Question : QUALITY OF FOOD STOCKS



(a) whether stocks of old, poor quality and non-issuable foodgrains have piled up in the Government owned/rented godowns;

(b) if so, the details thereof along with the reasons therefor indicating the total storage space, foodgrains stocks, quantum of foodgrains damaged during each of the last three years and the current year and the manner in which the damage foodgrains have been disposed of or proposed to be disposed of, State-wise;

(c) the corrective steps including liquidation of stocks and the action against the negligent officers taken in this regard; and

(d) the total storage capacity proposed to be created along with the funds allocated for the purpose, State-wise?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(PROF. K.V. THOMAS)

(a)& (b): As per information received from Food Corporation of India (FCI) as on 1.11.2012 total 145756 tons of old wheat stock and 91159 tons of old rice stock was available in owned and rented godowns. Details are at Annexure-I. Further, 311942 tons of lower category foodgrain stocks (307845 tons wheat and 4097 tons of rice) was available as on 1.11.2012. Details are at Annexure-II. A quantity of 3631.35 tons of non-issuable foodgrains (2348.9 tons of wheat, 1271.45 ton of rice and 11.0 tons of paddy) was available with FCI as on 1.11.2012. Details are at Annexure-III. The quality of foodgrains during storage may deteriorate or some quantity may get damaged due to various reasons such as storage pest attack, leakages in godowns, procurement of poor quality stocks, spillage during movement and handling of stocks, exposure to rains, floods, negligence on the part of concerned persons in taking precautionary measures etc. The total storage capacity available with FCI as on 31.10.2012 is 374.55 lakh tons (covered 335.61 lakh and CAP 38.94 lakh tons) and with State agencies 341.35 lakh tons

(including 147.18 lakh ton CAP) as on 31.5.2012. Details are at Annexure –IV. The statements showing State-wise details of storage capacity available with FCI and stocks held as on 31.3.2012, 31.3.2011 and 31.3.2010 are at Annexure- V, VI & VII respectively. Details of region-wise stock of foodgrains accrued as damaged/ non-issuable in FCI during last three years and current year is at Annexure VIII. Damaged foodgrains are disposed off through rate running contract or tender sale. Region-wise details of disposal of damaged/ non-issuable foodgrains through tender sale during last three years is at Annexure IX.

(c ): Foodgrains under central pool are procured as per prescribed uniform quality specifications and stored in scientific godowns. The prescribed scientific code of storage practices are followed to maintain the quality of foodgrains and to avoid damage. Generally, ‘First in first-out’ (FIFO) principle is followed during liquidation of stocks. Foodgrains procured by the field functionaries are subjected to supervisory checks/inspections. As a result of such regular as well as surprise inspections, cases relating to procurement of sub-standard/damaged stocks were detected in FCI and deterrent action taken against the responsible officials. Disciplinary action taken against such officials during the last three years and current year are as under:-


Year No. of officials proceeded against for rotting /damage of foodgrains 2009-10 28 2010-11 20 2011-12 59 2012-13 10 (upto June’12) Total 117
Further, in view of surplus stocks of foodgrains under central pool, various steps have been taken to liquidate the stocks through additional allocations, Open market sale scheme, export etc. In addition, steps have been taken to augment the storage capacity.

(d): The storage capacity requirement depends upon the procurement level, buffer stocking and PDS requirement of the Consuming States. To augment the storage capacity Government of India has formulated a scheme called Private Entrepreneurs Guarantee (PEG) Scheme for construction of storage capacity though Private Entrepreneurs, CWC & SWCs. A capacity of 181.08 lakh tons has been approved for construction of godowns in 19 States under PEG scheme which include 20 lakh tons of storage capacity for silos. Besides the PEG scheme, there is a plan scheme for creation of total additional storage capacity of 5.40 lakh tons in North Eastern States to FCI under which during 11th Five Year Plan some other deficit States have also been covered. Under the PEG scheme a cumulative capacity of 31.56 lakh tons has been constructed till 31.10.2012, including the capacity constructed under the scheme in 2011-12. Under the plan scheme a capacity of 11255 tons has been constructed in the year 2011-12 and a capacity of 4570 tons in the year 2012-13(upto 31.10.2012). The details are at Annexure –X. During the 12th Five Year Plan FCI proposed to create 5,88,360MT capacity godowns with a tentative cost of Rs. 566crores in order to bridge the storage gap in North Eastern Areas including Sikkim and in other parts of the country. State-wise details of storage capacity proposed to be created and also tentative expenditure only, since no funds at this stage can be allocated for the ensuing years, is placed at Annexure-XI.