Government of India Ministry of Consumer Affairs, Food and Public Distribution

Department of Food and Public Distribution

Ensuring food security for citizens of the country

Narendra Modi Honble Prime Minister of India

Ram Vilas Paswan Honble Minister for C.A, F&PD

The primary policy objective of the Department of Food & Public Distribution is

to ensure food security for the country through timely and efficient procurement

and distribution of Food grains. This involves procurement of various Food

grains, building up and maintenance of food stocks, their storage, movement and

delivery to the distributing agencies and monitoring of production, stock and

price levels of Food grains.

The focus is on incentivizing farmers through fair value of their produce by way

of Minimum Support Price mechanism, distribution of Food grains to Below

Poverty Line (BPL) families and covering poor households at the risk of hunger

under Antyodaya Anna Yojana (AAY), establishing grain banks in food scarce

areas and involvement of Panchayati Raj Institutions in Public Distribution

System (PDS).

The Department is also responsible for formulation of policies concerning the

sugar sector such as fixing of Fair and Remunerative Price (FRP) of sugarcane

payable by Sugar factories, development and regulation of sugar industry

(including training in sugar technology). The Department also formulates

policies on export and import of food grains, sugar and edible oils.

Honble Minister in an Exhibition-cum-Seminar on the issue of held on completion of 2 years of the Government in Patna

on 17.05.2016

Honble Minister in National Consultation Meeting with the Ministers of States & UTs in-charge of

Food, Civil Supplie s & Consumer Affairs, held on 21.05.2016 in New Delhi.

SIGNIFICANT ACTIVITIES AND

ACHIEVEMENTS

OF

DEPARTMENT OF FOOD & PUBLIC DISTRIBUTION

(During June, 2014 to May, 2016)

GOVERNMENT OF INDIA

MINISTRY OF CONSUMER AFFAIRS,

FOOD & PUBLIC DISTRIBUTION

CONTENTS

S. No. TITLE PAGE No.

1. Significant Achievements 1-8

2. Food grains Management & Food Security 9-12

3. Distribution of Food grains 13-15

4. Reforms in Sugar Sector 16-17

5. Digital India 18-21

6. Swachh Bharat Mission 22-26

1

Chapter-1

SIGNIFICANT ACHIEVEMENTS

Rapid progress in implementation of National Food Security Act, 2013

Major reforms in Public Distribution System (PDS) since June, 2014.

Procurement processes improved to enable efficient and wider coverage

of farmers

Multiple policy initiatives taken for Sugar Sector

New initiatives taken to upgrade and modernize storage capacity.

The National Food Security Act was enacted in 2013 and was being

implemented in only 11 States/UTs in May, 2014. This has been given special

attention and as on April, 2016, 33 States/UTs are now implementing the Act.

The Government achieved significant milestones in reform of PDS by

making it more transparent and leak proof. Digitisation of ration cards has been

completed in all States/UTs while it was just 15 in June 2014, the number of

States/UTs with online foodgrains allocations increased to 25 from 5 in June

2014 and toll free numbers/ online grievance redressal system has now been

introduced by all States/UTs. Direct cash transfer of food subsidy to the

beneficiaries started in Chandigarh and Puducherry in September, 2015. In

Dadra & Nagar Haveli, two areas have started DBT from March, 2016.

Based on the recommendation of High Level Committee (HLC) on

restructuring of FCI, procurement policy for paddy modified to ensure increased

reach of MSP operations to more farmers. Millers levy on rice was abolished.

The Government also provided relief to the farmers during the year 2015-16 by

relaxing procurement norms for their crops affected by the unprecedented rains

& hailstorms.

Due to sustained efforts to facilitate payment of cane arrears of 2014-15,

which was Rs. 21,000 crore at peak in April, 2015 have come down to Rs. 896

crore as on 27.04.2016.

I. Improving Foodgrain Management

A High Level Expert Committee under the Chairmanship of Shri Shanta Kumar, MP, was constituted to make recommendations on re-structuring of

FCI. Based on the recommendations, several measures have been initiated to

improve the functioning of FCI and to bring in cost efficiency in its

operations.

2

To bring all operations of FCI Godowns online and to check leakage and automate operations at the depot level, Depot Online system has been

launched in 31 Depots on pilot basis across 27 States on 17th March, 2016. As

on 03.05.2016, this system has been implemented in 100 depots.

Sufficient food grains are available in Central Pool Stocks of FCI. Stocks as on 16.05.2016 are 511.65 lakh MT, comprising 301.11 lakh MT wheat and

210.54 lakh MT rice.

Besides 12 States/UTs which are already under Decentralized Procurement (DCP), Telangana has become a new DCP State for procurement of rice and

Andhra Pradesh & Punjab have also adopted this system partially during

2014-15 to improve the efficiency of foodgrains procurement and distribution

operations.

Under Open Market Sale Scheme (Domestic), 70.77 lakh MT wheat and 1.11 lakh MT rice has been sold by FCI during 2015-16. The sale of wheat during

2015-16 is higher than the quantum of 42.37 lakh MT wheat released during

the previous year 2014-15. Sale of rice was not undertaken under the scheme

during 2014-15. Further, during 2016-17, a target of 65-75 lakh MT wheat

and 20 lakh MT Grade A rice has been set for sale out of Central Pool under

this scheme. The said target of wheat will be reviewed, if situation changes

after wheat procurement is over and its central Pool surplus as on 1st July,

2016 is exactly known.

Adequate supply of food grains made using multi-modal transport in North Eastern States despite disruption in rail route due to gauge conversion from

Lumding to Badarpur. 80,000 MT foodgrains moved through roads every

month. 20000 MT foodgrains also inducted into Tripura via Bangladesh

through riverine route during Mega Block.

1,10,531 MTs of rice have been moved from Andhra Pradesh to Kerala for the first time through riverine/coastal movement in 2014-15 and 9596 MT in

2015-16 (upto December, 2015).

Adequate supplies of food grains maintained during natural calamities of Hud-Hud cyclone in Andhra Pradesh and devastating floods in J&K.

The Government has revised the buffer norms w.e.f. January, 2015 and Nomenclature of buffer norms has been changed to Foodgrain stocking

norms for the Central Pool. The Government has revised the norms for better

management of foodgrain stocks.

100 MT of rice was sent to Myanmar to help the flood affected pocket near Manipur border.

500 MT of Rice was supplied to Zimbabwe as humanitarian assistance.

3

The storage losses for the financial year 2015-16 has been brought down to -0.06% which was 0.14% during May, 2014. Also, the transit losses which

was 0.45% during May, 2014 has now been reduced to 0.42%.

814.84 lakh MT storage capacity is available for central pool stocks of food grains.

New Godowns having capacity of 13.45 lakh MT under Private Entrepreneurs Guarantee (PEG) Scheme, 1.08 lakh MT under Plan Scheme in North East

and 2.40 lakh MT through CWC have been added.

A transformation plan for the Warehousing Development and Regulatory Authority (WDRA) has been initiated to streamline the warehousing sector.

The work for creation of IT platform and rewriting of rules and procedures

has been initiated.

A road map for creation of 100 lakh MT storage capacity in the form of Steel Silos by FCI and other agencies including State Governments on PPP mode

for wheat and rice has been approved. Letter of Award (LoA) has been issued

by Food Corporation of India (FCI) in March, 2016 to the selected bidders for

total 2.5 lakh MT capacity at 6 locations, namely Changsari (Assam), Narela

(Delhi), Sahnewal (Punjab), Kotkapura (Punjab), Kaithar (Bihar) and

Whitefield (Karnataka). Capacity 4.5 Lakh MT of silos has been created in

Madhya Pradesh by the State Government. Work of 3.5 lakh MT has been

awarded in Punjab by the State Government.

611.10 lakh MT of foodgrains have been allocated to States/UTs for distribution under Targeted Public Distribution System (TPDS) and other

Welfare Schemes during 2015-16.

The Central Government also decided to share 50% (75% in the case of Hilly and difficult areas) of the cost of handling & transportation of foodgrains

incurred by the states and the dealers margin so that it is not passed on to the

beneficiaries and they get coarse grain @ Rs. 1/Kg, wheat @ Rs. 2/Kg and

rice @ Rs. 3/Kg.

II. Major Reforms in TPDS

For maintaining supplies and securing availability and distribution of essential commodity mainly foodgrains under TPDS, Department has made amendment

to rules to ensure that highly subsidised foodgrains reaches to the intended

beneficiary.

Implementation of Component-I of the Scheme on End-to-End Computerization of TPDS in States/UTs is in progress. Guidelines for FPS

automation shared with all States/UTs. In Jan, 2015, a MoU was signed with

4

STQC (Directorate under DeitY) to certify the PoS devices and Mobile

terminal.

Sustained efforts have resulted in significant reforms in TPDS making it more transparent and leak proof and better targeting of food subsidy. Improvement

in main components for this purpose was as follows:-

May, 2014 May, 2016

Fair Price Shops automated 5,835 1,21,942

Digitization of ration cards 75% 100 %

Aadhaar seeding of ration cards 2% 56 %

Online allocation of foodgrains started 9 States/UTs 25 States/UTs

Supply chain computerised 4 States/UTs 13 States/UTs

Toll free numbers/ online grievance

redressal system implemented

25 States/UTs 36 States/UTs

Direct Cast Transfer in PDS launched Nil 3 UTs

In order to facilitate direct cash transfer of food subsidy to the beneficiaries, Government has notified Cash Transfer of Food Subsidy Rules, 2015 on

21.08.2015 under the NFSA. These rules provide that Direct Benefit Transfer

(DBT) scheme will be implemented in a State/ UT with the consent of the

concerned State Government/UT Administration. Accordingly, keeping in

view of checking of leakage and diversions, this Department is pursuing with

States/UTs to opt for DBT scheme in lieu of foodgrains under which subsidy

component will be credited to bank accounts of beneficiaries who will be free

to buy foodgrains from anywhere in the market. For taking up this model, pre-

requisites for the States/UTs would be to complete digitization of beneficiary

data and seed Aadhaar and bank account details of beneficiaries. The scheme

has been launched in Chandigarh and Puducherry w.e.f. September, 2015 and

partially in Dadra & Nagar Haveli (2 Districts) from March 2016.

III. Supporting the Farmer

In order to give relief to the farmers affected by the unprecedented rains & hailstorms, Government relaxed the quality norms for the wheat procurement

to the maximum possible. The Central Government decided to reimburse the

amount of value cut imposed on such relaxation to the State Government/their

agencies so that farmers can get full Minimum Support Price (MSP) even for

shrivelled and broken wheat grains having lustre loss. Such a farmers centric

step was taken for the first time by the Central Government.

5

Govt. agencies procured 280.88 lakh MT wheat during RMS 2015-16, providing relief to the farmers affected by freak rains and hailstorm. During

RMS 2016-17, Govt. agencies have procured 193.54 lakh MT wheat as on

27.04.2016.

The Government imposed custom import duty on Wheat @ 10% w.e.f. 07.08.2015 and it was enhanced from 10% to 25% w.e.f. 19.10.2015

applicable upto 31.03.2016 to help the Indian Farmers. Custom duty has been

extended till 30.06.2016 on existing rate of 25%.

The Government has also relaxed procurement norms of paddy and resultant rice during KMS 2015-16 in affected areas of Andhra Pradesh and Uttar

Pradesh on the request of State Government to help the farmers and to avoid

the distress sale.

The drop in international prices of imported oils was affecting the prices of domestically produced edible oils consequent upon which farmers interest

was affected. Department of Food and Public Distribution had recommended

an increase in the import duty on edible oils with a dynamic range which

varies according to international prices. Accordingly, Department of Revenue,

vide Notification No. 46/2015-Customs dated 17.09.2015 increased the

import duty on Crude oils from existing 7.5% to 12.5% and the import duty on

Refined oils from existing 15% to 20%.

With effect from 01.10.2015, levy of rice on millers has been discontinued. This will save farmers from exploitation and now they will not depend on

millers for selling their paddy. This initiative has improved delivery of MSP

to the farmers for paddy even in the situation of market prices ruling below

the MSP, especially in the states of Andhra Pradesh, Telangana, Uttar Pradesh

and West Bengal, where the farmers are substantially dependent on millers for

selling their paddy.

IV. Enhancing procurement in Eastern India

State-wise 5-year Action Plans have been drawn up by FCI for Uttar Pradesh (with focus on Eastern U.P.), Bihar, Jharkhand, West Bengal & Assam.

Procurement in Chhattisgarh and Odisha is already robust. Attempt is to

increase procurement of rice from these States and to reach out to all farmers

in various paddy growing districts of these States.

FCI has opened 232 procurement centres in comparison to only 141 in previous season. Besides Government Agencies, FCI in consultation with

States has engaged private parties to expand procurement operations in

hitherto poorly covered clusters in Eastern U.P., Jharkhand and West Bengal.

A total of 53,036 procurement centres have been opened in this season in

these States by FCI, State Govt. Agencies and private parties.

6

As on 26.04.2016, 65.62 lakh MT of paddy in terms of rice has been procured in these States in this season (KMS 2015-16) compared to only 40.82 lakh MT

in season KMS 2014-15 and 26.38 lakh MT in KMS 2013-14.

V. Reforms in Sugar Sector

Scheme for providing incentive on export of raw sugar has been extended for 2014-15 sugar season and incentive rate was increased from Rs. 3300 per MT

to Rs. 4000 MT. Under the scheme, Rs. 383.87crores have been disbursed to

the sugar industry to facilitate liquidation of cane dues arrears of farmers.

Extended financial assistance to the sugar mills through Soft Loan Scheme with interest subvention @ 10% per annum for one year. Under this scheme,

Rs.4305 crore has been disbursed directly to cane farmers account on behalf

of the sugar mills. This has benefited more than 32 lakh farmers associated

with 313 sugar mills.

Remunerative prices of Ethanol for supply under EBP have been fixed in the range of Rs. 48.50-49.50 per litre, a substantial increase over previous years.

Excise duties on ethanol for supply under EBP in the current season has also

been waived off to further incentivize ethanol supplies to improve the

liquidity position of sugar mills enabling them to clear cane dues of farmers.

As a result, supply of ethanol under EBP has been increased to about 68 crore

litres in 2014-15 season as against only 33 crore litres in 2013-14. Further,

during current season, it is expected that supply of ethanol may cross 130

crore litres. Blending targets under Ethanol Blending Programme (EBP) has

been scaled up from 5% to 10%.

Government, on 02-12-2015, has notified performance based production subsidy scheme providing subsidy @ Rs. 4.50 per quintal of cane crushed in

2015-16 sugar season to sugar mills to offset the cost of cane and facilitate

timely payment of cane price dues of farmers for sugar season 2015-16.

Funds shall be directly credited in to farmers accounts on behalf of sugar

mills.

As a result of these interventions, the ex-mill sugar price which was hovering around Rs.23 per kg during last sugar season has increased to about Rs.33-34

per kg. Cane price arrears for sugar season 2014-15 have significantly been

reduced from its peak level of Rs. 21000 crore in April, 2015 to Rs. 896 crore

as on 27.04.2016.

VI. Other Achievements

FCI has started procurement of pulses from farmers at market price under Price Stabilisation Fund operation.

7

In order to have better targeting of Other Welfare Schemes for poor, a Committee of Ministers set up under the Chairmanship of Honble Minister

for Consumer Affairs, Food and Public Distribution. The Committee not only

decided continuation of foodgrain allocation for other welfare schemes but

also decided nutritional support by providing milk and eggs etc. under the

schemes.

Central Warehousing Corporation had achieved an all time high turnover of Rs. 1562 crore in 2014-15 and Rs. 1580 crore (Provisional) in 2015-16. CWC

also paid a dividend of Rs. 20.21 crore in 2014-15 and an Interim Dividend of

Rs. 10.10 crore in 2015-16 to the Government

CRWC has paid a dividend of Rs. 6.08 crore in the year 2014-15 and has now paid interim dividend of Rs. 4.06 crore in the year 2015-16.

During the financial year 2014-15 and 2015-16, CRWC has taken up various projects under CSR Activities in the sectors of education, health, protection of

national heritage/art, Swachh Bharat Abhiyan etc. which have really impacted

the lives of people in the society at large.

Achievements of WDRA:

VII. Swachh Bharat Abhiyan

12 rooms of the Department which were in very bad condition have been modernized and modular furniture has been provided in these rooms thereby

imparting them neat and attractive outlooks. Renovation of three toilets of this

Department is being done through CPWD.

Item As on 1st

May, 2014

As on 1st

May, 2016

Number of Registered

Warehouses

403 1237

Negotiable Warehouse Receipts

(NWRs) issued

22419 54590

Value of commodities deposited

against NWRs

Rs. 2355.6

Crore

Rs. 4361.31

Crore

Loan availed against NWRs Rs. 804.67

Crore

Rs. 1396.56

Crore

8

Pest control and rodent control measures are being undertaken at regular intervals.

Swachh Bharat logo has been printed on letters and other stationery items for spreading awareness about cleanliness.

Drawing-cum-painting competitions were also organized for the wards of employees of the Department and poetry & essay competitions on the subject

cleanliness were organized for creating awareness amongst the employees of

the Department. This Department organized a blood donation camp on

05.10.2015 in Krishi Bhawan with the help of Red Cross.

VIII. Food subsidy released

An amount of Rs.1,13,171 crore in 2014-15 and an amount of Rs.1,34,919

crore in 2015-16 has been released as Food Subsidy directly to DCP States

and FCI.

Honble Minister during inaugration function of Depot Online system in Food

Corporation of India

9

Chapter-2

FOOD GRAIN MANAGEMENT AND FOOD SECURITY

Reduction in Old Stocks of Food Grains

Food grain stocks available with FCI are now not more than two years old.

This has been brought about by enhanced allocation in TPDS and disposal of

surplus stocks through sale in market.

Increase in Storage Capacity

FCI has its own grid of covered godowns in all states to safely stock the

Central Pool food grains. More than 814 lakh MT storage capacity was available

for Central Pool stocks of food grains as in December, 2015. Since, higher MSP

coupled with better outreach has led to higher procurement in the past few years, a

necessity was felt to augment the storage capacity for food grains. The Department

is implementing two schemes, namely Private Entrepreneurs Guarantee (PEG)

Scheme and Plan scheme, for augmenting the covered storage capacity.

Under the PEG Scheme, godowns are constructed in PPP mode and the

land and construction cost is borne by the selected partners. FCI on its part

guarantees 10 years usage of storage capacities to the private investors and 9 years

to CWC and SWCs.

Under the scheme, about 133.46 lakh MT capacity have been completed

till 31.03.2016 and 124 lakh MT capacity have been taken over by FCI. A road

map for creation of 100 LMT storage capacity in the form of Steel Silos by FCI

and other agencies including State Governments on PPP mode for wheat and rice

has been approved . Letter of Award (LoA) has been issued by Food Corporation

of India (FCI) in March, 2016 to the selected bidders for total 2.5lakh MT capacity

at 6 locations, namely Changsari (Assam), Narela (Delhi), Sahnewal (Punjab),

Kotkapura (Punjab), Kaithar (Bihar) and Whitefield( Karnataka) . Capacity 4.5

Lakh MT of silos has been created in Madhya Pradesh by the State Government.

Work of 3.5 Lakh MT has been awarded in Punjab by the State Government.

Government is also constructing godowns under Plan scheme with focus

on the North Eastern States. The capacity created in 12th Five Year Plan till 31st

March, 2016 is 1,13,700 MT.

PEG godown at Dhuri

10

Procurement of Food Grains

The Central Government extends price support to paddy, wheat and coarse

grains through the Food Corporation of India (FCI) and State Agencies. All the

foodgrains conforming to the prescribed specifications offered for sale at

specified centers are bought by the public procurement agencies at the Minimum

Support Price (MSP). The producers have the option to sell their produce to

FCI/State Agencies at MSP or in the open market as is advantageous to them.

Foodgrains procured by the State Governments and their agencies are ultimately

taken over by the FCI for distribution throughout the country.

To improve outreach of MSP operations to cover more farmers and extend

direct benefits to them, the Government has discontinued the levy on rice since

October, 2015. With a view to effect savings in the form of reduction in the

outgo of food subsidy, enhancing the efficiency of procurement and PDS and

encouraging local procurement to the maximum extent thereby extending the

benefits of MSP to local farmers, scheme of Decentralized Procurement (DCP)

of foodgrains was introduced in 1997-98. Under the DCP, the State Government

itself undertakes direct purchase of paddy and wheat and procurement of levy

rice on behalf of Government of India. The Central Government meets the entire

expenditure incurred by the State Governments on the procurement operations as

per the approved costing. Presently 14 States / UTs viz. West Bengal, Madhya

Pradesh, Bihar, Chhattisgarh, Odisha, Tamil Nadu, Karnataka, Kerala,

Uttarakhand, Gujarat, Punjab, Andhra Pradesh, Telangana and A&N Islands are

undertaking paddy/wheat procurement under the scheme. In addition, the State of

Rajasthan have partially adopted the scheme for limited number of districts.

Sufficient food grains are available in Central Pool Stocks of FCI. Stocks

as on 16.05.2016 are 511.65 lakh MT, comprising 301.11 lakh MT wheat and

210.54 lakh MT rice.

PEG godown at Dhuri

Silos

11

Trend of production & procurement of Wheat and Rice during the last five

years is as under:

Wheat Rice

Movement of Food Grains

Food Corporation of India undertakes the activities connected with the

movement of foodgrains for the Public Distribution System and other welfare

schemes. Movement division in the Department closely monitors the movement

and co-ordinates with FCI and Railways. Optimum evacuation of foodgrains

from the procuring regions and induction and stocking of foodgrains in the North

Eastern States, Jammu & Kashmir and other deficit areas, identified from time to

time is specially monitored.

FCI has also initiated coastal movement of foodgrains from Andhra

Pradesh to Kerala and riverine movement in NE States. Despite disruption in rail

route due to gauge conversion from Lumding to Badarpur in NE States and

natural calamities of Hud-Hud cyclone in Andhra Pradesh and devastating floods

in J&K, food supplies of food grains were maintained in the States.

Disposal of Surplus Food Grains under Open Market Sale Scheme

On directions of Govt. of India, FCI sells food grains in the open market

under Open Market Sale Scheme (Domestic) at pre-determined prices from time

to time through e-auction. To fast track the process, in January 2015 the

Government formed a Committee consisting of Secretary (Food & Public

Distribution), Secretary (Expenditure), Secretary (Consumer Affairs) and

868.74 948.82 935.01

958.54 865.27

283.35 381.48

250.92 280.23 280.88

0

200

400

600

800

1000

1200

2011-12 2012-13 2013-14 2014-15 2015-16

Production (in lakh tonnes)

Procurement (in lakh tonnes)

1053.11 1052.41 1066.45 1054.82 1036.12

350.41 340.44 318.45 382.69 323.88*

0

200

400

600

800

1000

1200

2011-12 2012-13 2013-14 2014-15 2015-16

Production (in lakh tonnes) Procurement (in lakh tonnes)

Movement of foodgrains by rail to Adanis Scientific

Silo at Kaithal (Haryana)

Coastal movement of foodgrains

Marketing Seasons

Marketing Seasons

*as on 10.05.2016

12

Secretary (Commerce) (for export related issues) for making recommendations

on the quantity and price for the sale of food grains stock in excess of buffer and

strategic reserve norms through Open Market Sale Scheme (Domestic). On the

basis of the recommendation of this Committee the policy for sale of surplus

stock of food grains under OMSS (D) for the concerned financial year is framed

with the approval of Minister (CAF&PD) and the Minister of Finance. Quantity

of food grains sold under this scheme during the years 2014-15 and 2015-16 are

shown below:

Year Wheat (in lakh

MT)

Rice (in lakh MT)

2014-15 42.37 Sale of Rice under OMSS(D) during 2014-15

was not undertaken

2015-16 70.77 1.11

13

Chapter-3

DISTRIBUTION OF FOOD GRAINS

Government is committed to provide food grains - wheat and rice, at

reasonable prices to the weaker sections of the society. Food grains are allocated

to State/UT Governments for distribution under Targeted Public Distribution

System (TPDS)/ National Food Security Act (NFSA) and Other Welfare

Schemes (OWS).

Allocation of Food Grains under TPDS/NFSA

Government has enacted the National Food Security Act, 2013, which

came into force w.e.f. 05.07.2013. Under the Act, eligible households are

entitled to receive foodgrains at highly subsidized price of Rs.1/-, Rs.2/- and

Rs.3/- per kg for coarsegrains, wheat and rice respectively @ 35 kg per family

per month to Antyodaya Anna Yojana (AAY) families and @5 kg per person per

month to priority households. So far, implementation of the Act has started in 33

States/UTs i.e. Andhra Pradesh, Assam, Delhi, Goa, Haryana, Rajasthan,

Himachal Pradesh, Bihar, Punjab, Karnataka, Chhattisgarh, Maharashtra,

Madhya Pradesh, West Bengal, Chandigarh, Lakshadweep, Tripura, Puducherry,

Uttarakhand, Jharkhand, Telangana, Odisha, Sikkim, Uttar Pradesh, Daman &

Diu, Meghalaya, Jammu & Kashmir, Andaman & Nicobar, Dadra & Nagar

Haveli, Gujarat, Arunachal Pradesh, Mizoram and Manipur. Out of these, the

UTs of Chandigarh, Puducherry and some parts of Dadra & Nagar Haveli are

following DBT mode and providing direct cash transfer of food subsidy to the

beneficiaries. In remaining three States which are not under NFSA coverage,

foodgrains are being allocated under erstwhile TPDS.

The States/UTs which have not implemented NFSA are being allocated

foodgrains under the erstwhile Targeted Public Distribution System (TPDS)

under which Government of India has been making allocation of foodgrains @

35kg per family per month for Antyodaya Anna Yojna (AAY) and Below

Poverty Line (BPL) families and @ 10kg-35kg per family per month for Above

Poverty Line (APL) families.

For the year 2015-16, an allocation of 289.46 lakh MT of foodgrains has

been made under NFSA and 207.31 lakh MT of foodgrains has been made to

States/UTs which have not implemented NFSA so far, under existing TPDS. In

addition a quantity of 50.01 lakh MT has been allocated for APL and BPL

families in the non-NFSA States/UTs. The Government has also allocated a

quantity of 11.70 lakh MT for natural calamities, festivals and additional TPDS

requirements, etc.

14

Allocation of Food Grains under Other Welfare Schemes

The Government also makes allocation of subsidized foodgrains for the

Other Welfare Schemes (OWS) administered by various Ministries/Departments

of the Central Government such as Mid-day-Meal Scheme (administered by M/o

Human Resources Development), Wheat Based Nutrition Programme

(administered by M/o Woman & Child Development), Rajiv Gandhi Scheme For

Empowerment of Adolescent Girls - SABLA (administered by M/o Woman &

Child Development), Annapurna Scheme (administered by M/o Rural

Development), Welfare Institutions Schemes and SC/ST/OBC Hostels Scheme

(both administered by D/o Food & Public Distribution). During the current year,

the Government has so far allocated a quantity of 35.98 lakh MT under OWS.

Status of Implementation of NFSA

NFSA provided for a period not exceeding 365 days after the

commencement of the Act for identification of eligible households for receiving

subsidized foodgrains under Targeted Public Distribution System (TPDS). At the

end of this one year period i.e. 04.07.2014, implementation of the Act had started

only in 11 States/UTs. Need for early implementation of the Act was vigorously

pursued with States/UTs, and as a result 22 more States/UTs have joined NFSA

since June 2015. Total no. of States/UTs implementing NFSA now is 33 and

more than 72 crore persons are being covered under the Act.

Status of implementation of the Act and progress in end-to-end

Computerization of TPDS are reviewed regularly at various levels. A

Consultation Meeting with the Food Ministers of States/UTs was held on

07.07.2015, under the chairmanship of Honble Ministers for Consumer Affairs,

Food & Public distribution (CA, F&PD) Another meeting under the

chairmanship of Honble Minister (CA, F&PD) with Food Secretaries of

States/UTs was held on 23.11.2015. Secretary (F&PD) also reviewed the

progress with State Food Secretaries on 01.09.2015. A separate meeting with

North Eastern States on NFSA roll out, TPDS computerization and fair price

automation was held in Guwahati on 19.11.2015.

The TPDS (Control) Order, 2015 notified by the Department regulates the

implementation of TPDS as per the provisions of the NFSA in the States/UTs. It

supersedes the existing PDS (Control) Order dated 31.08.2001. However, the

provisions of the PDS (C) Order, 2001 shall continue to have effect as against the

corresponding provisions of the TPDS(C) Order, 2015, in any State which has

not implemented the NFSA or is implementing it only in part.

Further, in order to remove the restrictions imposed by the TPDS (C)

Order, 2015 on fresh identification of AAY families, the TPDS (C)

Amendment Order, 2015 has been notified on 29.10.2015.

15

To share the initiatives and best practices as well as the latest

development and achievements, the Department has launched the quarterly

newsletter namely Khadya Suraksha. So far the Department has issued three

editions of newsletter namely Khadya Surakhsha (i) January-March 2015,

(ii) April-June 2015 and (ii) July-December 2015 of which first two editions

are also available on the homepage of this Departments website

(http://www.dfpd.nic.in/).

Honble Minister in National Consultation Meeting with the Ministers of States & UTs in-

charge of Food, Civil Supplies & Consumer Affairs, held on 21.05.2016 in New Delhi.

http://www.dfpd.nic.in/

16

Chapter-4

REFORMS IN SUGAR SECTOR

Since last five sugar season, the production of sugar have been more than

the domestic demand, leaving surplus for export. Production of Sugar during the

last 4 years and estimated production for current season are as under:

Excludes 6.76 lakh tones white sugar produced from imported raw sugar.

Excludes 1.05 lakh tones white sugar produced from imported raw sugar.

(E) Estimated.

Scheme for providing incentive on export of raw sugar has been extended for

2014-15 sugar season and incentive rate was increased from Rs. 3300 per MT to

Rs. 4000 MT.

Extended financial assistance to the sugar mills through Soft Loan Scheme

with interest subvention @ 10% per annum for one year. Loan has been disbursed

directly to cane farmers account on behalf of the sugar mills.

Remunerative prices of Ethanol for supply under EBP have been fixed in the

range of Rs. 48.50-49.50 per litre. Excise duties on ethanol for supply under EBP

in the current season has also been waived off to further incentivize ethanol

supplies to improve the liquidity position of sugar mills. Blending targets under

Ethanol Blending Programme (EBP) has been scaled up from 5% to 10%.

The Government has enhanced import duty on sugar from 25% to 40% to

discourage imports. The export obligation period has been reduced from 18 months

to 6 months under the Advanced Authorized Scheme.

263.43 251.83 245.54

284.63

251.6

227.25 230 243

256 256

0

50

100

150

200

250

300

2011-12 2012-13 2013-14 2014-15 2015-16 (E)

Figu

res

in la

kh t

on

ne

s

Production of Sugar

Domestic Demand

17

Government, on 02-12-2015, has notified performance based production subsidy

scheme providing subsidy @ Rs. 4.50/- per quintal of cane crushed in 2015-16

sugar season to sugar mills to offset the cost of cane and facilitate timely payment

of cane price dues of farmers for sugar season 2015-16. Funds is directly credited

into farmers accounts on behalf of sugar mills.

In order to mobilize more funds for various interventions to be undertaken to

facilitate liquidation of arrears of cane dues, such as interest subvention based soft

loans, export incentives and production assistance, the Sugar Cess Act, 1982 has

been amended vide notification dated 28-01-2016.

The Fair & Remunerative Price (FRP) of sugarcane payable to the farmers in

sugar season 2015-16 by sugar mills has been enhanced by Rs. 10/- per quintal to

Rs. 230 per quintal.

Honble Minister in a meeting with the Ministers of major sugarcane

growing States

18

Chapter-5

DIGITAL INDIA

Department of Food & Public Distribution has been playing a pioneer role in

propagating IT based development, solutions to facilitate rapid growth and

transformation in the ICT culture for efficient and effective delivery of services.

Department is constantly in the pursuit of developing/implementing state of-the-art

application software related to various areas of importance. It has also undertaken

various projects related to capacity building and is also following Central

Government e-Governance action plan. Various initiatives taken under e-

governance to make Digital India Programme successful are as follows:

a. Department is implementing a Plan Scheme on End-to-end Computerisation

of TPDS Operations on cost sharing basis with States/UTs. Costs are being

shared on 90:10 basis with North Eastern States and on 50:50 basis with other

states/UTs. The scheme is a Mission Mode Project (MMP) under the National

e-Governance Programme. The progress of implementation of Component-I of

the scheme is as follows:

i. Digitization of FPS database godowns database has been completed by all

States/UTs. Digitalization of ration cards/beneficiary data base has also

been completed in 36 States/ UTs. Upto May, 2016, overall Aadhaar

seeding of 56% has been achieved across States/UTs.

ii. Online allocation of foodgrains has been implemented fully in 25

states/UTs. Supply chain has been computerized in 13 States/UTs.

iii. Toll free helpline for TPDS and Online grievance redressed mechanism

for registration and tracking of grievance is available in 36 Sates/UTs.

iv. The Department in consultation with NIC, Deity and UIDAI, has prepared

and circulated Guidelines for Fair Price Shops (FPS) Automation and the

same were shared with States/UTs in November, 2014 and updated in

May, 2015. Consultations were held with States/UTs, UIDAI and NIC

etc. to discuss various aspects of FPS automation rollout in November,

2015. Upto May, 2016, 1,21,942 FPSs have been automated across the

country, and this is likely to be increased to 3,06,526 FPSs by March,

2017. Communication regarding providing of financial assistance to

States/UTs for FPS automation has been issued.

v. The Cash Transfer of Food Subsidy Rules, 2015 was notified on

21.08.2015, under the National Food Security Act, 2013. The Rules

stipulate that the DBT Scheme shall be implemented in identified areas

for which there is a written consent of the States Government for

19

implementation of the scheme. Section (5) of the Rules stipulate that the

amount of food subsidy payable to beneficiaries shall be computed by

multiplying entitled quantity of food grains with difference between 1.25

times applicable Minimum Support Price (MSP) and the Central Issue

Price (CIP) or as may be revised from time to time by the Central

Government. Direct Benefit Transfer (DBT) is being implemented on

pilot basis in UTs of Chandigarh and Puducherry w.e.f. September, 2015.

In Dadra & Nagar Haveli, it is being implemented partially w.e.f.

1.3.2016.

b. In order to provide transparency in the data management of sugar mills as well

as Governments working, the Directorate of Sugar has developed a web based

platform (esugar.nic.in/sugar_pii) for online submission of inputs by sugar mills

on monthly basis. This has helped the Government to take prompt and informed

policy decisions for better management of the sugar sector. The portal also

provides windows for online connectivity with the State Governments for

getting inputs regarding production, stocks utilization of levy sugar for PDS,

cane price arrears of sugar mills on fortnightly basis etc.

c. Bio-metric attendance, Aadhar Based Attendance System (ABAS) has been

installed in the Department to enforce punctuality. Effort is being made to make

e-Office fully functional. Many initiatives have been taken in this direction

under supervision of senior officers. All Sections have been instructed to ensure

that whenever new files are opened they may be opened electronically. Further,

all the employees are being provided DSCs and other basic requirements with a

view to make e-filing fully operational. The e-Office products like File

Management System (FMS) is being implemented partially while Knowledge

Management System (KMS), e-Leave is fully functional and being

implemented in the department. User can also view their Pay-Slip and Income

Tax details through the DFPD e-office portal. Effort is also being made to make

Personal Information Management System (PIMS), e-Tour operational. In this

regard necessary training with help of NIC has been imparted to Sr. PPS, PPSs,

PSs and PAs and other concerned personnel. Online ePAR (SPARROW) has

been implemented since August, 2014 for senior officers. Further, Department

has decided to get all the existing old files/records/documents digitized through

outsourced firm. Tender for the purpose is to be floated by department for

outsourcing the digitization of existing files/records/documents. Steps towards

digitization of service book have also been initiated in the department. RTI

request and Appeal Management Information System (RTI-MIS) web based

20

software developed by NIC is installed in the central server to track the RTI

requests and appeals. Public Grievance portal is available on official website of

the Department. Other initiatives taken in the Department are as under:

i. Constitution of a Core Team to handle Social Media Activities in the

Department.

A Core Team has been constituted in the Department under the charge of

a Joint Secretary & consisting of 3 Director level officers to deal with

Social Media Activities.

ii. A Twitter Account has been opened for the Department.

iii. The following initiatives have been taken under the e-Governance/ Digital

India Programmes by the Department.

The Departments Website (http://www.dfpd.nic.in) has been re-designed/

updated to make it GIGW (Guidelines for Government Indian Websites)

compliant in May, 2015.

A beginning has been made in opening e-files. 1790 number of files have

been opened in this format so far. Efforts are on for digitization of various

documents & records.

The DFPD takes active participation in the e-Governance activities/

programmes etc. organized by the DeitY etc. by way of an adequate

representation of its officers in them.

d. Food Corporation of India (FCI) is one of the first Government organizations to

start using the MyGov platform for involving citizens in the governance

process. Depot online project is being implemented with an objective to

automate all operations of FCI at the depot level which would include

procurement, storage and movement of foodgrains. FCI has also implemented

e-tendering and in the last 3 years 10037 tenders have been floated on e-

tendering. FCI has also implemented Integrated Information System for

Foodgrains Management (IISFM) under which information with regard to

receipt and issue of foodgrains and stock position is received daily from all the

depots. An Online Procurement Monitoring System has been launched for

reporting and monitoring procurement of wheat, paddy and coarse grain in the

country on daily basis.

e. Central Warehousing Corporation (CWC) is exploring implementation of

Integrated Business Management Solution (IBMS) project. This project

envisages linking all the operations units of the Organization to facilitate faster

decision both at the Corporate Office and Regional Offices level.

http://www.dfpd.nic.in/

21

f. Warehousing Development & Regulatory Authority (WDRA) has undertaken a

transformation plan which envisages IT based system for its major activities.

The plan inter alia includes online application for registration, online

registration of warehouses and issue of negotiable warehouse receipt in

electronic form for which draft rules are to be finalized shortly. A consultant

has been selected for writing Detailed Project Report for building IT based

system.

g. Continuous efforts are being made in the Department and its Organizations for

exploring more items which can be made online to make the Digital India

Programme successful both at the National and State/UT level.

e-Pos device in PDS

22

Chapter-6

SWACHH BHARAT MISSION

The Honble Prime Minister of India had given a call for Swachh Bharat as

a mass movement to realize Gandhijis dream of a clean India by the 150th

birth

anniversary of Mahatma Gandhi in 2019.

An action plan upto 2019 was chalked out by the Department of Food & Public Distribution to make the Swachh Bharat Mission successful and work are

being done accordingly. Since 25.09.2014 various special drives/ campaign/

pakhwada have been carried out in the Department from time to time and as per

directions issued by the Ministry of Drinking Water and Sanitation and by the

Cabinet Secretary. Recently, Department has observed the Swachhta

Pakhwada from 16th to 30

th April, 2016.

To create awareness among the employees for Swachh Bharat Mission, Banners, small plastic boards showing Dont litter were displayed at

prominent places in Krishi Bhawan during the campaign period. Department

also organized Drawing-cum-painting competitions for the wards of employees

of Department of Food & Public Distribution and poetry and essay competition

on the subject cleanliness during the special cleanliness drive on various

occasions. With the help of Red Cross, this Department, organized a blood

donation camp on 05.10.2015 in Krishi Bhawan during the special cleanliness

campaign from 25.09.2015 to 31.10.2015. Plants with special quality of emitting

oxygen have been placed in corridor.

To create healthy, hygiene and clean environment in the Department weeding out of old records as well as cleanliness drives is carried out regularly.

Old/obsolete/mutilated books of Department Library has been disposed off and

action has also been initiated for disposal of old/obsolete furniture and other

items.

Deep cleaning of the rooms in the Department of Food & Public Distribution is also being done in phased manner in every month.

23

In order to keep the working atmosphere neat and clean, white- washing, pest control and rodent control in the corridor and rooms are being done at regular

intervals. The services of Central Warehousing Corporation (CWC), who have

expertise in pest/rodent control are being utilized.

12 rooms of the Department which were in bad condition have been modernized, with the help of Department of Administrative Reforms and Public Grievances

(ARPG). Modular furniture has been in these rooms for special cleanliness

effect. Renovation/modernization of three toilets of this Departments through

CPWD are under process.

Floor Officers have been nominated on each floor of the Department for proper supervision of cleanliness and a Committee for monitoring the progress of

sanitation & cleanliness in the Department of Food and Public Distribution has

also been constituted under the Chairmanship of Joint Secretary (Admn.).

Cleanliness of all fixtures and fitting is being looked after regularly. Rooms and

toilets under the charge of the Department in Krishi Bhawan, are inspected

regularly even by Senior Officers and found to be well maintained. Photos in

this regard of DFPD rooms & corridor have been uploaded on the site provided

by Ministry of Drinking Water and Sanitation. As the cleanliness is a regular

process, Department is taking appropriate action for the purpose from time to

time.

Scanners have been purchased and provided in adequate number in the Department for digitalization of records which will add to cleanliness.

Swachh Bharat logo has been printed on letters and other stationery items for spreading of cleanliness awareness.

Suggestions on cleanliness were received from the officers/officials of this Department for improvement of cleanliness and Department is taking action as

per suggestions..

A running trophy is likely to be instituted in the DFPD to be awarded to the best Division on the basis of quarterly evaluation. Evaluation criteria would include

maintenance of files, upkeep, presentation, use of e-files etc.

This Department is again going to observe a Swachhta Pakhwada during 16th to 30

th June, 2016. This slot has been given by Minstry of Drinking Water and

Sanitation. During this period this Ministry has been suggested the following

activities

Mass pledges by employees volunteers

24

Volunteer cleaning activities undertaken and uploaded on mygov.

In addition to these activities this Department in consultation with its

organization /offices has prepared a list of activities which will be undertaken during

this pakhwada. These are as follows:

Placing air-purifying indoor plants inside the building. Organizing blood donation camp. Providing automatic sanitizer dispensers in the toilets.

Felicitating the safai karamcharis by honouring them with small gifts. Holding declamation, essay writing contests on "how we can motivate

individuals to adopt public cleanliness and hygiene as a way of life".

Holding painting competitions for the wards of employees. Taking up with local authorities for providing public amenities outside Krishi

Bhawan for the public.

Providing nose masks to the workers/labourers at CWC and FCI warehouses Providing dustbin to the vendors sitting on pavements around Krishi Bhawan.

Sensitizing them to the need of cleanliness and hygiene.

FCI to construct more lavatory blocks especially for female employees in 175 depots and provide safe drinking water in 90 depots.

Display of importance of cleanliness through rolling display unit at reception of Department.

Upgrading hygiene and cleanliness standards by setting up modular computerized offices and modern toilets.

Spreading awareness by printing Swachch Bharat logo on office stationery. Sensitizing contractor for providing masks, gloves and boots of good quality to

the safai karamcharis.

CRWC, to construct 4 toilets in village Laxmipura, distt. Sawai Madhopur, Rajasthan, as part of integrated development of that village.

Sensitizing the officers and employees on the importance of cleanliness and hygiene through lectures, demonstrations. video clips etc.

Requesting the sugar factories through their Associations to maintain and encourage cleanliness in the factory and surrounding area.

Awarding a running trophy to the best maintained floor in the FCI Headquarters. Awarding a running trophy quarterly to the best maintained section in Krishi

Bhawan in D/o Food &PD.

Routine works like sprucing up the work area and maintaining the cleanliness, keeping the passages & staircases unobstructed, keeping the files/papers neatly

stacked up, weeding out of files and papers will also be carried out with renewed

energy and vigour.

Honble Minister for CA, F&PD alongwith CMD, FCI and employees of the

FCI swept the area outside FCI Headquarters in September, 2014. On 02.10.2014 a

play by the FCI employees/artists on Swachh Bharat was performed sensitizing

25

the employees towards cleanliness and its importance in our day-to-day life. Every

employee of FCI has regularly been devoting half an hour from 9.30 AM to 10 AM

to ensure that their work place and surrounding is neat & clean. Swachh Bharat

Logo has been got printed on stationery items. No Bottled Water is being used

for the conferences and meetings. Old and useless furniture items have been

disposed off. Old and obsolete records have been weeded out. FCI is maintaining all

created facilities. Provided drinking water facility in all FCI owned depot by

31.03.2016. 261 existing toilets have been renovated and 155 new female toilets

have been constructed upto 31.03.2016.

All officers and employees of the CWC took Swachhata Sapath on

2.10.2014. Cleanliness drive was carried out in their offices, warehouses and CWC

flats at Mayur Vihar. Floor wise nodal officer in CO/RP building of CWC has been

nominated to ensure cleanliness floor wise. Toilet block has been constructed at ICP

Attari, Central Warehouse Amritsar and in a school in U.P.. Rs. 55.00 lakhs has

been contributed to Swachh Bharat Mission. Rs. 200 lakhs contributed to

Swachh Bharat Kosh and Rs. 133.25 lakhs contributed towards Namami Ganga

Programme. Rain water harvesting structure are being constructed in various

places. CWC has started using logo of Swachh Bharat Mission and its tagline on all

stationery items, annual reports, magazines.

Nodal officers have been nominated in corporate offices/terminals under

CRWC to ensure cleanliness. CRWC has taken up a project in the backward district

of Rajasthans Sawai Madhopur- Village Laxmipura, where alongwith many other

activities, renovation of toilets in school, construction of new toilets and sanitation

awareness campaigns among individuals were undertaken. CRWC has constructed

05 toilets and 02 urinals and also made arrangement for water for providing wash

facility in 02 government school of Sald and Thati-Dhanari in Uttarkashi district of

Uttrakhand and constructed another 5 toilets and 1 urinal with wash facility in the

government school of Langra village, Haryan with the help of the implementing

agency, PLAN INDIA and SATHEE respectively.

CRWC has contributed Rs.5 lakhs in cleaning Ganga Fund during 2014-15

and Rs. 10 lakhs in Swachh Bharat Kosh during 2015-16. Plantation activity

undertaken in and around premises of RWC Nishatpura, Bhopal and RWC,

Whitefield, Banglore terminals. Employees voluntarily carried out cleaning

activities at nearby surrounding of the Corporate Office and other field units and

made other personnel aware about the significance of cleanliness at their home,

office premises and nearby surroundings. Organized drive for weeding out of all old

26

record and ensuring cleanliness in all sections of CRWC, Corporate Office/RWCs.

Disposed off unused furniture and items. Organized competitions like essay, slogan

and poster with respect to Swachh Bharat Mission.

Cleaning in the WDRA office is one of the highest standard and the office

ambience is very good. All the officers and staff of WDRA have been sensitized

about maintaining the cleanliness in the office premises. The employees of WDRA

have been responding with great enthusiasm and maintaining the cleanliness of the

highest order. Warehouses registered with WDRA have been advised time-to-time

to carry on the National Cleanliness Campaigns. Regular disposal of old

newspapers, furniture/fixture/ stationery and unserviceable electronic equipment are

being done.

Government of India Ministry of Consumer Affairs, Food & Public Distribution Department of Food & Public Distribution Krishi Bhawan, New Delhi 110001 EPABX: 23383911 FAX: 23782213, Website: http://dfpd.nic.in

Web based platform for Sugar: esugar.nic.in/sugar_pii

http://dfpd.nic.in/

27