Ministry of Consumer Affairs, Food & Public Distribution

Year-End- Review of Department of Food and Public Distribution– 2022


Under Pradhan Mantri Garib Kalyan Anna Yojana, a total of about 1118 LMT foodgrains allocated to States/UTs

Of 291 districts, 250 Districts (in 26 States/UTs) lifted Fortified Rice under Targeted Public Distribution System, remaining to be covered by March 2024

More than 93 Crore portability transactions recorded under One Nation One Ration Card plan delivering more than 177 LMT foodgrains both inter-State and intra-State transactions

Supply of 40063 MT of Wheat to Afghanistan as humanitarian assistance

Rs.114981 crore paid to farmers for sugar season 2021-22, more than 97% cane dues cleared

Revenue of more than ₹18000 crore to sugar mills/distilleries for supplying more than 87% of total ethanol blended with petrol during Ethanol Supply Year 2021-22.

Posted On: 12 DEC 2022 4:14PM by PIB Delhi

The Department of Food and Public Distribution (DFPD) under Ministry of Consumer Affairs, Food and Public Distribution during 2022 continued to ensure that Central Government Schemes like Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), One Nation One Ration Card (ONORC), and Distribution of Fortified Rice under various schemes, Targeted Public Distribution and other reaches all beneficiaries.

In addition, the Department also procured food grains from farmers and continue to provide Humanitarian aid to various countries.

Some of the key achievements of the Department are:

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

To ameliorate the hardships faced by the poor due to economic disruption caused by COVID-19 Pandemic and to minimize the impacts of the Covid-19 pandemic on food security, Government in March 2020 had announced the distribution of additional free-of-cost foodgrains (Rice/Wheat) to about 80 Crore National Food Security Act (NFSA) {Antyodaya Anna Yojana(AAY) & Priority Households(PHH)) beneficiaries at the scale of 5 Kg per person per month under the PM Garib Kalyan Anna Yojana (PM-GKAY). So far, under the scheme the Department had allocated a total of about 1118 LMT foodgrains to the States/UTs. Currently Phase VII (October-December, 2022) of PMGKAY is operational in all States/UTs. The details are as under:

Phases

Allocation of foodgrains

(in Lakh MTs)

Maximum Financial implications (in crores)

PMGKAY-I (April-June, 2020)

120

44,834

PMGKAY-II (July-November, 2020)

201

68,351

PMGKAY-III (May & June, 2021)

80

26,602

PMGKAY-IV (July-November, 2021)

199

67,266

PMGKAY-V (December, 2021-March, 2022

159

53,344

PMGKAY-VI (April-September, 2022)*

239

85,838

PMGKAY-VII (October-December, 2022)

120

44,762

Total

1118

390997

 

Hon’ble PM’s announcement on Rice Fortification and scaling up

Hon’ble PM of India in his address on the 75th Independence Day (15th August, 2021) made an announcement providing nutrition by supplying of fortified rice throughout the government schemes. Pursuant to the announcement, the Government of India has approved the supply of fortified rice throughout the Targeted Public Distribution System (TPDS) under the National Food Security Act (NFSA) and in Other Welfare Schemes of Government of India including ICDS and PM POSHAN in all States and Union Territories (UTs) in a phased manner.

The implementation of Phase-I covering ICDS and PM POSHAN in all the States/UTs had commenced in FY 2021-22. Nearly 17.51 Lakh MT of fortified rice had been distributed under ICDS and PM POSHAN.

The implementation of Phase-II covering Phase-I plus TPDS and OWS in 112 Aspirational and 250 High Burden Districts on stunting (total 291 districts) has commenced from April, 2022. Out of 291 districts, 250 Districts (in 26 States/UTs) have lifted fortified rice under TPDS and under ICDS and PM POSHAN, nearly 16.79 LMT have been lifted by the States/UTs till 13.11.2022.

The implementation of Phase-III would start from the year 2023-24 where Phase-II plus covering the remaining districts of the country would be covered by March 2024.

Centrally Sponsored Pilot Scheme on "Fortification of Rice & its Distribution under Public Distribution System"

In order to address anemia and micro-nutrient deficiency in the country, Government of India approved Centrally Sponsored Pilot Scheme on "Fortification of Rice & its Distribution under Public Distribution System" for a period of 3 years beginning in 2019-20. Fifteen State Governments i.e Andhra Pradesh, Kerala, Karnataka, Maharashtra, Odisha, Gujarat, Uttar Pradesh, Assam, Tamil Nadu, Telangana, Punjab, Chhattisgarh, Jharkhand, Uttarakhand & Madhya Pradesh have consented and identified their respective Districts (Preferably 1 District Per State) for implementation of the Pilot Scheme. Out of these, 11 States- Andhra Pradesh, Gujarat, Maharashtra, Tamil Nadu, Chhattisgarh, Uttar Pradesh, Odisha, Telangana, Uttarakhand, Madhya Pradesh and Jharkhand distributed fortified rice in their identified districts under the pilot scheme. The pilot scheme ended on 31.03.2022.

Targeted Public Distribution System (TPDS) reforms

100% digitized ration cards/beneficiaries’ data under NFSA in all States/UTs. Details of almost 19.5 Crore ration Cards covering nearly 80 Crore beneficiaries are available on transparency portals of States/UTs.

More than 99.5%Aadhaar seeding of ration cards (at least one member).

About 99.8% (5.33 Lakh of total 5.34 Lakh) Fair Price Shops (FPSs) in the country are automated using electronic Point of Sale (ePoS) devices for transparent and ensured distribution of subsidized foodgrains to beneficiaries.

Nearly 90% biometrically/Aadhaar authenticated distribution of monthly allocated foodgrains to States/UTs under NFSA.

Progress of One Nation One Ration Card plan

Starting with inter-State portability in just 4 States in August 2019, so far, the ONORC plan has been enabled in all 36 States/UTs (across the country) covering around 80 Crore NFSA beneficiaries, i.e., almost 100% NFSA population in the country. Chhattisgarh State and Assam states had joined ONORC platform in the month of February 2022 and June 2022 respectively.

Since inception of ONORC plan in August 2019, more than 93 Crore portability transactions have been recorded under the ONORC plan in the country delivering more than 177 LMT foodgrains, which includes both inter-State and intra-State transactions.

During year 2022, about 39 crore portability transactions were performed in 11 months of 2022 delivering more than 80 LMT foodgrains including Inter-State and Intra-State portability transactions of NFSA and PMGKAY. Presently, more than 3.5 crore portability transactions are being recorded every month including NFSA and PMGKAY foodgrain distribution.

Movement of Foodgrains

During 2022 (from January, 2022 upto October, 2022), 153 containerized rakes moved with approx. freight savings of Rs. 343 lakhs.

FCI is also undertaking multi-modal transportation of rice involving coastal shipping and road movement from designated depots of Andhra Pradesh to designated depots in Kerala and A&N. During 2022 (i.e. from January, 2022 upto October, 2022) 39000 MT was moved based on cost economics in comparison to the conventional mode of transportation.

Further, FCI has moved total 15019 rakes of foodgrains with approximate quantity of 513.08 LMT have been loaded from January, 2022 to October, 2022, to meet the requirement of NFSA & PMGKAY.

Revised Guidelines for procurement, allocation, distribution and disposal of coarse grains

To obviate difficulties being faced by some States in procurement/distribution of coarse grains and to increase procurement of coarse grain under Central Pool, the distribution period/shelf life has been increased vide circular dated-28.03.2022. The distribution period of coarse grains has been increased to 6-10 months respectively from the earlier period of 3 months only. This would increase procurement and consumption of these commodities as the State would have more time to distribute these commodities in TPDS/OWS.

E-governance in procurement operations

Government of India has introduced MTP (Minimum Threshold Parameters) towards development of an application eco-system, wherein requisite information in respect of procurement is available at single source by integrating all State procurement portals with Minimum Threshold Parameters for monitoring and strategic decision making and to ensure uniformity and transparency. MTP involves online registration of farmers with Aadhar seeding, integration of land record, digitized mandi operations, MSP transfer to farmers, Rice/Wheat delivery management, auto generation of bills etc. The online procurement system has largely eliminated the procurement from middlemen and has resulted in better targeting of the MSP to farmers.

Procurement of Foodgrains (paddy/ wheat):

During ongoing Kharif Marketing Season (KMS) 2022-23, upto 04.12.2022, a quantity of 339.88 LMT of paddy (227.82 LMT in terms of rice) has been procured benefiting 29,98,790 farmers with MSP value of Rs.70015.19 crore. During Rabi Marketing Season (RMS) 2022-23, a quantity of 187.92 LMT of wheat was procured benefiting 17,83,192 farmers with MSP value of Rs.37,866.13 crore.

Procurement of Coarse grains

During KMS 2022-23, this Department approved the procurement plan of various State Governments for procurement of coarse grains as per extant guidelines dated-07.12.2021/28.03.2022 details of which are as follows:

Statement showing the Approved Quantity of coarse grains KMS 2022-23

As on 30.11.2022

Figures in Metric Tonne (MT)

S.No.

State

Commodity

Quantity (in MT)

1.

Haryana

Bajra

Maize

1,60,000

5000

2.

Karnataka

Jowar

Ragi

2,00,000

5,00,000

3.

Maharashtra

Jowar

Bajra

Maize

Ragi

16063

2279

42379

354

4.

Madhya Pradesh

Jowar

Bajra

40,000

1,40,000

5.

Uttar Pradesh

Maize

Bajra

1,00,000

50,000

6.

Gujarat

Maize

Bajra

10,000

20,000

7.

Tamil Nadu

Ragi

17,000

8.

Total

 

13,03,075

 

Open Market Sale Scheme(Domestic) (OMSS(D))

Through Open Market Sale Scheme (Domestic) (OMSS(D)) for the calendar year 2022, a total quantity of 0.10 Lakh MT of wheat and 1.22 Lakh MT of rice have been sold in the open market so far.

Sales have been lower this year as in view of the lower procurement of wheat in RMS 2022-23, and the lower stock availability, sale of wheat has been suspended vide letter dated 07.07.2022. Sale of rice restricted to 10000 MT per State/UT. Until further orders vide 07.09.2022.

Under OMSS(D) policy for the remaining period of calendar year 2022, the special dispensation for supply of foodgrains to all the charitable/ non-governmental organizations etc. engaged in relief operations/running relief camps for migrant labourers/vulnerable groups is extended till 31st December, 2022 or till further orders whichever is earlier, @ the rate of Rs. 22/kg for wheat and Rs. 23/kg for rice. This scheme is extended for Community Kitchens also.

Under the scheme, in the year 2020-21,1126 organizations have lifted 10422 MT of rice 230 organizations have lifted 1,246 MT of wheat till 25.03.2021.

Further, during the fiscal year 2021-22, 34 organizations have lifted 847 MT of rice and 6 organizations have lifted 10 MT of wheat. However, during remaining period of calendar year 2022, there is no quantity lifted by any organization till 11.10.2022.

Humanitarian Food Aid

Supply of 40063 MT of Wheat to Afghanistan as humanitarian assistance

Supply of 2000 MT of non-basmati rice to Timor Leste as humanitarian assistance

Supply of 500 MT of non-basmati rice to Mozambique as humanitarian assistance

Sugar Sector

The Indian sugar industry is an important agro-based industry that impacts rural livelihoods of about 5 crore sugarcane farmers & their families and around 5 lakh workers directly employed in the sugar factories. Employment is also generated in various activities relating to transport, trade servicing of machinery and supply of agriculture inputs. India is the largest producer as well as consumer of sugar in the world. Today, Indian sugar industry's annual output is about ₹ 1,40,000 crore approximately.

There were 521 operational sugar factories in the country in sugar season 2021-22, with sufficient crushing capacity to produce around 360 lakh MT of sugar against the domestic consumption of 260 LMT. To liquidate excess stocks, Govt. has also been extending assistance to sugar mills to facilitate export of sugar. In sugar seasons 2017-18, 2018-19 & 2019-20, about 6.2 LMT, 38 LMT & 59.60 LMT of sugar was exported. In sugar season 2020-21 against target of 60 LMT about 70 LMT have been exported. In order to ensure sufficient availability of sugar in the domestic market as well as proactively monitoring the sugar market to contain the price increases, if any, DGFT, Ministry of Commerce, Government of India has regulated the exports of sugar w.e.f. 01 June 2022 under which Directorate of Sugar, Department of Food and Public Distribution will issue Export Release Orders to exporters of sugar and sugar mills. However, in the sugar season 2021-22, India has exported more than 110 LMT of sugar becoming the largest producer and second largest exporter of sugar in the world.

As a result of measures taken by Government as on 29.11.2022, about Rs.114981 crore have been paid to farmers out of total cane price dues of about Rs. 118271 crore for sugar season 2021-22, thus, more than 97% cane dues have been cleared.

Ethanol Blending Petrol Programme

Ethanol is an agro-based product which is used for blending with petrol as fuel and many other industrial uses including manufacturing hand sanitizers. It is produced from a by-product of the sugar industry, namely molasses as well as starchy food grains. In years of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to make timely payment of cane price to farmers and to find a permanent solution to address the problem of excess sugar, Government is encouraging sugar mills to divert excess sugarcane to ethanol. Government has fixed target of 10% blending of fuel grade ethanol with petrol by 2022 & 20% blending by 2025

Till year 2014, ethanol distillation capacity of molasses-based distilleries was less than 200 crore litres. Supply of ethanol to OMCs was only 38 crore litres with blending levels of only 1.53 % in ethanol supply year (ESY) 2013-14. However, in past 7 ½ years due to the policy changes made by the Government, the capacity of molasses-based distilleries has been doubled and is currently at 605 crore litres. Capacity of grain-based distilleries are presently about 307 crore litres. Production of fuel grade ethanol and its supply to OMCs has increased by 8 times from 2013-14 to 2020-21.

During Ethanol Supply Year (Dec-Nov) 2021-22, 10% blending target is expected to be achieved for which more than 400 crore litres of ethanol is supplied for blending with petrol. This has resulted in revenue of more than ₹ 18000 crore to sugar mills/distilleries strengthening their cash flows and financial positions. Existing capacity of ethanol production in the country (as on 31.10.2022) has increased to 925 crore litres.

Further, to meet the blending targets and to increase the investment opportunities, Government has introduced various Ethanol Interest Subvention Schemes from time to time, to encourage sugar mills and distilleries to enhance their ethanol production capacities for which Government is facilitating them to avail loans from banks for which interest subvention @ 6% or 50% of the interest charged by the banks whichever is lower being borne by Government. Keeping in the view of molasses based feed stocks constraints, Government is also promoting the ethanol production from various feedstocks such as maize, damaged food grains and rice available with FCI. It will help India in creating clean and healthy environment, alleviating the impact of climate change as well as will make India Aatma Nirbhar in Energy Sector.

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