Major
reforms in PDS during 2015, digitisation of ration cards completed in
29 States, online foodgrains allocation started in 16 states
Procurement policy modified to provide benefits of MSP to more farmers for paddy procurement
Sustained efforts bring the cane price arrears down to Rs. 5406.24 crore from Rs. 66,003 crore
New provisions to promote quality products & services and to boost consumer protection
Procurement policy modified to provide benefits of MSP to more farmers for paddy procurement
Sustained efforts bring the cane price arrears down to Rs. 5406.24 crore from Rs. 66,003 crore
New provisions to promote quality products & services and to boost consumer protection
YEAR
END REVIEW- 2015
|
The Government achieved significant mile stones in the
reforms of PDS by making it more transparent and leak proof. During 2015,
digitisation of ration cards completed in 29 States while it was just touching
two- digits in the beginning of the year, 16 states even stared online
foodgrains allocations and online grievance redressal introduced in 26 states.
Direct cash transfer of food subsidy to the beneficiaries started in Chandigarh
and Puducherry in September this year.
Based on the recommendations of high level
committee on restructuring of FCI, procurement policy for paddy modified to
ensure reach of MSP operations to more farmers. Millers levy on rice was
abolished. The Government also provided relief to the farmers during the year
by relaxing procurement norms for their crops affected with the unprecedented
rains and hailstorms.
Due to sustain efforts to facilitate payment of
sugarcane arrears to the farmers, arrears came down to Rs. 5406.24 as on
November 15, 2015 from Rs. 66,003 crore in the sugar season of 2014-15.
Highlights of other initiatives are:
Improving
foodgrain management
·
High level Committee under the chairmanship of
Shanta Kumar, MP was constituted to make recommendations on re-structuring of
FCI. Based on the recommendations of High Level Committee on restructuring of
FCI, several measures have been initiated to improve the functioning of FCI and
to bring in cost efficiency in its operations.
·
Sustained efforts have
resulted in significant reforms in TPDS. As a
result by first week of December 2015,
-Digitisation of ration cards
completed in 29 States/UTs, over 32 crore ration cards have been
digitized and over 8.5 crore ration cards have been seeded with Aadhaar,
-Supply chain management implemented in 8 states/UTs.
-Online allocation of foodgrains implemented in
16 states/UTs.
- 56,146 FPS automated by installing
‘Point of Sale’device to swap the ration card.
-Toll free help lines installed in 32 States/UTs.
-Online grievance redressal implemented in 26
States/UTs
- Transparency portal to display all operations of
TPDS launched in 27 States/UTs
·
In the month of September, 2015, online formats
for obtaining the information related to various aspects of implementation of
TPDS in the States introduced. The information is now available
online. This has brought more transparency in implementation and facilitates
quick decision making
·
In order to check of leakage and diversions and
to facilitate direct cash transfer of food subsidy to the beneficiaries,
Government has notified “Cash Transfer of Food Subsidy Rules, 2015” on
21.08.2015 under the NFSA. These rules provide that DBT scheme will be
implemented in a State/UT with the consent of the concerned State Government/UT
Administration. Under the scheme, in lieu of foodgrains subsidy component will
be credited to bank accounts of beneficiaries who will be free to buy
foodgrains from anywhere in the market. For taking up this model,
pre-requisites for the States/UTs would be to complete digitization of
beneficiary data and seed Aadhaar and bank account details of beneficiaries. The
scheme has been launched in Chandigarh and Puducherry in September, 2015.
Dadra and Nagar Haveli, is also in full readiness for implementation of this
pilot cash transfer/ DBT scheme.
·
National Food Security Act in 24 States,
at the end of one year after National Food Security Act, 2013 (NFSA) came into
force, i.e, upto July, 2014, implementation of the Act had started in 11
States/UTs. Since then, 11 more States/UTs have joined NFSA the total number of
States/UTs now implementing the Act is 23. Sikkim has also notified the
implementation from Jan 2016, the number is going to increase to 24.
·
To ensure that beneficiaries of the National
Food Security Act get entitled foodgrains positively, rules for payment of
food security allowance to the beneficiary in the case of non-delivery of
foodgrains notified in January, 2015.
·
The Central Government also decided to share 50%
(75% in the case of Hilly and difficult areas) of the cost of handling &
transportation of foodgrains incurred by the states and the dealers’ margin so
that it is not passed on to the beneficiaries and they get coarse grain Rs1/kg,
wheat at Rs2/kg and rice at Rs 3/kg
·
Department Food & PD’s ‘Group’ namely “Food
Security” was opened @ myGov portal i.e. www.myGov.in for
engaging with citizens by inviting their comments/suggestions on various issues
from time to time. Under the said Group ‘Food Security’ a discussion thread
namely ‘Improving the TPDS’ was opened for a period of one month during
February, 2015. Suggestions /comments received from citizens have been shared
with the States/UTs as well as within the Department for action for an improved
TPDS.
·
To bring all operations of FCI Godowns online and
to check reported leakage, “Depot Online” system initiated and integrated
security system is being set up in all sensitive depots.
·
The Government of India approved approximately
111 lakh MT of wheat and 20 lakh MT of Grade-A rice for sale in the year 2015-16
under Open Market Sale Scheme (OMSS), out of which, 16.93 lakh MT of
wheat and 0.40 lakh MT of Grade-A rice was sold by the end of Oct, 2015.
·
As a result of progressive procurement policy of
the Government, sufficient food grains are available in Central Pool Stocks
of FCI. Stocks as on 01.12.2015 are 504.99 lakh MT, comprising 268.79 lakh MT
wheat and 236.20 lakh MT rice.
·
Besides 12 States/UTs already under
Decentralised Procurement, Telangana became a new DCP State this year for
procurement of rice. Andhra Pradesh & Punjab have also adopted this system
partially during 2014-15 to improve the efficiency of foodgrains procurement
and distribution operations.
·
Adequate supply of foodgrains made using
multi-modal transport in North Eastern States despite disruption in rail route
due to gauge conversion from Lumding to Badarpur. 80,000MT foodgrains moved
through roads every month besides creating additional storage of 20,000 MT
in the region. Foodgrains also inducted into Tripura via riverine route passing
through Bangladesh.
·
1, 03,636 MTs of Rice moved from Andhra Pradesh
to Kerala for the first time through riverine/coastal movement.
·
The Government revised the buffer norms in
January, 2015 for better management of foodgrain stocks. During 2015-16 both storage
and transit losses have been reduced to (-) 0.03% due to storage gain in
wheat and 0.39% against MoU target of 0.15% and 0.42% respectively.
·
100 MT of rice sent to Myanmar to help the flood
affected pocket near Manipur border.
·
Storage capacity for central pool stocks of food
grains increased to 796.08 lakh MT.
·
New godowns having capacity of 10 lakh MT
under Private Entrepreneur Guarantee Scheme (PEG) constructed in 20 States.
Besides this storage capacity of 62,650 MT in North East under Plan
Scheme and 1.78 lakh MT in 12 States added through CWC.
·
The FCI has successfully completed the RFQ stage
for construction of 6 silos of a total 2.5 lakh MT capacity at 6
different locations in the country- Changsari, Narela, Sahnewal, Kotkapura,
Katihar and Whitefield on PPP model, for a modernized system of storage as also
for bulk movement of foodgrains through specialized wagons which will help in
maintaining the quality of foodgrains, minimize losses and ensure rapid
movement of foodgrains.
·
590.41 lakh MT of foodgrains were allocated to
States/UTs for distribution under TPDS and other
Welfare Schemes during 2015-16 (upto 28.10.2015).
·
The Central Warehousing Corporation (CWC) also
achieved all time high turnover of Rs. 1562 crore in 2014-15 and added a record
dividend payment of 54% to the Govt.
·
A transformation plan for the Warehousing
Development and Regulatory Authority (WDRA) has been initiated to streamline
the warehousing sector. The work on for creation of IT platform and rewriting
of rules and procedures has been initiated.
Relief
to the farmers
·
In order to give relief to the farmers affected
by the unprecedented rains & hailstorms this year, Government relaxed Quality
norms for the wheat procurement. The Central Government decided to reimburse
amount of value cut on such relaxation to the State Government so that farmers
con get full Minimum Support Price (MSP) even for shrivelled and broken wheat
grains or grains having lustre loss. Such a farmer’s centric step was taken first time by any Central
Government.
·
Govt. agencies procured 280.88 lakh MT wheat
during RMS 2015-16, providing a saviour for the farmers affected by freak rains
and hailstorm.
Millers levy on rice abolished
·
To ensure payment of minimum support price to
more paddy farmers, millers levy on rice abolished from October, 2015. This
will save farmers from exploitation and now they will not depend on millers for
selling their paddy.
·
This initiative has improved delivery of MSP to
the farmers for paddy even in the situation of market prices ruling below the
MSP, especially in the states of Andhra Pradesh, Telangana, Uttar Pradesh and
West Bengal, where the farmers are substantially dependent on millers for
selling their paddy.
·
During Kharif Marketing Season (KMS) 2013-14
only a quantity of 8.52 lakh MT of paddy had been purchased directly from the
farmers by the State Agencies in unified Andhra Pradesh, but in KMS 2014-15,
such direct purchase of paddy has gone upto 36.76 lakh MT in Andhra Pradesh and
Telangana together. The reduction of levy in KMS 2014-15 has not resulted in
any substantial reduction of overall procurement of rice in these two States
till date compared to KMS 2013-14.
·
Similarly in Uttar Pradesh, the procurement of
paddy has gone up from 9.07 lakh MT in previous season to 18.18 lakh MT in
current season and overall procurement of rice has gone up from 11.05 lakh MT
of previous season to 16.10 lakh MT till April, 2015.
·
In West Bengal also, the procurement of paddy
has gone up from 5.79 lakh MT in previous season to 13.29 lakh MT in current
season and overall procurement of rice has gone up from 8.27 lakh MT to 13.31
lakh MT till April, 2015
Outreach
of MSP increased in eastern states for paddy farmers:
·
In a bid to increase reach of minimum support
price (MSP) operations to more farmers and increase procurement of paddy, a
policy for engagement of private players in procurement in Eastern States has
been formulated this year. Private firms have been allowed to procure paddy
from farmers in a cluster, indentified by the respective state government in
the states of Assam, Bihar, Eastern Uttar Pradesh, Jharkhand and West Bengal,
where the Food Corporation of India (FCI) does not have a robust procurement
mechanism which often forces farmers to go for distress sale. Private firms
would deliver custom milled rice (CMR) at the FCI or state government-owned
agency godowns.
·
FCI started procurement pulses from farmers at
market price and also working on procurement plan for oilseeds to ensure MSP
for farmers.
·
In order to have better targeting of “other
welfare schemes’ for poor, a committee of ministers set up under the
chairmanship of Consumer Affairs, Food and Public Distribution. The Committee
not only decided continuation of foodgrain allocation for other welfare schemes
but also nutritional support by providing milk and eggs etc under the schemes.
·
The drop in international prices of imported
oils was affecting the prices of domestically produced edible oils consequent
upon which farmers’ interests were affected. Department of Food and Public
Distribution had recommended an increase in the import duty. Accordingly, the
import duty on Crude oils increased from existing 7.5% to 12.5% and the import
duty on refined oils from existing 15% to 20%. on 17.09.2015
Steps
taken to liquidate cane price arrears of farmers
·
The Government has taken several measures to
facilitate payment of cane price arrears by infusing liquidity into the sector.
·
To facilitate clearance of cane price arrears of
the farmers, a scheme for extending soft loans to the extent of Rs. 6000 crore
to the sugar industry was notified on 23.6.2015. Rs 4047 crore have been
disbursed under the scheme. The government also extend period by one year for
achieving eligibility under the soft loan scheme and decided to bear the
interest subvention cost to the extent of Rs. 600 crore for the extended
period. This will extend benefits to larger number of farmers by enabling more
mills to avail the benefits of the scheme. It has also been decided that after
clearing cane dues of farmers, subsequent balance, if any, will be credited
into the mill accounts. This will benefit about 150 additional sugar mills
which had proactively liquidated more than 90 percent of their cane dues
payable. This would ensure that mills are incentivized for arranging bridge
finances for timely clearance of cane dues to farmers.
·
Direct Subsidy to farmers, Government decided to
pay a production linked subsidy of Rs 4.50 per quintal in 2015-16 seasons, to
sugar mills to offset the cost of cane and facilitate timely payment of cane
price dues of farmers for sugar season 2015-16. A notification in this regard
issued on 2.12.2015. Funds released under the scheme shall be directly credited
into farmers’ accounts.
·
The export incentive on raw sugar has been
increased from Rs 3200/MT to Rs. 4000/MT. Funds have been allocated to support
14 lac MT (LMT) of raw sugar exports as against 7.5 LMT achieved last
year. In September 2015 Government also announced quotas for mills and
co-operatives for mandatory exports of four million tonne of sugar in 2015-16.
·
The Government has enhanced import duty on sugar
from 25% to 40% to discourage imports. Also, to prevent leakages of sugar in
the domestic markets, the export obligation period has been reduced from 18
months to 6 months under the Advanced Authorization Scheme.
·
Blending targets under Ethanol Blending
Programme scaled up from 5% to 10%.
·
Remunerative prices for Ethanol supplied for
blending have been increased to Rs. 49 per liter, a substantial increase over
previous years. As a result, the supplies of ethanol for blending have
increased from about 32 crore liters per year to 83 crore liters per annum.
Excise duties on ethanol supplied for blending in the next sugar season has
been waived, to further incentivize ethanol supplies for the blending program.
This would further increase the ex mill price of ethanol and help improving
liquidity in the industry facilitate payment of cane price arrears.
·
In order to mobilized more funds for various
intervention to facilitates liquidation of cane arrear, such as interest
subvention based soft loans, export incentives and production assistance,
amendment in the Sugar Cess Act, 1982 introduce in the parliament.
·
As a result of sustain efforts, the cane price
arrears which were Rs. 66,003 crore in sugar season of 2014-15 came
down to Rs. 5406.24 crore as on December 15, 2015.
New
provisions to promote quality of consumer products and services
·
In order to ensure quality of products and
services for common consumer, the Government introduced Bureau of Indian
Standards Bill, 2015 in Parliament to replace 29 years- old BIS Act. The
new Bill has been approved by Lok Sabha. In the new Bill provisions have been made
for simpler self-certification mechanism, mandatory hallmarking, and product
recall and product liability for better compliance to standards.
·
More items concerning health, safety,
environment, prevention of deceptive practices, security have been brought
under the mandatory certification. Hallmarking of precious metal articles has
been made compulsory. To improve “ ease of doing business”, simplified
conformity assessment schemes, including self- certification and market
surveillance instead of inspectors visiting factories introduced, thereby
ending the inspector raj on standards.
·
New provisions proposed will promote harmonious
development of standardisation activities, enabling GoI to bring mandatory
certifications regime for goods or service considered vital from viewpoint of
health, safety, environment, and prevention of deceptive practices.
Provision to prevent import of below par products, providing mandatory
hallmarking of precious metal articles, increased scope of conformity
assessment, and enhancement of penalties and implication of provisions in the Act.
The new Bill has also made increased penal provisions for better and more
effective compliance and compounding of offence for violations
·
New Bill provides for recall, including
product liability of products not conforming to relevant Indian Standards
·
Registration for manufacturers of electronic
products to safeguard consumer / industry against sub-standard imports
provided.
·
Under the Swacch Bharat Abhiyan, steps taken to
formulate/upgrade standards on potable water, street food and garbage disposal.
Boost
to consumer protection
·
Consumer Protection Bill 2015 that seeks to
simplify and strengthen consumer grievance redressal procedure introduced in
the Parliament this tear. Setting up of a Central Protection Authority which
will have powers to recall products and initiate class suit against
defaulting companies, including e-retailers proposed. E-filing and time
bound admission of complaints in consumer courts is another important provision
made in the Bill.
·
Joint campaign organised with Heath, Financial
Services and other departments for greater consumer awareness. During the year
the Department of Consumer Affairs intensified its multimedia campaign under
the banner of Jago Grahak Jago. With special emphasis on rural areas, tribal
areas and North East, the campaign makes consumers aware of their
rights/obligations. Joint campaigns were organized with the Reserve Bank of
India, the Ministry of Health and the Ministry of Finance to focus on specific
issues of consumer interests.
·
An inter-ministerial monitoring committee
constituted for key sectors that matters to consumers viz Agriculture, Food,
Healthcare, Housing, Financial Services and Transport, to facilitate policy
coherence and coordinated action on consumer.
·
To tackle the menace of misleading advertisement,
a dedicated portal www.gama.gov
launched. It enables consumers to register their grievances against misleading
advertisements in six key sectors viz. food and agriculture, heath, education,
real estate, transport and financial services have included for this purpose.
The complaints lodged are taken up with the relevant authorities or the sector
regulators and the consumer is informed after the action taken.
·
To provide a host of consumer services under one
roof, Grahak Suvidha Kendras launched in six locations: Ahmadabad,
Bangalore, Jaipur, Kolkata, Patna and Delhi on March 18, 2015. Such centres
will be set up in every State in phased manner. They will provide guidance to
consumers regarding consumer laws, the rights of the consumers, the procedure
of approaching Consumer Courts and various other consumer related issues
including quality assurance and safety of products.
Measures
to ensure availability of essential food items at reasonable prices
In
order to ensure availability of essential food items at reasonable prices the
Government took flowing decisions recently:
·
5000 Tur imported, decision taken to import
10000 MT more pulses.
·
Decision taken to procure 1.50 lakh MT of pulses
for creating buffer stock. Export of edible
oil in bulk is prohibited except coconut oil
·
MSP increased for kharif pulse by Rs 275 per qtl
for Tur & Urad, and by Rs 250 per qtl for Moong.
·
Ban on export of all pulses, except Kabuli
Chana; and Organic Pulses & lentils up to 10,000 MTs
·
Zero import duty extended till 30th
September, 2016.
·
States/ UT’s empowered to impose stock limits, on
Onion and Pulses to check hoarding and black marketing under EC Act, 1955..
·
Other edible oil in branded consumer pack of up
to 5kgs is permitted with MEP of USD 900 per MT w.e.f. 6.2.2015.
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