Government of India Ministry of Consumer Affairs, Food and Public Distribution Department of Food and Public Distribution Ram Vilas Paswan

Disposal of Surplus Food Grains under Open Market Sale Scheme

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Disposal of Surplus Food Grains under Open Market Sale Scheme
On directions of Govt. of India, FCI sells food grains in the open market under Open Market Sale Scheme (Domestic) at pre-determined prices from time to time through e-auction. To fast track the process, in January 2015 the Government formed a Committee consisting of Secretary (Food & Public Distribution), Secretary (Expenditure), Secretary (Consumer Affairs) and Secretary (Commerce) (for export related issues) for making recommendations on the quantity and price for the sale of food grains stock in excess of buffer and strategic reserve norms through Open Market Sale Scheme (Domestic). On the basis of the recommendation of this Committee the policy for sale of surplus stock of food grains under OMSS (D) for the concerned financial year is framed with the approval of Minister (CAF&PD) and the Minister of Finance. Quantity of food grains sold under this scheme during the years 2014-15 and 2015-16 are shown below:


Wheat (in lakh MT)

Rice (in lakh MT)



Sale of Rice under OMSS(D) during 2014-15 was not undertaken






Government is committed to provide food grains - wheat and rice, at reasonable prices to the weaker sections of the society. Food grains are allocated to State/UT Governments for distribution under Targeted Public Distribution System (TPDS)/ National Food Security Act (NFSA) and Other Welfare Schemes (OWS).

Allocation of Food Grains under TPDS/NFSA

Government has enacted the National Food Security Act, 2013, which came into force w.e.f. 05.07.2013. Under the Act, eligible households are entitled to receive foodgrains at highly subsidized price of Rs.1/-, Rs.2/- and Rs.3/- per kg for coarsegrains, wheat and rice respectively @ 35 kg per family per month to Antyodaya Anna Yojana (AAY) families and @5 kg per person per month to priority households. So far, implementation of the Act has started in 33 States/UTs i.e. Andhra Pradesh, Assam, Delhi, Goa, Haryana, Rajasthan, Himachal Pradesh, Bihar, Punjab, Karnataka, Chhattisgarh, Maharashtra, Madhya Pradesh, West Bengal, Chandigarh, Lakshadweep, Tripura, Puducherry, Uttarakhand, Jharkhand, Telangana, Odisha, Sikkim, Uttar Pradesh, Daman & Diu, Meghalaya, Jammu & Kashmir, Andaman & Nicobar, Dadra & Nagar Haveli, Gujarat, Arunachal Pradesh, Mizoram and Manipur. Out of these, the UTs of Chandigarh, Puducherry and some parts of Dadra & Nagar Haveli are following DBT mode and providing direct cash transfer of food subsidy to the beneficiaries. In remaining three States which are not under NFSA coverage, foodgrains are being allocated under erstwhile TPDS.

The States/UTs which have not implemented NFSA are being allocated foodgrains under the erstwhile Targeted Public Distribution System (TPDS) under which Government of India has been making allocation of foodgrains @ 35kg per family per month for Antyodaya Anna Yojna (AAY) and Below Poverty Line (BPL) families and @ 10kg-35kg per family per month for Above Poverty Line (APL) families.
For the year 2015-16, an allocation of 289.46 lakh MT of foodgrains has been made under NFSA and 207.31 lakh MT of foodgrains has been made to States/UTs which have not implemented NFSA so far, under existing TPDS. In addition a quantity of 50.01 lakh MT has been allocated for APL and BPL families in the non-NFSA States/UTs. The Government has also allocated a quantity of 11.70 lakh MT for natural calamities, festivals and additional TPDS requirements, etc.

Allocation of Food Grains under Other Welfare Schemes
The Government also makes allocation of subsidized foodgrains for the Other Welfare Schemes (OWS) administered by various Ministries/Departments of the Central Government such as Mid-day-Meal Scheme (administered by M/o Human Resources Development), Wheat Based Nutrition Programme (administered by M/o Woman & Child Development), Rajiv Gandhi Scheme For Empowerment of Adolescent Girls - SABLA (administered by M/o Woman & Child Development), Annapurna Scheme (administered by M/o Rural Development), Welfare Institutions Schemes and SC/ST/OBC Hostels Scheme (both administered by D/o Food & Public Distribution). During the current year, the Government has so far allocated a quantity of 35.98 lakh MT under OWS.

Status of Implementation of NFSA

NFSA provided for a period not exceeding 365 days after the commencement of the Act for identification of eligible households for receiving subsidized foodgrains under Targeted Public Distribution System (TPDS). At the end of this one year period i.e. 04.07.2014, implementation of the Act had started only in 11 States/UTs. Need for early implementation of the Act was vigorously pursued with States/UTs, and as a result 22 more States/UTs have joined NFSA since June 2015. Total no. of States/UTs implementing NFSA now is 33 and more than 72 crore persons are being covered under the Act.

Status of implementation of the Act and progress in end-to-end Computerization of TPDS are reviewed regularly at various levels. A Consultation Meeting with the Food Ministers of States/UTs was held on 07.07.2015, under the chairmanship of Hon’ble Ministers for Consumer Affairs, Food & Public distribution (CA, F&PD) Another meeting under the chairmanship of Hon’ble Minister (CA, F&PD) with Food Secretaries of States/UTs was held on 23.11.2015. Secretary (F&PD) also reviewed the progress with State Food Secretaries on 01.09.2015. A separate meeting with North Eastern States on NFSA roll out, TPDS computerization and fair price automation was held in Guwahati on 19.11.2015.
The TPDS (Control) Order, 2015 notified by the Department regulates the implementation of TPDS as per the provisions of the NFSA in the States/UTs. It supersedes the existing PDS (Control) Order dated 31.08.2001. However, the provisions of the PDS (C) Order, 2001 shall continue to have effect as against the corresponding provisions of the TPDS(C) Order, 2015, in any State which has not implemented the NFSA or is implementing it only in part.
Further, in order to remove the restrictions imposed by the TPDS (C) Order, 2015 on fresh identification of AAY families, the TPDS (C) Amendment Order, 2015 has been notified on 29.10.2015.

To share the initiatives and best practices as well as the latest development and achievements, the Department has launched the quarterly newsletter namely ‘Khadya Suraksha’. So far the Department has issued three editions of newsletter namely ‘Khadya Surakhsha’ – (i) January-March 2015, (ii) April-June 2015 and (ii) July-December 2015 of which first two editions are also available on the homepage of this Department’s website (

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