SPEECH FOR PROF. K.V. THOMAS, HON’BLE MINISTER (I/C) CA, F&PD FOR THE MEETING OF FOOD MINISTERS AND FOOD SECRETARIES OF NE STATES (EXCEPT SIKKIM) TO BE HELD AT GUWAHATI ON 29-09-2011.

Food Ministers of the North Eastern States present here, Secretary, Food & Public Distribution, Government of India, Food Secretaries of NE States, CMD, Food Corporation of India and other officers of Government of India and State Governments.
2. Today, I am very happy to be with you for the review of the food and public distribution system of north-eastern region. In July this year, We had a meeting with the Food Ministers and Food Secretaries of producing and consuming States. Since the problems faced by the North Eastern States are somewhat different from other states, I thought to have a separate meeting for NE States. Government of India has taken up various schemes for all round development of this region having abundant natural resources. North East Region is the corner-stone of Government of India’s Look East Policy.
3. Our focus has been to ensure availability of foodgrains at reasonable prices especially to the weaker and vulnerable sections of the society. The Government is also determined to enact the National Food Security Act which will provide a statutory basis for a framework which assures food security for all and entitles every family below the poverty line to certain quantities of foodgrains at subsidized prices. The legislation will also be used to bring about broader systemic reforms in the Public Distribution System. The National Food Security Bill has been approved by EGoM and further action is being taken. Before placing it before the Parliament, consultations will also be held with the State Governments as providing of food security is the combined responsibility of the Central and the State Governments. The Targeted Public Distribution System which was launched in June, 1997 has played an important role in making available foodgrains at subsidized prices to the poor and vulnerable sections in this country.
4. However, one important thing which I would like to emphasis here is that the performance of PDS is the joint responsibility of the Government of India and respective state governments. While the Government of India is responsible for the procurement, storage, allocation and transportation to various states, the states are primarily responsible for further distribution to the FPS and in turn to the end user, the citizens. I am of the considered opinion that the most critical link in the entire system is distribution to FPS and to the end consumer as the success of the entire system depends on the performance on these counts.
5. Many states have initiated good number of reforms in the PDS with the support from Government of India. I am convinced that by appropriate and innovative use of the available technology, the states will be able to plug significant loopholes in PDS to ensure that leakages are brought to the lowest possible and the grain reaches to its real deserving consumer.
ALLOCATION
6. The Government of India has made substantial allocation of foodgrains during last year as well as in the current year for distribution to TPDS beneficiaries. I am aware of your requests for higher allocations based on increased population and BPL numbers. This issue will have to be addressed in the proposed National Food Security Bill. However, to meet your immediate requirements, during the current year, additional allocation of 10 million tons of rice and wheat for BPL and APL families have been made at subsidised BPL and APL prices.
7. Allocations of foodgrains for BPL families are made @35kg per family per month. For APL families, the allocations differ from 15kg to 35kg in various States. However, as a special case, for all North Eastern States, the monthly APL allocation is also made @35kg per family.
8. Based on requests received from the NE States, further additional allocations have also been made at BPL prices from the savings of January 2011 BPL allocations. Additional allocations for the poorest districts in some States have been made as per requirements received from the State Governments. Similar allocations for other States are also under consideration.
9. During last year, the offtake against the additional allocations made was only around 50% of the total allocation. I have written to all the State Chief Ministers to ensure lifting of the additional allocations in full and distribute to the targeted beneficiaries. I hope the States will take full advantage of these additional allocations by lifting them in full.
10. Taking into consideration the recommendations of the National Advisory Council, the Expert Committee headed by Dr. C. Rangarajan, and consultations with States, Central Ministries, experts and other stake holders, the Department of Food and Public Distribution has prepared a draft National Food Security Bill. The draft Bill has been placed on the website of the Department inviting comments/suggestions from all stake holders by 30th September. The suggestions received will be suitably considered before finalisation and introduction of the Draft Bill in Parliament. I request all the State Governments to send their comments immediately, if not already sent.
STORAGE
11. Central Warehousing Corporation (CWC) started functioning in the North East Region in early sixties and was having a capacity of 1.02 lakh MT with occupancy of 90% as on 31st August, 2011. The State-wise capacity being operated by the CWC in the North Eastern Region in Assam is 65,417 MT, Nagaland – 13,000 MT and Tripura – 24,000 MT.
12. The average utilization of NE Region during last three years viz., 2008-09, 2009-10 and 2010-11 was 79%, 93% and 92% respectively. Moreover, Guwahati Region has been incurring losses during the last few years. CWC plans to undertake construction of additional storage capacity of 4,000 MT and 1,280 MT at Sorbhog and Dhubri respectively in the existing vacant land during 2012-13.
13. Besides CWC, the Assam and Meghalaya State Warehousing Corporation (SWCs) are also operating in NE Region. The storage capacity of Assam SWC is 2.52 lakh MT with 75% average occupancy through 44 warehouses whereas the storage capacity of Meghalaya SWC is 0.14 lakh MT with 79% average occupancy through 6 warehouses. The existing capacity of these SWCs is not fully utilized. However, Meghalaya SWC has a plan to construct 6,500 MT capacity in the year 2011-12.
14 A proposal for construction of storage godowns, capacity totaling 5.4 lakh tonnes at a total estimated cost of Rs.568 crore has been prepared by the Department. The Planning Commission had also supported the proposed augmentation of storage capacity in the the North East. The EFC has now approved the proposal.
15. In the proposal there were 8 ongoing projects and 39 new projects were identified In Assam godown at Hailakandi (5,000 MT) has been made storageworthy, however at Changsari where a capacity of 1 lakh tonne is proposed to be built in two phases the progress is not satisfactory due to local issues. The efforts of the State Government of Arunachal Pradesh in identifying and handing over land free of cost has been appreciated. I would request the State Governments to give all possible assistance to the FCI for identifying the lands for construction of godowns.
16. The Department of Food & Public Distribution also releases funds as grants-in-aid to the State Governments of the North-Eastern States for construction of storage godowns under the Plan Scheme. In the Eleventh Five Year Plan, the Planning Commission has allocated Rs. 24 crores for this purpose. Funds have been released to the State Government of Assam, Mizoram, Sikkim, Tripura Meghalaya and Arunachal Pradesh. However, from many of these State Governments, the Utilization Certificates are still pending making it difficult for further release of funds. I would request the State Governments to expeditiously construct the godowns and submit the Utilization Certificates. The State Governments may also inform the physical progress of the godowns being constructed, to the Department on a regular basis.
SUGAR
17. Enough levy sugar is available with the FCI in their godowns in the North East States. During the month of August, 2011 against allocation of 27,130 MT of levy sugar the State Government lifted 24,762 MT, the percentage of lifting as against allocation being 91.27%. As per report from FCI 11,093MT of sugar was available in FCI godowns of North East at the end of August, 2011. Further during the month of September 2011, 10 rakes of 2688 MT each have already been dispatched upto 26-9-2011 and two more rakes of 2688 MT each are under despatch. State Governments are requested to make arrangements to lift their quotas timely for further distribution in the PDS.
EDIBLE OILS
18. Government of India has implemented a scheme for distribution of subsidized imported edible oils to States/UTs with a subsidy of Rs.15/- per kg since 2008 which was extended in 2009-2010 and 2010-2011 and for further period upto 30-9-2012. So far only nine States have sent their request for allocation of edible oils upto September 2011 where states of Arunachal Pradesh, Assam, Meghalaya, Manipur, Tripura, Mizoram and Nagaland have not participated in the Scheme. These States are requested to join the scheme and send their demand. The states of Arunachal Pradesh, Meghalaya, Manipur, Tripura, Mizoram and Nagaland have implemented stock holding limits of edible oils and oilseeds in their respective states whereas States of Assam and Tripura have not fixed stock limit but imposed licensing requirements/sock declaration. The remaining states are requested to notify and enforce stock holding limits on edible oils/oilseeds in their states in order to discourage hoarding of essential commodities.
I hope the deliberations in the meeting will be very useful in strengthening and revamping the Public Distribution System in the North East.