Modi launches e-platform to sell farm produce - Col Ranbir Lamba

Dear All, 

1) PM Modi has opened a e -platform to sell farm produce.

2) We have hefty loss making PSU known as FCI for wheat .rice & now dams too in some states.

3) It looks that this non profit making industry full of scams & losses will kept & taxpayer money will go down the drain.

4) e-platform is good but why not restructure ailing elephant FCI.

5)Food Corporation of India (Hindi: भारतीय खाद्य निगम) was set up on 14 January 1965 having its first District Office at Thanjavur - rice bowl of Tamil Nadu - and headquarters at Delhi under the Food Corporations Act 1964 to implement the following objectives of the National Food Policy :

A)Effective price support operations for safeguarding the interests of the farmers

B)Distribution of foodgrains throughout the country for Public Distribution System

C)Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security

D)Regulate market price to provide foodgrains to consumers at a reliable price

6)It operates through 5 Zonal offices and 24 Regional offices. Each year, the Food Corporation of India purchases roughly 15 to 20 per cent of India's wheat output and 12 to 15 per cent of its rice output. The purchases are made from the farmers at the rates declared by the Govt. of India. This rate is called as MSP (Minimum Support Price). There is no limit for procurement in terms of volume, any quantity can be procured by FCI(Food Corporation of India) provided the stock satisfies FAQ (Fair Average Quality)

7)The Food Corporation of India procures Rice and Wheat from farmers through many routes like Paddy purchase centers/Mill Levy/Custom Milling and stores them in depots.FCI maintains many types of depots like Food Storage Depots and Buffer Storage Complexes and Private Equity Godowns and also implemented latest storage methods of silo storage facilities which are located at hapur in UttarPradesh and Elavur in Tamilnadu.The stocks are transported. throughout India and issued to the State Government nominees at the rates declared by the Government of India for further distribution under the Public Distribution System (PDS) for the consumption of the ration card holders. (FCI itself does not directly distribute any stock under PDS, and its operations end at the exit of the stock from its depots). The difference between the purchase price and sale price, along with internal costs, are reimbursed by the Union Government in the form of food subsidy. At present the annual

8)Losses by FCI

FCI admits 1.94 lakh MT foodgrain wasted between 2005-13 .

The damaged stock which stood at 95,075 MT in 2005-06 came down to 3,148 MT in 2012-13. The wastage was at 25,353 MT in 2006-07, 4,426 MT in 2007-08, and 20,114 MT in 2008-09, the report said.It also said that of the damaged stock, around 84 per cent (1,63,576 MT) was rice and 14 per cent wheat (26,543 MT).Punjab with a total damage stock of 98,200 MT recorded 50 per cent of the total damages, while Maharashtra recorded a total of 20,067 MT of damaged stock, accounting for 10 per cent of the total loss, the report added.

Talking over the issue, Mr. Sharma expressed concern over the government’s inability to curb wastage of food.

9)SC on FCI

• A)Come up with ways to cut FCI loss: SC to govt ‘Labourers earn lakhs while you don’t give free grains to poor’
• B)A six-figure monthly salary for carrying sacks is not what the Supreme Court had expected loaders at Food Corporation of India (FCI) to earn. But thanks to the Centre’s policy, FCI cannot hire labour on contract, enabling its employee loaders to earn as much as Rs 4.5 lakh every month. This “malpractice” is, however, set to meet its Waterloo with the apex court declaring Friday that it amounts to “murdering” the state-run FCI and cannot go on further.
• C)A bench led by Chief Justice T S Thakur said the Centre will be held accountable, especially when a loss of nearly Rs 18,000 crore is being incurred annually over holding foodgrain stocks. It was also critical of the fact that while the government has not agreed to distribute foodgrains to poor for free, although it lacks adequate storage, nothing is being done for this monumental loss.

9)Food scams in FCI

• A) FCI detects Rs 20 cr scam, suspends general manager
• B)Uttar Pradesh food grain scam took place between years 2002 and 2010, in Uttar Pradesh state in India, wherein food grain worth ₹350 billion (US$5.2 billion), meant to be distributed amongst the poor, through Public Distribution System (PDS) and other welfare schemes like Antyodaya Anna Yojana (AAY), Jawahar Rozgar Yojana and Midday Meal Scheme for Below Poverty Line (BPL) card holders, was diverted to open market & grains were traced in Nepal & Bangladesh.
• C)The enforcement branch (EB) of the city police and the vigilance cell of the food and civil supplies department suspect a section of Food Corporation of India (FCI) and food department officials for being involved in smuggling wheat meant for the below poverty line (BPL) section of people to Bangladesh.
• D)JK Govt launches probe into food grain scam, top FCI official to visit Valley FRIDAY, 08 APRIL 2016 Srinagar: The State government on Thursday launched a full-fledged investigation into the bungling of food grains by FCI officials in connivance with consumers affairs and public distribution ( CAPD) officials in Jammu and Kashmir.  The investigation comes after The Kashmir Monitor carried a detailed report on Thursday how the high quality rice from Food Corporation of India (FCI) meant for J&K was being sold in Punjab and the food grains meant for J&K were replaced by substandard rice.
• E)The Food Corporation of India, along with some of Punjab’s leading nodal agencies, are in the dock for the transport scam 
• During 1999-2000 and 2000-2001, sub-standard 1.72 lakh MT rice worth Rs 171.46 crore was found to have been incorrectly accepted by technical staff in connivance of district managers
• During 1999-2000 and 2000-2001, sub-standard 1.72 lakh MT rice worth Rs 171.46 crore was found to have been incorrectly accepted by technical staff 
• F)CAG report blames FCI for 'corruption' A Second Comptroller and Auditor General (CAG) report has put the responsibility of frauds committed by FCI.
• G)Labour fraud : The CAG report also pointed out expenditure of Rs 48.18 crore was incurred from 1986 to 1987 and from 1999 to 2000 on irregularly appointed casual labour.  “There was no assurance against the fraudulent nature of these appointments,” it said, adding that the Vigilance Division had also not undertaken any exercises .

10) It looks like No Govt is able to Tame this loss making elephant FCI. Even not bothered about SC.CAG. Vigilance. & Government.

11) Then how can e-platform to sell farm produce launched by PM can succeed. Big shark FCI will eat away small fish e-platform.

12)Neither any thought have given to rectify FCI nor any thought has been given for e-plarform launch.

13) Babu's are not even handle to bags of food as per SC 

14) A Marwari can do much better. In front if my own eyes about 50 years back in Gujarat.  A Marwari  sitting in 6*6 room with tele & his muneem made fantastic busdines in minute's with few tele calls. Goods were transported from place A to B..Zero inventory holdings.

15)Now how to make efficient system which can ensure proper distribution. Transparency. Timely payments & Stop wastages of food losses.

A) Restructure present FCI.

I) Freeze promotions & job hike for a year.

Ii) Pay only basic pay balance link to performance & profitability base

Iii) Shed unwilling & non performers.

Iv)From post distribution shift to pre distribution.

V) From last 10 years records work out load wise  district requirements.

Vi) Work out  Supply & Demand Nodal points

vii) Work out Economic order Quantity

Viii) Work out economical transportation points.

Ix) Before harvesting season float pre tender ( Keep reserve price as MSP)& states should offer price & private players can also float bid ( they should be charged 5% extra)

X) Now demand cum price table is ready.

Xi) Similarly work out supply side also.

Xii) Now we know demand & supply  centres

Xiii) Now work out economical model of transportation Say Rail.Road. Even trolley for smaller distances cum loading .

Xiv) To avoid hoardings & transportation plus loading cum handling cast. Work on zero inventory.

Xv) Nominate SBI bank to handle all txn. Open Agri cum saving account department within present resources. Recover 90% advance from bidders a month in advance.

Xvi) Farmer saving accounts should be linked with 1) Adhar Card 2) PAN Card 3) Revenue ID Number showing ownership of land ( this will catch Benani holdings . Land held surplus to limit. Taxation & transparency)

Xvii) Now you are ready .. Once a farmer is ready  to give his produce. He should do SMS  like gas .

To district HQ . The district HQ should be linked with Agriculture Ministry & SBI + FCI

xviii) Now Admin should lift within 24 hours & transfer direct to destination by rail/ road as per worked out tables.

No storage.

Xix)The movement of goods should start with in 24 hours .

Xx) Credit amount to farmers account

xxi) Make all transactions on line

&  visible to concerned parties

Xxii) Keep on track movements if goods as train movement so that receiving parties are also geared up.

16) Now keep 15% reserve  in each  district  for food safety.

17) Advantages with this system 

A) Transparency 

B) Quick payments

C) Reduced storage & handling costs.

D) No storage losses.

E)Reduced corruption 

F) Weed out non performer's

G) Performance based promotion. Do or die

No profit No job.. Out you go

H) No worry of NPA

J) No loss if taxpayers money.

K) Prices will be stable & under control.

L) Inflation will reduce 

K) consumption will increase 

L) Nation will move on path if progress.

With best wishes & warm regards

Col Lamba ( one man army )

..........

Modi launches e-platform to sell farm produce

http://goo.gl/4zYSjB 

-via inshorts