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The Food Subsidy
provided to FCI by the Ministry is in the form of Consumer Subsidy and
Buffer Subsidy.
As per the mandate
given to it, the Corporation carries out Open Ended Procurement of
foodgrains at Minimum Support Price fixed by the Centrla Govt., Movement
of the same and Distribution of Foodgrains to various State/Central
Agencies as per the Allocation given by the Central Govt. and at the
Central Issue Prices fixed by the Central Govt.
For the quantity
distributed, the difference between the acquisition cost and distribution
cost incurred by FCI and the CIP realised is reimbursed as Consumer
Subsidy.
As per the
instructions issued, three months’ average sales quantity is treated as
operational stock. Stock over and above the operational stock is treated
as buffer stock. For buffer stock, the cost of holding and maintenance of
the stock (i.e. interest, storage etc.) is reimbursed in the form of
Buffer Subsidy.
As per existing
instructions, 95% of the subsidy (excluding shortages) is paid in advance
to FCI on quarterly basis and the balance is paid on completion of
Accounts and certification of the same by C&AG.
The Scheme-wise
subsidy allocation for 2005-06(BE) is as under, |
Food
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