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Annual Plan 2012-13

Department of Food & Public Distribution


Plan Schemes (Continuing)
1.

Construction of Godowns by FCI/State Govt.


The Department of Food & PD
has finalized a special scheme for
construction of godowns in the North Eastern Region by FCI. Earlier, the
Planning Commission had approved an outlay of Rs.149.00 crore which
included Rs.125 crore as equity to FCI for construction of godowns in the
North Eastern States as well as some other deficit States and Rs.24.00 crore
to be released to the State Governments of NE States as Grants in Aid. The
present scheme is revision of the existing scheme evisaging construction of
godowns to create a total additional storage space of 5.4 lakh tonne in the
NE States by the FCI with an allocation of Rs.568.17 crore, which has since
been approved by the Planning Commission / Ministry of Finance. For the
areas other than NE Region for the 12 th Five Year Plan, an Rs.20.00 crore has
been proposed for creation of storage godowns. BE for 2012-13 for this
scheme is Rs.60.00 crores.
2.
The locations where the godowns are proposed to be construction is at
Annexure-I
GRANTS IN AID TO THE STATE GOVERNMENTS OF NORTH EASTERN
STATES, SIKKIM AND JAMMU & KAHSMIR
The Department of Food & Public Distribution also releases funds as
grants-in-aid to the State Governments of the North-Eastern States for
construction of storage godowns under the Plan Scheme. In the Eleventh
Five Year Plan, the Planning Commission has allocated Rs.24 crores for this
purpose. Funds have been released to the State Government of Assam,
Mizoram, Sikkim, Tripura Meghalaya, Arunachal Pradesh and Jammu &
Kashmir. The details of the storage godowns undertaken by these states are
given at Annexure-II. For the 12th Five Year Plan (2012-17) a total of Rs.50
crore has been proposed inclusive of Rs.5.00 crore earmarked for Jammu &
Kashmir State.

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ANNEXURE-I
STATUS OF AVAILABILITY OF LAND FOR THE PROPOSED CENTRES AS
ON 15.9.2011
Name of Capacit
State
y in MT

Assam

290000

No. of
projec
ts
identi
fied

Land taken over


by FCI (No. of
Centres/Capacity
)

Land
identified
/Site
inspected/ yet to
be handed over
by State Govt.
(No.
of
Centres/Capacity
)

Land yet to be
identified
by
State Govt. (No.
of
Centres/Capacity
)

12 01/50,000
09/1,85,000
02/55,000
(Changsari existing
(Kokrajhar
(Nowgaon,
Ph.I Bongaigaon)
complex)
Dibrugarh,
Karimganj,
Fakrigram,
Nowgaon
Ph.II,
Tejpur, Salchapra,
Barpeta Road. &
Junai)

&

Arunach
al
Pradesh

20280

10 08/16,940(East
Kameng,/
West
Kameng/
Upper
Siang/Lower
Subansiri/ Anjaw /
Lohit
/Lower
Dibang
Valley/&
Anini)

02/3,340 (Tawang
& / West Siang)

Manipur

35000

06

02/5,000
(Chandel,
Thoubal,)

Meghala
ya

32500

03

02/7,500 (Shillong 01/25,000


& Baghmara)
Burnihat

Mizoram

20000

02

01/10,000
(Bhairabi)

01/10,000
(Sairang)

Nagalan
d

10000

01

01/10,000
Dimapur,

Sikkim

10000

01

01/10,000( Rangpo
o)

Tripura

45000

04

02/25,000 (Jirania 02/20,000(


& Kumarghat)
Bazar

04/30,000
(East
Imphal, Bishnupur,
Jiribam Ph.II and
Tamenlong)

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Santi
and

Ambasa)
Total :

4,62,78
0

39

09/66,940

17/2,42,500

13/1,53,340

TOTAL CAPACITY
ONGOING + PROPOSED
=
5,40,280MT
(72,500 + 4,62,780 + 5,000 AT HAILAKANDI COMPLETED IN MARCH
2011)

Annexure-II
STATE-WISE DETAILS OF FUNDS RELEASED BY THE GOVERNMENT IN
THE XI PLAN TO N.E STATES and JAMMU & KASHMIR FOR CREATION
OF INTERMEDIATE STORAGE
State/Centre
JAMMU & KASHMIR
Lethpora
Sub Total
ASSAM
Amingaon
Sub Total
MIZORAM
Champhai
Serchib
Sub Total
Lunglei
Aibawk
Mamit
Sub Total
Saitual
Kawlkulh
Lungdai
Hliappui
Sakawrdai
Tlabung
Lungsen
N. Vanlaiphai
Lungdai
Khawzawal
Biate
Tuidam
Hnahthial

Capacity in
MT

Estimated cost
( Rs.in lakhs)

6160
6160

341.00
341.00

Funds released
(Rs.in lakhs)
341.00
341.00
343.00

4000
3000
3000
6000
1000
500
500
2000
1000
1000
500
500
500
500
500
500
500
500
500
500
500

348.00

348.00

186.00

100.00

965.00

596.00

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Bungtlang
Chhipphir
Kawlchaw
Sangau
Sub Total
SIKKIM
Gyalshing
Sub Total

500
500
500
500
9500
375
375

115.00

60.00

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STATE-WISE DETAILS OF FUNDS RELEASED BY THE GOVERNMENT IN


THE XI PLAN TO N.E STATES FOR CREATION OF INTERMEDIATE
STORAGE
TRIPURA
Kanchanpur
Gandacharra
Silachari
Ganganagar
Chamanu
Sub-Total
Sabroom
Manubazar
Rajnagar
Ompinagar
Kumarghat
Kamalpur
Belonia
Teliamura
Melagarh
Sub-Total
MEGHALAYA
Nongstoin
Khanapara
Sub Total

1000
1000
500
500
1000
4000
1000
500
500
1000
1000
1000
1000
1000
1000
8000

198.00

198.00

386.00

386.00

2500
2000
4500

200.72

200.72

640
640
640
640

266.78

267.00

314.32

133.00

179.00

71.00

ARUNACHAL PRADESH
Kibithoo/ Anjaw
Sagalee/Papum Pare
Zimithang/ Tawang
Koloriang/KurungKu
mei
SubTotal
Meboo/East
Siang
Pasighat
Boleng / East Siang
Pasighat
Passighat/
East
Siang Pasighat
Tuting/Upper Siang
Vingkiong
Sub Total
Khonsa
Deomali
Pongchu
Sub Total

2560
640
640
1280
640
3200
640
640
640
1920

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Grand Total

2.

52215

3917.37

3043.72

Computerization of PDS Operations


Allocation for Scheme on Computerization of PDS Operations was
approved by the Planning Commission for the 11th Plan Period with an
outlay of Rs. 376 crore. A pilot Scheme on Computerization of TPDS
Operations was taken up in three districts each of four pilot States with an
outlay of Rs. 53.47 crore. This Scheme was only till Block level and did not
cover the FPS automation component.
In light of the directions of the Honble Supreme Court vide order
dated 14.09.2011, all States/UTs are required to undertake end to end
computerization of TPDS in a time bound manner. This would include
Computerization of the Supply Chain of TPDS Operations, setting up of
transparency portal and call centres, digitisation of beneficiary database,
FPS automation, etc. in all States/UTs. Honble Supreme Court has also
directed that Government of India shall provide necessary infrastructure and
financial support to all States/UTs for end-to-end Computerization of TPDS.
In view of the above, the existing Plan Scheme is proposed to be
expanded to cover all States / UTs and end-to-end computerisation of TPDS
would be undertaken upto the last mile. A Plan Scheme for the 12th Five
Year Plan (2012-17) is under consideration with an estimated outlay of Rs.
3,500 Crores on 50:50 cost sharing with States/UTs except for North eastern
States, where the sharing will be on 90:10 basis.
The Scheme shall be covering components such as Ration Card
Management, Supply-Chain Management, FPS Automation, Transparency,
Grievance Redressal, etc. The year-wise break-up of the total outlay during
the 12th FYP is as follows:
Year

2012-13
2013-14
2014-15

Centr
NE States (Rs. Crore)
e (Rs.
Crore)
Centre
Stat Total
share
e
shar
e
1.27
160.27 17.8 178.08
1
1.01
183.10 20.3 203.45
5
1.01
60.81
6.75 67.56

Other States (Rs. Crore)

Centre
share

State
share

Total

426.53

426.53

853.06

487.30

487.3

974.59

161.83

161.83

323.65
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2015-16
2016-17

1.06
1.06

63.21
75.35

Total

5.41

542.74

7.02
8.37
60.3
0

70.23
83.72
603.0
3

168.21
200.52
1444.39

168.21
200.52
1444.3
9

336.43
401.04
2888.7
7

The above proposed total outlay of Rs.3497.21 Crore (Rs.5.41 crore +


Rs.603.03 crore + Rs.2888.77 crore) may be subject to revision upon
specific requests which may be received from States/UTs.
BE 2011-12 for this scheme was Rs.5.00 crores and BE for 2012-13 is
Rs.40.00 crores.

3.

Strengthening of PDS Operations.

3(a) Financial assistance for curbing leakages/diversion of


foodgrains meant for TPDS
In order to curb diversion and leakages of foodgrains meant for TPDS,
it was decided to take up a new Scheme Viz. innovative/new technologies
such as piloting of Global Positioning System (GPS), RFIDs, bar coded
coupons, stamping of PDS foodgrains, etc. from the 11th Five Year Plan.
Consequently, a new scheme namely Innovative scheme for curbing
leakages/diversion of foodgrains meant for TPDS was taken up and a sum of
Rs.10 crore was approved for the entire 11th Five Year Plan for this scheme.
As per the guidelines, the maximum cost to be sanctioned for
purchase/installation of each GPS set is Rs.15,000/- + Rs.300/- per annum as
maintenance charges for each GPS set.
2.
Introduction of Global Positioning System (GPS) had been taken up for
implementation on pilot basis in Chhattisgarh, Tamil Nadu and Delhi for
tracking movement of vehicles transporting TPDS commodities. This pilot
was taken up to assess effectiveness of this technology in eliminating
leakages/diversion of food grains during transportation. Under the scheme,
Rs.44.76 lakh was sanctioned and released to the State Governments of
Tamil Nadu, Chhattisgarh and Govt. NCT of Delhi during 2007-08.
3.
The State Government of Tamil Nadu, who have implemented the
scheme in two districts, have reported that it has helped in the quantities of
foodgrains allotted from FCI to the indented godowns reaching without
single case of diversion, created moral fear among those involved in
transportation of PDS items and enabled the civil supplies department and
other vigilance agencies to track the movement of vehicles carrying PDS
items at short notice and avoided delays in transportation. State
Government of Chhattisgarh has intimated that after installation of GPS sets
in trucks transporting TPDS commodities, they are reaching their destination

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properly and no irregularities have since been found. Government of NCT of


Delhi did not implement the scheme and refunded the amount.
4.
In view of the feedback received from these State Governments, it was
decided to extend this scheme in all the States/UTs in the current financial
year 2011-12. Hence, proposals have been invited from all the State/UT
Governments. For the year 2011-12, B.E. has been kept at Rs.6.00 lakh and
at R.E stage the amount has been proposed to be enhanced to Rs.111.009
lakh.
BE 2011-12 for this component was Rs.6.00 lakh and BE 2012-13 is
Rs.50.00 lakh.

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3(b)

GENERATING AWARENESS AMONGST THE


BENEFICIARIES
ABOUT
THEIR
ENTITLEMENT
REDRESSAL MECHANISM

TPDS
AND

The Scheme GENERATING AWARENESS AMONGST THE TPDS


BENEFICIARIES ABOUT THEIR ENTITLEMENT AND REDRESSAL MECHANISM
is a component of the Plan Scheme titled STRENGTHENING OF PDS.
Under this scheme, financial assistance is provided to States for
generating awareness amongst TPDS beneficiaries about their entitlement
and redressal mechanism. The main objective of the scheme is to launch an
effective, subtle, sustained and intensive awareness campaign, impact of
which could reach the urban as well as rural and remote areas. Detailed
guidelines have been laid down for the States/UTs to undertake the publicity
cum awareness campaigns through/by DAVP at DAVP rates in terms of print
media and private TV and radio channels and at DAVP/Prasar
Bharati/Doordarshan approved rates for DD and All India Radio.
The Deptt. of Food and Public Distribution releases funds to the States
on the basis of the proposals received from them. The Department bears
80% of the total approved proposal and the State Governments bear
remaining 20% of the total expenditure. Of the total amount approved, the
Department initially releases 40% of the amount as 1 st installment. The
remaining amount of 40% is released by the Department as 2 nd installment
after receiving Utilization Certificates (UCs) of the 40% amount released by
the Department as 1st installment as well as remaining 20% share of the
State Government.
An assessment of the publicity cum awareness campaign cannot be
made in tangible terms as it is intended to create awareness among TPDS
beneficiaries in urban as well as rural and remote areas so that they exercise
their right to receive foodgrains from PDS outlets.
ACHIEVEMENTSThe position of budget provisions and expenditure actually incurred
during the 11th year Plan is as under:(Rs. in lakhs)
Financial
BE
RE
Funds
%age
Year
Utilized utilisation to
BE
2007-08
100.00
100.0
52.40
52.40 %
0
2008-09
250.00
81.00
73.66
29.46 %
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2009-10
2010-11
2011-12

100.00
28.00
60.00

27.00
28.00
60.00

26.68
63.04
---*

26.68 %
225 %
---

*Proposals/UCs awaited from States

Based on the funds released to States during the 11 th Five Year Plan
under this scheme, there is a requirement of about 100 lakhs to be released
as 2nd instalment on submission of Utilisation Certificates by the States.
OUTLAY FOR THE 12TH FIVE YEAR PLAN (2012-2017) FOR THIS
COMPONENT UNDER THE PLAN SCHEME ON STRENGTHENING OF
PDSConsidering that there is need to create awareness of the entitlements
and other features of the proposed National Food Security Act, which is likely
to be implemented in the 12 th Plan, it is proposed that a higher outlay of Rs.
7.5 crore be provided for the 12th Plan as per the details given below:(Rs. in lakhs)
Financial Year
OUTLAY
2012-13
200
2013-14
200
2014-15
150
2015-16
100
2016-17
100
Total outlay
750
Note : Of the total amount proposed above in the annual Plans as well as
the entire 12th Plan period, 10% of the provision, as per mandatory
requirement will be earmarked for North Eastern States and remaining 90%
funds are proposed to be earmarked for other States.
BE 2012-13 for this component is Rs.65.00 lakh

3(c) PDS-Evaluation,
Services

Monitoring

&

Research-Professional

To evaluate the impact of the TPDS on the target beneficiaries and to


plug loopholes in implementation of TPDS, evaluation studies will be taken
up. During 2007-08, Rs.41.41 lakh was released. An outlay of Rs.0.50 crore
was kept in the year 2008-09 against which an amount of Rs.0.27 crore was
released. BE 2009-10 is Rs.0.50 crore. RE 2009-10 was Rs.0.42 crore.
Actual expenditure was Rs. 0.35 crore. BE 2010-11 is Rs. 0.25 crore.
However, there was no expenditure in 2010-11. BE 2011-12 is Rs. 10 lakh.
BE 2012-13 for this component is Rs.40.00 lakh

3(d)

TPDS-Training

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Training programmes for officials of the State Civil Supplies


Corporation and Seminars/Workshops for senior level officials of the
States/UTs engaged in supply management of essential commodities and
Central Ministries/Organisations will be taken up. An outlay of Rs.0.50 crore
was kept in the year 2008-09. However, Rs.0.74 crore was spent on this
during 2008-09. BE 2009-10 was Rs.0.50 crore. RE 2009-10 was Rs. 0.88
crore. Actual expenditure was Rs. 0.88 crore, BE 2010-11 is Rs. 0.55 crore.
Only an amount of Rs. 10 lakh was spent in 2010-11. BE 2011-12 is Rs. 10
lakh.
BE 2012-13 for this component is Rs.50.00 lakh

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4.

NSI Kanpur
The National Sugar Institute, Kanpur is one of the premier Institutes
running Post-Graduate Level Courses in the discipline of Sugar Technology,
Sugar Engineering, Alcohol Technology, and also provides operative level
training in Sugar Boiling Certificate Courses, Sugar Engineering Certificate
Courses, Pre-harvest Cane Maturity Survey Certificate Courses. The
expenditure under plan head is done by NSI, Kanpur for development of
infrastructural facilities and augmentation of R&D facilities. The outlay for
the 11th Five Year Plan in respect of NSI was Rs.750 lakhs, out of which
expenditure incurred till 2010-11 was Rs. 438.22 lakhs. The BE for 2011-12
is Rs.155 lakhs.
NSI has proposed an outlay of Rs.390 lakhs for the 12th Five Year Plan.
BE for 2012-13 for this scheme is Rs.0.75 crores.

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5.

Consultancies, Training & Research

5(a) Technical Studies (Sugar, Hunger, Mapping and other


Studies)
1. Impact of price of sugar on the profits of sugar industry and farmers,
covering the aspects of the profits of middlemen due to movements in
sugar prices.
2. Impact and expected benefits of ethanol blending with petrol program
on the OMCs, sugar industry, cane farmers and consumers.
3. Objectives of jute Packing and Marketing Order, 1987, benefits
achieved by jute farmers from compulsory packing of sugar and
foodgrains in jute bags vis--vis its negative impact on sugar industry,
cane farmers and consumers of sugar.
4. Mechanization of Sugarcane Agriculture in respect of sugarcane
planting, intercultural operations and sugarcane harvesting.
5. The economics of cellulosic ethanol production.
6. Estimation of sugar consumption in the country in the next five years.
7. Impact of Futures and Commodities markets on retail sugar prices.
BE 2012-13 is Rs.30 lakh.

5(b)

Consultancies for research /monitoring in domestic /


global Markets for food grain
In order to have a Market intelligence System which could provide
regular price alerts and early warnings on possible increases in prices of
essential commodities, crucial for policy decisions, the Department of Food
and Public Distribution in May 2008 entrusted FCI with the task of engaging
a consultant for research/monitoring in domestic as well as global markets
for foodgrains. M/s National Collateral Management Service Limited (NCMSL)
was engaged as a consultant for a period of one year w.e.f 1.9.2008 which
was extended up to 31.8.2010.
2.
Later, the contract was awarded to M/s Indian Agribusiness Systems
Pvt. Ltd.(IASP) from 1.12.2010 to 15.9.2011. Fresh bids have been invited
by FCI for appointment of consultant for the next one year. Using such
Market Intelligence System, foodgrains stocks can be released when prices
are high in order to cool the market. Similarly, timings of import of
foodgrains, when necessary can be synchronized with lowest international
prices based on past trends by getting an analysis of the same from this
Market Intelligence System.
3.
A sum of Rs. 1.50 crore was allocated by the Planning Commission for
the 11th Five Year Plan out of that Rs 1,29,51,292/- has been spent during
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the years 2008-09, 2009-10, 2010-11 and 2011-12 upto 30.11.2011 A


requirement of Rs. 1.45 crore has been projected towards this scheme for
the 12th Five Year Plan based on the BE of Rs. 29 lakh for the annual Plan
2011-12.
BE 2012-13 is Rs.30 lakh.

5(c) E-governance
Department has been playing pioneering role in propagating IT based
development, facilitating 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 also follows Central Government eGovernance action plan. Till now an expenditure of Rs. 1.63 crore has
already been done on various ICT initiate during the 11 th Plan period some of
which are as follows:
1.
Training to Staf
2.
File Tracking System
3.
Payroll Software
4.
E-Granthalaya the Library Management System
5.
Parliament Matters Management System
6.
RTI Request and Appeal Management Information System
7.
Re-designing of web site
8.
New LAN System
9.
E-Office
10. Court Case monitoring System
11. Hardware Complaints Monitoring System
12. Purchase of new computers.
It is therefore, proposed that keeping in view the total likely
expenditure of Rs. 1.86 crore for 11 th plan period we may request Plan
Division to seek approval of competent authority for allocation of Rs. 3.00
core for the e-governance scheme for 12 th plan period. Here it also
mentioned that keeping in view of the initiative of the Government for
increased use of e-governance tools in the functioning of the Department
the proposed allocation of Rs.3 crore can be utilized during the 12 th Plan
period of following items.
I) Purchase of new computers, Laptop and iPad
II) Development of software for various operations of the Department
III) Continuous up gradation of IT infrastructure of the Department during
the 12 the plan period.
IV) Implementation of NeGP and other initiative which has been taken or
likely to be during the Plan period.

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BE 2012-13 is Rs.40 lakh.

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Details of actual expenditure incurred during 10 th & 11th Plan


period since
2006-07 to 2011-12 (upto 30.11.2011) have been
as follows:
Year
Item on which expenditure incurred
Expenditur
e
(Rs.in
Crore)
10th Five Year Plan
2006-07
Intensive training to officers/staff of the
Rs. 20 lakh
Department to familiarize them with
basic operation of computer i.e. MS
Office including Power Point, Internet,
LAN, file tracking system.
Total
11th Five Year Plan
2007-08
For payment towards supply and
Rs.
installation of 36 Nos. of HP Desktop
19,98,884
Computers, 36 Nos. of UPS of 1 KVA
capacity and 6 No. of Laptop for the
use of this Department .
2008-09
For payment towards supply and 23
Rs.
Nos. Of HP Desktop Computers, 34
16,34,682
Nos. Of HP LaserJet Printer P1007, 33
Nos. Of MS Office 2007 professional
software and 23 Nos. Of UPS of 1 KV
capacity for the use of Department.
2009-10
For payment towards supply and
Rs.
installation of 22 Nos. of Desktop
60,16,652
computers 27 Nos. Of HP LaserJet
Printer, 25 of UPS of 1 KVA, One HP
colour LaserJet Printer and 2 Nos. Of HP
LaserJet printer with Fax facility for the
official use of various officers.
2010-11
Expansion of LAN, Purchase of
Rs.
Computers by General Section, Addl.
39,99,000
Internet Nodes (40) Software &
Hardware for NIC , Introduction of eoffice
2011-12
Installation of 17 Nos. Of HP Desktop
Rs.
Computer of Intel i5, 17 Nos. Of HP
26,75,000
LaserJet Printer 1007 and 17 Nos. of
(Upto
UPS 1 KVA, Expansion of LAN
30.11.201
1)
Total
1.63
(crore)
Grand
11th Five Year Plan up to
1.63
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Total

30.11.2011.

(crore)

5(d) Research & Development and Modernisagtion of labs of


VVO&F
Directorate of Vanasapti, Vegetable Oils and Fats (DVVO&F) is
operating a Plan Scheme on Research and Development Modernisation of
the Laboratory of the Directorate of VVO&F during the 11 th Five Year Plan.
The R&D Scheme is mainly to augment the availability of vegetable oils and
to improve quality of vegetable oils and fats including the modernization of
laboratory of DVVO&F. R&D proposals are generally of one to three years
duration and the funds are released in installments.
During the 9th Five year Plan, 26 R&D projects were funded and
during 10th Five Year Plan 21 D&D projects were funded.In the tenth Five Year
plan, an amount of Rs 1.25 Crore was approved by the Planning
Commission. Actual expenditure during the 10th plan viz.2002-03 to 200607 was Rs 1.24 Crore. The total outlay for the scheme for the 11 th Plan
Period (2007-2012) is Rs.100 lakhs with year-wise break up of Rs.20 lakhs
for each year during the Plan Period. The actual expenditure during 2007-08
was Rs. 1.96 Lakh, during 2008-09 was Rs.6.33 lakhs and during 2009-10
was Rs.24.26 lakhs. The budget expenditure for 2010-11 is Rs. 20 lakhs. The
actual expenditure during 2010-11 was Rs. 16 lakh. BE 2011-12 is Rs. 20
lakh. BE 2012-13 is Rs.20 lakh.

6.

Village Grain Banks Scheme


i)
Village Grain Bank Scheme was earlier implemented by the Ministry of
Tribal Affairs in 11 States. However, since 24.11.2004, the scheme is being
implemented by the Department Food & Public Distribution.
ii)
The main objective of the scheme presently being implemented is to
provide safeguard against starvation during the period of natural calamity or
during lean season when the marginalized food insecure households do not
have sufficient resources to purchase rations. Such people in need of food
grains will be able to borrow food grains from the Village Grain Bank. The
grain banks are to be set up in food scarce areas like the drought prone
areas, the hot and cold desert areas, tribal areas and the inaccessible hilly
areas which remain cut off because of natural calamities like floods, etc.
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These villages are to be notified by the concerned State Government/Union


Territory. The scheme envisages inclusion of all willing BPL/AAY families in
the villages to be identified by the State Government in food deficit areas.
The quantity to be lent and the period of repayment is to be decided by the
Group themselves. Village Panchayat/Gram Sabha, Self Help Group for
NGOs etc. identified by the State Government are eligible for running the
Grain Banks.
BE for 2012-13 for this scheme is Rs.8.00 crores.
Details of VGBs sanctioned since 2005-06 have been as follows:
Year
VGBs
States where sanctioned
Amount
Sanction
(Rs.
ed
Crore)
2005-06
3,282 Andhra
Pradesh,
Orissa,
19.76
Chhattisgarh, Madhya Pradesh,
Jharkhand, Tripura & Meghalaya
20068,191 Andhra
Pradesh,
Assam,
51.79
007
Chhattisgarh, Gujarat, Himachal
Pradesh, Maharashtra, Manipur,
Nagaland, Sikkim, Uttarakhand,
Uttar Pradesh, and West Bengal
2007-08
2,598 Bihar, Gujarat, Kerala, Manipur,
17.44
Madhya Pradesh, Nagaland, Orissa,
Rajasthan and West Bengal
2008-09
2,407 Manipur, Tripura , Uttar Pradesh &
16.81
M.P.
2009-10
2,214 West Bengal, Andhra Pradesh and
17.23
Nagaland
2010-11
1,709
Madhya Pradesh, Tripura, Orissa
13.00
and Nagaland
2011-12
1082 West Bengal , Uttarakhand &
7.35
Nagaland
Total
21483
143.38

18 | P a g e

7.

Assistance to Warehousing Development & Regulatory


Authority
For the first time in the country, the Government of India has
introduced a negotiable warehouse receipt system in the country. The
Warehousing (Development and Regulation) Act, 2007 has been made
effective from 25th October, 2010. As per the provisions of the Act, the
Warehousing Development and Regulatory Authority comprising of one
Chairman and two full time members have been setup by the Government
from 26th October, 2010.
The main objectives of the Warehousing (Development and
Regulation) Act, 2007 are to make provisions for the development and
regulation of warehouses, negotiability of warehouse receipts, establishment
of a Warehousing Development and Regulatory Authority (WDRA) and
related matters. The Negotiable Warehouse Receipts (NWRs) issued by the
warehouses registered under this Act would help farmers to seek loans from
banks against NWRs to avoid distress sale of agricultural produce. It will also
be beneficial for a number of other stakeholders such as banks, financial
Institutions, insurance companies, trade, commodities exchanges as well as
consumers.
Advantages of Negotiable Warehouse Receipts: With the introduction
of negotiable warehouse receipts system, there would be following
advantages: 1. Increased liquidity in rural areas.
2. Encouragement of scientific warehousing of goods.
3. Lower cost of financing.
4. Shorter and more efficient supply chains.
5. Enhanced rewards for grading and quality.
6. Better price risk management.
7. Higher returns to farmers and better services (quality) to the
consumers.
Salient Features of Warehousing (Development and Regulation) Act,
2007:
Regulation of warehousing activities
Liabilities of warehousemen
Format of warehouse receipts
Setting up of a Warehousing Development and Regulatory Authority
(WDRA).
Constitution of Warehousing Advisory Committee
Powers of Central Government

19 | P a g e

Appeals
Offences and Penalties
Regulation of warehousing business:

No person shall commence or carry on the business of warehousing for


issuing negotiable warehouse receipts unless he has obtained a registration
certificate from the WDRA after fulfilling the prescribed norms in respect of
the concerned warehouse or warehouses.

Requirement for registration of warehouses:


i. The warehouses should be constructed as per Bureau of Indian
Standards (BIS) / FCI/CWC specifications.
ii.
The warehouses should be storage worthy for different goods to be
stored.
iii.
The warehouses should be equipped with all necessary equipments
for weighing, handling, sampling, grading, firefighting and insect
/pest management.
iv.
The warehouses should have positive networth certified by a
Chartered Accountant or credit worthiness certificate from a
scheduled bank for individual warehouse or for its organization.
v.
The warehouses should have adequate trained staff with expertise
and knowledge for the scientific storage of goods to be stored in
the warehouses.
vi.
Warehouses should have adequate security arrangements.
vii.
Any other requirement prescribed by the Authority from time to
time.
Advantages of Registered warehouses with the Authority:
(a) May Issue Negotiable Warehouse Receipts on which farmers /
depositors may be able to seek loan easily from banks.
(b) Warehouses would be following certain norms / requirements and
would encourage scientific storage.
(c) They will be having trained warehousemen.
(d) The
registered
warehouses
would
be
indicating
quality
standards/grades of the commodities stored in their warehouses on
the Negotiable Warehouse Receipt.
Actions initiated by Warehousing Development and Regulatory
Authority: The following actions have been initiated by the Authority:
1.
Constitution of the Warehousing Advisory Committee: As per
the provisions contained in section 34, the Authority with the prior approval
of Government of India has constituted a 15 member Warehousing Advisory
Committee to advise the Authority on matters relating to making of
20 | P a g e

regulations under section 51 of the Act. The first meeting of the warehousing
advisory committee was held on 01.02.2011.
2.
Drafting of Warehousing Regulations: The Authority has drafted
the following eight Regulations:
(i) Warehousing Development and Regulatory Authority (Negotiable
Warehouse Receipt) Regulations, 2011.
(ii) Warehousing Development and Regulatory Authority (Warehouse
Accreditation) Regulations, 2011.
(iii) Warehousing Development and Regulatory Authority (Registration of
Accreditation Agency) Regulations, 2011.
(iv) The Warehousing Development and Regulatory Authority (Disputes)
Regulations, 2011.
(v) The Warehousing Development and Regulatory Authority (Meetings)
Regulations, 2011.
(vi) The Warehousing Development and Regulatory Authority (Records &
Reports) Regulations, 2011.
(vii) The Warehousing Development and Regulatory Authority (Grading,
Sampling and Weighing) Regulations, 2011.
(viii) The Warehousing Development and Regulatory Authority (Salary,
allowances and other terms and conditions of services of the officers
and other employees of the Authority) Regulations, 2011.
(ix) The Warehousing Development and Regulatory Authority (Electronic
Warehouse Receipt) Regulations, 2011.
3.
Appointment of Accreditation Agencies: The Authority has
appointed following 5 Government and 4 private organisations as
accreditation agencies for the accreditation of warehouses:
Sl.
No.
1.
2.
3.

4.
5.
6.

Name of the Accreditation Agency approved by the WDRA


Indian Grain Storage Management and Research Institute (IGMRI),
Hapur, 245101 (UP)
National Institute of Agricultural Management (NIAM), Jaipur.
National Cooperative Development Corporation (NCDC), 4, Sri
Institutional Area, AugutsKrantiMarg, HauzKhas, New Delhi
110016
National Productivity Council (NPC), UtpadaktaBhavan, 5-6
Institutional Area, Lodhi Road, New Delhi 110003
The Rail India Technical and Engineering Services(RITES), Gurgaon
TQ Services (A Division of Tata Projects Limited), Quality Services
21 | P a g e

7.

8.

9.

Division, 2nd Floor, Varun Towers I, Begumpet, Hyderabad


500016.
Bureau Veritas Certification India Pvt. Ltd, Marwah Centre, 6 th Floor,
Opposite Ansa Industrial Estate, KrishanlalMarwah Mar
Off
Sakivihar Road, Andheri East, Mumbai 400072.
Vexil Business Process Services Pvt. Ltd, 10184, 3 rdFllor, (Landmark
Inn)
Main AryaSmaj Road, Karol Bagh, New Delhi 110005
American Quality Assessors (India) Private Limited, Quality House,
Plot: MCH No. 452, H.No. 8-2-601/P/6, Panchavati Colony, Road No.
10, Banjara Hills, Hyderabad-500034.

4. Notification of Agricultural Commodities for Negotiable


Warehouse Receipt: Initially the Authority had approved 40 agricultural
commodities including cereals, pulses, oil seeds and spices to be notified for
issuing Negotiable Warehouse Receipts. Most of these commodities have
been approved by various commercial banks for loan against pledge to the
farmers. The list of these commodities is as follows:
Sr.
No
1.
2.
3.
4.
Sr.
No
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Name
of
the
Commodity
Wheat
Rice
Paddy
Jawar
Name
of
the
Commodity
Bajra
Barley
Maize
Ragi
Soyabean*
Mustard seed
Rapeseed
Groundnut
Groundnut (pods) bag
Whole pulses and split
pulses
Sunflower oilseed
milled pulses
Cotton bales*
Cotton seed
Jute bales*
Chillies*

Sr.
No.
21.
22.
23.
24.
Sr.
No.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.

Name
of
Commodity
Tamarind seed
Cumin seed*
Castor seeds
Cashew kernel
Name
of
Commodity
Arecnut
Black pepper*
Coriander*
Fennel seeds*
Fenugreek seeds*
Guar gum*
Sesame seed
Horse gram
Isabgol*
Black gram (Flour)

35.
36.
37.
38.
39.
40

Coffee beans
Sago*
Turmeric*
Ball Copra
Cup Copra*
Cardamom*

the

the

*Commodities subject to need based laboratory testing.

22 | P a g e

Now 75 more agricultural commodities including cereals,


pulses, oilseeds, vegetable oils, spices, edible nuts and
miscellaneous items like rubber, tobacco, tea cofee and makhana
have also been approved for issuance of NWRs.
Qualitative specifications / standards for above commodities will be of
Agmark. However, in case, Agmark standards do not exist, for those
commodities quality standards laid down by the Central or State
Government shall be applicable.
For commodities requiring chemical or allied laboratory analysis, all
Agmark laboratories and all accredited laboratories, notified by National
Accreditation Board for Testing and Calibration Laboratories including
recognized laboratories accepting Bureau of Indian Standards schedule of
charges are authorized for laboratory testing.
In addition, all Central or State Government laboratories and other
laboratories recognized by them for testing of commodities are authorized
for laboratory testing.
5.
Finalization of format of Negotiable Warehouse Receipt: As per
the provisions contained in section 11 (1) of the Warehousing (Development
and Regulation)Act, 2007, the format of Negotiable Warehouse Receipts has
been finalized by the Authority in consultation with IBA, warehousemen and
banks and the Negotiable Warehouses Receipt books have been issued to
the registered warehouses. The Negotiable
Warehouse Receipt has unique features such as Anti copy, endless text, fine
line patterns micro printing with rainbow coloring.
6.
Receipt of Application from Warehouses for Registration: 399
applications from the 19 States namely, Kerala, Karnataka, Rajasthan,
Gujarat, Orissa, Haryana, MP, Tamil Nadu, Andhra Pradesh, UP, Uttarakhand,
Maharashtra, Delhi, Punjab, HP, Assam, Bihar, Chhattisgarh and Pudduchery
for registration of warehouses have been received till date.
7.
Registrations of Warehouses: 224 warehouses have been
accredited and in 185 warehouses of CWC, SWCs and private organisations
have been registered with the Authority.
8.
Regional Conferences: Regional conferences in association with
FICCI, ASSOCHAM and PHD Chamber are being organised by the WDRA to
create awareness about the negotiable warehouse receipt system the
country. The conferences at New Delhi, Bangalore, Chandigarh,
Thiruvanathapuram and Mumbai have already been organised. Conferences

23 | P a g e

in the north eastern states are also proposed to be organised in association


with DONER, National Horticulture Board (NHB) and SFAC.
9.
Besides, awareness programme for farmers in collaboration with CWC
are also to be organised at different locations in the States during 2011-12.
In additions to this IGMRI and NIAM have also organised awareness
programmes for farmers in UP and Rajasthan etc.
A 5 day training
programme for warehouse managers of CWC, RSWC and private warehouses
has also been organised at NIAM, Jaipur from 31 st October to 4th November,
2011.
10. Integration of PACS with NWR: The WDRA plans to integrate the
primary Agriculture Credit Societies (PACS) warehouses under the negotiable
warehouse receipt system so that the small and marginal farmers may get
benefited from this scheme.
BE for 2012-13 for this scheme is Rs.6.00 crores.

24 | P a g e

New Schemes
8.

Strengthening of Quality Control


1. INTRODUCTION:
Department of Food & Public Distribution in the Ministry of Consumer
Affairs, Food & Public Distribution is vested with the responsibility to ensure
food security for the country through timely and efficient procurement and
distribution of foodgrains. This involves procurement of various foodgrains,
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 foodgrains.
The focus of the Department is on incentivizing farmers through fair
value of their produce by way of Minimum Support Price (MSP) mechanism
and making available foodgrains to the consumers at affordable prices.
Green Revolution in 1960s and subsequent technological breakthrough has
made the country self-reliant. Foodgrain production has now reached 241.56
million tons in the year 2010-11.
Foodgrains are procured under the MSP scheme from farmers by Food
Corporation of India (FCI) and State Governments & their agencies on behalf
of FCI. The Government of India is encouraging various States for
decentralized procurement wherein State Governments procure foodgrains,
store and then distribute it on their own. Only the stock procured in excess
of their annual requirement is handed over to FCI for Central Pool and if the
requirement is higher than the production of State, the same is issued from
Central Pool to the concerned State Government. Storage of procured
foodgrains is a vital aspect wherein ideal conditions are required to be
maintained so that there should be no damage during storage.
Storage & Research (S&R) Division in Department of Food & Public
Distribution deals with the Post Harvest Management of foodgrains. Applied
R&D activities on safe storage of foodgrains and institutional trainings on
this aspect are conducted at Indian Grain Storage Management and
Research Institute (IGMRI), Hapur and its fields stations located at Ludhiana
and Hyderabad. Monitoring of quality of foodgrains being procured, stored
and distributed is undertaken by Quality Control Cells located at New Delhi,
Bangalore, Bhopal, Bhubaneshwar, Lucknow, Kolkata, Hyderabad and Pune.
In order to disseminate scientific storage practices at farm level
through trainings, demonstrations and publicity, there was a Save Grain
Campaign (SGC) scheme under the S&R Division which started as a pilot
25 | P a g e

project in 1965-66 and subsequently it had 17 offices throughout the


country. The activities of the SGC had been appreciated by various forums
and through independent evaluation also. The UNICEF, European Economic
Community (EEC) Mission and National Productivity Council (NPC) had
appreciated the activities of Save Grain Campaign Scheme in minimizing
post harvest grain losses.
However, in 1997, Ministry of Finance (Department of Expenditure)
had desired that SGC scheme be transferred to State Governments.
However, as the responding States were not prepared to take over the
assets, staff, equipments, etc. and meet the expenditure on the scheme
from 1998-99 onwards,
the transfer of SGC scheme could not be
materialized. It was thus construed by ERC that the States have serious
reservation on the usefulness of the scheme to the farmers in their States.
The SGC was, therefore, recommended to be discontinued. S&R Divisions
working concerns, prescribing and maintaining quality standards of
foodgrains in the prospect of increasing imports of foodgrains, which is
achieved through Quality Control Cell (QCC) and Central Grain Analysis
Laboratory (CGAL), Expenditure Reforms Commission (ERC), clearly
underlined the need for strengthening both these agencies. Accordingly, this
Department had closed SGC scheme w.e.f. dated- 30.4.2008.
At the instance of Cabinet Secretariat, three Quality Control Cells had
been set up in 1979 in the Ministry of Consumer Affairs, Food and Public
Distribution, so as to create a mini set up, independent of FCI, to monitor the
quality of foodgrains procured, stored and distributed by FCI and other State
agencies. These Cells are also to attend complaints and representations
received from State Governments, VIPs, media and public about the
foodgrains supplied through PDS to consumers. The officers of these Cells
suggest appropriate remedial measures without diluting the responsibility of
the custodian agency of foodgrains. During the re-organization in 2008,
Quality Control Cells have been increased from 3 to 8. There are only
3 Inspecting Officers in each Quality Control Cell thereby 24 Inspecting
Officers for whole country.
FCI has a well defined quality control mechanism right from Hqrs. level
to Zonal/ Regional/ District and Depot levels. The quality of foodgrains is
monitored at regular interval by a system of checks and super checks at
different levels. Following checks/super checks are conducted in the
godowns to ensure proper preservation of foodgrains in the storage:
(i)
Fortnightly inspection of stock on 100% basis by Technical
Assistants.
(ii)
Monthly inspection by Manager (QC).
(iii) Quarterly inspection of AGM (QC).
26 | P a g e

(iv)

Super checks by Squads from Regional, Zonal and FCI Hqrs.

The details on strength of the quality control staff in FCI as on


30.6.2011 is at Annexure-I. Though FCI has trained and qualified quality
control staff to manage procurement and storage of foodgrains, but there is
also constraint of staff as there are only 6,911 technical staff against the
sanctioned strength of 10,807. Further, the services of officers of Quality
Control in FCI are also utilized for other official works.
State Governments and their agencies do not have any well defined
quality control mechanism. It has been observed that they do not have
qualified technical staff for procurement and storage. Temporary duties are
given to the available staff for procurement. In case of decentralized
procurement States, adequate quality control mechanism and monitoring is
all the more important as the foodgrains are procured, stored and
distributed by the State Governments and their agencies directly. Although
trainings can be imparted to the concerned officials, but technically qualified
quality control staff is not in place in most of the States. During the last
decade instructions for safe storage of foodgrains and proper monitoring has
been issued/reiterated innumerable times by the Department. Staff from the
State Governments and their agencies has also been imparted training, but
still it is inadequate.
The media reports about damage to foodgrains in various parts of the
country keep on appearing from time to time and Honble Supreme Court
has also taken cognisance of damages of stored foodgrains in the country. A
lot of parliamentary questions in every Session are being raised on damages
to foodgrains and quality control mechanism. Various organizations and RTI
activists have also been taking up the issue of damages to foodgrains
vigorously and asking for more steps from the Government to prevent such
damages.
The Parliamentary Standing Committee on Food, Civil Supplies and
Public Distribution has been recommending for strengthening of quality
control mechanism to ensure availability of good quality foodgrains under
Public Distribution System (PDS).
The Expenditure Reforms Commission (ERC) constituted by the
Government of India, in its seventh report also recommended for
strengthening of Quality Control Cells (QCC) and Central Grain Analysis
Laboratory (CGAL).
Some of the State Governments often complain about the supply of
inferior quality of foodgrains for distribution under PDS. In the present era of
growing quality awareness among the consumers, it is imperative to ensure
supply of good quality foodgrains under PDS. In the PDS(Control) Order,
27 | P a g e

2001 promulgated by the Government, it has


also been made the
responsibility of the Government
to ensure supply of good quality
foodgrains conforming to Prevention of Food Adulteration Act (PFA)
Standards. It is ensured by joint sampling by FCI and State Governments
representatives and analysis of stocks before lifting from FCI depot as well
as issue of sealed samples for display at Fair Price Shops.
In the aforesaid scenario, besides exhorting FCI and State
Governments for strengthening their quality control mechanism, it is also
imperative that Department of Food & Public Distribution also strengthens
its quality control mechanism by way of increasing the Quality Control Cells
so that proper monitoring of quality of foodgrains can be done throughout
the country to avoid damages and to ensure procurement and distribution of
good quality foodgrains. This is the reason for conceptualizing new Plan
Scheme for strengthening quality control mechanism.
2.

PRESENT SET UP OF STORAGE & RESEARCH DIVISION:


Storage & Research (S&R) Division of Department of Food & Public
Distribution is entrusted with the following major responsibilities:
(a)
Laying down quality specifications for procurement of
foodgrains for Central Pool and monitoring the quality of foodgrains at
the time of procurement, storage and distribution through eight
Quality Control Cells (QCCs) at Bangalore, Bhopal, Bhubaneshwar,
Lucknow, Pune, Kolkata, Hyderabad and New Delhi.
(b) Applied R&D activities and institutional training on scientific storage of
foodgrains through Indian Grain Storage Management & Research
Institute (IGMRI) at Hapur (Headquarters) and its two field stations at
Ludhiana and Hyderabad.
These Quality Control Cells have been set up, independent of FCI, to
monitor the quality aspects of foodgrains during procurement, storage and
distribution.
In addition, the QC Cells are attending the complaints and
representations received from various State Governments, VIPs, media,
social organizations and consumers etc. about the quality of foodgrains
being procured, stored and issued.
The Government of India is encouraging various States for
decentralized procurement. The State Governments who are presently
undertaking Decentralized Procurement are West Bengal, Madhya Pradesh,
Chhattisgarh, Uttarakhand, Andaman & Nicobar Islands, Orissa, Tamil Nadu,
Gujarat, Karnataka and Kerala. Keeping in view the need to streamline the
procurement of foodgrains, guidelines for the State Governments and their
agencies has been formulated by this Ministry.
The guidelines on

28 | P a g e

procurement of foodgrains issued on 9.10.2002, for State Governments and


their agencies define the role of S&R Division as under:(i)
The Quality Control officers of S&R Division carry out inspections of
the procurement centers of FCI and the State agencies and collect
the samples of foodgrains for analysis to know the quality of
foodgrains. The cases of procurement of Beyond Rejection Limit
(BRL) foodgrains are brought to the notice of concerned State
Governments and senior officers of FCI.
(ii)

The officers of S&R division also carry out detailed inspection of


CAP Complexes/covered godowns of FCI and State Agencies to
ensure that the code of practices of scientific storage of foodgrains
are adopted by them.

(iii)

The quality control officers of the S&R Division also ensure that the
guidelines issued by the Government of India are strictly followed
by FCI and the State Governments at the time of procurement,
storage and distribution of foodgrains.

As announced by her Excellency, President of India, in her address to


the Joint Session of Parliament on 4 th June, 2009, the Government proposes
to enact the National Food Security Act that will provide a statutory basis for
a framework which assures food security for all and entitles every family
below poverty line to certain quantities of foodgrains at subsidized prices.
The legislation will also be used to bring about broader systemic reforms in
the Public Distribution System. The enactment of the law will have broader
ramifications on maintaining quality of foodgrains.
Presently, the area of operation of eight Quality Control Cells under
the S&R Division in the Department of Food & Public Distribution are as
under:
S.No Quality Control
States/UTs to be covered
.
Cell
1.
New Delhi
NCT Delhi, H.P., J&K, Punjab, Haryana, and
Chandigarh
2.
Hyderabad
Andhra Pradesh, Tamil Nadu and Pondicherry
3.
Kolkata
West Bengal, NE Region, Sikkim and
Andaman & Nicobar
4.
Bangalore
Karnataka, Kerala, and Lakshadweep
5.
Bhopal
Madhya Pradesh, Chhattisgarh and Rajasthan
6.
Bhubaneswar
Orissa, Jharkhand and Bihar
7.

Lucknow

Uttar Pradesh and Uttarakhand

29 | P a g e

8.

Pune

Maharashtra, Gujarat, Goa, Daman & Diu and


Dadra & Nagar Haveli

The Quality Control Cells undertake inspection activities in respect of


procurement centres, food storage depots, railheads, rice mills and fair price
shops to ensure:
(a) Procurement of foodgrains is as per uniform specifications.
(b)Proper maintenance and preservation of foodgrains in storage
depots by FCI and State agencies.
(c) Foodgrains conforming to PFA Standards are issued for TPDS and
other welfare schemes.
(d)Governments guidelines on procurement, storage and distribution
are followed.
(e) To investigate the complaints received from State Governments,
VIPs and others about quality of foodgrains.
(f) To collect foodgrain samples from States for considering the
request for quality relaxation.
Each Quality Control Cell is headed by Deputy Director(S&R). The total
sanctioned staff strength of these Quality Control Cells is 133 and presently
93 are in position. The post-wise detail is at Annexure-II.
During the year 2008, while re-organizing S&R Division based on the
ERC Recommendations, the Save Grain Campaign (SGC) component with its
field offices throughout the country dealing with the transfer of storage
technology at farm level was closed down and five SGC offices located at
Pune, Lucknow, Bhubaneshwar, Bhopal and Bangalore were converted into
QC Cells thereby increasing the strength of Quality Control Cells from 3 to 8
since May, 2008. There is an urgent need to further strengthen the quality
control mechanism of foodgrains in the country especially in view of likely
enactment of National Food Security Act.
Presently, some of the Quality Control Cells, such as, Kolkata,
Bhubaneshwar, Bhopal, Pune, Hyderabad and New Delhi are having vast
area under their jurisdiction to show any effective impact being thinly
spread, as only three Inspecting Officers (one Deputy Director and two
Assistant Directors) are at each QCC.
Presently, Indian Grain Storage Management and Research Institutes
located at Hapur, Ludhiana and Hyderabad are undertaking institutional
trainings on scientific storage of foodgrains and applied R&D activities on
safe storage of foodgrains. These Institutions have well established physical
and chemical laboratories wherein foodgrains samples are analysed for

30 | P a g e

physical and chemical parameters. Although pesticide residue and


mycotoxin contamination analysis which are very important parameters
under the Prevention of Food Adulteration Act, which has now been replaced
by Food Safety and Standards Act, 2006, but the technology used is very
old. There have been ultra modern technical advances in physical analysis,
pesticide residue analysis and mycotoxin contamination analysis. Most of
the equipments are very old, outdated and require frequent maintenance. In
the present era of quality consciousness, the facilities for upgradation of
technical requirements in respect of physical, pesticide residue analysis and
mycotoxin contamination analysis at IGMRI centres is need of the hour.
There had been proposal for upgradation of Central Grain Analysis
Laboratory (CGAL) for which requirements of upgradation of facilities at
CGAL were worked out based on facilities available at Food Analysis
Laboratories of ICAR, CSIR and ICMR and with wide consultations from
various institutions and experts in the line. The experts were of the view that
upgradation of facilities in respect of physical analysis can be undertaken at
CGAL. However, creating ultra modern facility for pesticide residue and
mycotoxin contamination at CGAL may not be congenial which can be taken
up at IGMRI, Hapur. Accordingly, the existing facility of pesticide residue and
mycotoxin contamination analysis and also for physical analysis at IGMRI,
Hapur and its field stations located at Ludhiana and Hyderabad can be
upgraded by acquiring the latest equipments/manpower for these purposes
identified for CGAL upgradation. The IGMRI laboratories will be got
accredited through National Accreditation Board for Testing and Calibration
of Laboratories (NABL).
Keeping in view the facts stated above and to strengthen the quality
control mechanism to ensure proper monitoring at the time of procurement,
storage and distribution so as to avoid damages/losses during storage and
to ensure that good quality foodgrains are distributed to the consumers
through PDS and other welfare schemes, there is need to open new Quality
Control Cells in the States/areas where there are procurement potentials and
need monitoring during storage and distribution. Further, to have ultra
modern facilities by utilizing recent technical advances in pesticide residue
and mycotoxin contamination analysis, there is urgent need to upgrade
these facilities at IGMRI, Hapur and also to provide the modernized
equipments for physical analysis at Hapur , Hyderabad and Ludhiana.
3.

DETAILS OF NEW SCHEME FOR STRENGTHENING QUALITY


CONTROL MECHANISM:
There are two components; (a) opening up of new Quality Control Cells
to augment the quality control mechanism and (b) upgradation of IGMRI
Laboratories.
(A)
Opening up of new Quality Control Cells:

31 | P a g e

It is proposed that we may open


in the Plan Scheme:
S.
Quality Control
No.
Cell
1.
Guwahati
2.
Patna
3.
Chandigarh
4.
Jammu
5.
Jaipur
6.
Chennai
7.
Ahmedabad

following 7 new Quality Control Cells


States/UTs to be covered
All North Eastern States
Bihar and Jharkhand
Punjab and Haryana
J&K and Himachal Pradesh
Rajasthan
Tamil Nadu and Puducherry
Gujarat, Daman & Diu

JUSTIFICATION FOR PRPOSED NEW QUALITY CONTROL CELLS:


(i)QCC, Guwahati
Presently QCC, Kolkata is looking after the States of West Bengal,
whole NE Region (7 States), Sikkim and Andaman & Nicobar.
Three
Inspecting Officers of QCC, Kolkata are not in a position to attend to the
needs of NE States, which mostly depends on PDS requirement. Now Assam
is also emerging as a procuring State, which further needs strengthening of
quality control mechanism in these States having different topography from
West Bengal. FCI also has its Zonal and Regional office at Guwahati. As West
Bengal is itself a major procuring State having decentralized procurement, it
needs independent QCC office at Kolkata.
(ii)QCC, Patna
Presently QCC, Bhubaneshwar is looking after the States of Orissa,
Jharkhand and Bihar. Orissa is a major procuring State and is operating
under decentralized procurement scheme. Now Bihar has also emerged as a
major procuring State. FCI has also opened separate Regional Offices at
Bihar and Jharkhand under Zonal Office (East) apart from Regional Offices at
Orissa and West Bengal. So, there is a need to open QCC office at Patna for
Bihar and Jharkhand. As Orissa is itself a major procuring State having
decentralized procurement, it needs independent QCC office at
Bhubaneshwar.
(iii) QCC, Ahmedabad
Presently QCC, Pune is looking after the States of Maharashtra, Gujarat,
Goa, Daman & Diu and Dadra & Nagar Haveli a vast area to cover. Gujarat
is a big State and emerging as a potential procuring State with increasing
procurement of wheat. QCC Ahmedabad will look after the States of Gujarat
and Daman & Diu and Dadra & Nagar Haveli. FCI has also a Regional Office
at Ahmedabad under Zonal office (West) Mumbai. QCC, Pune will look after
the quality of foodgrains in the States of Maharashtra and Goa.

32 | P a g e

(iv)
and (v) QCCs, Chandigarh and Jammu:
Presently QCC, New Delhi Hqrs. is looking after the States of NCT Delhi,
H.P., J&K, Punjab, Haryana, and Chandigarh U.T. apart from monitoring the
work of all field offices of QCCs. There is no separate Monitoring Cell in the
Ministry Hqrs. for coordination and monitoring the work of all QCC field
offices. The QCC, New Delhi henceforth will coordinate and monitor the
activities of all QCC field offices. The targeted field activities in respect of
States of Punjab, Haryana and Chandigarh UT will be looked after by QCC,
Chandigarh and in respect of States of J&K and H.P. by QCC, Jammu. FCI has
also a Regional Office each at Chandigarh and Jammu under Zonal Office
(North) Noida. Inspection activities in respect of NCT Delhi will be looked
after by QCC, New Delhi itself apart from coordination and monitoring the
work of QCC field offices and country-wide investigation of complaints as
also surprise super inspections, etc.
(vi)

QCC, Jaipur
Presently QCC, Bhopal is looking after the States of Madhya Pradesh,
Chhattisgarh and Rajasthan. Both Madhya Pradesh and Chhattisgarh are
major procuring States under decentralized procurement scheme having a
vast area, which require special attention. Rajasthan is also a major
procuring State. FCI has also a Regional Office at Jaipur under Zonal Office
(North), Noida. So there is a need to open QCC office at Jaipur for Rajasthan.
As Madhya Pradesh and Chhattisgarh are major procuring States having
decentralized procurement, they need independent QCC office at Bhopal.
(vii) QCC, Chennai
Presently QCC, Hyderabad is looking after the States of Andhra
Pradesh, Tamil Nadu and Puducherry. Andhra Pradesh is a major procuring
State having the highest procurement of rice under Central Pool. Every year
due to natural calamity, requests for relaxations in specifications of
paddy/rice are received from one or other parts of the State and QCC
officers have to collect samples from affected areas in association with FCI
and State Government, based on which relaxations are decided. Tamil Nadu
is also a major procuring State and is working under decentralized
procurement scheme. In Tamil Nadu also, there are recurring problems of
quality of foodgrains due to unseasonal rains for which requests are received
for relaxations in specifications. There is need to have a full fledged QCC at
Chennai. FCI has also its Zonal and Regional Offices at Chennai.

33 | P a g e

Staf strength:
The proposed staff strength in the above-mentioned new Quality
Control Cells

S.
N
o.
1.

Guwaha
ti

Patn
a

Chandiga
rh

Jamm
u

Jaipu
r

Chenn
ai

Ahmedab
ad

Tota
l

14

21

14

7.

Dy.
Director
Asstt.
Director
Tech.
Officer/
Tech.
Assistant
Lab.
Assistant
Tech.
Operator/
Lab
Attendant
Jr.
Accountan
t
LDC

8.

Steno

9.

Driver

10
.

Multitaski
ng staff
Total

21

16

16

16

16

16

16

16

112

2.
3.

4.
5.

6.

Posts

(B)

Upgradation of IGMRI Laboratory:


With widespread use of pesticides by farmers, from whom
procurement of foodgrains for the Central Pool is done, possibilities of
presence of pesticide residues in the Central Pool foodgrains cannot be ruled
out. In addition, pesticides are also used for preservation of Central Pool
stocks by FCI, CWC and State agencies during storage. These applications of
pesticides may also affect the quality of foodgrains. Under Prevention of
Food Adulteration (PFA) Act, 1954, which has now been replaced by Food
Safety and Standards Act, 2006, maximum limits of various refractions and
adulterants in different food items have been prescribed to ensure that
these are fit for human consumption. In case of foodgrains, levels of various
34 | P a g e

refractions like presence of foreign matter, damaged grains, mycotoxin


contamination, uric acid, etc. are also prescribed.
At times, the Central Pool stocks of foodgrains also get affected by
rains, high humidity, particularly during their storage and handling and thus,
get damaged and infected by fungi. This results in presence of mycotoxins.
Similarly, attack of storage insect pests results in deterioration of quality of
foodgrains due to presence of uric acid, etc.
Therefore, to ensure that the Central Pool foodgrains meet all the
quality specifications at all times and risks of adverse impact on the
consumers are eliminated, it is imperative to analyse from time to time the
Central Pool stocks for levels of various refractions as prescribed under
uniform specifications, for the presence of pesticide residues, mycotoxin
contamination, uric acid, etc. In order to strengthen the IGMRI Laboratories,
with such facilities, it is necessary to upgrade the present facilities and
strengthen the laboratories.
Equipments Required:
(a)
For Physical& Chemical analysis of foodgrains - Details of the
equipments required for chemical analysis of foodgrains and approximate
cost estimates of the additional equipment required for carrying out analysis
of pesticide residues in foodgrains, which is presently not being
undertaken, are given in Annex-III.
(a) For Pesticides Residue analysis in foodgrains - Details of the
equipments required for chemical analysis of foodgrains and approximate
cost estimates of the additional equipment required for carrying out analysis
of pesticide residues in foodgrains, which is presently not being
undertaken, are given in Annex-IV.
(b)
For mycotoxin determination-Presently, the IGMRI Lab. does not
have any of the equipments for carrying out analysis of foodgrains for the
presence of mycotoxins. A list of equipments required and their cost to be
provided for determination mycotoxins contamination in foodgrains is given
at Annex-V.
Staf Strength
The proposed staff strength for upgradation of IGMRI laboratories
would be as under:
Name of the
Post

Assistant
Director(S&R
)
Technical
Officer (S&R)
Lab.
Attendant
Total

Hapu
r

IGMRI
Total
Ludhian Hyderaba
a
d

15

27

35 | P a g e

(C) Capacity Building:


In view of the shortage of technically qualified
staff with the State Government agencies engaged in procurement, storage
and distribution of foodgrains and Government encouraging the
decentralized procurement scheme under which State Governments and
their agencies procure, store and distribute the foodgrains directly without
involvement of FCI, the training requirements for the staff of the State
Governments and their agencies is need of the hour. Presently, IGMRI,
Hapur and its field stations at Hyderabad and Ludhiana are imparting
training beside applied R & D activities. It is proposed that Quality Control
Cells, existing as well as newly proposed will also impart 2 3 days short
term training to the State Government officers / officials and farmers on
scientific storage, inspection and quality control of foodgrains. Each quality
control cell will impart 4 training programmes in a year for 30 35 trainees
per training.

BUDGETARY PROVISION:
Total requirement would be Rs. 59.43 crores for the 12 th Five Year Plan.
The details are as under:

S.
N
o.
1.
2.
3.
4.
5.
6.

Name
QCC

of Anticipated budgetary requirement for Total


12th Five Year Plan
2012201320142015201613
14
15
16
17
Guwahati
60.82 121.46
122.22 134.03 146.45 584.98
Patna
60.82 121.46
122.22 134.03 146.45 584.98
Chandigar
60.82 121.46
122.22 134.03 146.45 584.98
h
Shimla
60.82 121.46
122.22 134.03 146.45 584.98
Jaipur
60.82 121.46
122.22 134.03 146.45 584.98
Chennai
60.82 121.46
122.22 134.03 146.45 584.98
36 | P a g e

S.
N
o.
7.

Name
of Anticipated budgetary requirement for Total
QCC
12th Five Year Plan
Ahmedaba
60.82 121.46
122.22 134.03 146.45 584.98
d
Total
425.74 850.02
855.54 938.21 1025.1 4094.8
5
6
(a) Opening of new Quality Control Cells: Presently, there is no Plan
Scheme under S&R Division. The total anticipated budgetary requirement for
running the quality control scheme with these seven QCCs will be
approximately Rs. 40.95 crores for the 12 th Five Year Plan.
Annual
requirement for each office would be as under:
(Rs in lakhs)

(b) IGMRI, Hapur and its field stations located at Ludhiana and
Hyderabad: The anticipated budgetary requirement for creating modern
Physical analysis facilities and additional facilities of pesticide residue and
mycotoxin contamination analysis of foodgrains at IGMRI, Hapur and its field
stations at Ludhiana and Hyderabad will be approximately Rs.8.16 crores
(Non-recurring) and for additional manpower required for above chemical
analysis will be approximately Rs. 5.32 crores (recurring) for the 12 th Five
Year Plan. Annual requirement for each office would be as under:
(Rs in lakhs)
Sr. Name of Anticipated budgetary requirement for 12th Total
No IGMRI
Five Year Plan
2012 2013 -14
2014 2015 2016
.
office
Recurri Non- 13
- 15
- 16
- 17
ng
recurri
ng
1. Hapur
12.9 35.50
272.00
39.00 42.90 47.20 449.50
0
2. Ludhiana 12.9 35.50
272.00
39.00 42.90 47.20 449.50
0
3. Hyderab 12.9 35.50
272.00
39.00 42.90 47.20 449.50
ad
0
Total
38.7 106.50
816.00 117.0 128.7 141.6 1348.
0
0
0
0
50
(c) Capacity Building: The anticipated budgetary requirement for
training programmes will be Rs. 1.00 crore per year and Rs. 5.00 crores for
the 12th Five Year Plan period.
Total Requirements for 12th Five Year Plan for opening of new
Quality Control Cells, upgradation of IGMRI & its field stations and
for capacity building will be Rs. 59.43 Crores.

37 | P a g e

BE 2012-13 for this Scheme is Rs.1.00 crore.

38 | P a g e

Annexure I
ALL INDIA QUALITY CONTROL STAFF POSITION OF FCI AS ON 30.06.2011

39 | P a g e

CATEGORY-I
Place
Headquarters, New
Delhi
ZO, Noida
RO, Delhi
Nort RO, J&K
h RO, HP
RO, Punjab
Z
o RO, Haryana
n RO,
Uttrakhan
e
d
RO, UP
RO, Rajasthan
East ZO, Kolkata
Z RO, WB
o RO, Orissa
n RO, Bihar
e RO, Jharkhand
Sout ZO, Chennai
h RO, AP
RO, Tamil
Z
Nadu
o RO, Karnatka
n
e RO, Kerala
ZO, Mumbai
Wes RO,
Maharash
t
tra
Z RO, Gujarat
o RO, MP
n RO,
e
Chhattisg
arh
Nort ZO, Guwahati
h RO, Assam
RO, N&M
E RO, NEF
a RO, Arunachal
s
Pradesh

CATEGORY-II

AGM(QC)

M (QC)

CATEGORY-III
TA Gr I

CATEGORY-IV

TA Gr II

TA Gr III

Picker

D. Operator

SS

IP

SS

IP

SS

IP

SS

IP

SS

IP

SS

IP

SS

IP

8
4
2
2
2
16
7

5
0
0
0
0
15
5

15
29
20
10
4
218
86

29
13
26
28
11
265
106

5
48
30
16
9
384
169

2
4
5
3
1
137
39

5
49
30
16
9
384
169

0
0
0
1
0
84
4

6
65
42
22
12
512
228

9
5
29
14
10
312
126

2
0
17
6
2
210
89

4
1
18
4
0
155
13

3
1
25
11
2
316
134

0
1
12
11
2
394
111

3
11
5
3
11
8
7
2
3
15

0
4
2
1
1
2
3
1
2
19

10
136
68
9
80
37
35
10
13
124

31
167
71
8
57
20
35
8
8
247

15
217
118
12
111
60
63
15
20
223

7
89
23
1
20
11
1
1
2
205

15
217
118
13
111
60
63
15
21
223

0
8
8
1
24
12
19
6
0
9

22
290
159
19
147
82
84
20
28
300

18
129
69
0
56
72
83
14
1
107

7
99
48
0
53
22
27
5
0
101

11
118
51
2
69
28
56
2
2
142

10
148
72
1
79
33
40
7
1
152

14
299
118
2
99
35
27
17
4
265

4
4

3
0

41
35

57
27

66
61

24
27

66
61

1
0

88
82

67
104

35
25

36
23

52
37

83
78

5
3

5
1

37
11

26
7

48
16

34
0

48
17

3
0

66
23

35
1

28
0

50
4

42
1

55
17

4
3
5

3
1
0

76
35
40

70
17
47

129
49
71

27
29
23

129
49
71

2
2
1

173
67
96

95
21
42

64
25
27

84
56
22

96
38
40

51
18
45

5
2
6
2
3
4

3
0
1
1
1
0

41
3
24
6
7
5

45
4
38
9
15
5

71
3
34
7
11
9

22
1
2
2
1
0

71
4
34
7
11
9

0
0
1
0
0
1

95
5
47
11
15
12

35
2
17
7
7
8

32
0
17
2
5
0

13
0
29
0
5
1

49
1
26
4
7
4

32
6
74
14
25
2

40 | P a g e

t
Z
Total

159

79

1265

1497

2090

743

2095

187

2818

1495

948

999

1432

1911

Annexure-II
Staff Strength in Quality Control Cells

Sl
.
N
o
1

Name
of Post

Delhi

V S

In

Hyderaba
d
V S
In V

Bangalor Bhubanesh
e
war
S
In V S
In
V

Bhopal

Pune

Total

1
3

17

16

24

2
2
2

Deputy
Director
Assistant
Director
Tech
Officer
Tech
Asst
Lab Asst

JASK

Steno

LDC

Driver

10

Tech
Operator
.

16

1
4

3
4

Lucknow

I
n
1

Kolkata

In

V S

In

V S

In

I
n
-

41 | P a g e

11

Peon/
watchma
n
Total

14

1
2

1
4

1
7

1
4

17

1
0

1
7

1
3

17

14

1
7

1
7

1
1

1
7

1
4

13
3

9
3

4
0

(As on 30.9.2011)

42 | P a g e

Annexure-III
List of equipments required for Physical and Chemical analysis of food
grains
Sr.
Name of Equipment
Purpose
Approx.
No
Cost
.
(Rs.in lakh)
1.
Electronic
Balance
Max. For weighing of food
1.50
Capacity 500 gm. (Least Count grains samples
0.001 gm.)
2.
Flexible
arm
illuminated For
examining
the
0.20
magnifier (four)@ Rs.5000/-per refractions
and
grain
pc.
characteristics such as
pin point rice grains,
discoloured
and
red
grains etc.
3.
Hecto liter Weight Apparatus For
determination
of
0.15
with sample Pan, Strocker and Hecto liter weight of
weighing balance capacity One wheat
kg. Least Count 100mg. Brass
made.
4.
Grain Sampler
For
drawing
grain
0.10
Slotted tube Bulk sampler
samples from Bulk

5.

Bag trier/ sampler (Stainless For


drawing
grain
steel made.)
samples from Bag

0.04

6.

Thermo Sampler, Brass Made For


drawing
grain
with extension rods.
samples from Bulk and
recording
grain
temperature.
Winnower.
For thorough cleaning of
seed samples for quality
work
by
removing
light/heavy
impurities,immature
grains and broken grains
etc.
Dockage Carter.
For separating dockage
from grain samples
Mini Rice Mill consisting 1 set of For milling the paddy

0.20

7.

8.
9.

5.00

0.20
15.0
43 | P a g e

Sr.
No
.

10.

11.

12.

13.
14.

15.

16.

Name of Equipment

Purpose

testing husker with paddy


capacity of 40 kg. per hour.
Size of the rubber role width
35 x dia 100 mm. Built in motor
200 watts Single phase with
standard accessories and one
set of Testing Mill model TM 05
capacity 0.2 kg /one time,
Dimension 555 x 355 x380 mm
Build in motor 400 watts single
phase
with
standard
accessories.
Accessories
for
Husker
&
Polisher.
a. Rubber Rollers THU 35(A)
per piece.
b. Stone Polisher (TM05) per
piece.
Grain/ seed counter.

samples to find out outturn ratio.

Approx.
Cost
(Rs.in lakh)

3.00
Additional spares.

For counting the grain


kernels
for
thousand
kernel weight and other
purposes.
Computers
(with
laser For compilation of data
printer,FAX,Photocopier
and and report of analysis
Scanner).
work
Whiteness meter.
To evaluate the grain
quality in terms of color
and translucent of rice
kernels.
Hygrometer.
To determine the RH
Illuminated Purity Work Boards For grain grading and
(Three @ Rs.4000/-each).
checking
for
stress
cracks, germ damage
and seed viability
Image Analyser.
Quick determination of
broken, shrivelled etc.
grains.
Colour Sorter.
For sorting ill-formed,

0.25

1.50

1.50

0.05
0.12

10.00

10.00
44 | P a g e

Sr.
No
.

Name of Equipment

Purpose

damaged and coloured


grains.
17. Analytical Electronic Balance. For weighing chemicals
(Least Count 0.0001 gm.)
for
preparation
of
chemical solutions
18. Digital Electronic Balance Max. For weighing of food
Capacity 500 gm. (Least Count grains samples
0.001 gm.)
19. Digital Moisture Meter
@ Rs. For
determination
of
25000/- each.
moisture content of food
grains
20. Water distillation apparatus
For preparing the distilled
water.
21. Water bath
For evaporating solvents
22. Rapid Kjeldahl System
For
determination
of
wheat / rice protein.
23 IR moisture balance (capacity For quick and accurate
.
50 gms.)
analysis
of
moisture
Readability : 0.001 g
content of foodgrains and
Pan size : 90 mm
milled samples
Temperature : 50 to 1600
degree C.
24. Mini Flour Mill.
For preparing atta, maida
and suji (rava) of wheat
samples.
25. Mill Grinder Hammer type For mixing and grinding
cyclone mill with metallic the grain samples.
grinding chamber.
26. Horizontal sample shaker with For shaking the samples
timer (6 flask capacity)
with solvent for pesticide
residue analysis.
27. Hot Plate
For
heating
sample
extracts
28. pH Meter
To determine PH value
29.

Fibre Extraction Unit

30.

Air curtain system

For determination of fibre


content
For keeping hygiene in

Approx.
Cost
(Rs.in lakh)

2.00

1.50

0.50

1.00
0.50
15.00
1.55

20.0

1.50

0.27

0.10
0.50
5.00
0.15
45 | P a g e

Sr.
No
.

Name of Equipment

31.

Fume hood Chamber

32.

Commercial
scale
purification system
Total

Purpose

lab.
For removal of toxic
fumes and gases
water To get potable water for
all purposes

Approx.
Cost
(Rs.in lakh)
0.75
0.40
99.53

46 | P a g e

Annexure IV
List of the equipments required for Pesticide residue analysis of food
grains
Sr.
Name of Equipment
Purpose
Approx.
No
cost
.
(Rs.in lakh)
1
Oil bath with stirrer
For evaporating solvents
0.35
2.
Heavy Duty Mixer Grinder
For mixing and grinding the
grain samples.
3.
Gas Chromatography-Mass For Pesticidal residue , pH,
75.00
Spectroscopy GC MS MS
total acidity and total sugar
4.
Rotary vacuum evaporator
For evaporating the solvent
0.60
from
pesticide
residue
extracts.
5.
High velocity centrifuge For analysis of pesticide
1.00
machine
residue.
6.
Vacuum Pump
For staining sample extract
0.20
7.
Accelerated
Solvent Fully automatic extraction
33.0
Extraction (ASE) (Automatic system for preparation of
System).
analysis grade samples.
8.
Ultra
pure
water It is to obtain pure water for
4.00
purification
system
for sample
preparations
in
18.2 Mega Ohm resistivity mycotoxins and pesticidal
pure water
residue detection.
9.

Refrigerator

TOTAL

For keeping
reagents

samples

and

0.30

114.45

47 | P a g e

Annexure V
List of the equipments required for Mycotoxin analysis of food grains
Sr.
No
.
1.

2.

3.

4.
5.

6.
7.

Name of Equipment

Purpose

One Refrigerator (350 lt. For


keeping
the
capacity)
chemicals and reagents
and sample extracts of
residue analysis.
Horizontal sample shaker For shaking the samples
with
timer
(6
flask with solvent for pesticide
capacity)
residue analysis.
Ultraviolet
lamp
with For
identification
of
chamber
mycotoxin
in
grain
samples.
Flouro toxin meter
For analysis of mycotoxin
in foodgrains.
HPLC
(high
pressure For
determination
of
liquid
chromatograph) mycotoxins
with complete system
with
Fluorescence
detector
and Electrochemical
detector
consisting of gradient
pump, Degasser, injector,
column oven, variable
wave length detector with
flow cell standard : 14
micro liter volume, 100
mm cell path length and
40 bar (588 ps) pressure
maximum and computer,
printer and UPS (one KVA
on line with 30 minutes
backup).
Laminar Flow
Determination of fungus /
bacteria
B O D incubator
Determination of fungus /

Approx. cost
(Rs. in lakh)
0.30

0.20

0.25

1.50
25.0

2.50
2.50
48 | P a g e

Sr.
No
.
8.
9.
10
.
11
.
12
.
13
.
14
.
15
.

Name of Equipment

Purpose

bacteria
pH Meter
Determination of pH
Colony Counter
For counting of microbes
ELISA Reader
Determination of fungi /
mycotoxin
Binocular Microscope
For
microscopic
inspection of fungi /
bacteria
Phase
Contrast
For
microscopic
Microscope
with inspection of fungi /
accessories
bacteria with precision
Centrifuge
For separation of sample
extracts.
Refrigerator with minus For keeping extracts /
20o C Temperature.
reagents.
Autoclave
For
heating
under
controlled pressure
Total

Approx. cost
(Rs. in lakh)

0.50
1.50
5.00
1.50

7.00

7.50
1.00
1.50

57.75

49 | P a g e

9.

Construction of Fair Price shop-cum godowns


Under the Targeted Public Distribution System (TPDS), essential
commodities (rice, wheat, coarse grains and sugar) are distributed to the ration
card holders through Fair Price Shops (FPSs). TPDS is operated under the joint
responsibility of Central and State Governments. The responsibilities for lifting
of foodgrains from FCI depots/godowns, transporting it to intermediary storage
facilities and delivery to the FPS are that of the States/ UTs. FPSs are licensed
under the Essential Commodities Act, 1955 by State/UT Governments. Further,
the PDS (Control) Order, 2001 stipulates that State Governments shall make
arrangements for taking delivery of the essential commodities issued by the
Central Government by their designated agencies or nominees from the FCI
depots/godowns and ensure further delivery to the FPSs within first week of the
month for which allocation is made.
2.
The proposed National Food Security Bill (NFSB), 2011 aims to provide for
food and nutritional security, in human life cycle approach, by ensuring
adequate quantity of quality food at affordable prices for people to live life with
dignity and for matters connected therewith. Under the proposed legislation,
every person belonging to priority and general households shall be entitled to
receive every month from the State Government under the TPDS; such quantity
of foodgrains at such prices as would be specified. In case of failure to supply
the entitled quantities of foodgrains or meal to the entitled persons, such
persons shall be entitled to receive food security allowance from the
concerned State Government, to be paid to each person in the time and
manner as may be prescribed. Further, under the proposed legislation, the
Central Government shall allocate from the Central Pool, the required quantity
of foodgrains to the State Governments under the TPDS as per entitlements
and prices to be specified to ensure regular supply of foodgrains to persons
belonging to priority and general households. The Central Government shall
also among others create and maintain required modern and scientific storage
facilities at various levels.
Under the proposed law, duty of the State
Governments for food security shall include taking delivery of foodgrains from
the designated depots of the Central Government in the State, organize intraState allocations for delivery of the allocated foodgrains through their
dedicated agencies at the door step of each FPS and ensure actual delivery or
supply of the foodgrains to the entitled person at specified prices. The
proposed law also provides that for efficient operations of the TPDS, every
State Government shall create and maintain scientific storage facilities at the
50 | P a g e

State, District and Block level, sufficient to accommodate foodgrains required


under the TPDS and other food based welfare schemes.
3.
As per the guidelines formulated by this Department in March 1987, the
norm of one FPS for every 2000 persons was suggested to the States/UTs. It
was noted that there may be exceptions in view of the population density,
terrain of the area, etc. It was further provided that it should be ensured that
no card holder has to travel more than 3 kms to reach his FPS. States/UTs were
also to ensure the coverage of FPSs in areas like Harijan Basti and Tribal Areas
and introduce Mobile FPSs for remote and far flung, hilly inaccessible tribal
areas. Sale centres in some rural areas, particularly in tribal areas at weekly
haats, were also recommended to be opened. For successful implementation
of the proposed law on Food Security, which is likely to be enacted in the near
future, it is essential that adequate scientific storage capacities are created in
each State/UT at various levels to ensure availability of foodgrains as well as
access of beneficiaries to the foodgrains at the FPS. It is essential that
commodities under TPDS should be available on uninterrupted basis in
quantities adequate to meet the beneficiaries requirements of at least few
months so that the beneficiary does not have to forego his entitlements. This is
especially important for backward, hilly, inaccessible and tribal areas. It is thus
important that adequate stocks of foodgrains are maintained at not only the
intermediate storage facilities but also at the FPS level to meet the
requirements of the proposed law on Food Security.
4.
It may be mentioned here that based upon requests received from State
Government and in view of the existing stock position, States/UTs have already
been permitted vide this Departments letter dated 18.7.2011 for lifting and
distribution of up to six months ration under TPDS in one go subject to
conditions that there should be no compulsion on the beneficiary to lift their
entitlements in one go and should be purely voluntary; that the existing system
of lifting the quota every month and in installments should be continued and
that the bulk distribution of foodgrains be made as far as possible in the
presence of State Government officials, PRIs, Vigilance Committees, NGOs,
etc. and adequate publicity be made about the same. Further, during the
Conference of Food Secretaries & other officials of States/UTs held on Best
Practices and Reforms on TPDS in July 2010, it was resolved among others that
States may create decentralized storage facilities at block level and also
storage at Village/Panchayat levels by construction of Fair Price Shop-cumgodowns using funds available under various schemes including through
various Development and employment generation schemes.
51 | P a g e

5.
For proper and scientific storage of PDS commodities, Government of
Chhattisgarh has taken up a scheme for the construction of 25 MT capacity
FPS-cum-godowns in the Panchayat buildings during the year 2006-07 at a cost
fixed at Rs. 1 lakh for each FPS-cum-godown. Thereafter, the capacity of the
FPS-cum-godown has been revised to 35 MT and the cost enhanced to Rs. 2
lakh. At present, construction of 3388 FPS-cum-godowns in rural areas is
reported to have been completed and construction of another 1794 FPS-cumgodowns is in progress. For construction of these FPS-cum-godowns in rural
areas, funds of Backward Region Grant Funds (BRGF) and the 12 th Finance
Commission are being used by the State Government. Government of
Chhattisgarh has also started scheme for construction of minimum 50 MT
capacity FPS-cum-godown in the urban areas of the State in 2011-12. Cost of
each FPS-cum-godown has been fixed at Rs.10 lakh. In 2011-12, construction of
50 FPS-cum-godowns is being done in Raipur City.
6.
Several initiatives are being taken for creation of warehousing
infrastructure by the Central Government as well as State Governments. In
addition to the assistance being taken by the States like Chhattisgarh through
BRGF or 12th Finance Commission funds, a Rural Godown Scheme is being
operated by the Department of Agriculture for construction/renovation of rural
godowns. A Rural Infrastructure Development Fund (RIDF) for supporting the
creation of warehousing infrastructure for intermediary storage is also being
implemented by the National Bank for Agriculture & Rural Development
(NABARD).
7.
Keeping in view the need for scientific storage capacity at the FPS level, a
Plan Scheme for creation of FPS-cum-godowns in States/UTs is proposed to be
implemented in the 12th Five Year Plan. The details of the proposed Plan
scheme for creation of FPS-cum-godowns in the State/UTs are given as follows:i)

As per guidelines issued by Department of Food & Public


Distribution, a norm of 2000 persons per FPS was suggested.
Taking an average family size of 5 persons, the foodgrains storage
requirement in terms of provisions of NFSB at each FPS, for three to
four months period, works out to about 24 to 32 tons. Cost of
construction for each FPS-cum-godown of 30-35 tons capacity is
estimated to be between Rs. 1.95 lakh 2.36 lakh. The FPS-cumgodowns, therefore, may be constructed so as to create sufficient
capacity for storage of about 30 tons of foodgrains to be distributed
52 | P a g e

ii)

iii)

iv)

v)

vi)

vii)

viii)

under TPDS for BPL/AAY/APL categories of beneficiaries attached to


each FPS. If required, the facilities created may also be utilized to
supply to other FPSs in the vicinity in the absence of regular
transport or storage facility in the region.
Financial assistance may be given by Department of Food & Public
Distribution to States/UTs for the construction of FPS-cum-godowns.
Keeping in view the cost estimates referred above, the cost of each
FPS-cum-godown may be fixed at maximum of Rs. 2 lakh. Financial
assistance from the Central Government will be provided to the
extent of 50% of the cost of construction or maximum of Rs. 1 lakh
per FPS-cum-godown.
The remaining amount should be
contributed by the State/UT from its own resources.
These FPS-cum-godowns shall be opened in backward regions,
tribal areas, hilly and inaccessible areas only. Due care in selection
of locations /areas for opening of FPS-cum-godowns should be
taken by each State/UT so that adequate geographical coverage is
ensured and far flung and remote areas are covered adequately.
Cooperatives, Panchayati Raj Institutions, Self Help Groups and
similar community based organizations may be given preference in
the selection of dealers operating the FPS-cum-godowns.
The guidelines for scientific storage of foodgrain in FPS-cumgodown as per Annexure-A should be followed by the State/UT
Governments.
State/UT Governments may ensure that sufficient land/space is
made available at their own cost for construction of such FPS-cumgodowns.
The detailed procedure for construction, use and running of these
FPS-cum-godowns including charging of rent, allocation of rent
receipts for repair/maintenance, etc. may be worked out by each
State/UT as per their requirements.
As the FPS-cum-godowns so constructed shall be the State
Governments property, appropriate agencies/officials should be
made responsible for construction, up-keep and maintenance of
these facilities.

8.
The total requirement for the proposed scheme for 12 th Five Year Plan is
estimated at Rs. 506.21 crore, details of which are as under:i)

The exact number of FPS-cum-godowns to be opened in the


backward region, hills, in accessible and tribal areas will be
53 | P a g e

ii)

quantified by the State/UT Government. The total number of


FPSs reported by States/UTs upto 30.6.2011 is 5,06,198. (Statewise list is at Annexure). For the purpose of the proposed Plan
Scheme, each State/UT may be given financial assistance for
opening of FPS-cum-godowns restricted to a maximum of 10%
of the number of FPSs in existence i.e. for
50,621 FPS-cumgodown (State-wise details given at Annexure-B).
Financial assistance from Department of Food & Public
Distribution being restricted to maximum of Rs. 1 lakh per FPScum-godown, the estimated outlay for the proposed Plan
Scheme works out to maximum of Rs. 506.21 crore for the
duration of the 12th Five Year Plan.

BE 2012-13 for this Plan Scheme is Rs.5.00 crore.

54 | P a g e

ANNEXURE-A
To achieve the main objectives of scientific storage the Central
Warehousing Corporation has laid-down a regular drill and has prescribed a
code of practices as detailed below:

The stocks offered for storage are compulsorily analyzed and


graded as per the national grade.
For proper preservation of stocks, orderly stacking has been
introduced to facilitate inspection, physical verification, periodical
disinfestations operations and proper aeration.
Fortnightly examination of stocks is carried out to monitor health of
stocks.
Prophylactic treatment with approved pesticides like Malathion 50%
E.C., DDVP 76% E.C. & Deltamethrin 2.5% W.P. are given to prevent
cross infestation.
Godown hygiene is maintained by regular cleaning.
Foodgrain stocks as and when received in infested condition are
subjected to quarantine fumigation with approved pesticides like
Aluminium phosphide or Methyl bromide to arrest infestation.
Modern techniques and equipments are being used to keep pace
with the latest technology for continual improvement in customer
satisfaction.

These measures adopted for scientific storage maintain the marketable


nutritive value of the goods even after storage for considerable period.

55 | P a g e

S.N
o.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Annexure-B
STATEMENT INDICATING STATE-WISE NO. OF FAIR PRICE SHOPS AND
PROPOSED FPS-CUM-GODOWNS
Name
of No. of existing Fair Maximum
No.
of
State/UT
Price
Shops
in proposed
FPS-cumStates/UTs
(as godowns in States /UTs
reported by them ( @ 10% of FPSs )
upto 31.8.2011)
Andhra Pradesh
43615
4362
Arunachal Pradesh
1568
157
Assam
34053
3405
Bihar
44480
4448
Chattisgarh
10400
1040
Delhi
2508
251
Goa
501
50
Gujarat
16662
1666
Haryana
9369
937
Himachal Pradesh
4404
440
Jammu & Kashmir
5772
577
Jharkhand
14395
1440
Karnataka
20487
2049
Kerala
14248
1425
Madhya Pradesh
20688
2069
Maharashtra
50555
5056
Manipur
2551
255
Meghalaya
4110
411
Mizoram
1244
124
Nagaland
259
26
Orissa
28744
2874
Punjab
14348
1435
Rajasthan
22830
2283
Sikkim
1414
141
Tamil Nadu
32265
3227
Tripura
1586
159
Uttar Pradesh
73004
7300
Uttarakhand
8713
871
West Bengal
20260
2026
Andaman &
481
48
Nicobar Islands
Chandigarh
22
2
Dadra & Nagar
77
8
Haveli
Daman & Diu
51
5
Lakshadweep
36
4
56 | P a g e

35

Puducherry
TOTAL

498
506198

50
50621

10. SETTING UP OF NATIONAL FOOD COMMISSION AND STATE


FOOD COMMISSIONS
(a) Scheme for Setting up of National Food Commission
1.
Objective The National Food security Bill introduced in the Lok Sabha on
22.12.2011 provides for constitution of a National Food Commission to monitor
and evaluate the implementation of this Act and schemes made there under.
The proposal is for introduction of a new Central sector scheme for meeting the
expenditure of the National Food Commission during the XII Plan.
2.
A.

Components of Expenditure
Construction of Building
Central Govt. assistance for building purposes would be for construction
of a built up area of 20,000 square feet. Central Assistance would be given at
the rate of Rs. 2,000 per sq. feet, implying thereby a total cost of Rs. 4.0 crore.
This is only an indicative estimate and actual cost will depend on the relevant
prevailing rate of construction. This does not include cost of land. Ministry of
Urban Development will be requested to allot suitable land for construction of
the building for National Food Commission.
B.
Assistance for non-building assets:
Requirement towards non-building assets such as Air Conditioners,
furniture, office equipment, computers etc is estimated at Rs. 88.84 lakh.
C.
Salary, Allowances and other office expenses
As per the NFSB, the National Food Commission will consist of a
Chairperson, five other Members and a Member Secretary. The Central
Government is required to provide for the salary and allowances of
Chairperson, other Members and Member Secretary and support staff and
other administrative expenses, required for proper functioning of the National
Commission. Annual expenditure on salary and allowances, office expenses,
local transport and other recurring expenditure would be about 5.0 crore.
3.

Financial Implication during XII Plan:


Total financial implication (non-recurring and recurring) on the proposed
scheme is estimated to be Rs 29.89 crore for the XII Plan, and Rs. 6.45 crore for
2012-13, as per following details:
Sl.
Item of Expenditure
Estimated Expenditure
No.
(Rs. in crore)
XII Plan
2012-13
57 | P a g e

1
2
3

Construction of building of
National
Food Commission
(excluding cost of land)
Assistance for non-building
assets
Salary , Allowances and other
office expenses
Total

4.0

1.0

0.89

0.45

25.00

5.00

29.89

6.45

(b) Scheme for Assistance to States/UTs for Construction of


Building for the State Food Commission
1.
Objective: The National Food security Bill introduced in the Lok Sabha
on 22.12.2011 provides for constitution of State Food Commissions in each
State to monitor and evaluate the implementation of this Act and schemes
made there under. The proposal is for introduction of a new Central sector
scheme for providing assistance to States/UTs for construction of building for
the State Food Commissions and for non- building assets such as furniture,
office equipment, computers etc.
2.
Pattern of Central Assistance
A. Assistance for Building
(i) Central Govt. assistance for building purposes would be limited to
creation of a built up area of 15,000 square feet.
(ii) Based on classification of the city in which the State Commission is
proposed to be built, Central Assistance would be limited to the
following ceiling:
(iii)
Sl. No.
Location
Rate* (Rs. per sq.
feet)
1
State Capitals in Class A-1 cities
2,000
[ceiling of Rs. 3.0
crore]
2
Difficult/hilly/less
accessible
1,500
areas
[ceiling of Rs. 2.25
crore]
3
Other State capitals
1,200
[ceiling of Rs. 1.8
crore]
* Proposed rates are as per the rates used in the scheme,
Strengthening Consumer Fora, of the Deptt. of Consumer Affairs.
B.

Assistance for non-building assets:


58 | P a g e

Requirement towards non-building assets such as furniture, office


equipment, computers etc is estimated at Rs. 47.4 lakh per state Commission.
C.

Conditions for Central Assistance:


(i)
States/UTs would have to provide the land either free of cost or bear
the expenditure towards it from its own resources.
(ii)
State/UT should have constituted the State Commission and created
posts of necessary staff for proper functioning.
(iii) It would be one time assistance for creation of permanent and long
lasting assets only and therefore no recurring expenditure can be
borne out of it.
(iv) Proposal for Central assistance would be required to be submitted in
consultation with the State Commission

D.

Proposal and release of Central assistance


(i)
Assistance for building would be released based on cost estimates
furnished by States/UTs indicating the rates and certifying that the
rates are equal to or less than PWD rates.
(ii)
The Design of the building as prepared by the executing agency
should also be enclosed with the proposal.
(iii) The proposal will be considered by a Committee in the D/o F&PD
under the Chairmanship of AS&FA.
(iv) Central assistance for building would be released in two equal
instalments. Second instalment would be released subject to
States/UTs furnishing Utilisation Certificate in the prescribe proforma
indicating at utilisation of at least 50% of the first instalment,
alongwith a report on the physical progress.
(v)
Non-building grant would be released in one instalment alongwith
second instalment of the building assistance.

E.

Financial Implication:
Total financial implication (non-recurring) on the proposed scheme is
estimated to be Rs 91.75 crore, as per following details:
Sl.
Item of Expenditure
Estimated Expenditure
No.
(Rs. in crore)
th
12 Plan
2012-13
1
Building of State Food
Commission
(a) Class A-1 cities (6; 18.00 (@3.0 crore
5.0
Hyderabad,
Delhi, each)
Bangalore,
Mumbai,
Chennai, Kolkata)
59 | P a g e

2.

(b)Difficult/hilly/less
24.75
(@
2.25
accessible areas (11 crore each)
States/UTs in receipt
of
Hill
Transport
Subsidy)
(c) Other State capitals
32.40 (@ 1.8 crore
for remaining 18
States/UTs)
Total
75.15
Non-building assistance
16.60
Grand Total
91.75

5.0
1.0
6.0

Total BE 2012-13 for the Plan Scheme Setting up of National Food


Commission and State Food Commissions is Rs. 2.00 Crore.

60 | P a g e