Everyone knows that our food grains grow in the fields. Their basic requirements consist of soil, water, feed, sunlight and human resources. However, the movement of these food grains requires careful planning. The FCI is a regulatory body that is meant to make the food grain cycle easy. The food grain is moved from FCI godowns to states as per the food grain policy of India.

Key terms

• FCI – The Food Corporation of India acts as a bridge between the farmers and consumers. It works for both sides. It helps the countrymen in collecting grain under one roof and provides food grain to the different states of the country.
• Movement – Here, movement means the transfer of the requisite amount of food grain into every nook and corner of the nation using the required transport system, primarily railways.
• MSP: Minimum support price is the fixed support that insures the farmers in case of a sharp fall in some farm prices.

FCI’s movement of grains

A brief introduction to FCI

The Food Corporation of India was formed to serve several purposes in 1964. The Food Corporation Act brought FCI into existence for the following reasons:

• Provide economic support to farmers,
• To circulate food grains among the citizens of the nation,
• To achieve national food security, and
• To ensure price stabilisation.

A brief introduction to FCI’s movement of grains

FCI is a governmental body that regulates the movement of food grains from fields to various states all over the country using the required transport system. Beyond 69% of the attained stock is shifted from the surfeited areas to the undersupplied ones. This process is carried out by FCI using primarily railways, followed by roads and waterways.

Three major steps in the FCI’s movement of grains

To make the whole process of the movement of food grains smooth, the FCI works in a very systematic way in the following three steps.

• Plan of action for the successful movement in the regions required.
• Improvement of the Demurrage/Wharfage charges, that is, charges levied if the shifted stock is not picked up before the expiry date.
• Rake Release Position

How is food grain moved to states?

While most of the states receive grains via railways, those areas of the countries that do not have proper railways, such as HP, J&K, and North-Eastern hill regions such as Arunachal Pradesh, Manipur, etc., receive grains via roadways. Lakshadweep and Andaman & Nicobar receive the grains by waterways as they are disconnected from railways or roadways.

Food grain policy in India

The Government policy of procurement (the action of obtaining something) of food grains works by ensuring MSP (Minimum support price) to the farmers. Moreover, they also ensure that the underprivileged section of society receives the grain at reasonable pricing. 

MSP (Minimum Support Prices) is announced before the harvesting season of each crop. It is based on the recommendation of the Commission of Agricultural Costs and Prices (CACP). Various other aspects, such as agricultural input cost and farmer’s margin, are taken into consideration to decide the MSP.

State government agencies procure coarse grains. This is done to ensure that farmers receive a reasonable incentive for their produce. 

Conclusion

Hence, the movement of food grains by the FCI ensures that there is sufficient food supply in all parts of the country.