FOOD AND SUPPLIES

Introduction

Food corporation of India purchases rice, wheat, coarse grains from various states to provide price support to farmers. thegovernment has Cabinet committee on Economic affairs that takes the recommendations of Commission for agriculture costs and prices C.A.C.P.while deciding the Minimum support prices of food grains. The states are encouraged to have decentralized procurement norms. This involve giving autonomy to states to procure and distribute and keeping the surplus with the central pool so that it can be allocated to deficit areas.

Procurement Policy of F.C.I
Open ended procurement policy:

Wheat and rice are procured under this policy. Hence any farmer who wants to sell can approach the F.C.I and get M.S.P for his produce.

Closed ended procurement policy:

Here the farmers can only sell to the F.C.I if the price of his produce becomes less than the M.S.P.

Warehouse development and Regulatory Authority

For the growth and development of warehousing sector and improve credit flow to farm sector the Negotiable warehouse system was started by the Indian government. W.D.R.A became the statutory authority under this act to implement it.

The Negotiable warehouse receipts are issued to farmers in lieu of the stored produce in warehouses registered with W.D.R.A. These N.W.R can be given to banks to obtain loans for next agriculture cycle. The farmers can be protected from distress sale of produce and banks will have a safety net for loans as they are issued against the N.W.R. These N.W.R’s can be used to access the stored produce which can be then sold in the market by banks to recover loans or by farmers when the market is favorable.

Sugarcane pricing policy
India is the largest consumer and second largest producer of sugar in the World. To ensure the farmers are protected from price shocks the MSP system for sugarcane was replaced by the FRP – Fair and Remunerative prices for sugarcane. Under this the farmer is assured of fair price for his stock as well as a profit from the sale. This system also rewards the farmers if there is a higher recovery of sugar from his stock.

The FRP is determined by the Cabinet committee on economic affairs after the consultations with Comission for agriculture costs and prices CACP, sugar industry and farmer associations.

Consumer Welfare Fund
This is operated by the Dept of Consumer Affairs. This fund is where the unclaimed central excise refunds go to. All agencies which have worked in the field of consumer welfare for 5 years can be eligible for financial grant under this.

Consumer Courts
This is a three tier system of quasi judicial forum which settles disputes of consumers. The district forum hears complaints upto Rs 20 lakh. The state commission hears appeals from district forums and cases where amount involved in Rs 20 lakh to Rs 1 crore. The national forum hears appeals from state commission and complaints where amount involved is Rs 1 crore and above.

Cases should be filed within 2 years of occurance and receipt of defective goods or service is compulsory.

Quiz
Score more than 80% marks and move ahead else stay back and read again!

Q1:Minimum support prices of food grains. are decided by
1.Commission for agriculture costs and prices
2.Food corporation of India
3.Cabinet committee on Economic affairs
4.All

Q2:Open ended procurement policy: is
1.Wheat and rice are procured under this policy
2.any farmer who wants to sell can approach the F.C.I and get M.S.P for his produce
3.both
4.none

Q3:The Negotiable warehouse receipts are issued to farmers
1.in lieu of the stored produce in warehouses registered with W.D.R.A.
2.if they buy crop insurance
3.both
4.none

Q4:Fair and Remunerative prices for sugarcane has
1.the farmer is assured of fair price for his stock as well as a profit from the sale.
2.FRP is determined by the Cabinet committee on economic affairs
3.To ensure the farmers are protected from price shocks the MSP system for sugarcane was replaced by the FRP
4.All

Q5:Consumer Welfare Fund
1.is operated by the Dept of Consumer Affairs.
2.unclaimed central excise refunds go to.
3.All agencies which have worked in the field of consumer welfare for 5 years can be eligible for financial grant under this.
4.all