• UGI USER
  • Aug 02, 2024
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STATES CAN DIRECTLY PURCHASE RICE FROM FCI: KEY ANNOUNCEMENTS

Why in the news?

  • Union Food and Consumer Affairs Minister Pralhad Joshi announced states can now buy rice directly from the Food Corporation of India (FCI) without e-auction.
  • This aims to manage surplus stocks before the kharif crop procurement season.
source:Springerlink

What are the Key Details of the announcement?

  • States can purchase additional rice beyond the 5 kg per individual limit under the Pradhan MantriGaribKalyan Anna Yojana (PMGKAY) at ₹2,800 per quintal, down from ₹2,900, excluding transport costs.
  • The Centre will continue free food grains to 81.35 crore beneficiaries for five years starting January 1, 2024, with a financial outlay of ₹11.8 lakh crore.

About Price Monitoring System

  • Joshi addressed seasonal vegetable price increases, noting stabilizing tomato prices due to government efforts.
  • The Price Monitoring System (PMS) app now monitors 38 commodities, up from 22, including new items like bajra, jowar, ragi, and various spices and vegetables.
About Food Corporation of India (FCI)

Overview:

  • Establishment: FCI is a Public Sector Undertaking under the Department of Food & Public Distribution, established in 1965 under the Food Corporations Act, 1964.
  • Purpose: Created in response to significant grain shortages, particularly wheat, during the 1960s.
  • Support for Farmers: The Commission for Agricultural Costs and Prices (CACP) was also established in 1965 to recommend fair prices for farmers.

Primary Responsibilities

  • Core Functions: FCI’s main duties include purchasing, storing, transporting, distributing, and selling food grains and other foodstuffs.

Organizational Structure

  • Headquarters: FCI operates from its headquarters in New Delhi.
  • Network: It has five Zonal Offices, twenty-five Regional Offices, and 170 District Offices across the country to coordinate its operations.

Associated Article:

https://universalinstitutions.com/q-6-reforms-in-public-distribution-system-pds-and-food-corporation-of-india-fci-are-two-sides-of-the-same-coin-discuss-the-statement-along-with-suitable-reforms-in-pds-and-fci/