Fully ready to implement food security: C Viswanath

Interview with CMD, FCI

 

As the ambitious National Food Security Bill becomes a reality, the biggest onus for successful implemention of the programme is on the state-run Food Corporation of India (FCI). In an exclusive interview with Business Standard,  FCI Chairman and Managing Director, C Viswanath said that the Corporation will rely on short-term loans and bonds to arrange for the finances to run the programme. 

 

Lot of critics say FCI is ill-equipped to handle such a mammoth scheme given its stretched resources. Do you think this is correct? 

 

FCI is fully geared to take up the challenge of making foodgrains available to the states and union territories . Coming to the financial resources, it is estimated that National Food Security Bill to cost an additional Rs 24,000 crores only out of which the impact on FCI is around Rs 19,000 crores as FCI supply about 80 per cent of total foodgrain quantity required. Finances are being arranged through a basket of resources like short term loans, issue of bonds etc. and should not be a constraint for successful implementation of the Food Security Law. 

 

Now that Food Security has become a law, what are the preparations the Corporation is making to roll out various provisions of the programme in states?

 

Sufficient stocks of food grains are available for implementation of National Food Security Law. While about 61 million tonnes of food grains are required per annum to meet the requirement under the Food Security Law, we have about 65 Million Tonnes of foodgrain stocks. FCI is already undertaking all India food grain movement of around 40 million tonnes on a yearly basis which includes inter and intra region movement. 

 

What preparations have FCI made to store food grains in view of the Food Security Law? Does it have adequate storage space to meet the obligations?

 

About 61 million tonnes of foodgrains are required under the Food Security Legislation.  FCI and State Agencies have a total storage capacity of 73 million tonnes. FCI has undertaken a massive covered storage augmentation programme known as PEG (Private Entrepreneur Guarantee Scheme) under which it is proposed to build around 20.3 million tonnes capacity in 19 States. We have already constructed more than 7 million tonnes capacity under PEG scheme and 2 million tonnes of capacity is going to be constructed under Silo.  It is expected that this year we may add another 6 million tonnes.  

 

Can the Corporation assure the people that wastage and pilferage of grains will remain at their minimal level after the Ordinance is rolled out?

 

Compared to the size of FCI operations and the volume of foodgrain handled, the damages are very less.  As we are handling perishable commodities which are susceptible to pest attacks and other such biological forms of degradation, coupled with the fact that large quantities are transported over long distances involving multiple handling of bags by labour in adverse weather conditions, incidences of some quantity of foodgrains getting damaged cannot be ruled out.  FCI has been making consistent efforts to keep damages to the barest minimum.  During 2012-13, the extent of damage was only to the tune of 0.007 per cent of our total off-take. Efforts are on and shall continue with full vigour to ensure minimum damages to foodgrains. Furthermore we have very clear cut responsibilities fixed for storage and transportation losses. Recoveries from agencies concerned are made in case such losses occur in their godowns and the same is made from contractors in case of losses during movement of foodgrains by Road.

 

The Corporation plans to recruit extra personnel by the end of 2013-14 financial year. Will it not put additional burden on the Corporation?

 

It should not be a burden as administrative expenditure of FCI is within two per cent of the total food subsidy provided by the government and these recruitment are to replenish the retirements. FCI is currently manned by 25,752 employees against sectioned strength of 36,515 and the existing shortage of manpower at various levels is being filled by recruitment of about 8500 officials for maintaining the current level of operations.

 

FCI recently sold wheat in the international market at good prices, going forward do you think, the Corporation will get good price for its wheat?

 

FCI got a good price in the international market for its wheat export. There is huge demand for our wheat. We got prices as high as Australian Soft Wheat, one of the best in the world. About 4.2 million tonnes of wheat has been exported so far by FCI, at an average price of $311.38 per tonne. This has earned $1.32 foreign exchange, also Indian wheat has now established a brand of its own.