Following are the major highlights of the activities of the Department of Food & PublicDistribution during the year 2023:

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY):

The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched with the specific purpose of ameliorating the hardships faced by the poor and needy due to economic disruptions caused by the COVID-19 outbreak in the country. In view of COVID crisis, the allocation of free foodgrains, under PMGKAY was in addition to regular allocation done. A total quantity of approx. 1118 LMT foodgrains had been allocated under PMGKAY (Phase I-VII) for the period of 28 months with a total planned financial outlay was about Rs. 3.91 lakh crore.

The Central Government, in order to remove the financial burden of the poor beneficiaries and to ensure nationwide uniformity and effective implementation of the Act, had decided to provide food grains free of cost to NFSA beneficiaries i.e. AAY households and PHH beneficiaries, initially for a period of one year beginning from 1st January 2023 under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Prior to that, under NFSA, subsidized food grains were distributed at Rs 3 per kg for rice, Rs 2 per kg for wheat and at Rs 1 per kg for coarse grains to beneficiaries.

As per Central Government decision, inter-alia two food subsidy schemes have been subsumed as Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Keeping in view welfare of the beneficiaries and in order to strengthen the provisions of NFSA, 2013 in terms of accessibility, affordability and availability of food grains for the poor and to maintain uniformity across the States, the Central Government, has decided to continue to provide free food grains to about 81.35 crore NFSA beneficiaries (i.e. Antyodaya Anna Yojana (AAY) households and Priority Households (PHH) beneficiaries) under the PMGKAY for a period of five years with effect from 1st January, 2024, as per entitlement under NFSA.

The PMGKAY Scheme would ensure effective and uniform implementation of National Food Security Act (NFSA). Under the One Nation One Ration Card (ONORC), which is a successful initiative of portability of ration card, any beneficiary can take delivery of food grains from any FPS at uniform NFSA entitlement and price across the country. The free food grains will concurrently ensure uniform implementation of portability under One Nation One Ration Card (ONORC) across the country and will further strengthen this choice-based platform.

Distribution Data from Jan to Nov 2023 under PMGKAY.

* Final figures of distribution under PMGKAY for the month of Nov 2023 is being collated.

Sale of Bharat Atta

To moderate the prices of wheat & atta and to make available atta to general consumers at affordable rate, 2.5 lakh MT of wheat @ Rs.21.50/kg was allocated for Semi-Government and cooperative organizations like Kendriya Bhandar, National Cooperative Consumers' Federation of India Limited (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) under OMSS(D) for converting to atta and offer it for sale to the public under 'Bharat Atta' brand at an Maximum Retail Price (MRP) not exceeding ₹ 27.50/Kg. The quantity of wheat allocated under the scheme has been enhanced further to 4 LMT.

Open Market Sale Scheme (Domestic) [OMSS(D)]:

• Through Open Market Sale Scheme (Domestic) (OMSS(D)) during year 2023, a total quantity of 82.89 Lakh MT of wheat and 3.04 Lakh MT of rice have been sold in the open market so far, through e-auctions by FCI.

• Sale of foodgrains under OMSS(D) to all the charitable/ non-governmental organizations etc. engaged in relief operations/running relief camps for migrant labourers/vulnerable groups due to lockdown conditions has been discontinued as Covid-19 situation does not prevail now. However, the sub-scheme is being continued for sale of foodgrains to Community Kitchens @ Rs.21.50/Kg for wheat and @ Rs.24.00/Kg for rice till March, 2024.

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 state had joined ONORC platform in the month of February 2022 and June 2022 respectively.

Since inception of ONORC plan in August 2019, more than 125 Crore portability transactions have been recorded under the ONORC plan in the country delivering more than 241 LMT foodgrains, which includes both inter-State and intra-State transactions.

During year 2023, about 28 crore portability transactions were performed in 11 months of 2023 delivering more than 80 LMT foodgrains including inter-state and intra-state portability transactions of NFSA and PMGKAY. Presently, more than 2.5 crore portability transactions are being recorded every month under PMGKAY foodgrain distribution.

Annual Allocation of Foodgrains for 2023-24 under TPDS, OWS and Additional allocation(Flood, festival etc):

The Department of Food & PD makes allocation of foodgrains under NFSA {Antyodaya Anna Yojana (AAY), Priority Household (PHH), Tide Over, PM Poshan Scheme, Wheat Based Nutrition Programme [a component of Umbrella ICDS]} and Other Welfare Schemes such as, Scheme for Adolescent Girls, Annapurna Scheme and Welfare Institutions & Hostels Scheme (WIH). The Scheme-wise allocation for the year 2023-24 is annexed.

PM's announcement on Rice Fortification and scaling up:

The Prime Minister 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) 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.

• Phase-I (2021-22): Phase-I has been implemented covering ICDS and PM-POSHAN. Nearly 17.51 LMT of fortified rice have been lifted by States/UTs for distribution under ICDS and PM POSHAN.

• Phase-II(2022-23): Implementation of Phase-II covering all ICDS, PM-POSHAN centres and 291 Aspirational and High Burden districts under TPDS and OWS has started from April, 2022. Phase-II has been completed on 31.03.2023. Nearly 136 LMT of fortified rice have been lifted by States/UTs under ICDS, PM-POSHAN and TPDS.

• Phase-III(2023-24): The implementation of Phase-III has started since April, 2023 and is under implementation till 31.03.2024. As on 01.12.2023, nearly 207.31 LMT of fortified rice have been lifted by States/UTs under ICDS, PM-POSHAN and TPDS.

Targeted Public Distribution System (TPDS) reforms:

• 100% digitized ration cards/beneficiaries’ data under NFSA in all States/UTs. Details of almost 20.06 Crore ration Cards covering around 80 Crore beneficiaries are available on transparency portals of States/UTs.
• More than 99.8% Aadhaar seeding of ration cards (at least one member).

• About 99.8% (5.41 Lakh of total 5.44 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.

• Under distribution of foodgrains, more than 97% of the transactions have been recorded biometrically/Aadhaar authenticated by States/UTs.

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:

During ongoing Kharif Marketing Season (KMS) 2023-24, upto 17.12.2023, a quantity of 365.48 LMT of paddy (244.99 LMT in terms of rice) has been procured benefiting 30,90,303 farmers with MSP value of Rs.80,515.26 crore.

During Rabi Marketing Season (RMS) 2023-24, a quantity of 262.02 LMT of wheat was procured benefiting 21,28,985 farmers with MSP value of Rs.55,679.73 crore.

Procurement of Coarse grains/ Millets:

The procurement of coarse grains/millets during the last two years and estimated procurement for current year is as under:

*Estimated Procurement quantity as per request received from States/UTs.

Imposition of Wheat Stock Limit:

1. In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Government of India has imposed wheat stock limits on 12^th June 2023 which is applicable to Traders/Wholesalers, Retailers, Big Chain Retailers and Processors for all States and Union Territories which is applicable until 31st March 2024 for all States and Union Territories which is revised on 08.12.2023 as under:

(ii) The total number of entities registered on Wheat Stock Portal is 20,456 and 65.43 LMT stock of wheat has been declared on Wheat Stock Portal (as on 18.12.2023)

Storage Sector

• Storage of foodgrains and augmentation of storage capacity:

FCI continuously assesses and monitors the storage capacity and based on the storage gap assessment, storage capacities are created/hired. The requirement of storage capacity in FCI depends upon the level of procurement, requirement of buffer norms and PDS operations for Rice and Wheat mainly. Storage gap is assessed in the procuring States based on the highest stock levels in the last three years and in the consuming States on the basis of 4 months (6 months in case of NE regions) requirement of National Food Security Act (NFSA) and Other Welfare Scheme (OWS) for creation / construction of new godowns. As on 01.12.2023, the Storage capacity of 363.69 LMT is available with Food Corporation of India and 397.60 LMT is available with State agencies for Central Pool stock of foodgrains. As a result, a total covered capacity 761.29 LMT is available for storage of Central Pool stock of foodgrains. (CAP capacities are no longer used & are being phased out).

• Private Entrepreneurs Guarantee (PEG) Scheme :

With a view to meet storage requirement and ensure safe storage of foodgrains across the country, Government is implementing the Private Entrepreneurs Guarantee (PEG) Scheme for creating storage capacity through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Capacity augmentation through Plan scheme and Silos in addition to PEG Scheme is also given utmost importance by the Ministry of Consumer Affairs, Food & Public Distribution. Under the PEG Scheme, which was formulated in 2008 for non-Decentralized Procurement States (DCP) and later extended to DCP States in 2009, construction of conventional godowns has been undertaken in 22 States by attracting private investment. FCI guarantees 10 years’ usage of storage capacities to the private investors and 9 years to CWC and SWCs. Total capacity sanctioned for godowns as on 01.12.2023 is 151.74 LMT. Out of this, 146.45 LMT has been completed.

• Third party assessment of warehouses owned and hired by FCI from Quality Council of India-

Third party assessment of all warehouses operated by FCI was undertaken through QCI covering areas like Physical infrastructure, Compliance to SoPs, Safety standards and Benchmarking with best practices. Accordingly, grading of all warehouses was done in six categories namely “Excellent, 5 Star, 4 Star, 3 Star, 2 Star and 1 Star”.

QCI Submitted the reports for 556 FCI owned depots & 1591 hired depots by FCI and accordingly gaps and areas for improvement were identified. Based on QCI feedback, FCI has re-visited/ revised SOPs. The revised SoPs were circulated to the field offices. An action plan was prepared for upgradation of warehouses. Accordingly, FCI has improved the deficiencies pointed out by QCI and the same has been assessed by the FCI offices.

Further, as directed by DFPD, QCI has re-assessed FCI owned depots which have migrated to 4-Star, 5-Star and Excellent category. The assessment is completed and after up-gradation 479 FCI owned depots falls in 5 star and above category which were 102 in the first assessment done by QCI.

Some of the key achievements of Storage Sector this year were:

1. Conversion of CAP to Covered Capacity - Traditionally, wheat is also stored in CAP (Cover and Plinth) by State Agencies/FCI mainly in procuring regions. However, a policy decision was taken to phase out this capacity of CAP i.e. around 180 LMT Detailed Action Plan was prepared by FCI after deliberations with State Governments, which was approved by Government of India (DFPD) on 10.05.2022. It was also decided to create Covered capacity so that there is no requirement to use CAP in future. FCI has proposed to create a capacity of 117.75 LMT storage capacity under proposed new 5 years guarantee scheme and is approved by DFPD. Due to change in storage scenario, 13 LMT is envisaged in the first phase in Haryana (4 LMT) and in Punjab (9LMT). Tenders have already been floated in Haryana and Punjab for the same.

2. Asset Monetization-

• Asset Monetization by states for central pool stock/CAP phase out:

13 LMT is planned to be constructed in Phase 1 in Punjab (9 LMT) & Haryana (4 LMT). Tenders have been floated by the concerned Nodal Agencies in Punjab (PUNGRAIN) and Haryana (HAFED).

• Modernization & monetization of FCI assets as per KPMG report/FCI vacant Land:

Category A: Assets where land is available and there exists storage gap in the region, storage capacity will be created under PMS for 4.32 LMT in 21 locations and for 2.80 LMT under Non PMS in 48 locations.

• Category B: Assets where land is available, but there is no storage gap
• Category C: Assets located in urban areas with high monetizable value
• Category D: Assets with existing railway infrastructure
• 29 locations have been offered to CWC for which tenders have been floated by CWC.

3. WDRA Certification- In order to standardize godowns it was decided to seek certification of all 557 warehouses owned by FCI from Warehousing Development Regulatory Authority. 552 FCI Depots have been certified by WDRA. In 2 cases, major engineering repairs are underway. 03 godowns have been rejected which will be taken up under Asset Monetization.
4. Model Tender Form made GEM compliant - All Field offices are floating Handling & Transport Contract and Road Transport Contract tenders through respective ‘Registered Service category’ on GeM portal w.e.f. 11.04.2023. Training Sessions have been organized in co-ordination with GeM for FCI Zonal & Regional Offices as well as prospective bidders for better understanding of relevant modules. Now FCI TC/RTC/HTC tenders are GEM compliant.

Silos: Scientific Storage of Foodgrains

1. For augmentation and upgradation/ modernization of storage capacity Government of India has approved an Action Plan for construction of 100 LMT silos across the country under PPP mode. Out of 100 LMT, silos with capacity of 29 LMT were to be constructed by FCI under PPP mode, 2.5 LMT by CWC and 68.5 LMT to be constructed by State Government. Out of which a capacity of 14.75 LMT at 29 locations has been completed and put to use, 9.00 LMT at 18 locations are under implementation. In addition, Silo capacity of 5.50 LMT at 7 locations were created under Circuit Model in 2007-09 is also being used, thus the total capacity completed and put to use is 20.25 LMT. Most of these silos are with Railway Siding.

2. Hub & Spoke model of Silos: In order to further augment development of silos, FCI has devised roadmap for development of 111.125 LMT silos at 249 locations in phased manner across the country, most of which will be road-fed and will work on the Hub and Spoke model. It is anticipated that the Hub and Spoke model will be efficient and complexities related to land acquisition for rail siding silos would not be there. In first phase of Hub and Spoke model, a capacity of 34.875 LMT silos at 80 locations is planned to be constructed out of which 10.125 LMT capacity at 14 locations under DBFOT mode (FCI own Land) and 24.75 LMT capacity at 66 locations under DBFOO mode. Tenders have been awarded for Phase-I locations. Tenders for phase 2 for 30.75 LMT silos at 66 locations under DBFOO mode in 18 bundles/Projects have been floated on 05.05.2023 & bids have been opened on 21.09.2023 and presently in technical evaluation stage.

Central Sector Scheme for Construction of Storage Godowns

The Department is implementing a Central Sector Scheme (earlier Plan Scheme) for construction of godowns with focus on augmenting capacity in the North Eastern Region (NER) along with few other States, i.e. Other than NE head. Under this Scheme, funds are released directly to FCI in the form of equity for land acquisition and construction of food storage godowns and infrastructure like Railway Sidings, electrification, installation of Weighbridge etc. Under the Central Sector Scheme (2017-20), which has been extended up to 31.03.2025, a total capacity of 1,05,890 MT in NE regions and 56,690 in Other than NE regions have been approved to be completed with a financial outlay of Rs. 419.99 Cr (Rs. 315.41 Cr for NE & Rs. 104.58 Cr for Other than NE), which has been increased to Rs. 484.08 Cr (Rs. 379.50 Cr for NE & Rs. 104.58 Cr for Other than NE). Under the CSS, a total capacity of 77,650 MT (56,430 MT in NE regions, 21,220 MT in Other than NE regions) has been created by FCI from 01.04.2017 to 30.11.2023. Apart from this, in NE regions, there are 5 works (49,460 MT) which are currently in progress. In Other than NE regions, a total of 4 works (33,540 MT) are under progress.

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 534 operational sugar factories in the country in sugar season 2022-23. Average annual production of sugarcane is now increased to about 5000 Lakh Metric Tonnes (LMT) which is inter-alia used to produce around 330 LMT of sugar after diverting about 43 LMT sugar for ethanol production. After meeting domestic consumption of about 280 LMT of sugar, 63 LMT sugar was exported during Sugar Season 2022-23.

As a result of pro-farmers measures taken by the Govt., about 99.9% of cane dues of previous sugar seasons have been cleared. For the sugar season 2022-23, against cane dues payable of Rs. 1,14,494 crores, about Rs. 1,12,829 crores have been paid & only Rs. 1,665 crore dues are to be paid. Thus, more than 98% cane dues have been paid to farmers resulting in lowest cane arrears pending.

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 and improve the liquidity of sugar mills by helping them to clear their cane dues on time, Government is encouraging sugar mills to divert excess sugarcane to ethanol. Government of India has been implementing Ethanol Blended Petrol (EBP) Programme throughout the country wherein Oil Marketing Companies (OMCs) sell blended petrol. Under EBP Programme, Government has fixed the target of 20% blending of ethanol with petrol 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 9 years due to the policy changes made by the Government, the capacity of molasses-based distilleries has increased to 875 crore litres. Capacity of grain-based distilleries has increased to 505 crore litres.

During Ethanol Supply Year (Dec-Oct) 2022-23, 12% blending target was successfully achieved for which about 502 crore litres of ethanol was supplied for blending with petrol. Existing capacity of ethanol production in the country (as on 30.11.2023) has increased to 1380 crore litres (505 crore liters of grain based and 875 crore liters of molasses-based distilleries). Successful implementation of Ethanol Blended with Petrol (EBP) Programme has led to multiple benefits in various aspects:

• Sale of ethanol has resulted in better cash flows for sugar mills resulting in prompt payment to cane farmers. In last 10 years (2014-15 to 2022-23), sugar mills have earned revenue of more than ₹ 90,000 crores from sale of ethanol which has added to the bottom line of sugar mills.
• Production of ethanol has replaced imported petrol or crude oil which has resulted in saving of foreign exchange for India. In 2022-23, with production of about 502 crore litres of ethanol, India has saved about ₹ 24,300 crores of foreign exchange and improved India’s energy security.
• Government of India is committed to meet its goals regarding reduction of emissions of Green House Gases (GHGs). Use of ethanol blended petrol reduced emission of Carbon Mono Oxide by about 30-50% and other hydrocarbons by about 20%. In fact, increasing use of ethanol in transportation will switch Indian transportation sector to be greener and environment friendly.
• As a result of this effective government policy, investment opportunities worth over ₹ 40,000/- crore emerged, leading to the establishment of new distilleries in rural areas and contributing to direct and indirect employment generation of about 60,000 in those regions. It is expected that by 2025-26, more than one lakh employment opportunities would be created in the form of direct and indirect employment.

Digitization in Sugar Sector

To promote ease of doing business, bringing transparency and to facilitate sugar mills, DFPD in collaboration with Invest India to automate various regular activities of DSVO. To have complete and integrated digitization of the whole system as well as to have all the relevant data of sugar mills and ethanol industry at one place, a dedicated portal has been developed on NSWS portal.

Progress so far on NSWS portal:

• All the sugar mills have been registered on NSWS portal.
• MIS Formats has been developed on NSWS portal.
• Sugar mills have started filling data on NSWS portal.
• The data for monthly release is being taken for all sugar mills from NSWS portal.
• Appointment of Nodal officer at state level to access the forms filled by sugar mills and generate MIS reports.

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