What is Food Corporation of India (FCI)?
Historical Background
Key Points
8 points- 1.
Main functions: Procurement, Storage, Distribution, and Sale of food grains.
- 2.
Procures food grains primarily at MSP from farmers.
- 3.
Maintains buffer stocks of food grains to ensure food security.
- 4.
Distributes food grains under the Public Distribution System (PDS) and other welfare schemes.
- 5.
Operates through a network of godowns and depots across the country.
- 6.
Faces challenges related to storage losses, inefficiency, and high operational costs.
- 7.
Role in ensuring food security during natural disasters and emergencies.
- 8.
Accountable to the Ministry of Consumer Affairs, Food and Public Distribution.
Visual Insights
Understanding Food Corporation of India (FCI)
Mind map illustrating the key functions and challenges of the Food Corporation of India (FCI).
Food Corporation of India (FCI)
- ●Functions
- ●Objectives
- ●Challenges
- ●Recent Developments
Recent Developments
5 developmentsReforms aimed at improving efficiency and reducing storage losses.
Use of technology for better stock management and distribution.
Debate on restructuring or unbundling FCI's operations.
Focus on decentralized procurement to reduce transportation costs.
Increased scrutiny of FCI's operations and financial performance.
Frequently Asked Questions
61. What is the Food Corporation of India (FCI) and what are its main functions?
The Food Corporation of India (FCI) is a statutory body established in 1965 to ensure food security in India. Its main functions include:
- •Procurement of food grains, primarily at Minimum Support Price (MSP) from farmers.
- •Storage of food grains to maintain buffer stocks and prevent wastage.
- •Distribution of food grains under the Public Distribution System (PDS) and other welfare schemes.
- •Sale of food grains as per government directives.
Exam Tip
Remember the four key functions: Procurement, Storage, Distribution, and Sale. These are crucial for understanding FCI's role.
2. How does the FCI ensure food security in India?
The FCI ensures food security through several key mechanisms:
- •Procuring food grains from farmers at MSP, providing them with assured prices and encouraging production.
- •Maintaining buffer stocks of food grains to meet emergencies and ensure price stability.
- •Distributing food grains through the Public Distribution System (PDS) to ensure access to affordable food for the poor.
- •Intervening in the market to regulate prices and prevent hoarding.
Exam Tip
Focus on the interconnectedness of procurement, storage, and distribution in ensuring food security.
3. What is the legal framework governing the Food Corporation of India?
The FCI is governed primarily by the Food Corporations Act, 1964. It also operates under the policies and guidelines issued by the Ministry of Consumer Affairs, Food and Public Distribution.
Exam Tip
Remember the Food Corporations Act, 1964 as the primary legislation. Knowing the responsible ministry is also important.
4. What are the challenges faced by the Food Corporation of India in fulfilling its mandate?
The FCI faces several challenges, including:
- •High storage losses due to inadequate infrastructure.
- •Inefficiencies in procurement and distribution leading to increased costs.
- •Issues related to quality control and contamination of food grains.
- •Financial burden due to high operational costs and subsidies.
- •Debate on restructuring or unbundling FCI's operations.
Exam Tip
Consider these challenges when evaluating the effectiveness of FCI and potential reforms.
5. How has the Food Corporation of India evolved since its establishment in 1965?
Since its establishment in 1965, the FCI has evolved significantly:
- •Initially focused on addressing food shortages and price volatility, particularly after the Green Revolution.
- •Expanded its operations to cover a wider range of food grains and geographical areas.
- •Adopted technology for better stock management and distribution in recent years.
- •Undergone reforms aimed at improving efficiency and reducing storage losses.
Exam Tip
Understanding the historical context helps in appreciating FCI's role and its evolution.
6. What reforms have been suggested for improving the efficiency of the Food Corporation of India?
Several reforms have been suggested to improve FCI's efficiency:
- •Decentralizing procurement to reduce transportation costs and empower local farmers.
- •Modernizing storage infrastructure to minimize storage losses.
- •Improving the efficiency of the Public Distribution System (PDS) through better targeting and technology.
- •Restructuring or unbundling FCI's operations to focus on core functions.
- •Promoting private sector participation in storage and distribution.
Exam Tip
Reforms are a recurring theme in discussions about FCI. Be aware of the common suggestions.