The Hindu : National : FCI augmenting foodgrain supply to tsunami-hit States

Online edition of India's National Newspaper
Monday, Jan 24, 2005

National

National

FCI augmenting foodgrain supply to tsunami-hit States

By Vinay Kumar

NEW DELHI, JAN. 23. The Food Corporation of India has been loading daily about 10 rakes of foodgrains (containing 23,000 tonnes) to the tsunami-affected States of Tamil Nadu, Andhra Pradesh, Kerala and the Andaman and Nicobar Islands.

So far, during this month, about 100 foodgrain specials, carrying 2.3 lakh tonnes, have been made available to these States. The FCI has planned to supply 5.10 lakh tonnes to Tamil Nadu, 19,000 tonnes to Kerala and 15,000 tonnes to Andhra Pradesh during January.

Decentralised buying

"The policy of decentralised procurement has ensured that there was no immediate shortage in tsunami-hit states. While the supplies to these States are being augmented, decentralisation has paid dividend as being a key component in disaster management planning. The FCI holds comfortable stocks in its godowns spread over five zones in the country,'' the FCI Chairman and Managing Director, V.K. Malhotra, told The Hindu here to mark the completion of 40 years of the Corporation.

Under the decentralised procurement scheme, designated States could procure, store and issue foodgrains as per allotments made by the Centre under the Targeted Public Distribution System and other scheme.

Under the decentralised scheme wheat was procured in Uttar Pradesh, Madhya Pradesh, Chhattisgarh and Uttaranchal and paddy or rice was bought in West Bengal, U.P., Uttaranchal, Chhattisgarh and M.P.

Mr. Malhotra said the decentralised scheme was adopted to extend the reach of the FCI to States where there was any procurement. For example U.P., Uttaranchal, Orissa, West Bengal, M.P., A.P. and Chhattisgarh had scope for increasing the procurement of wheat and rice. It would help in reducing the subsidy to the extent of savings on freight and movement of stocks from Punjab and Haryana. Similarly, serious efforts were needed in Bihar, Jharkhand, Rajasthan, Karnataka and Maharashtra for providing infrastructure, mandis and procurement incentives which would extend the benefit of support price to about one crore farmers. Lack of awareness among farmers, absence of mandis and related infrastructure and unattractive procurement incentives were some of the reasons for low procurement.

The decentralised procurement plans, if implemented fully, would result in savings on freight, incentives to the State Governments and farmers. The freight savings as a result of local procurement and godown facility to the FCI could be to the tune of Rs. 662 crores, Mr. Malhotra said. For example, U.P. procures far too less of wheat considering its output. As a result, grains were to be brought to the State from Punjab.

Raising of funds

The FCI would come out with Government guaranteed bonds in March to raise funds for its operations at a lower interest rate. About Rs. 1,000 crores would be raised in the current fiscal.

As part of its action plan to bring more States under the umbrella of decentralised grain procurement, traders, rice millers and private companies would be appointed sub-agents of the FCI or State Governments to take up the procurement under price support operations but also storage, transportation, milling and delivery of rice to the PDS.

Printer friendly page
Send this article to Friends by E-Mail

National