Question

Q- How FCI works ?? (in simple terms)

Answer 1

What is the role of FCI in India? What are its proposed and needed reforms?

The role of Food Corporation of India is to maintain sufficient buffer stock in the country and price stabilisation .

FCI purchases food grains mainly from surplus states such as Punjab, Haryana and supplies them to deficit states. For example wheat is transported from Haryana, Punjab to Goa.

A minimum support price is fixed by the government of India on which the purchase of food grains is done, but if a farmer gets more than MSP he is free to sell it wherever he wants.

The Purchased stock is maintained in godowns aka depots by Quality control staff of FCI, under which fumigation and other procedures are carefully applied.

Ministry of consumer affairs and Public distribution allocates a particular amount of food grains to Department of civil supplies, Department of education, Army supply corps. Under which they lift their allocated stock in time bound manner.

There is also a scheme called OMSS or open market sale scheme where private parties purchase food grains from FCI, but this sale is done only when stock is surplus and may deteriorate if not processed or consumed.

The supply of food grains for Mid day meal scheme ( Primary and upper Primary), APL ( Above poverty line),( Below poverty Line) BPL and other schemes ( SABLA, WBNP) is done by FCI.

The Supply of Food grains to army is also done by FCI.

And as far as reforms are concerned.

Rail Transit Loss, and storage losses are the two kinds of losses suffered by FCI.

Transit loss is result of poor handling by handling loaders (such as use of hooks), while loading and unloading and use of damaged wagons by Indian Railways for transporting food grains, Sometimes loss in the moisture of food grains while transporting also causes loss in tonnes which is later written off.

Storage loss is mainly because of poor condition of storage depots because of which a considerable amount is consumed by rodents and pigeons, which varies from depot to depot.

To counter the Rail Transit loss freight Container based storage as well as transport system is being brought into force by FCI.

And a major breakthrough was implementation of Depot online system which will be immensely beneficial in curbing the various malpractices across India.

Answer 2

$\huge\bf{Answer:-}$

FCI stands for Food Corporation of India

Functions of FCI:

1. Maintainance of stocks as measure of Food Security.
2. Supply food grains through shops of rations.