FOOD GRAIN MANAGEMENT IN INDIA
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Transcript of FOOD GRAIN MANAGEMENT IN INDIA
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FOOD GRAIN MANAGEMENT IN INDIA
PRESENTED BY:-
RICHA SHARMA
09MB-29
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OVERVIEW
Food grain management in INDIA is all about- Procurement, Storage &Distribution of food grains in the country.
The focus is on the attainment and maintaining self-sufficiency in
foodgrains to achieve food security.
In 1965 - to disseminate high-yielding varieties and ensure low-pricedfood to consumers led to the creation of the Food Corporation of India(FCI) and the Agricultural Prices Commission (APC).
The government follows a dual pricing policy -
procurement price at which it would purchase grains from farmers,
ration price (lower than the retail price) at which it would sell limitedquantities of grains as entitlement to households through Fair PriceShops (FPS).
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The instruments for food management are-
MSP(Minimum Support Price)
CIP(Central Issue Price)
The TPDS( Targeted Public Distribution System)operation
since ,1997-food grains management by State Govt.
Food stocks are maintained by Govt for-
Meeting the prescribed min. Buffer stock norms for food
security.
Monthly release of food grains through PDS.
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OBJECTIVES
Procurement of food grain from farmers atremunerative prices.
The procurement price is set by- the Commission forAgricultural Costs and Prices (CACP)
Based on considerations of cost of production
a fair return to land and family labour of the farmers
A system of open-ended procurement FCI is obligated to buy all the grains that farmers offer to sell
at the prescribed procurement price as long as the grainsmeet a certain quality standard .
The foodgrains stocks procured by the FCI consist of
operational stocks and buffer stocks.
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The operational stocks are used for distribution through
the Public Distribution System (PDS) and for variouswelfare schemes.
Each year, the Food Corporation purchases roughly 15-
20% of India's wheat production and 12-15% of its rice
production.
Foodgrains are being provided for various employment
programs such as the Food-for-Work programme, National
Rural Employment programme (NREP), the Rural Labour
Employment Guarantee programme (RLEGP), theJawahar Rozgar Yojana (JRY), etc.
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Distribution of food grains to the
consumers.The food grains are procured from the producers atminimum support prices and distributed among theconsumers, at uniform prices, all over the country.
The PDS has been able to check black marketing andhoarding of essential food grains.
The govt. runs AAY(ANTYODAYA ANNA YOJANA)
issue rice and wheat at the rate of Rs. 3/- per Kg. And Rs. 2/-per Kg., respectively to BPL families.
The validity period for lifting of allocated foodgrains under
TPDS is 50 days for each allocation month .
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Open Market Sale Scheme (OMSS), under which 30 lakh
tonnes of foodgrains have been allocated to state
governments for sale to retail consumers.
various welfare schemes-
Mid-Day-Meal, Nutrition Programme, SC/ST/OBC Hostels,
Welfare Institutions & Hostels, Annapurna, Sampoorn
Gramin Rozgar Yojna (SGRY), National Food for Work
Programme.
Maintenance of food buffers for
food security and price stability. to maintain the supply of food grains throughout the
year and also to maintain the supply in the event of
unforeseen circumstances.
to stabilize prices.
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Price policy
Production incentives,
remunerative prices-minimum
support prices.
Consumer protection-subsidised
ration prices
Procurement
Price stabilization- buffer stocks
Supplying welfare programs-
operational stock
Distribution system
Supplies to consumers- fairprice shops
FOOD GRAIN MANAGEMENT SYSTEM IN INDIA
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FOOD GRAIN MANAGEMENT
POLICIES IN INDIA
The overall objective of the foodgrains management policies in
India since the mid-1960s-
(i) ensure a reasonable support price which will induce farmers to
adopt improved methods of cultivation for increasing production
(ii) ensure that consumer prices do not rise unduly.
(iii) avoid excessive price fluctuations and reduce the disparity ofprices between States.
(iv) build up sizeable buffer stocks of wheat and rice from imports
and internal procurement
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POLICIES TO FACILITATE PRICE STABILIZATION
PROGRAMS
Monopoly Control Over International Trade,1965
to keep administrative control over the use of scarceforeign currency reserves to monitor and regulate food
imports.
Restrictions on Movement of Foodgrain ,1941
preventing hoarding and building stocks for
distribution in major urban centres.
India enforces movement restrictions in selected stateson the ground of preventing smuggling to neighbouringcountries.
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Restrictions on Private Storage
a more direct and deliberate policy -under the Essential
Commodities Act 1955, which set specific limits on the levelof foodgrains stock a trader can have at any given point in
time.
Restrictions on ProcessingThe restrictions on sales of milled rice in India started under
the Rice Milling Industry Act 1958.
to increase procurement for governments buffer stocking and
distribution through ration channels
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FOOD GRAIN MANAGEMENT :A
CONTINUING CHALLENGE Storage facility is poor-(in 2008-09) ,total= 913.23 LT of food grains were
stored & still need of additional 120 LT of storage.
Over 11,700 tonnes of foodgrains worth Rs 6.86 crore were found
"damaged" in government godowns.
excess stockholding by the government- foodgrain stock much higher
than the buffer stocking norm.
Unable to maintain additional strategic buffer for key commodities for
past 3 years.
Supply chain management suffers max. Inefficiency, cumulative wastage
is estimated to be 9.8% of agriculture component of GDP.
PDS is no longer able to stabilise prices effectively.
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The Diversification Challenge -Indian farm outputhas been diversifying away from cereals and towards high
value crop and livestock products.
Poor lifting of foodgrains by state latest only 12%of total
wheat allocated was lifted by them under open market sale
scheme
Farmland diversion from agriculture to non-agri. use.
Lack of uniformity of taxes on food produce in different partsof India.
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HOW TOOVECOME
Additional storage capacity should be created.
Modern warehouse construction- To dispose off surplus andun-storage worthy godowns and introduce concepts ofmechanized handling in the conventional godowns
Focus on PPP to improve effectiveness in farm sector .
Private marketing should be strengthened through reform ofthe Agricultural Produce Marketing Committees (APMC)Act.
Farmland should not be diverted for non-agricultural use,and food crop-cultivating land should not be diverted for non-
food crops.
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TPDS- to reintroduce as universal PDS
benefit as cash assistance
flexibility in formulating alternative local food security
schemes by state govt.
Essential Commodities Act (ECA )amendment needed for
large scale corp. Investment.
Permitting direct purchases from farmers.- giving farmers a
direct access to markets by eliminating the middlemen
wherever possible.
Strengthening the food distribution system to reach the poor
more effectively- alternative delivery mechanisms, for
example, grain banks.
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automatic and transparent policy of variable tariffs on both
agricultural imports and exports linked to the deviation of spotinternational prices from their long run trends-for stabilisation
of prices in an open economy.
To ensure adequate buffer for meeting requirements under
TPDS & Other Welfare Schemes.
Open market operations are vital for price stabilisation,
There should be a stable and predictable policy regarding open
market sales.
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THANK
YOU