Question : STORAGE OF FOODGRAINS

(a) whether a large quantum of foodgrains got damage due to poor management and shortage of storage space;

(b) if so, the details thereof and the reasons therefor indicating the total quantum of stocks held by the Food Corporation of India (FCI) and other agencies and the quantum that got damaged and became unfit for human consumption during the last one year;

(c) the reasons for non-allocation or sale of excess stocks by the FCI/ Ministry officials and the action taken/responsibility fixed against these officials so as to avoid such damage in future; and

(d) the steps being taken by the Government to increase its storage capacity so to avoid foodgrains from rotting?

MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a) & (b): No Madam, a large quantum of foodgrains has not been damaged due to poor management and shortage of storage space. Total stocks of foodgrains in Central Pool held by FCI as on 1.04.2011 was 234.02 lakh tons and with State agencies 238.55 lakh tons as on 1.4.2011. During last one year (2010-11), 0.63 lakh tons of foodgrains with FCI and 0.82 tons with State agencies accrued as damaged/non-issuable.

(c): During the current year 2011-12, besides allocating a quantity of 488.71 lakh tons of foodgrains (which includes 50 lakh tons additional APL allocation) under Targeted Public Distribution System (TPDS), an adhoc additional allocation of 50 lakh tons of rice and wheat has been made to States/UTs in May 2011 at BPL issue prices for distribution to BPL families upto March 2012. About 1 lakh tons of foodgrains have been released so far for calamity relief purposes. Further, in pursuance to the Hon’ble Supreme Court’s direction, in its order dated 14.05.2011 to allocate additional quantity of foodgrains to the 150 poorest districts in the country for distribution to extremely poor and vulnerable sections of the society, the Government has allocated 2,57,336.67 tons of foodgrains at BPL/AAY issue prices for three months for poor families identified in 45 districts of 8 States as per recommendation of Central Vigilance Committee on PDS set up by the Hon’ble Supreme Court. In addition 32.44 lakh tons of foodgrains have been released for other welfare schemes (OWS) as such as Mid-day meals scheme, wheat based nutrition programme under ICDS, Annapurna, welfare institutions, SC/ST/OBC hostels etc so far.As far as feasible, additional allocations as above has been made by the Ministry to dispose off excess stocks.

(d): In order to create additional storage space, Government has formulated a scheme for construction of godowns through private entrepreneurs under Private Public Partnership mode with a view to reduce dependence on CAP (Open Storage) by construction of covered godowns both in procurement as well as consumption areas through private entrepreneurs. For the consuming areas, storage capacity is to be created to meet four months requirement for Public Distribution System (PDS) and other welfare schemes in the State. For the procurement areas, the highest stock level in the last three years is considered for deciding the storage capacity required. Under the scheme, Food Corporation of India would now give a guarantee of 10 years for assured hiring to the private entrepreneurs. A capacity of about 152.97 lakh tons is planned in 19 States under the Scheme through private entrepreneurs and Central and State Warehousing Corporations. Out of this, so far tenders have been finalised for creation of storage capacity of 52.32 lakh tons by private entrepreneurs. CWC and SWCs are constructing 5.31 and 15.49 lakh tons respectively under the scheme, out of which a capacity of about 3.5 lakh tons have already been completed.