FOOD CORPORATION OF INDIA Presented by:Charu chandra Bikash Prasad Rupesh Kumar Bajrang Agarwal
Contents
1. Case Brief
2. Introduction
3. SWOT Analysis
4. Distribution System
5. Functions of FCI
6. Issues
7. conclusion
Case Brief
The case gives an insight into the Food Corporation of India (FCI) and its Public Distribution system through fair price shops across India.
Introduction Introduction The Food Corporation of India was set up on 14th Jan. 1965 by an Act of Parliament. Its Primary Objectives are as follows :
To provide the farmers remunerative prices. To make food grains available at reasonable
prices, particularly to the vulnerable section of the society and To maintain buffer stocks as a measure of Food Security To intervene in the market for price stabilization.
Distribution System
Public Distribution System
Targeted Public Distribution System
SWOT Analysis Strengths Round the year availability of materials Support from central government Strong network of distribution Excellent Storage Management
Weakness High requirement of working capital Inadequate automation with regard to information management Corruption at all level Leakage
Opportunities Vast Domestic market Improvement in distribution channel Diversify into nontraditional commodities / activities.
Threats Rapid development Shift in food habits Entry of Retail Sector
Functions of FCI 1. Procurement
2. Storage
3. Preservation
Functions Cont… 4.Transportation
5.Distribution
6.Stock
Issues Question 1
FCI was set up to act as an apex organization for equitable distribution of food grains to the lower end of society. However, it ended up with losses and incurred huge inventory costs. What were the flaws in the operations of FCI? How could it be improved to achieve its objectives effectively?
Question 2 FCI procured around 20 to 25 % of the productions of wheat and rice however, despite having an adequate quantity of food grains, it was unable to cater to the needy masses effectively. How was the public distribution system responsible for this inefficiency? Suggest some measure to improve the PDS in India
Queries
Thank You