FOOD COORPORATION OF INDIA

(Overview of Supply Chain & Strategy)

GROUP -1
Submitted byShamaila Sara Hye (79)
Diana P (105)
Prakhar Rastogi (107)
Amit Singhal (109)

Mid Term Report - SCM

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FOOD CORPORATION OF INDIA

Food Corporation of India (FCI) is a Public Sector Under taking company
formed on 14 January 1965 under the Food Corporation Act 1964.The main
objective of the organization is to distribute food grains throughout the country
through Public Distribution System (PDS), to provide effective price support for
safeguarding the interests of farmers and to maintain satisfactory level of
operational and buffer stocks of food grains to ensure National Food Security.
FCI is Asias largest Supply chain and second largest in the world. It
purchases, stores, transports and distributes food grains throughout the country.
It procures wheat and rice from farmers at prices stipulated by the government.
These food grains are sold to consumers at subsidized prices through the public
distribution system. In addition to these marketing activities, Indian imports of
food grains are canalized through the Food Corporation of India. The Food
Corporation of India is the largest agricultural parastatal in India in terms of
turnover, the value of commodities, and the significance of commodities in the
Indian consumption basket. It also has the largest number of employees of all
the agricultural parastatals in India.

Mid Term Report - SCM

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Food Coorporation of India, Supply Chain

Local
Mandis
Local
Mandis

Local
Mandis
Local
Mandis

Local
Mandis

Local
Warehouse

Local
Mandis
Local
Warehouse

District
Warehouse
District(to
different
state/same state)

Local Warehouse

PDS

Local Warehouse

PDS

PDS

PDS

Efficiency and Responsiveness

Under normal conditions of operation efficiency is preferred as it
mainly targets in providing food to the beneficiaries in a subsidized rate. Along
with it, the economic welfare of farmers are considered, so profit making is not
a motive. The customer purchases from the PDS system on an average once in a
month, along with that there is always a buffer. So we could conclude it to be
more towards efficient side of Supply Chain.
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Under the situations of calamities more importance is given to

responsiveness.

Facilities
The facilities mainly include the intermediate warehouse, district
warehouse, zonal warehouse and the PDS outlet.

Sourcing
FCI, along with other State Agencies undertakes procurement of wheat, paddy
and coarse grains under price support scheme and rice under statutory levy
scheme. The procurement under Price Support is taken up mainly to ensure
remunerative prices to the farmers for their produce which works as an
incentive for achieving better production.
To facilitate procurement of food grains, FCI and various State Agencies in
consultation with the State Govt. establish a large number of purchase centres at
various mandis and key points. The number of centres and their locations are
decided by the State Governments, based on various parameters. Whatever
stocks which are brought to the Purchase centres falling within the Govt. of
India specifications are purchased at the fixed support price. If the farmers get
prices better than the support price from other buyers such as traders / millers
etc., the farmers are free to sell their produce to them.

Inventory
The main inventories are rice, wheat, Jowar, Bajra, Maize, Ragi, Barely and
other pulses.

Transportation:
The main mode of transporting the grains is through rail, road and waterways.
Most of the warehouse of the FCI are usually located near railway links so that
bulk goods can be transferred more conveniently and cost effectively.
The regional transport is done through roadways.
Import Export mainly is done by water ways. Eg: As a goodwill gesture to the
people of Afghanistan and to strengthen the bilateral ties with the friendly
country, India has decided to export a quantity of 2.5 lakh MT of wheat by way
of gift to Afghanistan through FCI from Central Pool stocks by 31st March,
2012 to help them tide over the food crisis in the country due to draught like
conditions.
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Initially, a consignment of one lakh MT of wheat will be issued by Food

Corporation of India (FCI) to M/s. Agility Logistic Private Limited, the Agency
nominated by Ministry of External Affairs (MEA) for movement of stock from
FCI Depot at Gandhidham to Kandla Port.

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