Storage Crisis in Food Corporation of India

INN/New Delhi, @Infodeaofficial

Against total stocks of 565.11 LMT (as on 01.01.2020) with Central Pool, the total storage capacity available with Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and the State Agencies (both owned and hired capacity) including Covered and Plinth (CAP) storage, was 758.46 LMT (as on 31.12.2019).

Stocking Norms of foodgrains in Central Pool are as follows:

(Figures in LMT)

Under Open Market Sales Scheme (Domestic) [OMSS(D)], FCl sells excess stock of foodgrains out of Central Pool in the open market at pre-determined prices. The prices and the quantity of foodgrains to be offloaded under OMSS (D) are decided by Government taking into consideration MSP, Economic cost, procurement incidentals, surplus stocks etc.

Depending on requirement in specific areas and for modernization of the storage facilities, the Government implements the following schemes for construction of godowns and silos for storage of Central Pool Stocks in the country:

1. Private Entrepreneurs Guarantee (PEG) Scheme: Under this Scheme, which was formulated in 2008, storage capacity is created by private parties, Central Warehousing Corporation (CWC) and State Government Agencies for guaranteed hiring by FCI. As on 31.12.2019, a total capacity of 143.63 LMT has been created.  Under this scheme, no funds are allocated by Government for construction of godowns and full investment is done by the private parties/CWC/State Agencies.
2. Central Sector Scheme (erstwhile Plan Scheme): This scheme is implemented in the North Eastern States along with a few other States. Funds from annual budgetary allocation are released by the Government of India to FCI and also to the State Governments for construction of godowns. A total capacity of 1,84,175 MT has been completed by FCI and State Governments during the 12^th Five Year Plan (2012-17). This scheme has been extended from 01.04.2017 to 31.03.2022. A capacity of 51,925 MT has been created by FCI & State Governments from 01.04.2017 to 31.12.2019.
4. Construction of Steel Silos: In addition to conventional godowns, Government of India has also approved an action plan for construction of steel silos in the country for a capacity of 100 LMT in Public Private Partnership (PPP) mode for modernizing storage infrastructure and improving shelf life of stored foodgrains. As on 31.12.2019, steel silos of 7.25 LMT capacity have been created.

In addition, godowns are hired under Private Warehousing Scheme (PWS) to address immediate/urgent requirement of storage space. Godown under PWS can be hired after hiring all the capacity available with CWC/SWCs/State Agencies/PEG capacity available with them.

The details of food subsidy released to FCI during last 3 years and current year (in Rs Cr) is as follows:

*including National Small Savings Scheme (NSSF) loan of Rs 25,000 Cr

**including NSSF loan of Rs 40,000 Cr.

***including NSSF loan of Rs 70,000 Cr

This information was given in a written reply by the Minister of State for Ministry of Consumer Affairs, Food & Public Distribution Shri Danve Raosaheb Dadarao in Rajya Sabha today.