APP Users: If unable to download, please re-install our APP.
Only logged in User can create notes
Only logged in User can create notes

General Studies 2 >> Governance

audio may take few seconds to load

FOOD CORPORATION OF INDIA (FCI)

FOOD CORPORATION OF INDIA (FCI)

 
 
 
1. Context
 
Activist Ajay Bose received replies under the Right to Information (RTI) Act that the regional offices of the Food Corporation of India (FCI) in Rajasthan, Sikkim, Mizoram, Tripura, and Meghalaya have finalised tenders for procuring “woven laminated bags with an indicative logo of Mr. Modi” to distribute foodgrains.
 
2.Food Corporation of India (FCI)
 
The Food Corporation of India (FCI) is a government agency responsible for the procurement, storage, distribution, and maintenance of the public distribution system (PDS) of food grains in India. It was established under the Food Corporation Act of 1964 and operates under the Ministry of Consumer Affairs, Food and Public Distribution
 
Key functions of the Food Corporation of India include:
 
  • FCI is involved in the purchase of various food grains, primarily rice and wheat, from farmers at the minimum support prices (MSP) declared by the government
  • The FCI maintains large warehouses and storage facilities across the country to store the procured food grains. These storage facilities help in managing the food stock and ensuring its availability during periods of high demand or emergencies
  • FCI plays a crucial role in the distribution of food grains to various states and union territories. The food grains are distributed through the Public Distribution System (PDS) to ensure food security and affordability for the economically weaker sections of the society
  • FCI maintains a buffer stock of food grains to stabilize prices in the market and meet any sudden increase in demand. This buffer stock acts as a cushion against unforeseen events such as natural disasters or crop failures
  • FCI may intervene in the market to stabilize prices by buying or selling food grains when necessary
  • The corporation is involved in implementing various government schemes related to food distribution and management
3.Objectives of the FCI
 
The Food Corporation of India (FCI) has several key objectives, all aimed at ensuring food security, supporting farmers, and managing the distribution of food grains in India.
 
The primary objectives of FCI include:
  • FCI is tasked with procuring food grains, primarily rice and wheat, from farmers at the minimum support prices (MSP) declared by the government. This helps in providing farmers with a fair price for their produce and ensures a stable income
  • FCI operates warehouses and storage facilities to store the procured food grains. One of its key objectives is to maintain an adequate buffer stock to meet any sudden increase in demand, stabilize prices in the market, and address unforeseen events such as natural disasters or crop failures
  • FCI plays a central role in distributing food grains through the Public Distribution System. This system aims to provide subsidized food to economically weaker sections of the society, ensuring that essential commodities are accessible and affordable to those in need
  • FCI intervenes in the market to stabilize prices by buying or selling food grains as required. This intervention helps in preventing sharp fluctuations in food prices, which can impact both consumers and producers
  • FCI is involved in implementing various government schemes related to food distribution and management. This includes initiatives to provide food grains to vulnerable populations, such as Antyodaya Anna Yojana and the National Food Security Act
  • By procuring food grains directly from farmers at MSP, FCI supports agricultural practices and provides farmers with a reliable market for their produce. This helps in promoting agricultural sustainability and rural development
  • FCI's overall objective is to contribute to national food security by managing the procurement, storage, and distribution of food grains efficiently. This involves ensuring a steady and reliable supply of essential commodities across the country
  • FCI aims to maintain an efficient logistics system for the transportation and distribution of food grains. Timely and effective management of the supply chain is crucial to achieving the organization's objectives
4.Organizational Structure of the FCI
 
  • Headquarters: The FCI is headquartered in New Delhi, India.

  • Zonal Offices: FCI is divided into zones, each headed by a Zonal Manager. These zones are further subdivided into regional offices.

  • Regional Offices: Each zone comprises several regional offices, each headed by a Regional Manager. These regional offices are responsible for the implementation of FCI's activities in their respective regions.

  • District Offices: At the district level, FCI has offices responsible for coordinating procurement, storage, and distribution activities within the districts.

  • Functional Divisions/Departments: FCI has various functional divisions or departments that focus on specific aspects of its operations. These may include:

    • Procurement Division: Responsible for coordinating the procurement of food grains from farmers.

    • Storage Division: Manages the storage facilities and buffer stocks of food grains.

    • Distribution Division: Coordinates the distribution of food grains through the Public Distribution System (PDS) and other government schemes.

    • Finance Division: Handles financial matters, budgeting, and accounting.

    • Personnel and Administration Division: Manages human resources, personnel matters, and administrative functions.

  • Corporate Office Functions: FCI also has central functions that oversee corporate governance, policy formulation, and coordination between different zones and regions.

  • Board of Directors: The FCI is governed by a Board of Directors. The Chairman and Managing Director lead the board, and other directors may be responsible for specific functions such as finance, procurement, or distribution.

  • Field Staff: Field staff, including field officers and other operational personnel, play a crucial role in the day-to-day implementation of FCI's activities at the ground level.

5. Way Forward
 
FCI has procured a substantial amount of paddy (unhusked rice) during the ongoing Kharif Marketing Season (KMS) 2023-24, laying a strong foundation for the Public Distribution System (PDS)
FCI has been actively offloading wheat from its buffer stocks through e-auctions to manage rising wheat prices and ensure market stability. Open market sales of wheat from buffer stocks might be stopped in northern states from March 1, 2024
 
 
Source: The Hindu
 

Share to Social