Audit Reports
Civil
Report No. 7 of 2013 - Performance Audit of Storage Management and Movement of Food Grains in Food Coporation of India, Union Government, Ministry of Consumer Affairs, Food and Public Distribution
Overview
Procurement of food grains increased from 343 lakh metric tonne (LMT) to 634 LMT during the period 2006-07 to 2011-12. As a result, stock of food grains in the Central Pool also went up from 259 LMT on 1 June 2007 to 824 LMT on 1 June 2012. Such a sharp increase in stock of food grains raises issues relating to storage space and larger movement of food grains from procuring states to consuming states.
Considering the widening gap between stock of food grains and available storage capacity as well as the constraints being faced in movement of food grains, Audit decided to examine the storage management and movement of food grains in Food Corporation of India.
The average food grains procurement of 514 LMT during the period 2006-07 to 2011-12 was lower than the average allocation of 593 LMT made by the Government of India (GOI) to states for distribution under Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS). The current procurement level of food grains by FCI, State Government Agencies (SGAs) and states undertaking decentralized procurement (DCP) would not be able to adequately meet the allocation and the future requirement of food grains estimated by the GOI.