FOOD CORPORATION OF

INDIA (FCI)
 Date of Establishment
• FCI was set up on 14th January, 1965
(by an Act of Parliament)
 OBJECTIVES OF FCI
1. To act as an main AGENCY OF
GOVERNMENT for handling FOOD-
GRAINS.
2. To PROCURE FOOD-GRAINS on behalf
of Govt. of India.
3. To act as MARKETING AGENCY in the
country.
4. To serve the interests of both the
FARMERS and CONSUMERS.
5. To provide REMUNERATIVE PRICE to
farmers for his PRODUCE.
6. To supply regularly food grains to
VULNERABLE SECTIONS of Society
(Poor People) all over the country at
REASONABLE and subsidised PRICE.
7. To intervene in Market for PRICE
STABLIZAATION.
 FUNCTIONS OF FCI
The Main Functions of FCI are as under :-
1. To procure Food-grains and other
Agricultural Commodities at incentive prices
from the Farmers on behalf of Central and
State Govts.
2. To make timely releases of the stock through
the PUBLIC DISTRIBUTION SYSTEM (PDS)
i.e. Fair Price Shops and Controlled items
Shops for consumers, especially to poor
people in REMOTEST CORNERS of the
country.
3. To set-up a PURCHASING and
DISTRIBUTION net-work to minimize
seasonal price fluctuations in the market.
4. To build-up and keep a SIZEABLE BUFFER
STOCK OF FOOD-GRAINS to meet the
situations that may arise as a result of
SHORT-FALLS IN INTERNAL
PROCUREMENT and Imports (for FOOD
SECURITY).
• Buffer-stock is maintained to meet-out the
unforeseen situations like :-
– Low Production of Food grains.
– Natural Calamities (Flood, Drought, War etc.).
– Crop Failure ( 1965-66 and 1966-67 in India)
and there was shortage of food grains
(Scarcity) in these two years.
• It gave momentum to have GREEN
REVOLUTION.
 ORGANIZATIONAL CHART OF FCI

• CORPORATE OFFICE
• ZONAL OFFICES (5)
• REGIONAL OFFICES (23)
• DISTRICT OFFICES (165)
• DEPOTS. (INCLUDING CAP --Covered
And Plinth- (1470) WITH 1646 OFFICES.
 CORPORATE SET-UP

BOARD OF DIRECTORS
I
CHAIARMAN
I
MANAGING DIRECTOR
(MD is Ex-Officio Mg. Director of Central
Ware-housing Corporation also)
GOVERNMENT REPRESENTATIVES

• 3 DIRECTORS to represent
respectively the Ministries of the Central
Govt. dealing with :
– FOOD
– FINANCE
– CO-OPERATION, &
• 6 OTHER DIRECTORS (out of which 4
are Non-official Directors).
 UNIQUE FEATURE OF FCI
• It is ISO 9001 :2000 CERTIFIED.
(Meaning thereby – Ensuring Food
Security of Nation).
 ZONAL OFFICES

(1) NORTH ZONE Uttaranchal, U.P., Rajasthan,

Punjab, J&K, H.P., Delhi and
Haryana.
(2) EAST ZONE Jharkhand, Bihar, Orissa, W.B.
(3) WEST ZONE Chhatisgarh, Gujarat, M.P.
Maharashtra.
(4) SOUTH ZONE Andhra Pradesh, Kerala,
Karnataka, Tamil Nadu.
(5) N-E-FRONTIER Nagaland, Meghalaya, Assam.
 Progress of the FCI in various areas may be
assessed from the following seven points:-
1. PROCUREMENT
2. STORAGE
3. TRANSPORTATION
4. IMPORTS
5. DISTRIBUTION
6. PROCESSING
7. CONSULTANCY
 PROCUREMENT :-
• Procure means to obtain by care or to acquire
Something.
• FCI undertakes procurement of Food grains on
behalf of Central Govt. and State Govts.
• Procurement is done by FCI or through other
Public Procurement Agencies such as :
– Cooperative Marketing Societies
– Krishi Upaj Mandi Samities (KUMS)
– Other Mandis
– Cooperative Societies including PACS
• FCI predetermines support prices for
Cereals and are made available for
Farmers.
• Handling of huge stocks procured by
other agencies is done by FCI.
• FCI purchases food-grains in RABI AND
KHARIF Seasons directly or through the
Cooperatives/ Purchasing Agents.
• FCI purchases cereals & pulses at
Market price to --
• Supply them to Defence Services.
• FCI utilizes the services of Cooperative
Societies to the Maximum Extent
possible for Procurement, Storage and
Distribution of Foodgrains and other
Commodities.
(2) STORAGE OF FOODGRAINS BY FCI
– Scientific Storage is done by FCI for food
grains
– From procurement till distribution.
– Procurement from Farmers is done
• Distribution is done to various people :
– To Remote Areas; Hilly/Desert area.
– To Poor People of Rural area.
– To Poorest of the Poor in Village area.
– To Public at large to common man.
 Buffer Stock is maintained by FCI :
a. Food grains are stored in Godowns &
Warehouses.
b. Godowns & Warehouses are constructed
scientifically for protection against –
• Dampness (Moisture in Air)
• Rats, &
• Fungus (Mushroom/allied plant)
c. Till 1968, godown construction was
banned. After 1968 Godown
Construction started in every State and
Districts for storage of food grains and
other Commodities.
d. After Green Revolution in our Country,
the need of Storage increased.
Construction of Godown were done
near Production and Consumption
Centres.
• GOI also encouraged Private parties to
construct Modern Food grain Godowns
on a Guaranteed Occupation basis.
• Constant and Effective Inspections and
Treatment of Foodgrains in Storage was
ensured by FCI so that the stocks are
kept in Good Conditions.
• Preservation of Stocks is done by FCI.
 STORAGE IS DONE IN 3 WAYS :
• In Godowns -
500/1000/2000/5000/10,000 MT
• In Silos (Tall & massive structures)
• In CAP (Cover And Plinth)- In Large
open areas with Polythene Covers at
bottom and Top- Bags are kept in open
(Thousands of bags are kept at one
place).
• Construction of SILOS by FCI is done for bulk
Handling and storage of food grains (with
mechanical handling for filling and for taking
out of the silos). Silos construction has been
done in FOUR STATES by FCI :
– PUNJAB
– HARYANA
– DELHI &
– UTTAR PRADESH
(h) Safe storage of Food grains is ensured by
FCI through - Chain of 138
Laboratories & Quality Control Laboratories by
doing following activities :-
(i) Blow Air in Godowns
(ii) Rotate Stocks – Bags are shifted i.e. Change
of place is done
(iii) Bags and Godowns are fumigated (fumes
are spread over (Smokey perfumes are
Spread- over to kill the pest, flies and Other
fungus etc.
• FCI uses Air-strips, Army Barracks, and
former Palaces for the storage of food
grains during massive production
season.
 TRANSPORTATION BY FCI :-
• Transportation of Food grains is
generally done by –
(a) Rail and (b) Road
• Rail and Road Transportation is used for
timely supply of food grains in the areas
of Consumption and Storage.
• FCI maintains a steady Public Distribution
System (PDS) from the procurement
centers and the ports to the areas of
consumption and storage. FCI is one of
the largest users of the Railways. More
than 20 million tonnes of Food grain is
transported through RAIL by Food
Corporation of India.
• IMPORTS OF GOODGRAINS BY FCI –
– Imported food grains are handled by FCI.
– Import is through Shipment to all Major
Ports. i.e. Mumbai, Goa, Calcutta, Koshin,
Vishakhapattanam.
– This responsibility was given to FCI in 1969-
70.
– Imported Food grains are speedily
dispatched to various destinations to avoid
congestion at the ports.
– Supply to needy area is made immediately
by FCI.
• DISTRIBUTION OF FOODGRAINS BY
FCI:-
– Distribution function is one of the important
Function of FCI.
– Procured/Imported food grains is distributed
to public through 4.91 Lacs FAIR PRICE
SHOPES all over India.
Food grains are issued on the basis of
allocation made by the Central Govt. at
reasonable prices :-
(i) How much (quantity)
(ii) To whom (State-Area &People)
(iii) At what Rate (Price or Rate )
(iv) Type of Food grain (Wheat, Rice etc.)
(v) For open sale.
PROCESSING OF FOODGRAINS BY FCI

• FCI has done commendable work in the field

of Food-Processing
• FCI has set-up 24 Modern Rice Mills
• Paddy-processing Research Centre at
TIRUVERUR in Tamil Nadu ( with GOI
collaboration).
• Solvant Extraction Plant in TN – Edible
oil and industrial grade oil from Paddy.
• Paddy Dryers in Thanjavur district in TN.
• Maize Dryer at KHANNA in Punjab ( to
reduce the moisture content from maize)
to save from diseases.
• Solvant Extraction Plant of FCI at Ujjain
(MP) to process Groundnut.
• Maize Mill of FCI at Faridabad (Haryana)
to manufacture a variety of Maize
Products.
• Dall Mill off FCI at Lucknow (U.P.) to
meet out the purchase requirement of
the ARMY.
• Protein-rich Food (Balahar) a midday
meal for school children ( a mix of wheat
flour, groundnut meal, vitamins and
minerals)— FCI produces 40,000 MT
per Annum Balahar.
 CONSULTANCY
• Consultancy is a new function of FCI. It
provides guidance to private
entrepreneurs.
• Provides Technical & Scientific
assistance to Public and Private
Undertakings and to Cooperatives.
• Provides assistance in the Modernization of
RICE AND DAL MILLS and other Agro-
Processing units.
• Provides Feasibility ad Techno-economic
studies, market survey and Management
systems to those who need it.
• FCI also collects and manages Levy Sugar on
behalf of the Government of India.
***********
 BUFFER STOCKING

• The Term “Buffer Stock” of food-grains

refer to the Stock of Food-grains
maintained by the Govt. to be used as a
buffer :-
– To cushion the stocks of fluctuating supply of
price,
– To meet the emergency needs and,
– To meet the situations arising out of
unexpected shortages resulting from
following:
– (i) Transport bottlenecks,
– (ii) Natural Calamities (War, Famine)
– (iii) From the influx of Refugees.
– ADVANTAGES OF MAINTAINING A BUFFER
STOCK:--
– 1.It helps in the stabilisation of prices by
counter acting the effects of the activities of
speculators and Hoarders.
• 2. It safeguards the producers against low
prices, especially during surplus
production years and,
• 3. It imparts stability to the country’s food-
economy.
– The Govt. enters the market and purchases
food-grains for the maintenance of the buffer-
stock. Buffer-stock is maintained by –
(a)Internal purchases and (b) by Imports from
foreign countries.
• Buffer stock is maintained by FCI.
• 20 Million Tonnes of Food-grains stock
requires for India. As on 1-7-1990 stock of
food-grain was maintained by India was
20.3Million Tonnes.
– Stock Required and Maintained by FCI was
as under :--
• Year Minimum Norms . Actual Stock.
• 1995 15.4 MT 30.3 MT
• 2000 16.8 MT 31.4 MT
• 2003 16.8 MT 64.7 MT
• 2005 16.8 MT 16.2 MT
• 2006 16.8 MT 15.7 MT
• 2007 16.8 MT 17.88 MT
• 2008 16.8 MT 19.64 MT
• 2009 16.8 MT 35.03 MT
• ACTUAL BUFFER STOCK POSITION OF
WHEAT AND RICE (in Lakh Tonnes):-
• -------------------------------------------------------
• Year Wheat Rice Total
• -------------------------------------------------------
• Jan.2007 54.28 119.77 174.05
• Jan.2008 77.12 114.75 191.87
• Jan.2009 182.12 175.76 357.88
» (Against a Total Target of 200 Lakh Tonnes).
• PUBLIC PROCUREMENT OF FOOD-
GRAINS:
– Public procurement means securing food-
grains by the Govt. or its agency (FCI) to meet
the requirements for the supply to consumers
through Fair Price Shops and to meet
emergency needs in Agriculturally Lean years
(low production years). The prices at which
the procurement operation is carried out are
referred to as procurement prices.
 – Procurement prices may be higher or lower than the
Market prices. Since 1971 the procurement prices
were treated as Support Price.
• PROCUREMENT PRICES = SUPPORT
PRICES
• Till 1990-91, the procurement system was in
operation for Cereals (i.e.Rice Wheat, Maize
etc.). Procurement agencies tried to procure
pre-decided quantities at these prices.
– When targets of procurement are not
achieved, then Govt. puts RESTRICTIONS on
movement of Food-grains from :-
– (i) Inter-State (one state to other state),
– (ii) Inter District (one district to other district).
– Thus by imposing restriction on movement,
the prices are depressed in surplus regions
and procurement is done by the Agencies
(FCI or Coop. Mkg. Society).
• Question : How procurement targets are
achieved by Govt. for procurement of
Food-grains ?
• Answer: Apart from the imposition of
movement restrictions, several other
instruments are also used at different
stages and time to achieve the
procurement targets.
• 1. LEVY ON PRODUCERS.
• 2. LEVY ON TRADERS AND MILLERS.
• 3. PRE-EMPTIVE PURCHASES.
• 4. OPEN MARKET PURCHASES.
• 5. MONOPOLY PROCUREMENT
1. LEVY ON PRODUCERS:
It is a legal obligation on producers to
sell a part of their produce to the Govt.,
• Procurement price. The quantity to be
procured by the Govt. is fixed in proportion
of Acreage under the crop in that year, or
at a Flat-Rate.
• Example:
• (i) 10 Acreage Wheat - 1 acre production
is procured by Govt. at Procurement price.
• (ii) 10% of Total production to be
procured by Govt. through :--
• (a) FCI
• (b) Coop. Marketing Society.
• (c) Any other Agent appointed by Govt.
(KUMS or Mandi Yard).
• (d) Private Traders on a fixed commission
basis (Say Rs.20 per Quintal)
– Thus, Govt. procures food-grains from a large
number of farmers through-out the country.
2. LEVY ON TRADERS AND MILLERS:
Traders and Millers are legally bound to
deliver a fixed percentage of the food-
grainspurchased or processed by them to the
Govt. at the Announced Procurement Prices.
Traders and Millers are free to sell the
remaining quantity in the open market at the
• Prevailing prices.
• Example: At present, Sugar is procured
from Sugar factories by imposing a Levy
on the quantity of Sugar processed by
them.
Similarly, RICE : Rice-millers are
required to hand-over a fixed percentage
of Rice milled by them to the Govt. at a
Fixed Price.
3. PRE-EMPTIVE PURCHASES:
– (First Right of Purchase with Govt.):
– The Govt. purchases foodgrains in the open market
at a price settled between the Trader and producer.
Govt. assumes its first right to purchase the grains.
4. OPEN MARKET PURCHASES:
The Govt. or its agency enters the market as a
trader and buys the produce after competing with
other Traders. No price is announced before- hand.
• 5. MONOPOLY PROCUREMENT:
• Govt. acquires monopoly rights for the
purchase of food-grains from the farmers.
• Traders are not allowed to enter the
market for this purpose. Govt. uses the
Infrastructure in terms of –
• (i) Manpower (ii) Storage Godowns
• (iii) Finance & (iv) Transport facilities, for
Procurement of Foodgrains.
• Food-grains procured are Wheat, Rice and
Coarse grains (Maize, Bajra, Jowar etc.).
• Wheat & Rice constitutes – 98%
• Coarse grains accoount for –2% of the
Total procurement.
PROCUREMENT PERIOD:
1. Rabi Mkg. Season –for Wheat :April-June.
2. Kharif Mkg. Season- for Rice : Oct. 1 to
Sept.30.
• CONTRIBUTION OF STATES IN
PROCUREMENT OF FOOD-GRAINS:--
• Punjab, U.P., Haryana & A.P. constitute
85 to 90% of the total food-grains
Procurement. (of which Punjab contribute
about 50%).
• For RICE:-Punjab, Haryana & A.P. and
• For WHEAT:- Punjab, Haryana & U.P.
• Account for over 95% of the total
procurement, in recent years.
• PROCUREMENT OF FOOD-GRAINS BY
FCI (From 4 States) is as under :
• WHEAT (Punjab and Haryana):
• 2006-07 99.5%
• 2007-08 91.1%
• 2008-09 66.88%
• RICE (Punjab, Haryana, U.P.and A.P):--
• 2005-06 68.8%
• 2006-07 69.7%
• 2007-08 69.46%
• Improvement in Procurement for Rice
during 2007-08 was in the States of
Andhra Pradesh, Orissa and West Bengal.
• In Wheat procurement, improvement was
observed during 2008-09 in the States of
Punjab, M.P., U.P., & Gujarat. (Rabi Mkg.)
• PROCUREMENT PRICES:
• Year Wheat Rice Maize.
• 2006-07 750/- 745/- 550/-
• 2007-08 850/- 775/- 620/-
• 2008-09 1000/- 850/- 840/-
• 1080/- 880/-
• The Govt. is increasing MSP from time to
time for Wheat, Rice and other grains.
 ADMINISTERED PRICES
• The following are termed as Administered
Prices:--
• 1 Commission for Agricultural Costs and
Prices (CACP).
• 2. Minimum Support Price (MSP).
• 3. Procurement Prices (PP).
• 4. Market Intervention Scheme (MIS).
• 5. Statutory Price Control & Rationing.
 1. CACP (Commission for
Agricultural Costs and Prices:-
• A) Administered Prices are nothing but
various methods of intervention in the
Market prices which includes following:-
– (i) Minimum Support Prices,
– (ii) Statutory Minimum Prices,
– (iii) Procurement Prices, and
– (iv) Issue Prices.
– These prices are announced for different
• Agricultural crops by the GOI on the
recommendations of CACP (Commission
for Agricultural Costs and Prices).
• CACP was originally set up in January,
1965 in the name of the Agricultural Prices
Commission (APC).
• The CACP take cares of interest of the
Producers as well as that of Consumers.
• The Commission (CACP) when
recommends the price, considers the
following aspects :--
• (i)The need for incentives to Farmers for
the adoption of improved Technology and
Maximization of production;
• (ii) The need for ensuring a rational
utilisation of land and other production
resources; and
• (iii) The likely effect of the price policy on
the rest of the economy, particularly on the
cost of living of masses and industrial cost
structure.
• The Commission has been
administering two sets of administered
prices viz., MSP and PP(Procurement
Prices.
• CACP is a Statutory body.
• CACP submits separate reports for Kharif
and Rabi season crops about the
recommended prices.
• The Central Govt. takes decision on the
recommended prices after considering the
views of State Govt. on the basis of
Demand and Supply situation in the
country.
• The Chairman of CACP is an eminent and
experienced Agricultural Economist. Few of
the eminent Economists were as under:
– 1. Prof. M.L. Dantwala (1965-66),
– 2. Prof. Dharma Narain(1970-75 &76-78)
– 3. Dr. S.S.Acharya (1992-1996)
– 4. Dr. T. Haq (2002- )
– 5. Dr. S.S. Acharya
 MINIMUM SUPPORT PRICE
• MINIMUM SUPPORT PRICE (MSP):
• MSP is the price fixed by the Govt. to
protect the producer-farmers against
excessive fall in price during bumper
production years. MSP is a guaranatee to
the farmers which means that a price not
lower than the announced minimum price
will be paid to the farmers when they bring
their produce for sale in the market.
• ANNOUNCEMENT OF MSP:
• MSP for different agricultural crops are
announced by the GOI before the start of the
sowing season of the crop. Following Crops are
covered:
– 1.Foodgrains;(cereal & pulses)
– 2.Oilseeds 3.Fibre Crops (Cotton & Jute)
– 4.Sugarcane 5. Tobacco.
REVAMPED PUBLIC DISTRIBUTION
SYSTEM (R-PDS):
A RPDS was launched on Jan. 1, 1992 and
made effective from JUNE 1, 1992.
AREA COVERAGE: RPDS was started in
selected Blocks of country:
(i) Drought Prone Area
(ii) Desert Area
(iii) Tribal Area, and
(iv) Hilly Areas.
 MAIN FEATURES OF RPDS:
• 1. In addition to Essential Commodities (Wheat,
Rice, Sugar,Edible Oils, Soft Coke, Controlled
Clothe and Kerosene (Seven items) included in
the general PDS, it includes additional items of
daily use like : Tea, Soap, Pulses and Iodised
Salt.
• 2. These items are delivered by the Govt. at the
door of the Fair Price Shops so as to minimise
the delay and leakage, and
• 3. A Vigilance Committee for each Village,
consisting of local persons is constituted for a
watch on the Distribution System.
– The Revamped PDS was initially operated in
1775 Blocks in Tribals, Hilly and Arid (desert)
areas having poor infrastructure (i.e. No
connectivity by Pucca Road).
– Under this system, Food-grains – Rice and
Wheat are allocataed to State/UT at prices
• Lower by Rs. 50/- per quintal than the Issue-
Prices for general PDS.

• TARGETTED PUBLIC DISTRIBUTION

SYSTEM ( TPDS):-
– The GOI has been continuously reviewing and
announcing some changes in the PDS and
termed as the TPDS.
 ESSENTIAL FEATURES OF T-
PDS:
• Features at the time of launching the
TPDS were as under :-
• (i) The State Govt. would identify the
families Below Poverty Line(BPL) who
woild be issued 10 kg. or more of
foodgrains per month per family at prices
almost HALF-the normal Central issue
prices for general PDS.
• (ii) Population above the poverty-line
(APL)- now under PDS would continue to
receive at the Normal Central Issue price.
• (iii) The supply of foodgrains for the BPL
population at 10 kg. per family per month
shall be guaranteed to State Govt./UT by
the Central Govt.
• (iv) The State Govt. will be free to add to
the quantum, coverage and the subsidy
From their own resource, and
(v) The subsidised foodgrains will also be
issued to all beneficiaries under the
Jawahar Rozgar Yojana (JRY) as per
guidelines at the rate of one kg.per
manday for which food coupons would be
issued to benefeciaries for exchange at
Fair Price Shops.
 FOODGRAINS FROM 2003 TO
BPL FAMILIES :
• (a) 35 Kg. Food-grains to BPL faamily from
1-4-2003 per famaily per month at a price
which was 45% of the Economic Cost.
• (b) 15 Million Poorest of the Poor
(Antodaya families) were being supplied :
• Wheat at Rs. 2/- per kg. and
• Rice at Rs. 3/- per kg. under Antodaya
Anna Yojna (AAY).
FOOD SECURITY PROGRAMME:
– Apart from the above (two schemes) the food
Security programmes included the following
for BPL and poorest of the poor families:-
– (i) Mid-Day Meal scheme for School
Childrens.
– (ii) Supplementary Nutrition Programme
for under 6 years of age children and
Pregnant and lactating mothers.
• (iv) Supply of foodgrains to SC/ST
Hostels and hostels run by Social Welfare
De;patment, and
• (v) Supply of foodgrains under Sampurna
Gramin Rojgaar Yojana (Total Rural
Employment Scheme).
• ====
 APEDA
• AGRICULTURAL AND PROCESSED
FOOD PRODUCTS EXPORT
DEVELOPMENT AUTHORITY (APEDA):
• 1. Established in 1985 under the Act
passed by the Parliament in Dec. 1985.
The Act was made effective from 13th Feb.
1986 by a notification issued in the
Gazette of India. (Replaced by PFEPC).
 FUNCTIONS OF- APEDA:
• 1. Development of Industries relating to the
Scheduled products for export by way of
providing financial assistance or otherwise for
undertaking surveys and feasibility studies,
participation in enquiry capital through joint
ventures and other reliefs and subsidy schemes;
• 2. Registration of persons as Exporters of the
scheduled products on payment of such fees as
may be prescribed;
• 3. Fixing of staandards and specifications
for the scheduled products for the purpose
of exports;
• 4. Carrying out Inspection of meat
products in slaughter houses, processing
plants, storage premises, conveyances or
other places where such products are kept
or handled for the purpose of ensuring the
quality of such products;
• 5. Improving of packaging of the
Scheduled products;
• 6. Improving of marketing of the
Scheduled products outside India;
• 7. Promotion of export oriented
production and development of the
Scheduled Products;
• 8. Collection of statistics from the owners
of factories or establishments engaged in
• In the production, processing, packaging,
marketing or export of the Scheduled
Products or from such other persons as
may be prerscribed on any matter relating
to the Scheduled Products and publication
of the statistics so collected or of any
portions thereof or extracts therefrom;
• 9.Training in various aspects of the
industries connected with the S-Products.
 PRODUCTS MONITORED BY
APEDA:
• APEDA is mandated with the
responsibility of Export promotion and
Development of the following Scheduled
Products:-
• 1. Fruits, Vegetables and their Products.
• 2. Meat and Meat Products.
• 3. Poultry and Poultry Products.
• 4. Dairy Products.
• 5. Confectionery, Biscuits and Bakery
Products.
• 6. Honey, Jaggery and Sugar Products.
• 7. Cocoa and its products, chocolates of all
kinds.
• 8. Alcoholic and Non-Alcoholic Beverages.
• 9. Cereal and Cereal Products.
• 10. Groundnuts, Peanuts and Walnuts.
• 11. Pickles, Papad and Chutneys.
• 12. Gaur Gum.
• 13. Floriculture and Floriculture Products.
• 14.Herbal and Medicinal Plants.
• 15. Rice (Non-Basmati).
• 16. To monitor exports of some non-scheduled
items such as Basmati Rice, Wheat, Coarse
Grains and also import of Sugar.
• COMPOSITION OF THE ‘APEDA’
AUTHORITY:
• APEDA Authority consists of the following
members :-
• A Chairman, appointed by the Central Govt.
• The Agril. Marketing Advisor to the GOI, ex-
officio;
• One member appointed by the C.G.
representing the Planning Commission.
• Three members of Parliament off whom two
are elected by the House of People and one
by the Council of States.
• 8 members appointed by the C.G.
representing respectively;the Ministries of the
C.G. dealing with :-
• -Agriculture and Rural Development
• Commerce
• Finance
• Industry
• Food
• Civil Supplies
• Civil Aviation
• Shipping and Transport;
• 5 members appointed by the Central Govt.
• By rotation in the alphabetical order to
rerpresent the States and the UT.
• 7 members appointed by the CG
representing :-
• I.C.A.R.
• National Horticultural Board.
• National Agril. Coop. Mkg. Federation.
• Central Food Technological Res. Inst.
• Indian Institute of Packaging;
• Spices Export Promotion Council and
• Cashew Export Promotion Council.
• 12 members appointed by the C.G.
representing :-
– Fruit and Vegetables Products Industries;
– Meat, Poultry & Dairy Products Industries;
• DIRECTOR : Appointed by APEDA
• SECRETARY : Appointed by C.Govt.
• OTHER OFFICERS AND STAFF:
– Appointed by the Authority.
– The Total sanctioned staff strength is 100 in
different categories of A, B, C and D.
APEDA’S PRESENCE:
APEDA have its presence in all Agro
potential states of India and has been
• Providing services to agri-export
community through its head office,
• 5 Regional Offices and 13 Virtual Offices.
• Head office at NEW DELHI.
• 5 Regional offices :
• ` (i) Mumbai (ii) Kolkata
• (ii) Bangalore (iii) Hyderabad, and
• (v) Guwahati.
• VIRTUAL OFFICES (13):
• (i) Thiruvananthapuram (Kerla)
• (ii) Bhubneshwar (Orissa)
• (iii) Srinagar (J&K)
• (iv) Chandigarh.
• (v) Imphal (Manipur)
• (vi) Agartala (Tripura)
• (vii) Kohima (Nagaland)
• (viii) Chennai(Tamil Nadu)
• (ix) Raipur (Chattisgarh)
• (x) Ahmedabad (Gujarat)
• (xi) Bhopal (M.P.)
• (xii) Lucknow (Uttar Pradesh)
• (xiii) Panaji (Goa).
• The Virtual offices have been
established in association with respective
• State Govts./agencies. Basic information
about APEDA, its functions, registration
and financial assistance schemes etc. is
being made available to
entrepreneurs/prospective exporters by
these virtual offices.
• ******
 NAFED
• NATIONAL AGRICULTURAL
MARKETING FEDERATION OF INDIA.
– The NAFED is an Apex organisation of
Marketing Cooperatives in the country which
deals in –
– 1. Procurement.
– 2. Processing
– 3. Distribution, and
– 4. Export & Import of Selected Agril.
Commodities.
• NAFED is also the Central Nodel Agency
for undertaking Price Support operations
for pulses and oilseeds and market
intervention operations for other Agril.
Commodities.
• ESTABLISHMENT : October, 1958.
• MEMBERS : (I) N.C.D.C. (ii) State Level
Marketing Federations.
• HEAD OFFICE OF “NAFED”: Delhi.
• BRANCH OFFICES: 1. Mumbai
• 2. Kolkata
• 3. Chennai
• AREA OF OPERATIONS: Whole Country
• Other branches are in all major Port
Towns and Capital cities in the country.
 OBJECTIVES OF ‘NAFED’
• The main objectives of NAFED are :-
• A) To coordinate and promote the
marketing and Trading activities of its
affiliated Cooperative Institutions.
• B) To make arrangements for the supply
of the Agril. inputs (seed and Fertilizers
etc.) required by Member institutions.
• C) To act as an Agent of the Govt. for
• The purchase, sale , storage and distribution of
Agril. products and inputs.
• ACTIVITIES OF ‘NAFED’: (FUNCTIONS):
• (1) Internal Trade of Agril. Commodities.
• (2) Foreign Trade – Export and Import of
Agricultural Commodities.
• (3) Price Support Operations.
• (4) Production & Marketing of Agril.Inputs.
• (5) Promotional activities.
• (6) Developing Cooperative Marketing of
Tribal Produce.
• (7) Setting off Scientific storage system.
• (8) Processing of Fruits, Vegetables and
other commodities.
• DETAILS OF FUNCTIONS OF ‘NAFED’:
• 1. INTERNAL TRADE OPERATIONS:
The NAFED is engaged in inter-state trade
in Agril. Commodities, particularly
Foodgrains, Pulses, Oilseeds, Cotton,
Jute, Fruits, Vegetables and eggs with a
view to assuring better prices to the
producers.
• The objectives of internal trade operations
are both the market support to farmers
and maintaining steady supply of
commodities to consumers at reasonable
prices.
– NAFED purchases Agril. Commodities
through a) the Cooperatives
– b) the public sector organisation,
– c) the State Agencies.
• 2. FOREIGN TRADE: Export & Import of
Agril. Commodities:--
• After the establishment of
NAFED, the export of Agril. commodities
developed on a large scale.
• (a) EXPORT: The following Agril.
Commodities are exported by NAFED:-
– Onions (canalised), Potatoes, Ginger, Garlic...
• ..Nigerseed, sesamum-seed, Gum, de-
oiled cake of Ground-nut, Soyabean,
Cotton-seed, fresh and processed fruits &
Vegetables.
• SPICES: Black Pepper, Cardamom,
Turmeric, Cummin-seed, coriander-seed.
• CEREALS: Rice, Barley, Bajra, Jowar,
Ragi, Jute Bags.
• COUNTRIES FOR EXPORT:
• Sri Lanka, England, Mauritius,
Australia, Belgium, Canada, Fiji, Hong-
Kong, Japan, Malaysia, the USA and
number of African, Western Asia and Gulf
Countries.
• Market Intervention by NAFED:
• Many times, the NAFED have helped
• The growers of such Crops – as Onion,
Potato, Copraa, Chillies and others in
realising reasonale prices even in those
years when market prices crashed.
• (B) IMPORTS: NAFED arranges for the
imports of Pulses, Fresh fruits, Dry-Fruits,
nutmeg (Jaiphal), Javitri (Mace), Wetdates
and also imports of inputs (fertilizers and
• Machinery) as and when asked to do so
by the Government.
• 3. PRICE SUPPORT OPERATIONS:
• NAFED is appointed as Agent of the
Govt. to undertake purchases on support
price, commodities like – Groundnut,
Soyabean, Mustard-seed, Gram, Tur,
Moong and Urad since 1976.
• Commodities like Bajra, Jowar, Barley,
Sunflower seed since 1985-86.
• GOI have designated NAFED as the
Nodel Agency for implementing the price
support policy for Oilseeds and Coarse –
grains during Seventh Five Year Plan
period (1985-90).
• (d) PRODUCTION AND MAARKETING
OF AGRIL. INPUTS:-
• NAFED helps farmers by supplying the
Agril. Machinery like –
• - Harvesting combines,
• - Tractors,
• - Spare-parts,
• - Bio-fertilizers.
• The Technical know-how to operate and
maintain the machines is also provided to
the farmers by NAFFED.
• The NAFED through its service centres
also sells – (i) Farm Tools
• (ii) Agril. Implements.
• (iii) Spareparts produced by
Krishi Yantra Udyog, Bhiwadi (Rajasthan).
• Bio-Fertilizer (produced by Indore Unit in
M.P.) since 1985 is made available to
farmers for increrasing yields of Pulses
and Oilseeds Crops.
• (e) PROMOTIONAL ACTIVITIES:-
• NAFED maintain expert staff which
conducts maarket studies, collects data
and circulates the results among the
members.
• - Intensive Development of Selected
Marketing Societies in each State as a
Pilot Society.
• -Improvement in market intelligence
services for Coop. Marketing Societies.
• - Conduct of market surveys.
• - Training of Market personnels, promotion
of market regulations and dev.of infra-
structures.
• (f) DEVELOPING COOPERATIVE MARKETING
OF TRIBAL PRODUCE:-
• NAFED have set-up a separate Cell to develop
the marketing of produce of the tribal areas
(minor forest products) having economic value.
NAFED develops markets for other commodities
like Chilgoza, Gum, etc. A separate Tribal
Cooperative Marketing Dev.federation (TRIFED)
has been set up.
• (g) SETTING OF SCIENTIFIC
STORAGE SYSTEM:
– Other Scheduled Products Industries;
– Packaging Industries.
2 Members appointed by the CG. From
amongst specialists and scientists in the
fields of agril., economics and marketing
of the Scheduled Products.
ADMINISTRATIVE SET-UP:-
1. CHAIRMAN -Appointed by the C.Govt.
 Cotd…..
• 1.
 AGRICULTURAL PROCESSING
• Important points:
• 1. Processing and Valu Addition.
• 2. Meaning of Processing
• 3. Processing Function
• 4. Technological Changes & Processing.
• 5. Food Processing.
 PROCESSING AND VALUE
ADDITION:
• Most of the Farm products need some
kind of processing before their
consumption by the ultimate consumers.
• Examples: (i) Wheat to Flour, Daliya
– (ii) Moong to Moong Dal/pulses
– (iii) Groundnut to Oil of Groundnut.
– (iv) Mustared Seed to Mustard oil.
– This processing function increases the
price spread of Agril. Commodities.
• Example : Rate of 1 kg. Wheat = Rs.12/kg.
• Rate of 1 kg. Flour = Rs.15/-/kg.
• This is called value addition and increases the
price of the commodity.
– The processing is an important marketing function
in the present day of marketing of Agril.
Commodities. At present, consumers are
dependent upon processing for most of their
requirements.S
• Many Technological changes have taken place
in the recent past, such as the introcution of ----
• (a) Refrigeration
• (b) Modern methods of Milling and Baking
foodgrains.
• (c) New processing methods for Dairy
products.
• (d) Modern methods of packing & presentation.
• Value addition in Food
• in India it is 7%
• In Chine it is 23%
• In Phillipines it is 45%, and
• In U.K. it is 188%.
• MEANING OF PROCESSING: The
processing activity involves a change in
the form of the commodity. This function
includes all of those essentially ….
• Manufacturing activities which change the
basic form of the product.
– Processing converts the basic raw material
and brings the products nearer to human
consumption. As soos as the change in
product takes place it gets value addition in
the product (in other form and shape).
• The processing of Agril. Commodities can
take any of the following forms :-
• 1.FOOD PROCESSING:-
• (I) Milling of Grains : Wheat Flour, Rice
milling and pulse milling.
• (ii) Manufacture of edible oils and oil-
cakes from oilseeds.
• (iii) Manufacture of Hydrogenated and
• Vanaspati Oils.
• (iv) Manufacture of Sugar, Gur, Khandsari
from Sugarcane.
• (v) Manufacture of Dairy Products – like
Ghee, Butter, Paneer (Khoya), Milk power,
Cheese and Cream from liquid Milk.
• (vi) Canning and preservation of fruits &
Vegetables.
(vii)Manufacture of juices and other products from
fruits and vegetables.
(viii) Slaughtering of animals and preparation of
meat.
(ix) Canning and ;preservation of fish.
(x) Manufacture of Bakery and Confectionary
products.
(xi) Tea processing.
(xii) Coffee curing and roasting.
(xiii) Cashewnut processing.
• (xiv) Manufacture of starch.
• (xv) Manufacture of prepared animal feed.
• 2. AGRO-RELATED PROCESSING
(Other than food processing):-
• i) Processing of Tobacco leaves and
manufacture of Tobacco products;
• ii) Brewing and manufacture of
beverages;
• iii) Manufacture of yarn, cloth and made
ups (cotton and Jute).
• iv) Leather processing and manufacture
of leather and fur products.
• v) Manufacture of wood products,
furniture and fixtures.
• vi) Manufacture of paper and paper
products.
There are several methods of processing
Agricultural Commodities. But they
continually undergo a change because of ---
(i) A Change in Technology.
(ii) A Change in Capital-labour price ratio.
(iii) A change in managerial skill.
(iv) A change in the demand for product quality in the
market; and
(v) A change in the volume to be processed.
ADVANTAGES OF PROCESSING:
• 1. Very few products are consumed directly
in the form in which they are obtained by the
producer-farmer. Therefore, Processing of
Agril. products is essential. (Milk, Eggs,
Fruits & Vegetables).
• 2. Processing is important, both for the
producer-sellers and for consumers.
• 3. By processing, it increases the total
revenue of the producer.
• 4. It is possible for the consumer to have
articles in the form liked by him.
– The Specific ADVANTAGES of the processing
function are :-
– 1. It changes raw food and other farm
products into edible, usable and palatable
forms. The value added by processing to the
total value produced at the farm level varies
• From product to product. It is nearly 7% for
Rice and wheat, about 79% for Cotton and 86%
for Tea. It is generally higher for Commercial
Crops than for Food Crops.
• Examples of the products in this group are :- (a)
The processing of Sugarcane to make Sugar,
gur, Khandsari;
– (b) Oilseeds processing to make Oil;
– (c) Grinding of foodgrains to make flour;
– (d) Processing of Paddy into Rice;
• (e) Conversion of Raw Mango into pickles.
-2. The processing function makes it possible to
store perishable and semi-perishable agril.
commodities which otherwise would be wasted
and facilitates the use of the surplus produce of
one season in another season or year.
• Examples are : Drying, Canning and pickling of
fruits and vegetables, Frozen foods, conversion
of Milk into Butter, Ghee and Cheese and curing
of meat with salting/smoking.
• -3. The processing activity generates
employment. The processing industry like
(a) Baking industry; (b) the canning
industry; (iii) the brewing and distilling
industry; (iv) the confectionary industry; (v)
the Sugar industry, (vi) Oil mills and Rice
mills provide employment to a large
section of society.
• -4. Processing satisfies the needs of
customers at a lower cost. Processing
saves the time of the consumers and
relieves them of the difficulties and
botheration experienced in processing.
• -5. Processing serves as an adjuct to
other marketing functions, such as
Transportation, Storage and
Merchandising.
• -6. Processing widens the market.
Processed products can be taken to
distant and overseas markets at a lower
cost.
• VALUE ADDITION AND PROCESSING
OF AAGRICULTURAL COMMODITIES: