levy on wheat anywhere in the country. However, rice is procured under the statutory levy imposed by the State
ernments on rice millers/wholesale traders. However, some State Governments have instituted check points at their State
ndaries to ascertain payment of local mandi charges and purchase tax etc.
rocurement of Foodgrains
Upto 12.3.93, a quantity of 63.80 lakh tonnes of wheat had been procured by FCI/State agencies during 1992-93 Rabi marketing
on as against 77.52 lakh tonnes which had been procured during the corresponding period of the previous Rabi season of 1991-9
Lower wheat procurement during the current Rabi marketing season is primarily attributable to the higher level of open market
es as compared to the minimum support price fixed by the Govt. increased purchases by traders this year; lesser arrivals of whea
dies in the major wheat procuring States of Punjab, Haryana, U. P. and possible holding back of the stocks by the farmers in
cipation of higher open market prices later. The State-wise procurement of wheat is given in the following table:
-------------------------------------------------------------------------
(In lakh tonnes)
-------------------------------------------------------------------------
Marketing Season April-March
-------------------------------------------------------------------------
te/U.T. 1990-91 1991-92 1992-93 (As on 12.3.93)
-------------------------------------------------------------------------
Haryana 25.95 18.34 13.72
Himachal 0.01 - -
Pradesh
Jammu & Neg. - -
Kashmir
Madhya Neg. - -
Pradesh
Punjab 67.49 55.42 44.89
Rajasthan 1.35 0.08 0.22
Uttar 15.83 3.68 4.97
Pradesh
Chandigarh 0.02- - -
------ ------- ----
Total 110.65 77.52 63.80
------ ------- -----
-------------------------------------------------------------------------
The kharif marketing season is normally reckoned from October to September. The kharif 1992-93 season has been preponed to
tember, 1992, in the states of Punjab, Haryana and Tamil Nadu in anticipation of early market arrivals of grain.
As reported upto 12.3.93 a quantity of 112.02 lakh tonnes of rice has been procured during 199293 kharif marketing season as
pared to 88.29 lakh tonnes procured during the corresponding period last year. State-wise procurement of rice, including paddy
ms of rice, is given in the following table:
Table
--------------------------------------------------------------------------
Procurement of Rice (including Paddy in terms of Rice)
Marketing Season: October-September
(In lakh tonnes)
---------------------------------------------------------------------------
te/U. T. 1990-91 1991-92 1992-93
As on 12.3.93
---------------------------------------------------------------------------
Contributing to Central Pool
Andhra Pradesh 33.35 22.61 21.09
Arunachal Pradesh Neg. Neg. Neg.
Assam 0.07 0.06 0.07
Haryana 10.63 9.19 8.91
Karnataka 1.46 1.15 0.89
Madhya Pradesh 6.31 4.04 4.99
Maharashtra 0.23 0.52 0.54
Orissa 2.14 2.66 2.82
Punjab 48.21 42.49 48.13
Rajasthan 0.29 0.20 0.20
Uttar Pradesh 13.47 8.31 11.62
West Bengal 1.03 0.79 1.40
Chandigarh 0.21 0.24 0.24
Delhi 0.05 0.05 0.05
Pondicherry 0.05 0.05 0.04
---------------------------------------------------------------------------
Total 'A' 117.50 92.36 100.99
---------------------------------------------------------------------------
Not Contributing To Central Pool
Gujarat 0.20 0.11 0.16
Jammu & Kashmir 0.07 0.03
Tamil Nadu 8.99 9.97 10.87
---------------------------------------------------------------------------
Total 'B' 9.26 10.11 11.03
---------------------------------------------------------------------------
al All India (A + B) 126.76 102.47 112.02
---------------------------------------------------------------------------
. : Below 500 tonnes
rocurement of Coarsegrains
From 1985-86 marketing season, NAFED under the Ministry of Agriculture & Cooperation, had been the nodal agency for
curement of coarse cereals. In the kharif marketing season of 1989-90, the FCI was entrusted with the task of conducting price
port operation of coarse cereals in Punjab, Haryana and U.P., while the NAFED continued its procurement operation in other Sta
m 1990-91 Rabi marketing season, FCI has been made responsible for the procurement of Rabi and Kharif coarsegrains. As arriv
oarse grains are in small quantities spread over a large number of markets, FCI makes arrangements with State agencies so that t
e-spread infrastructure is made use of in providing price support to the coarse grain producing farmers. All legitimate costs incur
he State agencies are reimbursed by the FCI. Against practically no procurement of coarse grains during 1991-92 on account of
h open market prices, during 1992-93 upto 12.3.93 nearly 5.97 lakh tonnes of coarse grains have been procured for the Central po
rocurement Operations in Tribal Areas
It has been decided that the TRIFED under the Ministry of Welfare will procure foodgrains in tribal areas. These procurement
rations will be undertaken at support prices. Foodgrains thus, procured by Trifed will be handed over to FCI.
Central Issue Prices
Procured foodgrains are distributed through the Public Distribution System (PDS). The PDS, which operates through a wide
work of fair price shops (FPS), aims at making foodgrains available at reasonable prices to the PDS consumers, most of whom
ng to the vulnerable secitons of the society.
The Central Issue Prices for the PDS are revised by the Govt. periodically keeping in view the increase in the procurement pric
ease in acquisition costs etc. These prices are fixed deliberately below the economic cost.-in order to keep foodgrains within the
h of the vulnerable sections of the population and the difference between economic cost and issue price is borne by the Central
ernment through its food subsidy budget. During the current financial year (1 992-93), Rs. 2,500 crores have been provided in th
get estimates to meet the food subsidy.
The Central issue price (ex-FCI godown) of rice and wheat are given below:
Table
---------------------------------------------------------------------------
For Public Distribution System (PDS)
(Rs. per quintal)
---------------------------------------------------------------------------
Common Fine Superfine
---------------------------------------------------------------------------
e
ective from 437.00 497.00 518.00
1.1993
at
ective from 330.00
1.1993
rsegrains
ective from 199.00
0.1990
---------------------------------------------------------------------------
For I.T.D.P. Tribal Majority States and
Revamped PDS from 1.6.1992
(Rs. per quintal)
---------------------------------------------------------------------------
Common Fine Superfine
---------------------------------------------------------------------------
ce
fective from 387.00 447.00 468.00
.1.1993
eat
fective from 280.00
.1.1993
arsegrains
fective from 149.00
10.1990
---------------------------------------------------------------------------
Public Distribution of Foodgrains
The Public Distribution System, functioning through a network of fair price/ration shops, aims primarily at supplementing supp
oodgrains to the consumers, particularly the vulnerable sections of the population, at reasonable prices. During the year 1987,
ause of wide-spread drought in .several parts of the country and floods in some others, the distribution of foodgrains was maintai
record level of 18.70 million tonnes. In the post-drought year of 1988 also, the Public Distribution of foodgrains was maintained
gh level to meet the reasonable pressure on Public Distribution System, the total distribution in 1988, exclusive of open market s
wheat by FCI being at 18.58 million tonnes. In 1989 and 1990, the production and availability of foodgrains had improved and th
l public distribution stood at 16.43 million tonnes and 16.01 million tonnes respectively and was thus kept at a lower level by
onal use of the limited stocks in view of the easy market availability on account of good harvests and for buidling up buffer stock
991, the public distribution again came under pressure due to high open market prices and rose to a record level of 20.61 million
nes, depicting an increase of 28.7% over the previous year. In 1992 the public distribution of - rice and wheat has been about 19.1
ion tonnes.
The grain-wise total public distribution of foodgrains during the years 1987 to 1992 is given on the next page.
Allocation of Foodgrains
The country had the fifth consecutive good harvest of rice during kharif 1992-93 with the production expected to reach a record
l of about 71.50 million tonnes during 1992-93. How-, ever, the procurement which had reached an all time high of about 12.66
ion tonnes during 1990-91 Kharif season came down to 10.25 million tonnes in 1991-92. As a result, the stocks of rice in the
tral Pool which were 8.62 million tonnes as on 1.1.92 higher than to 8.46 million tonnes as on 1.1.93. The improved situation of
ks had enabled the government to raise the allocation of rice from the Central Pool to 11.36 million tonnes during 1991-92 as
pared to 9.61 million tonnes during 1990-91. An allocation of about 8.47 million tonnes of rice was made during the period Apr
o December, '92 as compared to the allocation made for the same period last year, which stood at about 8.72 million tonnes.
TOTAL PUBLIC DISTRIBUTION (CENTRAL + STATES+NREP/RLEGP/JRY+RELIEF+ NUTRITION)
(IN LAKH TONNES)
---------------------------------------------------------------------------------------
R RICE WHEAT C.G.
---------------------------------------------------------------------------------------
PD NREP/EGS/ RELIEF/ TOTAL PD NREP/EGS/ RELIEF/ TOTAL PD GRAND
RLEGP/JRY NP/DNP RLEGP/JRY NP TOTAL
----------------------------------------------------------------------------------------
7 92.25 5.73 0.27 98.25 58.39 18.22 11.23 87.84 0.91 187.00
8 94.09 2.59 0.27 96.95 76.69 7.75 2.75 87.19 1.66 185.80
9 85.56 1.43 - 86.99 73.18 2.67 0.61 76.46 0.83 164.28
0 89.43 0.84 - 90.27 67.29 1.10 0.50 68.89 0.98 160.14
1 (P) 111.92 0.15 - 112.07 91.05 0.02 0.38 91.45 2.58 206.10
2 (P) 105.63 0.29 0.02 105.94 84.32 0.42 0.69 85.43 0.02 191.39
----------------------------------------------------------------------------------------
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
- Provisional (PD) - Public Distribution through fair price shops.
g) - Below 500 tonnes. (NP) - Nutrition Programme.
NP) - Drought Nutrition Programme. (NREP) - National Rural Employment Programme.
EGP) - Rural Landless Employment Guarantee Programme.
S) - Employment Generation Scheme. (Mills) - Roller Flour Mills.
Y) - Jawahar Rozgar Yojna introduced from 1989-90 and in which the programme of NREP and RLEGP have been merged
e: Public Distribution figures given above do not include open merket sales of wheat by the Food Corporation of India.
The production of wheat during 1991-92 crop year was 55.09 million tonnes as compared to the production of 55.14 million
nes for the year 1990-91. Because of the lower procurement of wheat during 1991-92 marketing season, the level of stocks of wh
he Central Pool as on Ist April, 1992 stood at 2.2 million tonnes as compared to the stocks of 5.6 million tonnes as on Ist April,
1. This was mainly because the allocations of wheat were made at high levels keeping in view the comfortable stock position in
tral Pool and sharp increase in prices of foodgrains in the market. The allocation of wheat for the year 1991 92 was 10.36 million
nes compared to 9.50 million tonnes during 1990-91. With low stocks of wheat in 1992, the allocation were restored to pre 1991,
istic level. An allocation of about 6.97 million tonnes of wheat was made during the period April, '92-December, 92 as compared
allocation made for the same period last year, which stood at about 7.80 million tonnes.
A decision has been taken to allocate 2 million tonnes of additonal foodgrains during the year specifically for the identified are
er the revamped PDS covering more than 1700 blocks in tribal, hilly, drought prone and desertified areas. In these areas, foodgra
ssued at a further subsidised price which is Rs. 50 per quintal less than the normal PDS issue price. This scheme has been effect
m Ist June, 1992.
A quantity of 12.0 lakh tonnes of foodgrains (comprising 5.50 lakh tonnes of rice and 6.50 lakh tonnes of wheat has been
marked for the Jawahar Rozgar Yojana for the year 1992-93.
A quantity of 1. 15 lakh tonnes of wheat has also been set apart for additional support to the Nutrition programme for children a
ectant mothers for the year 1992-93.
Public Distributionn
The public distribution during 1991 was 20.61 million tonnes as against 16.01 million tonnes and 16.43 million tonnes during
0 and 1989 respectively. The public distribution during 1992 was 19.14 million tonnes (Provisional).o 25
Distribution of Foodgrains at Specially Subsidised Price in RPDS Areas
A scheme for distribution of foodgrains at specially subsidi-sed prices in ITDP areas was introduced in December, 1985. Since
, foodgrains are being distributed to the people living in the areas covered by the Integrated Tribal Development Projects and tri
ority States at
cially subsidised rates at Rs. 3.05 paise per kg. of wheat and Rs. 4.12 paise per kg of common rice (w.e.f. January 11, 1993). The
eme covers all Integrated Tribal Development Project areas, the tribal majority States/Union Territories viz. Nagaland, Meghalay
nachal Pradesh, Mizoram, Lakshadweep and Dadra & Nagar Haveli and North Cachar and Karbi Anglong hill districts of Assam
plies of wheat and rice for this purpose are made by the Food Corporation of India to the various States/Union territories at
cially subsidised rates of Rs. 2.80 per kg. of wheat and Rs. 3.87 per kg. for common rice with effect
m January 11, 1963. A margin of Rs. 0.25 paise per kg. is allowed to the State Governments for being passed on to the beneficiar
he costs involved in transport and distribution. States/Union Territories were advised to strengthen the public distribution system
ure proper distribution of grains to the beneficiaries in ITDP areas, which are generally remote and not well served by
munications.
These tribal areas are now part of the Revamped Public Distribution System launched by the Prime Minister with the objective
roving the reach of PDS to the vulnerable section living not only in these areas but also in other poor areas composed of drought
ne, desert and hill areas. Foodgrains at a specially subsidised Central Issue Price are also being issued w.e.f. 1.6.1992 for
ribution in about 1700 areas/blocks identified under the RPDS. The total offtake of foodgrains under the Revamped Public
ribution System during June-December, 1992 was about 22.3 lakh tonnes comprising of 10.8 lakh tonnes of wheat and 11.5 lakh
nes of rice. The RPDS Scheme is being implemented by Ministry of Civil Supplies, Consumer Affairs & Public distribution and
nitored by Ministry of Food.
Buffer Stocking Policy
The building up and maintenance of buffer stocks has been an important plank of the national food policy. These stocks are
ntained primarily to ensure stability in supplies and prices over the entire year and to provide food security to the country.
As, per the decision taken by the Government on 4th January, 1991, the size of the minimum stocks to be maintained by the pu
ncies in the country should be as under on different dates of a year:
Total Minimum Stocks
(Million tonnes)
----------------------------------------------------------------------
e Wheat Rice Total
----------------------------------------------------------------------
April 3.7 10.8 14.5
July 13.1 9.2 22.3
October 10.6 6.0 16.6
January 7.7 7.7 15.4
----------------------------------------------------------------------
Stock Position
As on 1.1.93, the stocks of foodgrains with the public agencies stood at 13.2 million tonnes as against 14.7 million tonnes on th
e day last year. The lower stocks are due to lower procurement of wheat during the marketing season 1 991 92 and 1992-93 and
her outgo during 1991. The total stocks of foodgrains with the Central and State Governments during the last four years were as
ows:
Table
(In million tonnes)
----------------------------------------------------------------------
January 1990, 12.9
January 1991, (P) 19.1
January 1992, (P) 14.7
January 1993, (P) 13.2
(P) - Provisional
----------------------------------------------------------------------
mports
In order to correct the imbalance between demand and supply and contain rising prices of foodgrains on account of a fall of 9
ion tonnes in the production of foodgrains, especially of coarse grains, during the crop year 1991-92, as also to maintain adequat
plies to States/UTs for Public Distribution System, the Goverment contracted for import of 29.90 lakh tonnes of wheat during 19
rom Canada, Australia and U.S.A., which are the major and suitable suppliers of wheat. It was necessary to tie up some imports
e, 1992 itself, so that Indian ports could be used for unloading immediately after monsoons by end of August, 1992. Australia ha
ally expressed its inability to supply any wheat to India due to its poor crop in 1991 and prior commitments and USA had not, b
, reviewed its earlier decision to exclude India from supply of subsidised wheat under Export Enhancement Programme (EEP).
otiations were, therefore, carried out with Canadian Wheat Board (CWB) a Federal Government agency of the Canadian
ernment and a contract was signed on 19.6.1992 for import of 10.05 lakh tonnes of good quality Canadian Wheat at a very
ourable average f.o.b price of US $ 147.78 PMT. The price quoted for good quality Canadian Wheat by the International Wheat
ncil for that period was about US $ 172 PMT. Subsequently, the Australian Wheat Board (AWB) the sole statutory wheat expor
ncy of Australia, informed in July, 1992 that they were in a position to offer some quantity of Australian Wheat and after protrac
otiations, import of 5 lakh tonnes of good quality Australian Standard White Wheat at f.o.b. price of US $ 137.50 PMT was
nged in August, 1992. The second round of negotiations were held with AWB in September, 1992, asking them to further reduce
r price in view of US announcement of extending EEP cover for wheat exports to India and a contract for import of another 5 lak
nes at f.o.b. price of US $ 135 PMT was concluded with AWB on 8.10.1992. The internationally quoted price of Australian
ndard White Wheat at the time of first deal was US $ 147 PMT and at the time of second deal, US $ 159 PMT. Upon the extensio
EP subsidy to India, a delegation visited USA at the end of September/ beginning October, 1992 and finalised the purchase of 9
tonnes of US Wheat at the f.o.b. price of US $ 110.50 PMT for October-December, 1992 shipments and at US $ 112.50 PMT fo
uary-March, 1993 shipments, for US Gulf ports. On this Export, the US Department of Agriculture has given an average bonus
sidy) under EEP of US $ 33.45 PMT.The market price quoted for similar quality wheat at that time was about US $ 144 PMT.
Aquantityofover25.25 lakh tonnes of imported wheat has already arrived at the Indian ports upto 22nd March, 1993. It is being
d for making supplies for PDS and supplementation of the Central buffer stocks.
Contracts have also been signed between August and October 1992 for the import of 2.15 lakh tonnes of 35% broken white rice
m Vietnam, of which 75,000 tonnes is being supplied against repayment of interest on our commodity loans payable by Vietnam
balance is on commercial basis. The contracts have been signed at the f.o.b. price of US $ 180 PMT, which is substantially lowe
the price of Vietnamese rice imported in 1989. A quantity of over 72,000 tonnes of Vietnamese rice has also arrived at the India
s upto 22nd March, 1993.
Exports
During the year 1992-93 (upto 31.12.1992) Food Corporation of India has signed two contracts with Nepal Food Corporation f
ply of 1 0,000 MTs of wheat and 30,000 MTs of rice. A total quantity of 9,375 MTs of rice has been supplied by FCI to Nepal up
2.1992. A quantity of 1989 MTs of wheat has also been Supplied to Nepal upto 31.12.1 992. Further a quantity of 1 0,000 MTs
has been supplied by way of Commercial sale to Cuba by FCI upto 31.12.92. A quantity of 3,000 MTs of rice from FCI stocks h
n supplied to Russia through STC as a gift.
Subsidy on Foodgrains to Food Corporation of India.
The Food Corporation of India procures foodgrains for the Central Pool at prices fixed by the Government of India. The
dgrains (Wheat & Rice) procured are released by Food Corporation of India through Public Distribution System as well as for
onal Rural Employment Programme and other sanctioned relief schemes at the issue prices fixed by Government in accordance
h the allocations made by the Govt. of India. The Central issue price is less than the Food Corporation of India's economic cost an
difference between the two is reimbursed to the Corporation by the Central Govt. as consumer subsidy as a deliberate welfare po
he Govt. The expenditure incurred by the Food Corporation of India on mainte- nance of buffer stock of foodgrains on behalf of
tral Govt. is also reimbursed to the Corporation by the Central Government.
During the financial year 1991-92 an amount of Rs. 2850 crores was released to the Food Corporation of india as subsidy. An
unt of Rs. 2500 crores has been provided in 1992-93 (BE), out of which Rs. 1848 crores has been released till 31st December,
2.
Internal Movement
Large scale movement of foodgrains to different parts of the country is necessary in order to ensure availability of foodgrains in
cit states. The Food Corporation of India organise the movement, which is monitored by the Movement Division in the Ministry
d. The monitoring is done in order to ensure that movement is quick and smooth with minimum wastage in terms of cross
vement and optimum utilisation of available stocks.
During the Calendar year 1992, the total movement of foodgrains by rail was 172.41 lakh tonnes as compared to 173.56 lakh
nes in 1991. In addition to this, 11.64 lakh tonnes of foodgrains were moved by road and 0.27 lakh tonnes by riverine route. The
l movement of foodgrains during 1992 was 184.32 lakh tonnes as against 187.06 lakh tonnes during 1991.
The total quantity of levy sugar moved by rail for domestic consumption during 1992 was 12.88 lakh tonnes as compared to 12
tonnes during the corresponding period last year. In addition, the Ministry of Food organised rail movement of levy sugar from
minated factories to various destinations in the country.
Special attention was paid to move and supply sufficient quantites of foodgrains to the areas affected by drought and floods.
Similarly high priority was accorded to movement of imported foodgrains received at various ports.
The movement of foodgrains from the surplus States of Punjab, Haryana and Uttar Pradesh exceeded the achievements during t
esponding period last year. States in the North Eastern region of the country as well as J&K, Himachal Pradesh, West Bengal etc
e accorded special attention by the food Ministry and the Food Corporation of India.
Grain Specification and Inspection
Government exercises control over the quality of foodgrains which are procured, stored and distributed by various public agenc
he country. Quality specification for each of the cereals procured for public stocks are fixed at the commencement of the
curement season, keeping in view the interests of the cultivators as well as the consumers. The specifications, do not, under any
umstances, go below the limits prescribed under prevention of Food Adulteration Act.
The quality of foodgrains at the time of procurement, storage and distribution is constantly monitored by the quality control win
ood Corporation of India. Sample checks at random are also being done by the quality Control Cells of Ministry of Food. This is
e to ensure that the foodgrains issued by public distribution through fair price shops conform to the required standards. During th
, the Central Grain Analysis Laboratory in the Ministry assisted in monitoring the quality of foodgrains at the time of procureme
age and distribution, so as to protect the interest of the farmers and consumers. It rendered technical opinion on quality aspects o
dgrains that are imported and exported in the country. It has procured and analysed 3495 foodgrain samples and trained 39 perso
nalysis of foodgrains and two rice varieties classified till December, 1992.
Three Quality Control offices investigate the quality control measures at storage depots and the procurement centres of Food
poration of India. These offices also investigate the complaints regarding quality of foodgrains issued through fair price shops.
ing the year (till December, 1992) the quality control officers inspected 294 storage depots, 218 procurement centres, 192 fair pr
ps, 1 00 rail heads, 1 15 rice mills and 3 investigation of complaints.
Prices
Foodgrains
The All India Wholesale Price Index on base 1981-82=100forfoodgrainsrose from 192.5 in January, 1991 to 198.9 in February,
1 showing a rise of 3.3 per cent. The Index declined thereafter and touched a low level of 187.7 in May, 1991, the fall being of th
er of 5.6 per cent. From June, 1991 onwards the WPI registered a rising trend and the upward trend persisted till February, 1992
wing a significant rise of 31.5 per cent with the exception of October, 1992 when the Index showed a marginal fall. The trend go
rsed and the prices index recorded a downward movement between March, 1992 and May, 1992, the fall being of the order of
%. The Index rose from June, 1992 to August, 1992 registering a rise of 3.5 per cent and fell thereafter to 240.2 at the end of Janu
3 compared to 245.2 at the end of January, 1992 showing a fall of 2.0 per cent.
Cereals
The Wholesale Prices Index for Cereals after having shown a rise of 3.5 per cent to 192.3 in February, 1991 started declining an
to the level of 180.3 in May, 1991 thus recording a fall of 6.2 per cent. Thereafter the Index spurted by 36.7 per cent to reach the
l of 246.5 in February, 1992, except in October, 1992 when a slight fall was noticed. From March, 1992 the Index displayed a
nward trend till May, 1992 registering a fall of 2.2 per cent. The Index started moving up thereafter and reached 248.6 in Augus
2 recording a rise of 3.1 per cent. Reversing the trend, the Index fell and touched the level of 237.5 thus showing a fall of 4.5 per
.
Rice
The Wholesale Prices Index for Rice continued to rise from 184.8 in January 1991 to 220.9 in October, 1991 registering a rise o
per cent and followed a consistent upward trend til September, 1992. When the Index was recorded at 255.8, the rise being of th
er of 15.8 per cent over the level of October, 1991. The Index registered a rise, thereafter at 250.3 in october 1992 and 251.8 in
ember, 1992. On 30th January, 1993, the index increased from 239.3 in January, 1992 to 248.2 in January, 1993 thereby showin
of 3.7 per cent.
Wheat
The Wholesale Prices Index for Wheat firmed up to 211.2 in February, 1991 from 200.3 in January, 1991. The Index declined b
per cent to 167.7 in May, 1991 over the level of February, 1991. Thereafter, the Index registered consistent upward trend till
uary, 1992 recording an increase of 49.9 per cent from 167.7 in May, 1991 to 251.3 in January, 1992 with the exception of a
ginal fall observed in October, 1991. The fall in Index persisted upto May, 1992 which was of the order of 14.3 per cent. The Ind
, thereafter, to 234.7 in August, 1992 recording a rise of 9.0% and subsequently declined to 221.5 in November, 1992 registering
of 5.6 per cent. At the end of January, 1993, at 233.2, the Index was lower than that obtaining at the end of January, 1992 viz. 25
.2 per cent.
mple checking of stored foodgrains.
India Index Number of Wholesale Prices (Averages) (Base 1981-82 = 100)
---------------------------------------------------------------------------------------------------
uary February March April May June July August September October November December
---------------------------------------------------------------------------------------------------
dgrains
1 192.5 198.9 196.8 189.5 187.7 192.5 196.6 210.6 216.6 216.0 221.4 230.0
2 245.2 246.9 245.7 243.5 242.9 245.2 247.7 251.3 248.2 240.70 238.9 238.3 P
3 240.2 P
Rice
1 184.8 188.1 188.1 188.5 190.9 194.3 200.0 210.7 219.8 220.9 223.7 228.2
2 239.3 244.0 245.3 246.3 249.7 250.6 251.5 252.2 255.8 250.3 251.7 249.0 P
3 248.2 P
Wheat
1 200.3 211.2 205.5 180.8 167.7 173.2 174.2 193.6 198.8 196.0 204.2 219.2
2 251.3 249.3 240.0 225.3 215.4 220.8 225.6 234.7 226.6 221.8 223.5 227.0 P
3 233.2 P
Cereals
1 185.8 192.3 190.9 182.9 180.3 184.6 189.0 202.9 210.1 209.8 216.0 225.7
2 243.9 246.5 245.2 241.9 241.1 243.5 245.9 248.6 245.4 237.2 237.8 237.1 P
3 237.5 P
-------------------------------------------------------------------------------------------------------
Provisional
CHAPTER IV
STORAGE AND WAREHOUSING
1. Need and Approach
The storage plan of the Ministry aims at providing the capacity required for (i) buffer and operational stock of foodgrains
to maintain the public distribution system and (ii) general warehousing. The broad approach is to provide scientific
storage capacity and reduce dependence on the capacity under cover-and-plinth. The Ministry has also been making
efforts to improve the traditional storage practices in vogue at the farm level.
2. Foodgrain Slorage and General Warehousing
Addition to Storage Capacity
2.1 There are three agencies in the public sector which are engaged in building large scale storage/ warehousing capacity
namely, Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and 16 State Warehousing
Corporations (SWCs). Over a period of time, sizeable scientific storage/warehousing capacity has been developed by
these public agencies and they are implementing plans to increase it further. While the capacity available with FCI is used
mainly for storage of foodgrains, that with CWC and SWCs is used for storage of foodgrains as also certain other items.
The following table will show the growth of covered storage/warehousing capacity available with the public agencies
during the last few years:
Table (In lakh tonnes)
------------------------------------------------------------------------------------
Agencies As on 31.3.1990 As on 31.03.1991
-------------------------- ------------------------
Owned Hired Total Owned Hired Total
FCl 119.36 56.52 175.88 119.97 75.95 195.92
CWC 45.68 17.68 63.3 47.22 17.55 64.77
swcs 64.53 24.27 88.80 65.98 25.81 91.79
------------------------------------------------------------------------------------
Agencies As on 31.3.1992 As on 31.12.1992
-------------------------- ------------------------
Owned Hired Total Owned Hired Total
FCl 119.82 63.32 183.32 120.84 55.36 176.20
CWC 47.75 16.53 64.28 48.32 15.97 64.29
SWCs 67.20 24.83 92.03 68.51 22.39 90.90
-------------------------------------------------------------------------------------------------
2.2 The hired capacity of the Food Corporation of India includes the capacity taken on hire from the Central Warehousing
Corporation and the State Warehousing Corporations. This hired capacity is also part of the capacity shown against
Central Warehousing Corporation and State Warehousing Corporations in the preceding table.
2.3 The total covered capacity available with the Food Corporation of India for storage of foodgrains, including the
capacity hired from Central Warehousing Corporation and State Warehousing Corporations was 176.20 lakh tonnes as on
31.12.1992. The hired capacity with the Food Corporation of India was 55.36 lakh tonnes as on 31.12.1992. The break up
of the hired capacity available with the FCI as on 31.12.1992 was as follows:
Table II
--------------------------------------------------------------------------------------------------
(Capacity in lakh tonnes)
(i) Private godowns built under 22.42
Agricultural Refinance Development Corporation (ARDC) assisted Scheme.
(ii) Central Warehousing Corporation 12.49
(iii) State Warehousing Corporations 10.38
(iv) State Governments 5.27
(v) Others 4.80
--------------------------------------------------------------------------------------------------
Total 55.36
--------------------------------------------------------------------------------------------------
2.4 The FCI, constructed a storage capacity of 0.39 lakh tonnes for foodgrains during 1991-92 to take care of the regional
imbalances and the need to create adequate capacity in the remote, hill and other inaccessible areas. Additional storage
capacity expected to be realised by FCI during the year 1992-93 is 2.25 lakh tonnes.
2.5 Details of the storage capacity constructed by FCI, CWC and SWCs during 1991-92 and expected to be constructed
by these agencies during 1992-93 are given in the table below
------------------------------------------------------------------------
Table - III
(In lakh tonnes)
Agency Year
------------------------------------------------------------------------
1991-92 1992-93
FCI 0.39 2.25
CWC 1.27 1.13
SWCs 1.48 1.47
Total 3.14 4.85
--------------------------------------------------------------------------------------------------
2.6 Of the total capacity of 176.20 lakh tonnes with FCI as on 31.12.1992 a capacity of 4.85 lakh tonnes is in the form of
silos/flat bulk warehouses.
3. Quality Control
3.1 The storage godowns built by Food Corporation of India and Central Warehousing Corporation are designed on
scientific lines and are rodent and damp proof. Pre-monsoon inspection of godowns is carried out and repairs undertaken
wherever necessary to prevent seepage of rain water. Regular inspection of foodgrains stocks are carried out for checking
their quality. Prophylactic and curative measures are undertaken to control insect infestation. Qualified and technically
trained staff is employed for proper upkeep of foodgrains in the godowns.
4. Farm Level Storage Practices
4.1 In addition to providing for storage of foodgrains required for buffer and operational needs, the Ministry continued its
activities to improve the storage practices at farm level at which a major portion of foodgrains produced is retained.
Save Grain Campaign
4.2 The Save Grain Campaign, which was launched as a pilot project in 1965-66 and became a regular scheme since
1969-70, seeks to popularise scientific methods of foodgrains storage at farm level. The scheme is implemented through a
net-work of 17 Central teams located in different States in close collaboration with the State Governments. The main idea
is to enable the farmers to minimise storage losses. The major planks of the campaign are Training, Demonstration and
Publicity, in selected villages.
Training
4.3 The training programmes are stipendiary and non-stipendiary. At the end of two weeks stipendiary training, each
farmer trainee is given Rs. 150/and a certificate. In the 5 days Prerak training
Rat Burrow fumigation with Aluminium Phosphide tablets in the field.course, a stipend of Rs. 75/- is given to each I
trainee. The non-stipendiary training is of a week's duration for village level workers and of 2 -3 days duration for
volunteers. During the year (upto Dec. 92) 236 stipendiary training courses were organised in which 11,718 farmers were
trained and 320 Prerak training courses were organised for 15929 candidates. Special attention was given to cover the
farmers belonging to Scheduled Castes and Scheduled Tribes under the Stipendiary training programme. Under the non-
stipendiary training programmes, 47 training courses for 1706 village level workers and 869 training courses for 1 1 816
volunteers were organised upto December, 1992. In addition, the teams collaborated in the training programmes organised
by other institutions/ agencies and imparted training to 6844 persons in 172 training courses during the same period.
Demonstrations
4.4 Farmers in selected villages are given demonstrations in insect and rodent control method and
Exhibition on save grain campaign activities.are explained the recommended practices. Improved non-metallic storage
structures and feasible improvements in traditional storage structures are also demonstrated. During the year (upto
December, 1992) 26892 foodgrains receptacles and 224051 rat burrows in different fields were fumigated. Rat control
measures in 52687 houses were undertaken and 37770 storage premises were given prophylactic disinfestation treatment
in 708 villages. In additon, 1939 non-metallic storage structures were erected and 16298 indigenous storage structures
were improved upon in different villages.
Publicity
4.5 In order to make the farmers increasingly aware of the importance of saving the grain during storage, multi-media
publicity was undertaken, with emphasis on the visual media for which the Central Teams have been provided with
demonstration vans. The teams arranged 1 1 02 exhibitions in villages and 1737 film/slide shows during the year (upto
December, 1992) besides 146 radio talks and 4 TV Programmes, 187589 leaf-lets and hand bills were distributed, besides
attending to 23516 postal and personal enquiries. The teams participated in 14 exhibitions/fairs at Regional/State level.
Further participation in India International Trade Fair during November, 1992 organised by Trade Fair Authority of India
at Pragati Maidan was the other notable event. A documentary film on scientific storage of foodgrains is under production
through Films Divison.
Metal Bin Programme
4.6 Since the inception of the programme in 1971 72 upto 1980-81, the Ministry provided loan assistance of Rs. 3.57
crores to 20 State Government/Union Territories for fabrication and sale of metal bins for storage at the farm level. From
1971-72, to December, 1992, 620079 improved metal bins of different capacities were sold to the farmers. The number of
improved bins sold to farmers during the year upto December, 1992 was 8465.
4.7 In order to revive metal bins loan programme to State Governments for making available metal bin for grain storage
to the farmers, an amount of Rs. 20 lakhs have been placed at the disposal of the State Government of Tamil Nadu for this
purpose during the year 1992-93.
Fumigation of foodgrains with EDB ampoules for insect control.
5. Rasearch, Development and Institutional Tarining on Storage
5.1 Research and Development on Storage and preservation of foodgrains is carried out at the Indian Grain Storage
Institute (IGSI), Hapur and its five field stations located at Ludhiana, Hyderabad, Jabalpur, Udaipur and Jorhat. The
research work covers both farm level and large scale storage of foodgrains.
5.2 Upto December, 1992 the Institute conducted 8 training courses each of 8 weeks duration and trained 138 candidates
from various organisations. In 40 short term courses, 645 candidates were trained in various specialised fields of grain
storage and inspection including 90 persons trained under four Artisan training course.
5.3 Foodgrain samples were collected from different parts of the country throughout the year from farm/commercial level
and analysed 2321 samples for physical parameters for assessment of quality of foodgrains, 319 for Mycotoxin
contamination and 599 for pesticidal contamination. Also 45268 E.D.B. Ampoules were filled and sealed for use during
demonstrations.
5.4 The on-going Research and Development projects include :
1. Studies on the impact of combine harvesting & threshing machine on the breakage and milling of common, fine and
superfine varieties of paddy in comparison with manual harvesting, threshing on resultant rice.
2. Evaluation or stone slab structure for safe storage of jowar and paddy in Rangareddy dist. in A. P. & Bengal gram in
M.P.
3. Driage loss/grain in weight of wheat rice in different agro climatic zones.
4. Development & evaluation of low cost pucca kothi (2.0 MT).
Code of practices for safe storage of high moisture paddy at farm level.
CHAPTER V
SUGAR
General
1 The general policy of partial control and dual pricing for sugar continued during 1990-91 and 1991-92 sugar years. The ratio o
vy and freesale sugar remained at 45:55. Production of sugar during the season 1991-92 was an all time record and was of the
rder of 132.77 (provisional) lakh tonnes, as against 120.47 lakh tonnes during 199091. The carry-over stock of sugar at the
eginning of 1991-92 season was 33.03 lakh tonnes as compared to 21.78 lakh tonnes at the beginning of 1990-91 season. The
atio of levy and freesale sugar has ben changed to 40:60 for 1992-93 season.
2 The quantum of levy sugar allocation to State Governments/UTs was revised upward to 3.32 lakh tonnes from February, 1987
nd was further slightly enhanced to 3.33 lakh tonnes from May, 1990. The Government also allowed an ad hoc increase of 5% in
he monthly levy allocations of all States/UT from August, 1991, which is continuing in 1993. Additional quantity of 1 lakh tonne
f levy sugar was also released for distribution through public distribution system as festival quota. The releases of freesale sugar
or sale in the open market were 71.05 lakh tonnes during 1991-92 season, as compared to 71.95 lakh tonnes during 1990-91
eason.
3 The internal consumption of sugar increased to 11 1.63 lakh tonnes (Provisional) in 1991-92 season, as against 107.15 lakh
onnes.in 1990-91 season thereby showing an increase of 4.18%.
Production, Consumption and Stocks
1 The details of sugar production, consumption and stock during 1990-91 and 1991-92 seasons are as under:
(in lakh tonnes)
-----------------------------------------------------------------------
1990-91 1991-92
(Provisional)
-----------------------------------------------------------------------
. Carry over from previous 21.78 33.03
season
. Production of sugar 120.47 132.77
. Imports - -
. Total availability 142.25 165.80
. Internal consumption 107.15 111.63
. Exports 2.07 5.83
. Closing stocks 33.03 48.34
-------------------------------------------------------------------------------------------------
2 The production of sugar during the current 1992-93 season, i.e. from 1.1 0.1 992, totalled 51.16 lakh tonnes upto 31-1-93 as
gainst 55.22 lakh tonnes during the corresponding period last season. It is expected to go upto about 120 lakh tonnes by the end
f the season.
Sugarcane and Sugar Pricing Policy 1992-93
1 The statutory minimum price of sugarcane payable by sugar factories for 1991-92 season was fixed at Rs. 26.00 per quintal
nked to a basic recovery of 8.5% with proportionate premium of 30.588 paise per quintal for every 0.1 per cent increase in
ecovery above 8.5 per cent. The SMP has been raised to Rs. 31.00 per quintal linked to a basic recovery of 8.5 per cent for 1992-
3 season. An advance announcement of SMP at Rs. 32.50 per quintal has also been made for 1993-94 season. In practice,
owever, actual prices paid by the sugar factories are substantially higher than the statutory minimum price of sugarcane.
2 The range of sugarcane price notified for the factories and the prices paid by the factories at the factory gate during the 1991-
2 season is in Appendix 11.
3 The report of the Bureau of Industrial Costs and Prices recommending basic conversion cost schedule covering the sugar
easons 1990-91, 1991-92 and 1992-93 was accepted after examination. On the basis of the recommendations, the ex-factory levy
rice for 1991-92 season for different pricing zones were notified on 21-1-92. The retail issue price of levy sugar, which was fixed
Rs. 6.1 0 per kg. with effect from 24-7-91 had been revised to Rs. 6.90 per kg. with effect from 21-1-92. The retail issue price
as further been increased to Rs. 8.30 per kg. w.e.f. 17-2-93.
4 The notified levy price for 1991-92 has been extended to the sugar season 1992-93 till such time as the new levy price for
992-93 season is notified.
5 A reference has been made to Bureau of Industrial Costs and Prices to examine and recommend the basic conversion cost
chedules covering the sugar seasons 1993-94, 1994-95 and 1995-96.
6 In order to encourage sugar production during 1991-92 season, freesale at 72% instead of normal 55% had been granted on
ugar production achieved by the sugar factories during the period 1st October to 15th November, 1991. Similar incentives had
een granted at 72% on the production achieved during the period 1st May 1992 to 31st July, 1992 pertaining to 1991-92 sugar
eason. In order to encourage sugar mills to maximise sugar production during the current 1992-93 season, incentives have been
nnounced for mid and late - crushing periods as under:-
a) Mid-crushing: The incremental/additional production during the period 1-1 -1 993 to 30-4-1993 over the corresponding period
uring 1991-92 season would be entitled to 80% freesale against the normal freesale entitlement.
b) Late-crushing : The sugar production during the period 1-5-1993 to 31-7-1993 would be entitled for 72% freesale as against th
ormal freesale entitlement.
7 By the end of 31st December, 1992, the payment of sugarcane price was made to the extent of 56.8% of the total price due for
992-93 season. Cane price arrears thus outstanding as on 31-12-1992 for the season 1992-93 were 43.2 percent of the total price
ayable as compared to 35.3% for the season 1991-92 and 31.3% for the season 1990-91 on the corresponding date.
8 The wholesale prices in important markets as on 22-2-93 ranged from Rs. 968/- to Rs. 1050/- per quintal. In the retail market,
he prices of sugar on the said date ranged from Rs. 1 0.1 0 to Rs. 10.75 per kg.
Licensing in Sugar Industry
1 The Central Government announced on 8.11.1991 the guidelines for licensing of. new units and expansion of the existing
ugar factories for the sugar year 1991-92 and the Eighth Five Year Plan (1992- 93 to 1996-97).
2 The proposals for establishment of new sugar factories and effecting expansion in the existing units would now be considered
n the basis of these guidelines.
3 As on 31.12.92, 97 new and 177 expansion projects sanctioned during the Sixth and Seventh Plans and the years 1990-91 and
991-92 are under various stages of implementation.
4 As on 31.12.92, the aggregate capacity of the sugar industry covered by Industrial Licences and letter of intent was 175.96 lak
onnes spread over 508 production units, while the installed annual sugar production capacity was 102.79 lakh tonnes comprised i
11 sugar factories. During the crushing season 1992-93, the installed annual sugar production capacity is expcted to go up by
bout 7.86 lakh tonnes by way of commencement of 9 more new sugar factories and the completion of 20 expansion projects. The
umber of sugar factories installed is thus expected to go upto 420 by the end of 1992-93 season.
Incentive Scheme
1 Because of increasing cost, sugar industry was finding it difficult to set up new factories or to go in for expansion and
modernisation. With a view to provide incentives for setting up of new factories or for going in for modernisation/expansion,
chemes were formulated by which such factories get a higher freesale quota as well as excise duty concession. The extra funds so
enerated are to be used for repayment of term loans taken from Central Financial Institutions. The first scheme was announced o
12.1975. Subsequently, new schemes were announced on 16.11.1980, 4.11.1987 and 26.12.1988.
2(i) Government has recently formulated a new incentive scheme for new sugar factories and expansion projects. The new suga
actories and expansion projects licenced during the period 7.9.1990 to 31.3.1994 would be entitled to incentives, as under:
) New sugar units in High Recovery Area would be entitled for 100% freesale quota of sugar produced by them for 8years while
nits located in other Recovery Area would be entitled for incentives for 10 years comprising 100% freesale for 9 years and 66%
eesale for one year.
) Expansion projects in High Recovery Area would be given incentives at 1 00% freesale for 5 years and those in other Recovery
rea, for 6 years. The quantum of incentives will be worked out with reference to the excess production achieved by the expansio
rojects.
) All the sugar factories and expansion projects which have been licensed during the 7th Plan period upto 6.9.1990 and which
ommence production on or after 7.9.1991 also have the option to avail of incentives under the above new Scheme or the earlier
cheme.
2 ii) BICP will be asked to undertake a fresh study of the mod of incentives to be given to new sugar factories and expansion
rojects to be licensed from 1.4.1994 and upto the end of the Eighth Five Year Plan period.
3 iii) Government has also recognised that since certain sugar units are relocated. to enable them to be rehabilitated at better
tes, they will also be granted incentives of additional freesale sugar to service loans raised by them for relocation. These
ncentives will be decided on a case to case basis on merits by a Committee consisting of representatives of the Food Ministry,
CDC and IFCI.
3 During the period from 1. 1.1 992 to 31.12.1992, sixteen fresh claims (4 from new units, 3 from restructured and 9 from
xpansion projects) were received for grant of incentives. Ten factories were visited for on the spot verification of incentive claim
nd 7 cases of incentive claims were finalised.
4 Brief Programme of work for quarter January 1993 to March, 1993
uring the period January to March, 1 993 six on the spot verification of claims are likely to be carried out and an equal number o
aims would be finalised.
Development of Sugar Industry
1 Under the Sugar Cess Act, 1982, a cess of Rs. 14.00 per quintal is being collected on all sugar produced by any sugar factory
n India.
2 The Sugar Development Fund Act, 1982, provides that an amount equivalent to the proceeds of the duty of excise levied and
ollected under the Sugar Cess Act, 1982, reduced by the cost of collection as determined by the Central Government, together
ith any moneys received by the Central Government for the purposes of this Act, shall after due appropriation made by
arliament by law, be credited to the Fund. During the period from 1982-83 to 1992-93 (upto September, 1992), a cess amount of
s. 1200.16 crores has been collected. During the same period, an amount of Rs. 1 1 41.00 crores has been transferred to the Suga
evelopment Fund.
3 As provided under the Sugar Development Fund Act, the Fund has to be utilised by the Government of India for the following
urposes:
a) Making loans for facilitating the rehabilitation and modernisation of any sugar factory;
b) Making loans for undertaking of any scheme for development of sugarcane in the area in which any sugar factory is situated;
c) Making grants for the purpose of any research project aimed at development of sugar industry;
d) Defraying expenditure for the purpose of building up and maintenance of buffer stock of sugar with a view to stabilising price
f sugar;
e) Defraying any other expenditure for the purpose of the Act;
4 The year-wise sanction and disbursement of loans from the Sugar Development Fund is given below:
Year-wise Sanction & Disbursement of SDF loans as on 31.12.1992.
-------------------------------------------------------------------------------------------------------
(Rupess in Crores
Cane Development Modernisations Grant-in-aid Total
Year Sanc Disbur Sanc- Disbur- Sanc- Disbur- Sanc- Disbur-
tioned. sement. tioned sement tioned sement tioned sement
-------------------------------------------------------------------------------------------------------
1985-86 - - 1.79 1.79 - - 1.79 1.79
1986-87 45.89 21.42 4.46 4.46 - - 50.35 25.88
1987-88 70.10 27.87 5.89 5.89 - - 75.99 33.76
1988-89 77.34 27.66 48.09 37.17 0.46 0.12 125.89 64.95
1989-90 84.80 64.67 62.25 57.89 23.23 2.11 170.28 124.67
1990-91 26.54 46.20 54.42 50.38 6.41 5.55 87.37 102.13
1991-92 31.00 10.40 133.57 39.13 - 0.08 164.57 49.61
1992-93 26.68 12.76 40.62 73.07 - 3.62 67.36 89.45
(upto 31.12.92)
-------------------------------------------------------------------------------------------------------
Total: 362.35 210.98 351.09 269.78 30.10 11.48 743.60 492.2
-------------------------------------------------------------------------------------------------------
Levy Sugar Price Equalisation Fund
1. The Levy Sugar Price Equalisation Fund Act, 1976 has been in force from 1.4.1976. During the year under report, a sum of
s. 2.97 crores has been recovere d from the sugar mills and credited to the fund bringing the total amount thus credited since the
ommencement of the Act to Rs. 1 9.71 crores. In addition, Food Corporation of India, under orders of Courts of Law, has so far
ollected by way of such recovery from the sugar mills, a sum of Rs. 23.11 crores.
Quality Control of Sugar
1 Sugar Inspection Section of the Directorate of Sugar is concerned with the quality control of sugar produced by vacuum pan
ugar factories. For this purpose, periodical visits to sugar factories are made, samples of sugar are drawn from the stocks of sugar
eld by the factories and also consignments under despatch. In case actual grades of sugar represented by the samples are found to
e
52>inferior to the grades marked on the bags by the factories, action is taken against the defaulting sugar factories according to
he prescribed procedure.
2 In pursuance of this policy, the Directorate of Sugar in the year l992 (from 1.1.1992to 31.12.1992) have recommended 4 cases
o the
rainig/Demonstration at NSI, Kanpur.State Governments for launching prosecution proceedings against the defaulting sugar
actories in terms of Clause 4(1) of the Sugar (Packing and Marking) Order, 1970 for over-grading their sugar stocks. Also under
his policy, warnings have been issued to sugar factories in 73 cases upto 31.12.92 for being more careful in future in marking
rades on the sugar produced by them.
Development Council for Sugar Industry
1 The Development Council for Sugar Industry is an Advisory Body constituted under the Industries (Development &
egulation) Act, 1951. Its- tenure is for two years and thereafter it is reconstituted. The functions assigned to the Development
ouncil are specified in the Second Schedule of the Industries (Development & Regulaton) Act, 1951.
2 The Council has two Standing Committees viz, (i) Standing Avisory Committee on Sugar Standards and (ii) Standing Researc
dvisory Committee. The tenure of these Committees run concurrently with the tenure of the Council. The Council has been last
econstituted on 27.2.1989 which expired on 26.2.1991.
3 Sugar factories generate two types of pollution, namely air pollution caused by flue gases coming out of boilers and water
ollution caused by waste water (effluent) discharged by the sugar factories. In order to bring down the pollution within the
ermissible limits, the Directorate of Sugar of the Ministry of food has been advising the sugar factories and their apex bodies
om time to time to take necessary steps for installation of the required pollution control equipments. According to the
nformation received from the sugar factories, 244 sugar factories have installed effluent treatment plants to check water pollution
nd 193 sugar factories have installed equipments to check air pollution. The following measures/steps have been taken to control
ollution in Sugar Industry.
) Two meetings of Secretaries of major sugar producing States, representatives of State Federations, National Federation of
ooperative Sugar Factories and Indian Sugar Mills Association, Financial Institutions and Director, National Sugar Institute,
anpur were called on 3rd January, 1992 and 5th February, 1993 respectivlely to discuss the measures taken/to be taken to contro
he pollution of environement by sugar factories.
i) The procedure for conversion of letters of intent into industrial licenses and grant of completion certificates to new sugar
actories and expansion projects has been revised. According to this procedure, the sugar factories are required to obtain a 'No
bjection Certificate' from the concerned State Pollution Control Boards before conversion of their letters of intent into Industrial
icences. They are further required to obtain a certificate from the Pollution Control Board indicating that they have installed the
equired equipments and they are achieving the prescribed norms for issue of completion certificate.
54>(iii) An all-India Seminar was organised by the National Sugar Institute, Kanpur on 25th September, 1992 on Pollution
ontrol in Sugar Industry in which representatives from a large number of sugar factories participated. The Seminar discussed
merits and demerits of various Pollution Control measures in depth. The proceedings of this Seminar have been circulated to all
ugar factories for their information and necessary action.
0. Export/import of Sugar
0. 1 The International Sugar Agreement, 1977 of which India was a Member as an exporting country expired on 31.12.1984.
hereafter, International Sugar Agreement, 1984 came into existence with effect from 1. 1. 1 985 and its term was extended by th
nternational Sugar Council upto 31.12.1987. India continued to be a member of this Agreement.
0.2 Another agreement called the International Sugar Agreement, 1987(ISA 1987) came into force with effect from 24.3.1988, in
hich India was a member as an exporting country. The term of ISA1987 was extended upto 31.12.1992. India contin- ued to be
member of ISA- 1 987 for its extended term upto 31.12.1992.
0.3 A United Nation Sugar Conference 1992 was convened at Geneva in March, 1992 for the purpose of negotiating a successor
greement to the ISA 1987. This Conference established the text of the International Sugar Agreement 1992 (ISA- 1992), which
as come into force provisionally with effect from 20th January, 1993. India has decided to become a member of the new ISA-
992.
0.4 With the upswing in sugar production in recent years export of sugar in substantial quantities have again been resumed.
uring, 1 990-91, Government authorised an export of 5.25 lakh tonnes of sugar comprising commercial quota of 5 lakh tonnes
nd preferential quota of 0.25 lakh tonnes. Indian Sugar & General Industry Export Import Corporation Ltd., one of the export
gencies notified under the Sugar Export Promotion Act, 1958, was entrusted with the task of exporting sugar and they are
ontinuing to do so. In 1991-92 sugar season, a further quantity of 2.71 lakh tonnes, comprising commercial quota of 2.5 lakh
onnes and preferential quota of 0.21 lakh tonnes, was notified and exports are being carried out by the said Organisation against
his export quota. In addition, export of 20,000 tonnes out of levy sugar to Nepal has also been decided which is being handled by
.T.C. Besides this a quantity of 1 lakh tonnes of sugar out of 1991-92 season's production has further been notified, out of which
2,830 tonnes has been permitted for delivery out of 1992-93 season's production. There after Govt. have further notified 2.19 lak
onnes for export out of 1992-93 season's production comprising 2.00 lakh tonnes as commercial export to GCA and 0.19 lakh
onnes as preferential quota to USA/EEC.
1. Research and Training
1. 1 Development of Sugar Industry is vital in bringing about significant changes in socio-economic structure of the rural
conomy. Over 3.5 lakh workers are directly or indirectly connected with this industry. The National Sugar Institute, Kanpur,
lays a significant role in proper development of sugar industry and maintaining its operational efficiency.
1.2 During 1992-93 academic year, the Institute imparted training to 190 trainees in various courses conducted by them. Through
hese courses, care has been taken of additional technical manpower requirement for the sugar industry. There has been a
ontinuous interaction between the Institute and the industry through consultancy and extension services. During the period
1.04.92 to 30.12.92, the experts of the Institute made 80 visits to the sugar factories and provided extension services to eight
ugar factories and advised them on related matters. It is proposed to visit eight sugar factories under advisory services and three
actories under extension services during January-March, 1993. Close interaction between the Institute and the industry also
nabled research workers at the Institute to understand the problems faced by the factories in running their units smoothly and
fficiently and to orient their research accordingly. Eighteen research papers were published during the period April to December
992.
1.3 The important designs developed by the Institute are as under: 11.3.1 New Designs
1.3.1.1 Vaccum Pan of 100 Tonnes.
1.3.1.2 Continuous vertical crystallizers.
1.3.1.3 Rain and Shower type condenser for 1 00 Tonnes pan.
1.3.1.4 Multijet condenser for 1 00 ton Vacuum Pan
1.3.1.5 Juice Weighing Scale - 6.5 tonnes/Tip capacity.
1.3.1.6 Sugar Elevator for 2500 to 3500 TCD Sugar Plant.
1.4 Designs developed as per factory demand.
1.4.1 Multijet Condenser for 17.17 ton/Hr. vapour load.
1.4.2 Reversal cutter hood sweep dia 11 94 mm.
1.4.3 External catch all.
1.5 Design developed as per sugar industry standard
specifications :
1.5.1 Water cooled crystalizers of 65 tonnes capacity.
1.6 Designs developed on computers:
1.6.1 Continuous vertical crystalizers.
1.6.2 Top & Bottom type plates.
1.6.3 Multijet condenser for 17.17 Ton/hour vapour load.
1.6.4 Bottom saucer of 1 00 tonnes low head vacuum pan.
1.6.5 Detail drawing of 1 00 tonnes low head vacuum pan
1.6.6 Common parts of Pan, Evaporators and sulphur furnace.
2. Designs Revised
2.1 Spray and Jet Nozzles for Multijet Condenser.
2.2 Bottom Saucer of 80 tonnes pan.
3. The Experimental Sugar Factory of the Institute commenced its crushing for the season 1991-92 from 26.12.1991 and
ontinued till 17.2.1992. The quantity of cane crushed was 18874 quintals and sugar produced was 700 quintals.
4. A refresher course was conducted by this Institute from 14.9.1992 to 19.9.1992 and 25 persons participated in this course.
5. Enforcement and Vigilance Cell
5.1 An Enforcement and Vigilance cell has been set up in the Directorate of Sugar in July, 1986 to ensure strict compliance by
he sugar factories of the various statutory as well as adminsistrative orders and directions issued by the Government and
irectorate of Sugar. The functions of this Cell include scrutiny of records regarding sales and despatches of free sale sugar,
hecking of final manufacturing report, i.e. RT 8 (C) received from the sugar factories, enforcement of quality and packing of
ugar with regard to the provisions of the Sugar (Packing and Marking) Order, 1970 etc.
5.2 During the period from 1.1.1 992 to 31.12.1992,1 (one) sugar factory and 2 (two) fair price shops were visited for this
urpose.
CHAPTER VI
NUTRITION
Nutrition is the cornerstone of National Development. All the National
Development Plans aim at improving the quality of life of the people, their
health being its prime indicator. Nutrition is the most important pre-
requisite for better health and both nutrition and health are inseparable.
A number of nutrition related programmes are therefore, being
implemented by the Govt. to uplift the nutritional status of its people. The
nutrition programmes of the Ministry of Food are:-
I. Nutrition Education & Training;
II. Development & Promotion of Nutritious Food; and
Ill. Fortification & Enrichment of Foods.
A brief account of these activities during the period under report (upto
December, 1992) is as follows
1. Nutrition Education & Training
(a) Mobile Food & Nutrition Extension Units
Nutrition education is a guide for the people to improve their dietary
practices. Realising the importance of nutrition education, thirty four
Mobile Food & Nutrition Extension Units (MEUs) equipped with a vehicle,
audio-visual aids and technically trained personnel have been set up in
different parts of the country to impart non-formal nutrition education in
rural, urban and tribal areas. The units organise live demonstrations
supported by lecturecum-discussions, film and slide shows and exhibitions
on various aspects of food, nutrition, health, hygiene and environmental
sanitation in collaboration with concerned departments of State Govts.
educational institutions and non-Governmental organisations. 10605
programmes were organised by these units during the period April-
December, 1992. Out of these 7830 programmes were organised in rural
and slum areas. 3,76,340 people were benefitted by these programmes,
40.85% of which belonged to scheduled castes/scheduled tribes. These units
Organised 582 programmes in Minority concentrated areas benefitting
21719 persons.
33 Food & Nutrition Extension Centres (FNECs) of the Ministry located in
different parts of the country impart education and training in household
scale preservation of fruits and vegetables and nutrition to the housewives
and adolescent girls. These centres encourage the community to preserve
fruits arid vegetables during the glut season at
Dr. J. R. Lupien, Director, FAO, Rome in a 5 day Integrated Nuitrition
Education Camps.household level by offering two training courses of two
weeks duration per month in the preservation of fruits and vegetables
including nutrition. These centres also provide processing facilities for
fruits and vegetables for domestic consumption on payment of nominal
charges. Methods for preparation of Instant Weaning/suplementary foods
for infants and young children from the family pot and from roasted cereals,
pulses and oilseeds are also taught during the training. These centres trained
19192 housewives through 666 training courses and produced 231 tonnes of
processed fruits and vegetables material during the period April- December
1992.
Out of total number of trainees 3242 belonged to SC/ST community.
Special training courses are also organised specially for groups like tribal
women, SC/ST communities and minority concentration districts. 326
persons were trained through 12 training courses for SC/ST while 1091
persons from minority groups received training through 41 courses.
For integration of the activities of MEUs & FNECs, these units have been
amalgamated and henceforth they will be known as Community Food &
Nutrition Extension units.
Three FNECs at Kohima (Nagaland), Aizwal (Mizoram) and Naharlagoon
(Arunachal Pradesh) have been set, up in collaboration with the State
Government. They trained 417 persons through 12 training courses and
produced 390 kgs. of processed fruits and vegetables material during the
period under report. One more FNEC in Andaman & Nicobar Islands is
being set up in collaboration with the union teritory administration.
(c) Integrated Nutrition Education
In view of the importance of integrated approach to nutrition education to
reduce the incidence of malnutrition, the Ministry launched an Integrated
Nutrition Education Scheme in 1988 with an objective to equip the grass-
root level workers of concerned sectors like Anganwadi workers,
multipurpose health workers, health educator, adult education instructors,
gram sevikas and voluntary workers of NGOs with basic knowledge on
food, nutrition, health and other related aspects so that the simple messages
are conveyed to the community by all the field functionaries during their
duties. The field units of the Ministry namely MEUs and FNECs organise
Orientation Training for grass root level workers of concerned sectors like
Agriculture, Health & Family Welfare, Women & Child Development,
Education, Rural Development etc. at the block and district level in the
form of 'Integrated Nutrition Education Camps'. 40 such camps were
organised during the period April- December, 1992 in different parts of the
country with the cooperation of block and district level agencies of the
concerned sectors of the State Governments and Voluntary Organisations.
Field units of the Ministry namely MEUs and FNECs also organise short-
term 'Orientation Training Courses' for nutrition promotion in collaboration
with State level training institutions. Home Science Colleges and Voluntary
Organisations for training the trainers and supervisors, teachers from
Anganwadi Training Centres, CDPOs, ACDPOs, Health Education
Instructors. Health Trainers, Adult Education Supervisors, Trainers from
Voluntary Organisations. During the period April-Dec., 1992 field units
organised 20 Orientation Training Courses. A close coordination with
concerned Departments like Women & Child Developments, Health &
Family Welfare was maintained during the year. Nutrition demonstrations,
film and slide shows were organised at Anganwadis and Training
Institutions under ICDS.
Development of educational/training material including mass media
communication related to nutrition is an important activity of the Ministry.
Four posters on Feeding Infants; Nutrition for all and Vitamin 'A' were
produced. Four folders on different aspects of Nutrition were updated and
printed. Nutrition message in 7 different languages was printed on postcards
which will also be used as a vehicle for nutrition promotion. Special cover
with Nutrition message has been printed through Department of Posts in
connection with the International Conference on Nutrition. Action to
produce Quickies/short video films for nutrition promotion is in progress.
(d) National Nutrition Week
The eleventh National Nutrition Week (NNW) was celebrated in the
country from 1- 7 September, 1992 in collaboration with State Govts.,
Educational Institutions and voluntary organisations with a view to
intensify the efforts for creating nutritional awareness among the masses
and to impart basic simple messages for nutrition promotion among the
people. Highlights of these celebrations included Organisation of 232 films
and slide shows, 749 demonstrations, 89 recipe competitions, 76 group
discussions/seminars/training programmes, 60 baby shows, 51
essay/slogan/painting competitions, 9 medical check up camps and various
other information programmes covering 284 villages in the country.
The Theme of World Food Day this year was 'Food & Nutrition'. It was
celebrated on 16 October, 1992 by all the MEUs and FNECs by organising
semi- nars/workshops/camps, highlighting the theme. 14 million postcards
with nutrition message in different languages were printed on the occassion.
(e) Food Processing & Nutrition Centres
Four Food Processing & Nutrition Centres, set up one each at Balussery
(Kerala), Kumarghat (Tripura), Mahendragarh (Haryana) and Jaisamund
(Rajasthan) by the designated agencies of the respective State Governments
with technical and financial assistance from the Ministry, trained 923
persons in food processing, organised 299 nutrition education programmes
and produced 15083 kgs. of processed food during the period April-Dec.,
1992. The scheme, however, stands transferred to respective State Govts.
during the 8th Five Year Plan.
11 Development & Promotion of Nutriitious Foods
The Ministry promotes setting up of Nutritious Food Units through State
Governments for production of low-cost processed nutritious foods for use
in Supplementary Feeding Programmes of the State Governments for young
children, expectant and lactating mothers. These are
(a) Milton
Miltone is a nutritious milk like beverage based on 50% groundnut protein
and 50% animal milk suitably enriched with vitamins and minerals.
During the year, the units at Bangalore, Ahmedabad and Hyderabad were in
operation which produced about 11.3 lakh litres of miltone during April-
Dec., 1992.
(b) RTE Extruded Foods
The Ready-to-Eat (RTE) Extruded Foods are produced from cereals and
pulses or oilseeds by applying extrusion processiong technology and are
enriched with vitamins and minerals. Five RTE plants one each at Dhar in
Madhya Pradesh, Hyderabad in Andhra Pradesh, Jaipur in Rajasthan,
Gangtok in Sikkim and Delhi set up by the respective State
Government/Union Territory were in operation during the year. The units at
Hyderabad and Jaipur produced weaning foods also for infants. These units
produced 20403 MTs of RTE Extruded Foods during the period April-
December, 1992.
(c) Energy Food
Energy Food is a blend of cereal and pulse or oilseed flour, flour fortified
with vitamins and minerals and sweetened with sugar or jaggery to
Imparting nutrition education to Anganwadi workers.make it a ready-to-eat
food supplement suitable for children, expectant and nursing mothers. Four
Energy Food Plants set up at Belgaum, Chitradurga, Raichur and
Dodaballapura in Karnataka by the Karnataka State Agro-Corn Products
Ltd. produced 7239 MTs of energy food during the period April-December,
1992. One Energy Food Unit is being set up at Bhubaneswar in Orissa.
The Ministry has initiated dialogue with the States of U.P., Bihar, West
Bengal, Karnataka and Tripura for establishment of Small Nutritious Food
Manufacturing Units of the capacity of 1 -2 MTs per day for meeting the
needs of Supplementary Feeding Programmes of the State Governement.
A National Workshop on 'Community Based Production of Nutritious
Foods involving NGOs' was organised by the Ministry on 17th September,
1992 at New Delhi with financial support from UNICEF with a view to
enable in-depth discussions with the NGOs regarding the feasibility of
producing and providing nutritious food to young children through the
existing infrastructure for Welfare Feeding Programmes. It is proposed to
undertake the project on a pilot scale.
III. Fortification & Enrichment of Foods
(a) Fortification of Milk with Vitamin A
The objective of the scheme is to prevent nutritional blindness due to
vitamin 'A' deficiency. The scheme was first introduced in 1980 in Mother
Dairy, Delhi. It has since been extended to 46 dairies in the country
covering 16 States and 2 Union Territories. The dairies are eligible for
reimbursement of the entire expenditure incurred on fortification for the
initial period of 3 year. Thereafter, the entire cost of fortification is to be
borne by the dairies. About 30.28 lakh litres of milk was fortified with
vitamin 'A' daily during the period April-December 1992 through these
dairies.
(b) Fortification of Salt with Iron
The consumption of iron fortified salt is one of the most economical and
effective methods of preventing iron deficiency anaemia. A plant for
producing 15000 MTs of iron fortified salt per annum has been set up at
Valinokkam salt Complex at Ramanathapuram Distt. in collaboration with
the Government of Tamil Nadu through its Salt Corporation. Another salt
fortification plant has been set up at Sambhar Lake in Rajasthan in
collaboration with Hindustan Salts Ltd., Jaipur. The iron fortified salt
produced by this Plant was supplied to Modern Food Industries and
Department of Social Welfare for use in ICDS Programmes. These units
produced 1593 tonnes of Iron fortified salt during AprilDecember, 1992.
IV. Food Analysis Laboratories
The Ministry is entrusted With the analysis of fruit and vegetable products
under the regulation of quality control of these products for domestic
consumption as well as for export. The analysis of fruit and vegetable
products is carried out at four laboratories at Delhi, Bombay, Calcutta and
Madras. 10808 samples were analysed during April-Dec., 1992. Besides,
the laboratories also analysed enriched and fortified food stuffs used in the
welfare feeding programmes. The foodstuffs analysed include Vitamin 'A'
fortified milk, bakery products like bread and bun, fortified salt, miltone
etc.
V. Research & Development Scheme
The Ministry sponsors research & development projects relevant to the
programmes of the Ministry with a view to facilitate the application of
research findings in the field programmes.
Eight R&D Projects are in progress. The first phase of the project on
'Village based Production of Infant Foods - Pilot trial' with the Lady Irwin
College, New Delhi has been completed. The second phase of this project is
being taken up shortly by the college.
The project on 'Development of a cheap and Nutritious Dal from Soyabeans
on Pilot Plant Scale' undertaken by Ganesh Scientific Research Foundation,
New Delhi has been completed.
The Project on 'Appropriate Methodology to fortify milk with vitamin A
without using Homogeniser' has been completed and it is being tried in
some dairies.
VI. International Confrerence on Nutrition (ICN)
The Ministry of Food was designated as the Country Focal Point for the
International conference on Nutrition held in December, 1992 at Rome. A
country paper on Nutritional situation in the country was prepared by this
ministry in consulation with other concerned Ministries/ organisations and
the same was discussed in the regional meetings. An Indian delegation
comprising nominees of concerned Ministries of the Govt. of India attended
the Asia-Pacific Regional Meeting held in January at Bangkok, Preparatory
Committee (Prepcom) Meeting (1) held during August at Geneva and the
Prepcom (2) as also the main Conference held at Rome in December, 1992.
CHAPTER VII
INTERNATIONAL CO-OPERATION
India continues to be a member of the International Wheat Council. The
117th Session of International Wheat Council was held in London from
22.6.92 to 23.6.92 and the Seminar on 'Future of World Grain Trade' was
held on 24.6.92. These mettings were attended by Secretary (Food) and the
Joint Secy. concerned. The 11 8th Session of IWC was held in London from
30.11.92 to 1.12.92.1 India is also a member of the SAARC Food Security
Reserve. The 4th Meeting of the SAARC Food Security Reserve Board was
held from 6.12.1992 to 9.12.1992 at Dhaka.
2. Delegations/Officers sent Abroad
During the year, 1 9 officers were sent abroad to participate in the following
1 0 International Meetings/Conferences/Workshops-
(1) United Nations Sugar Conference at Geneva.
(2) National Seminar on Post Harvest Food Loss Management at
Kathmandu.
(3) Council Session of International Sugar Organisation at London.
(4) Regional Export Consultation on International Conference on Nutrition
at Bangkok.
(5) 11 7th Session of InternationI Wheat Council at London.
(6) Sugar Industry Programme for Senior Executives at Kathmandu.
(7) Preparatory Committee Meeting of International Conference on
Nutrition at Geneva.
(8) International Conference on Nutrition at Rome.
(9) International Sugar Organisation Council Session at London.
(10)Fourth Session of SAARC Food Security Reserve Board at Dhaka.
Besides the above off officers, 27 off officers including 15 off officers from
Food Corporation of India were also sent abroad to perform off official
duties.
One officer each from National Cooperative Development Corporation and
M/s. Aruna Sugar Mills, Madras was deputed to attend the International
Training Programme on Energy Conservation in Sugar Plants in Malmo,
Sweden.
CHAPTER VIII
PUBLIC SECTOR UNDERTAKING
Food Corporation of India
1. Function
1.1 The Food Corporation of India (FCI) is the main agency responsible for the execution of the Food
policies of Central Government.
1.2 Functions of the FCI primarily relate to the purchase, storage, movement, transport, distribution
and sale of foodgrains and other food-stuffs, on behalf of the Central Government, according to the
Government's policies. It is also engaged in the processing of foodstuffs, handling, storing and
distributing sugar as per Government instruction.
1.3 The Government of India lays down the prices of foodgrains which are to be purchased/procured
and issued, the incidental charges, and the quantum of allotment to the State Governments as also other
relevant policy matters.
2. Organisational Set-up
2.1 The FCI, with its headquarters at New Delhi, coordinates its function through 5 Zonal Off ices, 1 9
Regional Off ices, 3 sub- Regional Offices, 3 off ices of JM(Opn.) and 160 District Offices.
2.2 The category-wise staff position as on 30.9.92 was under:-
Category In-position
------------------------------------------------------
I 748
II 4053
III 38904
IV 23618
------------------------------------------------------
Total 67323
------------------------------------------------------
3. Capital Structure
3.1 The authorised capital of the Corporation stood at Rs. 1,000 crores as on 31st March, 1992. The
subscribed and paid up capital increased to Rs. 923.49 crores as on 31st March, 1992 with an addition
of Rs. 15 crores being the contribution of the Government of India as equity towards construction of
godowns. The Corporation has also requested the Government of India to convert the soft loan of Rs.
1200 crores into equity to strengthen its capital base.
. Performance Highlights
4.1 The turn-over of the Corporation during 1991-92 was Rs. 14,990.10 crores as against Rs. 13,699.56
crores during 1990-91. The Corporation handled 42.05 million tonnes of commodities like foodgrains,
Sugar and Fertiliser during 1991-92 against 41.80 million tonnes in 1990-91.
5. Procurement and Distribution of Food grains
5.1 Price support purchases of wheat during 1992- 93 season are organised in about 9519 centres as
against about 8000 centres operated during 199192 season. As a result of such price support operations,
63.80 lakh tonnes of wheat has been procured upto 12.3.1993 (Rabi 1992-93). Despite opening of
larger number of procurement centres and declaration of additional central bonus of Rs. 25/- per quintal
and State Bonus of Rs. 5/- per quintal in Punjab, Haryana and Rajasthan and Rs. 25/- per quintal in
M.P., the actual procurement was lower due to following reasons:
i) Market prices of wheat were much higher than support price;
ii) market arrivals were less due to holding of stocks by farmers in anticipation of better prices as well
as due to sale away from the regulated market jurisdictions;
iii) There was no ban on inter-district/inter-State movement of wheat except Rajasthan which allowed
traders to take out the stocks from procuring States to other States.
5.2 Price Support procurement operations for paddy were organised in about 5289 centres as against
4702 centres operated last year. In respect of coarse-grains procurement under price support, though
the main responsibility has been entrusted to the State Govts. by the Ministry of Food but wherever this
role is entrusted to the Corporation, the Corporation operated all the paddy purchase centres for
procurement of coarsegrains besides opening of additional centres in the States of Haryana, Rajasthan,
Andhra Pradesh and Madhya Pradesh etc.
All the State Govts. were requested to maximise procurement of levy rice for building up buffer stocks
of rice. Though Kharif marketing season 1992-93 started from 1st October, 1992 in most of the States,
it was preponed to 1st Sept. in Punjab, Haryana and Tamil Nadu. The estimates of procurement were
assessed as 10.54 million tonnes rice including paddy in terms of rice for the central pool during the
entire Kharif marketing season. As on 12.3.93, the total procurement of rice in the country including
procurement on Central and State Account was 112.02 lakh MT comprising 100.99 lakh MT on
Central Account and 11.03 lakh MT on state account as against 88.29 lakh MT procured during the
corresponding period of last year with 79.73 lakh MT on Central account and 8.56 lakh MT on State
account. The coarsegrain procurement upto 12.3.1993 was of the order of 5.97 lakh MT comprising
Bajra 0.05 lakh MT, Jowar 5.85 lakh MT and Maize 0.07 lakh MT as against NIL procurement during
the last year.
5.3 The Suplies, of foodgrains viz. Wheat and Rice under Public Distribution System continued
smoothly even in disturbed, adverse weather affected and remote areas.
5.4 FCI has made elaborate arrangements for the timely bagging and despatch of imported wheat as the
entire operation is time bound. Not only all the major, but a number of minor ports have also been used
for unloading of ships carrying wheat. As many as 14 ports have been used in this operation and for the
first time foodgrain ships have been handled at Jawaharlal Nehru Port at Nhava-Sheva where
mechanical unloading facilities exist. Special efforts are also being made to expedite bagging and
clearance of unloaded cargo by rail/road and such clearance is being matched with the distribution
requirements so that transportation leads are minimised and the maximum efficiency is achieved in
making available imported wheat for delivery to States/Union territories. The entire operation, which
requires coordination between number of Ministries and Organisation, is being closely monitored, both
by the FCI as well as by the Food Ministry so that bottlenecks are attended to and resolved promptly.
Some set back in unloading of ships was experienced during December, 92 and January, 93 on account
of law and order distur- bances in Bombay. Clearance of imported wheat is now expected to be
completed by May, 93.
6. Storage Management
6.1 FCI has a network of storage depots strategically located all over India. These depots include silos,
godowns and an indigenous method developed by FCI called 'Cover and Plinth' (CAP). The storage
capacity available with FCI (covered & CAP) was 19.56 million tonnes with 1393 depots as on
31.12.1992.
7. Scientific Preservation
7.1 The FCI has extensive stock preservation system. Grain in Storage is continuously and
scientifically graded, fumigated and aerated by a large fleet of trained and experienced personnel. FCI's
testing laboratories are spread across the country to ensure that the stored foodgrains retain their
essential nutritional qualities.
8. Transportation Management
8.1 Provisional figures of movement during Oct'92 December, 1992 in respect of foodgrains & sugar
are indicated below:
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Foddgrain Movement
Figure In Lakh Tonnes
-----------------------------------------------------------------------------------
1992 1991
---------------------------- ----------------------------
Rail Road Riv Total Rail Road Riv Total
-----------------------------------------------------------------------------------
Jan. to March 47.97 1.80 0.01 49.78 42.14 2.08 - 44.22
Apr. to Dec. Indigenous 117.80 5.09 0.26 123.15 131.42 5.31 0.11 136.84
Imported 6.64 4.75 11.39
-----------------------------------------------------------------------------------
Total 172.41 11.64 0.271 84.32 173.56 7.39 0.11 181.06
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Movement of Sugar
-----------------------------------------------------------------------------------
1992 1991
Imported Levy Total Imported Levy Total
-----------------------------------------------------------------------------------
Jan. to March - 3.50 3.50 - 3.64 3.64
April to December - 9.38 9.38 - 8.80 8.80
Total - 12.88 12.88 - 12.44 12.44
---------------------------------------------------------------------------------
Keeping in view of present trend of movement which has already taken place and expected, projection
of movement by rail and road during the quarter January to March'93 is expected to be as under:
Foodgrains
-----------------------------------------------------------------------------------
Figures in Lakh Tonnes
-----------------------------------------------------------------------------------
INTER INTRA TOTAL
Rail Road Rail
Indigenous 31.50 1.80 4.50 37.80
Imported 6.50 4.50 - 11.00
-----------------------------------------------------------------------------------
Total 38.00 6.30 4.50 48.80
-----------------------------------------------------------------------------------
Sugar Levy Imported Total
3.00 - 3.00
-----------------------------------------------------------------------------------
Fertiliser
9.1 F.C.I. is selling old unsold stocks except CAN, through tender enquiry or negotiations. As per the
directions of Ministry of Agricultrue and Cooperation, Sub-standard CAN is being sold for industrial
uses through tender enquiry to Public Sector Undertaking/Joint Sector undertakings owned by the State
Govt. /Union Territory Administration.
9.2 This disposal of sound and sub-standard fertiliser from April to Dec. 1992 is as follows
Sound - 2394 MTs
Sub- -
Standard - 6106 MTs
Total : 8500 MTs
9.3 The stocks held as on 31.12.92 are as under
Sound - 6605 MTs
Sub- - 13588 MTs
standard
Total 20193 MTs
10. Vigilance & Security
10. 1 Food Corporation of India has a f full-fledgad vigilance set-up at Headquarters, Zonal and
Regional levels. Appropriate preventive vigilance measures are being taken and special squad of the
Headquarters to carry out special checks and investigations.
10.2 As a result of these efforts, the quality of foodgrains procured and distributed has significantly
improved.
10.3 The security of FCI's stocks is organised through their own Watch and Ward staff, security
contractors, State Armed Police and Central Industrial Security Force. The CISF and Armed Police are
entrusted with the task of safe-guarding centrain vulnerable depots in the States of Bihar and West
Bengal.
11. Planning & Research
11. 1 The Planning & Research Division of the Corporation assists the 'Top Management' in the areas
of Corporate Planning and Policy Formulation. It undertakes various studies, review, projects and
reserch work to improve the operations and the overall efficiency of the Corporation.
74
Farmers storing grains at Trichinapalli, Tamil Nadu.
12. Cost Reduction Plan
12.1 The Food Corporation of India is drawing up action plan to reduce its operational cost since 1986-
87. In the plan certain thrust areas have been identifed having some scope for reduction of the cost of
operations. With the effective implementation of the cost reduction plan, actual achievement has been
higher than the target.
12.2 The year-wise targets/achievements are given hereunder:
---------------------------------------------------------------
(Fig. in Rs. crores)
Financial
-----------
Year Targets Savings
1986-87 195.38 238.42
1987-88 232.20 276.11
1988-89 53.16 61.86
1989-90 70.22 91.26
1990-91 61.46 135.87
1991-92 140.48 141.96
1992-93 101.95 12.75 (Revised)
(Annual)
Targets and achievements are upto 31.12.92.
---------------------------------------------------------------
Central Warehousing Corporation
Introduction
The main functions of the Central Warehousing Corporation are to acquire and build warehouses at
suitable places and to operate them for storage of agricultural produce and certain other items including
industrial goods.
2. Capital Structure
2.1 The authorised share capital of the Corporation is Rs. 1 00.00 crores. There has been no change in
the Corporation's subscribed share capital and paid-up share capital from the previous year and it stood
at Rs. 74.525 crores and Rs. 68.021 crores, respectively. The Corporation has no oustanding loans.
Cargo handling at CFS, Kalamboli
3. Physical Performance
Growth in Storage Capacity
3.1 As would be seen from the following table, the covered warehousing capacity with the Central
Warehousing Corporation has been increasing over the last 3 years:
(In lakh tonnes)
---------------------------------------------------------------
As on Owned Hired Total
31.03.1990 45.68 17.68 63.36
31.03.1991 47.22 17.55 64.77,
31.03.1992 47.75 16.53 64.28
31.12.1992 48.32 15.97 64.29
---------------------------------------------------------------
Capacity Utilisation
3.2 The average utilisation of the warehousing capacity of the Corporation during 1992-93 is expected
to be about 69 percent.
3. Diversification
3.3 Over the years, the corporation had diversified its activities. As on 31.03.1992, it had 169
custombonded warehouses with a total capacity of about 8.81 lakh tonnes. It handles cement on behalf
of
the Cement Controller/Cement Corporation of India. It is operating air cargo complexes at Amritsar
and Goa to cater to the needs of export trade.
3.4 It is also operating Container Freight Stations at Patparganj (Delhi), Royapuram (Madras),
Bhandup (Bombay), Jawahar Lal Nehru Port, Kalamboli, Pune, Adalaj (Ahmedabad), Santnagar
(Hyderabad) and Virugambakkam (Madras), besides a joint venture with the Punjab State Warehousing
Corporation at Ludhiana. The con- struction of CFSs at Calcutta as well as Madhavaram and Dronagiri
node (out-side JLN Port) is in progress and is likely to be completed and commissioned during April-
May 93.
4. Financial Performance
Turnover
4.1 The total turnover increased from Rs. 1 1 7.46 crores in 1990-91 to Rs. 121.94 crores during 1991-
92. The major components of the turnover during 1991-92 are; (i) warehousing charges - Rs. 95.60
crores, (ii) agency commission and miscellaneous receipts - Rs. 12.65 crores, (iii) dividend on shares
held in State Warehousing Corporations Rs. 1.66 crores, and (iv) other income - Rs. 12.03 crores.
Profit and Dividend
4.2 The Corporation has been making profits and paying dividend consistently as given below :
(Rs. in crores)
---------------------------------------------------------------
Year Net pre-tax profit Dividend paid
---------------------------
To Central Others Total
Government
---------------------------------------------------------------
1988-89 34.04 2.06 1.68 3.74
1989-90 40.48 2.25 1.83 4.08
1990-91 43.47 2.62 2.14 4.76
1991-92 42.09 4.68 3.82 8.50
---------------------------------------------------------------
5. Internal Resources
5.1 The Corporation generates internal resources.
The generation of internal resources has increased significantly over the years. The Corporation is fully
relying on its internal resources for funding its storage construction programme and contributing
towards the equity capital of SWCs.
6. State Warehousing corporations
6.1 The Central Warehousing corporation has 16 associates in the State Warehousing Corporations.
The total investment of the Central Warehousing Corporation, which is a 50% shareholder in the equity
capital of State Warehousing Corporations, was Rs. 40.25 crores as on 31.3.1992. The State
Warehousing Corporations paid a total dividend of Rs. 1.66 crores to the Central Warehousing
Corporation during 1991-92. The covered storage capacity available with the State Warehousing
Corporations and the growth of capacity over the last 3 years is reflected in the following table:
(In lakh tonnes)
--------------------------------------------------------------
As on Owned Hired Total
--------------------------------------------------------------
31.03.1990 64.53 24.27 88.80
31.03.1991 65.98 25.81 91.79
31.03.1992 67.20 24.83 92.03
31.12.1992 68.51 22.39 90.90
--------------------------------------------------------------
CHAPTER IX
WELFARE OF SCHEDULED CASTES/ SCHEDULED TRIBES
Wherever possible, the Ministry has taken steps to extend the benefits of its
schemes to the Scheduled Castes and Scheduled Tribes. The Ministry and its
attached/subordinate offices as also the Public Sector Undertakings continued
their efforts to meet the statutory requirement for giving repre- sentation to
these communities in services.
2. The Ministry has 17 Save Grain Campaign teams operating in different
parts of the country. As part of the efforts to disseminate knowledge on
scientific storage practices to minimise foodgrains losses during storage, these
teams organised stipendiary training courses of 15 days duration and prerak
training course of 5 days duration in rural areas. A stipend of Rs. 150/- is
given to each trainee together with a certificate in the stipendiary training
programme and Rs. 75/- in the prerak training programme at the conclusion of
the training. The trainees from scheduled castes/ scheduled tribes under these
training programmes accounted for 23.30% and 8.31 % respectively, of the
total number of trainees during 1992 (AprilDecember, 1992) as given below:
---------------------------------------------------------------
Year Total No. of No. of %of
No. of SC ST ST/SC
trainees trainees trainees trainees
---------------------------------------------------------------
1992 (April-December)
1. Stipendiary 11718 2719 723 29.37
training
programme
2. Prerak 15929 3723 1574 33.25
training
Programme
---------------------------------------------------------------
3. The Ministry has 34 Mobile Food & Nutrition Extension Units (MEUs) and
33 Food & Nutrition Extension Centres (FNECs) in different part of the
country for imparting education and training in Nutrition & Home Scale
preservation of fruits and vegetables to the Community. MEUs and FNECs
have been amalgamated and re-named as Community Food & Nutrition
Extension Units (CF & NEU). These Units organise nutrition education
programmes in rural, urban and tribal areas in collaboration with the State
Govts. and voluntary Organisation and conduct two-week's training courses in
home scale preservation of fruits and vegetables and Nutrition. The coverage
of SC/ST Communities under the programmes organised by these units during
April, 1992 - December, 1992 is as under :
---------------------------------------------------------------
Unit/ Total No. of Total No. Total % of
Centre trainees/ of SC Trai- No. of SC/ST
beneficiaries nees/Benefi- ST Trai- train-
ciaries. nees/ ees/
Beneficia- benefi-
ries ciaries.
---------------------------------------------------------------
MEUs 3,76,340 98,872 54,891 40.85%
FNECs 19,192 2,522 720 16.89%
---------------------------------------------------------------
3.1 The four CF&NEUs at Ranchi, Bhopal, Udaipurand Vishakha patnam
organised 12 training courses for 326 trainees under the accelarated
programme for the development of SC/ST communities during the period
April-December, 1992.
4. Tribal Sub Plan
The plan schemes of the Ministry of Food consist of three broad components,
namely, Storage & Warehousing (including Post Harvest Operations), Sugar
and Nutrition. For the year 1993- 94, an outlay of Rs. 4.08 crores has been
proposed for the TSP areas which comes to 7.42 percent of the total Plan
outlay of Rs. 55.00 crores approved for the year.
It is anticipated that during the year 1992-93, an expenditure of Rs. 3.21
crores will be incurred on various schemes under the Tribal sub-Plan. This
represents 4.65 percent of the total outlay of Rs. 69.00 crores.
5.1 Out of 2228 employees as on Ist January, 1993 in the Ministry of Food,
527 belong to the Scheduled Castes and 1 1 7 to the Scheduled Tribes,
accounting for the 23.65% and 5.25% respectively, of the total strength. The
corresponding figures for the last year were 23.07% and 5.09%. Of 103
vacancies filled by direct recruitment and by promotion during the Calendar
Year 1992, 23 were filled by SC and 5 by ST candidates. The number of
employees from Scheduled Castes and Scheduled Tribes as on Ist January,
1993 vis-a-vis the total number of employees is indicated in Appendix-III.
Appendix-IV gives the total number of reserved vacancies filled by candidates
from Scheduled Castes and Scheduled Tribes communities during the
Calendar Year 1992.
5.2 In Food Corporation of India (FCI) out of a total of 68,017 employees as
on Ist January, 1993, 14,473 belonged to Scheduled Castes and 2169 to
Scheduled Tribes representing 21.28 percent and 3.19 percent, respectively, of
the total. Out of 1703 vacancies filled in FCI by direct recruitment and
promotion during the Calender Year 1992, 349 were filled by the Scheduled
Castes and 82 by' Scheduled Tribes candidates.
5.3 In the Central Warehousing Corporation (CWC) out of total of 9963
employees as on Ist January, 1993, 2284 belong to Scheduled Castes and 253
to Scheduled Tribes representing 22.92% and 2.54%, respectively, of the total.
Out of 281 vacancies filled in Central Warehousing Corpration by direct
recruitment and promotion during the Calendar Year, 1992, 49 were filled up
by Scheduled Castes and 31 by Scheduled Tribes.
5.4 The total number of employees and the number of Scheduled Castes and
Scheduled Tribes candidates from amongst them as on Ist January, 1993 and
the total number of reserved vacancies filled by the candidates belonging to
the Scheduled Castes and Scheduled Tribes during the Calendar Year 1992 in
these two Public Sector Undertakings have been shown in Appendix-V to VI.
ENDIX-I
MINISTRY OF FOOD
SANCTIONED POSTS AS ON 1.1.1993
Subordinate Office
-----------------------------------------------------------------------------------
-------------
of Ministry of Dte. of SGC Controller FNB NSI IGS
Total
ts Food Sugar Office of Kanpur Hap
(Proper) (Attached Accounts
-------------------------------------------------------------------------------------------------------
-------------
Office)
`A' 68 18 33 1 29 38 3
222
`B' 191 35 46 13 52 38 2
398
`C' 256 81 149 126 223 143 10
1090
`D' 135 33 124 27 159 193 8
784
-------------------------------------------------------------------------------------------------------
-------------
680 167 352 167 463 412 24
2494
-------------------------------------------------------------------------------------------------------
-------------
APPENDIX-II
MENT SHOWING RANGE OF MIIMUM SUGAR CANE PRICE NOTIFIED AND THE ACTUAL PRICE PAID BY THE SUGAR MULLS IN
RENT STATES 1991-92 SEASON
RES IN RS. PER QTL.)
-------------------------------------------------------------------------------------------------------
----------------------
Name of State Minimum notified
l cane price
Price
(provisional
-------------------------------------------------------------------------------------------------------
----------------------
Punjab 26.00 to 29.98
to 49.00
Haryana 26.00 to 31.20
to 54.00
Rajasthan 26.00 to 27.84
to 46.86
Uttar Pardesh 26.00 to 32.73
to 48.00
Madhya Pradesh 28.75 to 32.73
to 43.00
Gujarat 26.00 to 37.93
to 60.00
Maaharashtra 26.00 to 37.93
to 46.63
Bihar 26.00 to 38.54
to 44.50
Assam 26.00 to 32.12
to 38.00
Andhra Pradesh 26.00 to 26.31
to 40.59
Karanataka 26.00 to 37.32
to 45.00
Tamil Nadu 26.31 to 31.51
to 35.00
Kerala 26.00 to 27.53
Orissa 27.22 to 28.75
West Bengal 26.00
to 48.72
Nagaland 26.00
Pondicherry 26.00 to 29.06.
to 31.50
Goa. 26.00
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----------------------
Compilied on the basic Price Arrears Return for the Period ending
.92
APPENDIX-III
ement Showing the Number of Govt. Servants and the number of Scheduled Castes/Scheduled Tribes Amongst
e Ministry of Food and its Attached and Subbordinate
e as on 1.1.1993.
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----------------------------------------------------
ntage Scheduled Percatage
/ Permanent/ Total No. of Scheduled
tal Tribes to total
Temporary employees Castes
yees employees
-------------------------------------------------------------------------------------------------------
----------------------------------------------------
A/ Permanent
I Other than lowest rung of Class I 65 15
1 1.54
Lowest rung of Class-I 101 15
7 6.93
Total: 166 30
Temporary
Other than lowest rung of Class-I 3 1
-
Lowest rung of Class-I 1 -
Total 4 1
Permanent 288 44
8 2.78
Temporary 88 18
3 3.41
Total: 376 62
B/ Permanent 802 166
39 4.87
-II Temporary 155 37
8 5.16
Total: 957 203
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----------------------------------------------------
Appendix - III (Cont.)
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----------------------------------------------------
2 3 4
6 7
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----------------------------------------------------------
-III
D/ Permanent 549 156
43 7.83
- IV Temporary 121 27
5 4.16
Total 670 183
uding safaiwalas)
D/ Permanent 42 36
3 7.14
IV Temporary 13 12
-
Toral: 55 48
iwalas)
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----------------------------------------------------------
Grand Total: 2228 527
117 5.25
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