Fact Sheet

FOOD AND PUBLIC DISTRIBUTION

    Government of India is committed to ensure food security for all and to make available essential commodities to vulnerable section at reasonable cost round the year through Public Distribution System (PDS). With this objective in mind the PDS was reorganised in June, 1997 with its focus on the poor whereby the population Below Poverty Line (BPL) will be given 20 kg of foodgrains per month per family at 50 per cent of economic cost. This will benefit an estimated 33 crore of people living Below Poverty Line (BPL) in the country while the population Above Poverty Line (APL) will continue to get foodgrains at economic cost through the fair price shops. The estimated subsidy for running the Targeted Public Distribution System is estimated at Rs. 7457crore.

    Food security is ensured through a system of procurement of foodgrains, their storage, movement, public distribution and maintenance of buffer stock. Adequate size of buffer stock of foodgrains is an essential element of the National Food Policy. Foodgrains in buffer is necessary not only to impart inter-seasonal stability to foodgrains supply and prices but also to ensure food security and meet emergent situations arising out of unexpected reduction in crop area, natural disaster etc. Foodgrains procurement is on the Minimum Support Price (MSP) offered by the Government. Rice is also being procured under levy from rice millers/dealers at prices announced separately for each State.

    Wheat procurement has touched an all time high during the rabi marketing season 2000-2001 with the procurement reaching about 157.82 lakh tonnes as on June 7, 2000 as against the total procurement of 141.43 lakh tonnes during the last year.

    The Ministry has introduced a Citizens' Charter for imparting essential information to the public on entitlement of BPL families, quality of foodgrains, procedure of issue of ration cards, inception and checking, right to information and vigilance as well as public participation. With the objective of strengthening the public distribution system and to ensure that the benefit of PDS reaches the poor, the Ministry has advised State Chief Ministers and Administrations of Union Territories to involve active participation of panchayati raj institutions in Public Distribution System.

    A Public Grievances Redressal Cell has also been opened in the Ministry to facilitate the general public to send their complaints by post or in person which are promptly acknowledged.

    During the year, the Ministry had made special allocations of foodgrains to Orissa for cyclone relief amounting to 3,96,701 tonnes. Special additional allocations of 5,26,462 tonnes and 4,19,205 tonnes of foodgrains respectively were given to Rajasthan, Gujarat and Andhra Pradesh for relief operations in drought affected areas of these States. These allocations were for distributing 20 kg. per family per month to both BPL and APL families for three months in addition to the normal monthly allocations of foodgrains for BPL families at BPL rates and to APL families at APL rates.

    The storage plan of the ministry aims at providing a capacity of buffer and operational stock of foodgrains to maintain the public distribution system and general warehousing. The broad approach is to provide scientific storage capacity and reduce dependence on the capacity under cover and plinth. The total storage capacity by the end of last year available with Food Corporation of India, Central Warehousing Corporation and 16 States Warehousing Corporations was about 558.56 lakh metric tonnes. During the IX Plan (1997-2002) FCI and CWC have proposals to construct additional storage capacity of 4.45 lakh MTs and 8.20 lakh MTs respectively. The Ministry has taken a number of measures for reducing the post-harvest losses of foodgrains which is supposed to be about 4.12% of the total production. The Department will soon be finalising a National Storage Policy to harness efforts and resources of the public and private sectors both domestic and foreign in creating storage facility. Government is also considering to accord bulk storage and handling operations the status of infrastructure and improve the legal framework to create a more investment friendly environment in the sector.

SUGAR AND EDIBLE OILS

    The Government is currently following a policy of partial control with dual pricing system for sugar. Under this policy, specified percentage of the total production of each sugar factory is procured by the Government at controlled ex-factory levy price for distribution through the Public Distribution System at a uniform retail issue price and the balance production is allowed to be sold by factories in the open market as free sale sugar through a mechanism of monthly releases. Now it has been decided to change the population base for distribution of PDS sugar from 1991 to the projected population as on March 1, 1999 which is 9813.25 lakh as against 8463 lakh based on 1991 census data. The Government has also decided to exclude the families of Income Tax assessees for sugar distribution under the Public Distribution System w.e.f. July 1, 2000. The annual requirement of PDS sugar is estimated at about 51 lakh metric tonnes. The retail issue price of sugar is uniform through out the country which is Rs. 13 per kg with effect from March 1, 2000.

    In order to give the domestic sugar industry a level playing field, the Government has revised the duty on sugar imports to 60 per cent from 40 per cent w.e.f. February 9, 2000. The levy obligation of domestic sugar factory has been reduced from 40 per cent to 30 per cent with a view to improving the financial position of the sugar factories enabling them to pay cane price dues promptly. The Central Government has been pursuing a policy of encouraging stability and reasonable level of sugar price in the domestic market through a mechanism of free sale quota releases to enable sugar factories to clear cane price arrears to farmers.

    The major responsibility of the Department of Edible Oil is to ensure availability of safe and quality edible oils to the consumer. With this in view the Department has promulgated the Edible Oil Packaging (Regulation) Order which mandates that edible oils conforming to the standards of quality as laid down under the PFA Act can be marketed only in packets with proper label declaration including the name and the address of the packer/manufacturer so that the clear identity of the manufacturer is available to the consumer. The duty on imported oils has been increased from 16.5% to 27.5% w.e.f December 30, 1999. The Department of Sugar and Edible Oils has further rationalised import duty by proposing structured duties for various sectors keeping in view the need of the consumer and industry in the country. Duty on crude oil has been kept lower at 15% against 25% on refined oils. In order to ensure the difference in duty actual user condition has been imposed by which only actual manufacturer can import the raw material in the country at concessional rate of duty.

CONSUMER AFFAIRS

    The Consumer Protection Act, 1986 is being enforced effectively in all States and Union Territories to provide a three-tier redressal agency at national, state and district levels. At present one National Commission, 32 State Commissions and 543 District Fora are functioning in the country to offer redressal to consumers' grievances. The Government is completing the formalities for introducing a Bill to amend the Consumer Protection Act in the coming session of Parliament to ensure among other things speedy disposal of cases pending in consumer courts.

    The Department of Consumer Affairs along with the Department of Administrative Reforms and Public Grievances has brought out 62 Citizens' Charters in Ministries/Departments/PSUs having public contacts. Under a scheme for granting one time financial assistance to strengthen infrastructure facilities of redressal agencies, the Department has disbursed Rs. 61.8 crore during the period 1995-1999.

    The Department regularly monitors retail prices of 12 essential commodities including rice, wheat major pulses and edible oils, sugar, tea, onions, potatoes, and salt on a daily basis in respect of 18 centers all over the country. Whole sale prices of 9 essential commodities are also monitored on a weekly basis for 37 centres in the country. Prices are collected from States/Union Territories Food and Civil Supplies Department. The Department of Consumer Affairs also collects information on wholesale price indices (WPI) of 27 essential commodities and international prices of some essential commodities as part of its monitoring activity.

    The Essential Commodities Act, 1955 gives powers to central government to control production, supply and distribution of essential commodities for maintaining or increasing supplies or for securing their equitable distribution and availability at fair prices. On the basis of at Expert Groups' recommendation, certain amendments are proposed to be carried out in the Essential Commodities Act,1955 to make its provisions more effective. The Essential Commodities (Amendment) Bill, 2000 has been introduced in the Lok Sabha on March 8, this year. The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980 provides for preventive detention in certain cases for the purpose of preventing black marketing and maintenance of supplies of commodities essential to the community. Detentions are made by the State/UTs to prevent hoarding of and blackmarketing in essential commodities.