Agriculture Marketing
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Food Corporation of India

The Food Corporation of India was setup under the Food Corporations Act 1964, in order to fulfill following objectives of the Food policy :

  • Effective price support operations for safeguarding the interests of the farmers.

  • Distribution of food grains throughout the country for Public Distribution System; and

  • Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security.


Since its inception in 1965, having handled various situations of plenty and scarcity, FCI has successfully met the challenge of managing the complex task of providing food security for the nation. A strong food security system which has helped to sustain the high growth rate and maintain regular supply of wheat and rice right through the year. The efficiency with which FCI tackled one of the worst droughts of the century not only cemented its role as the premier organization in charge of food security in India, but also brought it accolades from international organizations.

Today it can take credit for having contributed a great deal in transforming India from a chronically food deficit country to one that is self-sufficient


The Food Corporation of India was setup under the Food Corporation Act 1964, in order to fulfill following objectives of the Food Policy:

  • Effective price support operations for safeguarding    the interests of the farmers.

  • Distribution of food grains throughout the country for public distribution system ; and

  • Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security.

In its 40 years of service to the nation, FCI has played a significant role in India's success in transforming the crisis management oriented food security into a stable security system.  


Food Corporation of India,
 Regional Office, No.124, Greams Road,
Food Corporation of India,
District Office,
No.1, Bharathi Road,
Cuddalore – 607 001.
Food Corporation of India,
District Office,
Imanuvel Complex,
No.40, Thayumanavar Street,
Vellore – 632 006.
Food Corporation of India,
District Office,
No.2, Satyamurthi Road,
Chennai- 600 031
Food Corporation of India,
District Office,
No.379, 380, North Ajram Street,
Thanjavur- 613 006
Food Corporation of India,
District Office,
Post Box No.2911,
Tatabad, Coimbatore– 641 012.
Food Corporation of India,
District Office,
Xaverina Building,
23-B, Beach Road,
Tuticorin – 628 006.


Name of the Depot Capacity
Chennai FSD Avadi
FSD Egmore
Vellore FSD Sevur
FSD Arakkonam
Coimbatore FSD Coimbatore
FSD Peelamedu
FSD Salem
Tuticorin MG Complex
Cuddalore FSD Pondicherry
FSD Karaikal
FSD T.V. Koil
FSD Chidambaram
Thanjavur FSD Sembarnarkoil 7000


  • Food grain bags should be received with proper dunnages as per stack plan to facilitate cross ventilation/inspection/QC treatments and ensuring stacks are formed to full capacity and avoid part stacks.
  • Maintaining excellent hygienic conditions all around the stacks/ godowns /operational points and avoiding loose spillages by ensuring cleaned spillages are put into palla bags to respective stacks.
  • Effective personal supervision of prophylactic (spraying) treatments with correct dosage and immediate curative treatments (fumigation) on finding insects in a stack to avoid cross infestation on the lines of “A stitch in times saves nine”.
  • Insistence / ensuring provision of adequate Tarpaulins/ polythene bits to the minimum size of 10’ x 10’ at the operational points of receipts/ issues to avoid mixing of spillages with mud and possible losses.
  • Insistence / ensuring spreading of tarpaulins / polythene bits/ gunny wrappers on the decks of trucks before loading of food grains bags to avoid oozing enroute and proper full covering of loaded bags with tarpaulins to avoid pilferages, without complacency.
  • Ensuring adequate aeration of stacks by opening all doors on all clear days.
  • Completely avoiding dumping of spillages on the stacks.

As per the quality policy to comply with ISO 9001: 2000, we are focused on professional excellence in management of food grains by adopting the above principles to avoid deterioration/ losses.


To nurture the Green Revolution, the Government of India introduced the scheme of minimum assured price of food grains which are announced well before the commencement of the crop seasons, after taking into account the cost of production \ inter-crop price parity, market prices and other relevant factors.

  • The Food Corporation of India along with other Government agencies provide effective price assurance for wheat, paddy and coarse grains.
  • FCI and the State Govt. agencies in consultation with the concerned State Govts. establish large number of purchase centres throughout the state to facilitate purchase of foodgrains
  • Centres are selected in such a manner that the farmers are not required to cover more than 10 bring their produce to the nearest purchase centres of major procuring states.
  • Price support purchases are organized in more than 12,000 centers for wheat and also more than  12,000 centers for paddy every year in the immediate post-harvest season.
  • Such extensive and effective price support operations have resulted in sustaining the income of farmers over a period and in providing the required impetus for higher investment in agriculture for improved productivity.
  • To name a few states about Rs.41,000 millions for paddy and 43,000 millions for wheat in Punjab and Rs. 45,000 millions for levy rice in Andhra Pradesh is paid to the farmers/ millers during wheat / rice procurement season.
  • India today produces over 200 million tonnes of foodgrains as against a mere 50 million tonnes in 1950.
  • In the last two decades, foodgrain procurement by Government agencies have witnessed a quantum jump from 4 million tonnes to over 25 million tonnes per annum.
  • Foodgrains are procured according to the Government - prescribed quality standards.
  • Each year, the Food Corporation purchases roughly 15-20% of India's wheat production and 12-15% of its rice production.
  • This helps to meet the commitments of the Public Distribution System and for building pipeline and buffer stock.

The Dept. of Food, GOI has recently formulated aforesaid policy for involving Central Govt. Undertaking /State Govt. undertakings/for the Central Pool and expanding the scope of MSP operations in the areas where FCI/State agencies infrastructure for potential of procurement is weak and existing Govt. Agencies (FCI and State Agencies) are not able to carry out MSP operations in such areas where procurement exists to ensure that farmers are not denied the benefit of MSP. 

The eligibility Criteria and priority for engaging such Agencies/Private companies is mentioned n clause 2 to 2.3 of the policy guidelines. The private companies can only be engaged as last option as per the policy guideline. The engagement of agencies falling under clause2.2 and 2.3 must result in a cost saving of at least 10% of the incidentals (other than taxes, statutory charges etc.) of FCI as provided at point 3.3 of policy of guidelines of Ministry of Food. The other details are mentioned in the Policy Guidelines. The Central Govt. Undertaking/State Govt./Undertaking/Co-operatives/Private Companies fulfilling the eligibility criteria and desirous to undertake paddy procurement operations on behalf of FCI may contact concerned GMs(Region),/EDs(Zone) or Procurement Division, FCI Headquarters


The Food Corporation of India has an extensive and scientific  stock preservation system. An on-going programme sees that both prophylactic and curative treatment is done  timely and adequately. Grain in storage is continuously scientifically graded, fumigated and aerated by qualified trained and experienced personnel.

Food Corporation of India's testing laboratories spread across the country for effective monitoring of quality of food grains providing quality assurance as per PFA leading improved satisfaction level in producers (farmers) and customers (consumers). The preservation of food grain starts, the minute it arrives in the godowns. The bags themselves are kept on wooden crates/poly pallets to avoid moisture on contact with the floor. Further till the bags are dispatched/issued, fumigation to prevent infestation etc. of stocks is done on an average every 15 days with malathion and once in three months with Deltamethrin etc. on traces of infestation, curative treatment is done with Aluminium Phosphide.

FCI's testing laboratories spread across the country (188) ensure that the stored food grains retain their essential nutritional qualities as per FAQ.

District Labs - 164
Regional Labs - 18
Zonal Labs - 5          
Central Lab - 1


  • Ensuring accessibility to food in a country of India's size is a Herculean task. The foodgrains are transported from the surplus States to the deficit States.
  • The foodgrain surplus is mainly confined to the Northern States, transportation involves long distance throughout the country. Stocks procured in the markets and purchase centers is first collected in the nearest depot and from there dispatched to the recipient States within a limited time.
  • FCI moves about 270 Lakh tonnes of foodgrains over an average distance of 1500 Kms.


The national objective of growth with social justice and progressive improvements in the living standards of the population make it imperative to ensure that foodgrain is made available at reasonable prices.

  • Public Distribution of foodgrains has always been an integral part of India’s overall food policy. It has been evolved to reach the urban as well as the rural population in order to protect the consumers from the fluctuating and escalating price syndrome.
  • Continuous availability of foodgrain is ensured through about 4.5 lakhs fair price shops spread throughout the country.
  • A steady availability of foodgrains at fixed prices is assured which is lower than actual costs due to Govt. policy of providing subsidy that absorbs a part of the economic cost (about 45%).
  • The Govt. of India introduced a scheme called Targetted Public Distribution Scheme (TPDS) effective from June, 1997. The stocks are issued under this scheme in the following two categories:-

    a) Below Poverty Line (BPL): Determination of the families under this category in various states is based on the recommendation of the Planning Commission. A fixed quantity of 35 Kg. foodgrains per family per month is issued under this category. The stocks are issued at highly subsidized Price of Rs.4.15 per Kg. of wheat and Rs. 5.65 per Kg. of rice.

    Antyodaya Anna Yojna - During the year 2000-2001 Govt. of India decided to release foodgrains under Antyodaya Anna Yojna. Under this scheme the poorest strata of population out of earlier identified BPL population is covered. Foodgrains are being provided to 1.5 crores poorest of the poor families out of the BPL families at highly subsidized rates of Rs.2/- per kg. of wheat and Rs.3/- per kg. of rice by FCI. This is the biggest food security scheme in the world.

    b) Above Poverty Line ( APL) – Families which are not covered under BPL are placed under this category. The stocks are issued at Central Issue Price of Rs. 6.10 per Kg.  of wheat and Rs. 8.30 per Kg. of rice.

The Central Issue Price (CIP)

Commodity As on BPL Families APL Families
Wheat 01- 04- 2002 415 510
  12- 07- 2001 415 610
Rice 01- 04- 2002 565 730
  12- 07- 2001 565 830


Welfare schemes of the Govt. of India

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