A Summer Training Project Study Report On
“Food security management in
Food Corporation of India”
Submitted for partial fulfillment of the requirement for the award of Degree of
Master of Business Administration Of
R.A. PODAR INSTITUTE OF MANAGEMENT,UNIVERSITY OF RAJASTHAN, JAIPUR
Session 2010-11
Supervised By Submitted By
Dr. K.L. BATRA Prithviraj Singh Shekhawat Roll No. : E-305 Enrollment No. : 10/4918
MBA (ECom) Sem IV
2011
FACULTY OF MANAGEMENT STUDIESUNIVERSITY OF RAJASTHAN
J.L.N Marg, Jaipur-302004
DECLARATION
I, Prithviraj Singh Shekhawat, a student of MBA IV Semester at R.A.Podar Institute of Management, Jaipur (University of Rajasthan) hereby solemnly declare that the Project Report titled as “Study of working of capital management” at FOOD CORPORATION
OF INDIA is the outcome of my own original work and the same is not submitted to any university or institute for the award of any Diploma or Degree.
Date : 23 March 2012 Prithviraj Singh Shekhawat Place: Jaipur
2
CERTIFICATE
23 March 2012
JAIPUR
TO WHOMSOEVER IT MAY CONCERN
This is to certify that PRITHVIRAJ SINGH SHEKHAWAT M.B.A E-Com III Sem student of R.A. Podar Institute Of Management, University Of Rajasthan, Jaipur has done project work in the Future Group regarding “STUDY OF WORKING OF CAPITAL MANAGEMENT” under the guidance of Dr. K.L. Batra, towards the fulfillment of the award of “Masters Of Business Administration” during the period of July 2011 to August 2011.
Dr. K.L. Batra
Asstt. Professor
R.A. Podar Institute of Management
3
PREFACE
Learning is a continuous process and it is my great pleasure to get such an opportunity to learn in way of project work. It gave me chance to get familiar with working ways of real corporate world and to expand horizon of our knowledge. The project assigned to us at Future group is an exercise in understanding and implementing various concepts that we learnt during the Master of Business Administration Programme. This project helped us to gain knowledge about T24 Sales & Operations.Future Group is live example of very well organized retail industry.I welcome suggestions from every reader of this report.
4
ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the only factors to achieve the desired goal. Those must be supplemented by the guidance assistance and cooperation of experts to make it success. I am extremely grateful to my institute for providing me the opportunity to undertake this research project in the prestigious field.
First of all, I would like to thank my mentor Dr. K. L. Batra, Asstt. Professor, R.A. Podar Institute of Management, UOR, Jaipur; who provided me with constant guidance, inspiration, perspective and stimulating discussion, throughout the writing of this report.
I express my deep and sincere gratitude to all the staff members of the Food Corporation Of India for providing me firsthand knowledge and giving me a chance to have the experience of actual retail operations.
Last but not the least I am indebted to Prof. Harsh Dwivedi, Director R.A. Podar Institute of Management, Jaipur; without whose sincere gratitude this project would not have been possible.
I am also thankful to all of my friends and batch mates for their help in completing this project work. Finally, I am thankful to my entire family members for their great support and encouragement.
PRITHVIRAJ SINGH SHEKHAWAT
5
TABLE OF CONTENTS
Acknowledgments
Preface
Abstract1. Introduction
1.1 Overview- FCI................................... 12-241.2 Brief History....................................... 15-181.3 Objectives........................................ 18-201.4 Organization Structure .................. 21-24
2.Food security management
2.1 Mode/type of storage......................... 25-28 2.2 Status of storage capacity................................... 28-29 2.3 Steps taken .................................. 29-30 2.4 Storage and tranit losses 2.5 Problems 2.6 Recommendations
3. Research study-Key challenges facing FCI
3.1 Methodology.................................................. 31-32 3.2 Questionnaire .......... 32-33 3.3 Data collection and analysis............. 33-36 3.4 Finding....................................... 36-37
6
3.5 Recommendations............................... 37-40
4. CSR in FCI 4.1 Initiatives taken by FCI.............. 41-424.2 Research on CSR perception..................... 42-454.3 Questionnaire 45-47 4.4 Findings...... 47-504.5Recommendations ................................... 50-56
References
Glossary
7
INTRUDUTION
Objectives of internship
A. Organization study of FCI activities-with specific focus on storage of food grains i.e. FOOD SECURITY
B. Experiencing Primary Qualitative research-a. Key management challenges of FCI.b. Awareness of corporate social responsibility in FCI
Methodology
A. Organization study Study the organization structure Identify key departments/functions Meet head of departments to get an overview of functions performed
B.Qualitative research-Opinionated study Prepare questionnaire Collect data from management Compile and analysis
8
ABOUT FCI
OVERVIEW
Food Corporation of India (Hindi: भा�रती�य खा�ग निगम) was setup on 14th January
1965 under Food Corporation Act 1964 with authorized capital of almost $600 million to implement the national policy for price support operations, procurement, storage,
preservation, inter-state movement and distribution operations.
It operates through 5 zonal offices and 26 regional offices. Each year, the Food Corporation purchases roughly 15-20 per cent of India's wheat output and 12-15 per cent of its rice output. The losses suffered by FCI are reimbursed by the Union government, to avoid capital erosion, and thus declared as a subsidy in the annual budget. In 2007, such food subsidies were met by government bonds worth almost $8 billion.
9
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 Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security
In its 45 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. FCI's Objectives are:
To provide farmers remunerative prices To make food grains available at reasonable prices, particularly to vulnerable section of the society To maintain buffer stocks as measure of Food Security To intervene in market for price stabilization
10
Strengths of FCI
Provider of price and market assurance to the farmer
Ensuring steady food grain supplies to 5 lakhs fair price shops for PDS to cover 141 million APL/67 million card holders.
Ensuring food for all welfare schemes.
Large pool of talent managing world’s largest food grain operation on behalf of Govt. Of India.
Countrywide network of offices and strategically located food storage depots.
Operates in mandis/purchase centres located within 10 kms. Proximity of farmers. Undertakes purchases of 30 to 40 million tonnes annually making it the largest buyer in the world.
Effective market intervention to stabilize prices.
11
State of the art experience on food grain preservation/warehousing/transportation management.
Maintains the health of millions of tonnes of food grain in storage.Quality acknowledge by International buyers.
Excellent storage management.
Timely movement of food garins from procuring states to consuming states.Mode of distribution even by head loads and mule loads etc. To ensure food security.
Countarywide network of offices and strategically located Food storage Depots.
12
FUNCTIONS OF FCI
There are 4 main functions of FCI :
Procurement Storage
Movement
Distribution
PROCUREMENT
-Food grains are grouped as cereals,millet and pulses. Cereals comprise of Wheat,Rice,Maize and Barley.
Millets include Jowar,Bajra , Ragi etc.
13
Procurement
Mandi Depot
Paddy Wheat Course Grain Customed Milled Rice
Levy Rice Wheaat
Pulses include Chana,Tur,Urd etc
All cereals other than rice are wheat and rice are grouped as Course Grains.
Course grains are procured in the State where they are produced.
STORAGE
FCI stores millions of tones of tones of food garins procured by it from Food surplus states. In order to provide easy physical access in deficit, remote and inaccessible areas, FCI has a network of storage depots strategically located all over India . These depots include silos , godowns and an indigenous developed by FCI called Cover and Plinth(CAP).FCI has 30.52 million tones( owned and hired) storage capacity in over 1820.
As the subject of my study of Internship is ‘Storage’ a detailed review is given here under.
MOVEMENT
Ensuring accessibility of food all over the country is a huge challenge being faced by the country.FCI proves to be pioneer in this regard and is regularly moving food grain from surplus States to deficit States. The foodgrain surplus is mainly confined to Northern States consequently transportation involves long distance throughout the country. Stocks procured in the markets and purchase centres is first collected in the nearest depot and from there dispatched to the recipient Staes within a limited
14
time. FCI moves about 300 lakh tones of food grains over an average distance of 1500 kms.
FOOD GRAIN MOVEMENT DURING LAST 7 YEARS
YEAR FOOD GRAIN SUGAR TOTAL
2004-2005 338.7 1.4 340.1
2005-2006 315.5 1.8 317.3
2006-2007 288.7 2.4 291.1
2007-2008 277.92 1.78 279.70
2008-2009 256.65 1.91 258.56
2009-2010 312.26 3.52 315.78
2010-2011 341.34 3.62 344.96
Figure in LMT
Regularly rice and wheat procured in the Northern States is moved to far flung areas like Imphal , Manipur or Kanyakumari in Tamil Nadu and to the higher reaches of the Himalayas in the North.
An average of 12,00,000 bags(50 Kg) of food grains are transported every day from the producing States to the consuming areas, by rail, road, inland waterways etc.
15
DISTRIBUTION
Government uses various schemes to make sure that the food reaches vulnerable section of the society at affordable price despite inclement weather and other odd situations. There are different schemes under which FCI distributes food grains to different target segments.
Under Public Distribution System (PDS) Government releases a prescribed quantity of food grains to each state based on the parameters such as population and food grains situation in the states.
TPDS:
Targeted Public Distribution System: Under this scheme special cards are issued to population under Below Poverty Line(BPL) and food grains are supplied at a subsidized price. The states are also free to increase the coverage. The TDPS also covers Above Poverty Line (APL) segment who are not given a subsidized price. AAY (Antyodaya Anna Yojana) scheme is for the most marginalized segment of society.
OWS( Other Welfare Schemes) such as:
Mid-Day Meal Scheme-every school going child is entitled to 3 kgs of wheat or rice per month.
Wheat Based Nutrition Program
Food for Hostel and Welfare Institutes
Annapurna Scheme
Sampoorna Gramin Rojgar Yojana
16
National Food For Work Program
FCI also provides foodgrains to defense services and paramilitary forces such as CRPF,BSF, and ITBP.
MANAGEMENT
Board of Directors
The Board of Directors of the Corporation consists of the following namely:-
Chairman Three Directors to represent respectively the Ministries of the Central
Government dealing with: Food, Finance and Cooperation
Managing Director CWC-ex-Officio
Managing Director
Six other Directors
Organizational Structure
The Food Corporation of India coordinates its functions through its Headquarter at New Delhi and 5 Zonal Offices, 24 Regional Offices, one Port Office at Kndla and 168 District Offices and 1613 Depots under its control. Each Zone is headed by an Executive Director (Zone), Region by a General Manager(Region) and District Office by an Area Manager respectively.
17
The structural formation of FCI is depicted in the organogram given below:
18
HQRS
ZO(North)Noida
RO(Delhi) 2 distt.
RO(Punjab)13 distt.
RO(Hrayana)5 distt.
RO(J&K) 2 distt
RO(H.P.) 2 distt
RO(Raj) 8 distt
RO(U.P.) 19 distt
RO(Uttarakhand) 3 distt
ZO(East) Kolkata
RO(WB) 20 distt
RO(Bihar) 12 distt
RO(Orissa) 7 distt
RO(Jharkhand) 2 distt
ZO(West) Mumbai
RO(Gujrat)3 distt+1PO-KANDLA
RO(M.P.) 7 distt RO(Chhatisgarh) 3 distt
ZO(South) Chennai
RO(T.N.) 6 distt RO(Karnataka) 5 distt
RO(Kerala) 9 distt
RO(A.P.) 16 distt
ZO(NE) GuwahatiRO(Assam) 9 distt RO(NEF) 3 distt RO(N&M) 2 distT ROaRUNACHAL) 4 distt
RO(Maharashtra) 6 distt
KEY FINANCIAL & OPERTATIONAL FIGURES 2008-2009(Latest available annual report)
Source of Finance Amt(crores)
Equity Capital 2,525
Cash Credit Limit 34,495
Long Term Bonds 4,044
TOTAL 40,023
Food Grains Quantity(LMT) Amount(Crores)
Total Grain Sold 303 17,289
Subsidy Cost 34,787
Closing Stock 2008-09 27,525
19
Opening Stock 2008-09 15,135
Addition-during the year
12,390
(2008-09 latest available audited annual report)
FOOD SECURITY MANAGEMENT
FCI has a network of storage depots strategically located all over India. These depots include silos,gowdown and an indigenous method developed by FCI, called (CAP).
Stocks are stored in scientifically constructed godowns. However , in case of storage of space and at times of emergency, stocks of wheat and paddy are stored in open also in a scientific manner and such storage is known as CAP(Cover and Plinth). CAP storage is a term given to storage of food grain in the open with adequate precautions such as rat and damp proof plinths, use of Dunnage and covering of stacks with specially fabricated polythene covers etc.
FCI Has 30.52 million tones( owned &hired) of storage capacity in over 1820 godowns all over India. Besides its own storage capacity , FCI is also utilizing hired capacities from CWC,SWCs, State Government and private parties.
Thus, there are 3 types of Gowdowns:
1. Road Fed Godowns: loading and unloading through trucks2. Rail Fed Godowns: Railway Good shed3. Railway Siding Godowns: where railway enters the godown from the centre
loading the goods
There are 3 types storage facilities in FCI:
1. CAP system2. Open Storage( conventional godowns)3. Silos( Bulk Storage)
20
Standalone Silos Modular Silos Integrated Silos
At present, the storage space available in the country is not sufficient to cater to the procured stocks. As a result, substantial quantity of foodgrains is stored in covered and plinth(CAP). This has necessitated creation of additional covered storage capacity in the country. Due to variations in the procured quantity of foodgrains, it is likely that some storage capacity so created would remain idle in years of low procurement through efforts would be made to hire out such idle capacities.
21
STORAGE CAPACITY
The total covered storage capacity with FCI is 284.50 lakh MT(as on 31.3.2011). The covered storage capacity with FCI on 31.3.2010 was 258.59 lakh MT. Thus,25.91 lakh MT of covered capacity has been hired since 1.4.2010. The following table shows the capacity available with FCI and the states agencies which is used for storage
Covered CAP Total
FCI(AS ON 31.3.2011)
284.50 31.60 316.10
State Agencies (as on 31.3.2010)
151.19 144.31 295.50
Of food grains:
Storage Capacity of FCI since 2007
In the last few years the utilization of FCI godowns has increased gradually, and at present we are in a situation where augmentation of storage capacity has become critical.
As on Covered CAP Total Utilization
01.07.2007 222.34 25.20 247.54 62%
01.07.2008 227.12 23.83 250.95 74%
22
01.07.2009 246.82 28.77 275.59 88%
01.07.2010 273.99 32.45 306.44 91%
01.07.2011 292.88 32.75 325.63 84%
VARIOUS STEPS TO AUGMENT STORAGE CAPACITY
Construction of godowns under guarantee scheme of FCI
PEG Scheme launch (Public Entrepreneur Guarantee Scheme)-
1. In 2004-05 the Government of India had announced a 5 year guarantee scheme for creation of storage capacity through private entrepreneurs. However , the response to this scheme was vry poor as the maximum rate allowed in the scheme(Rs 3.80 per qtl.) was not found sustainable by private entrepreneurs.
2. PEG revision-
Due to poor response in Pilot states (Punjab,Hrayana, Bihar and Jharkhand)Government revised the guarantee period to 7 years , and the rate to Rs.4.78 per qtl. Per month in January 2010.
3. Creation of storage capacity by CWC/SWC on their own land:
The government has decided that Central Warehousing Corporation (CWC)/State Warehousing Corporation(SWC) can construct godowns on their own land for which 6 years guarantee may be given. The rates allowed to these agencies are fixed by Ministry of Finance.
4. Further enhancement of guarantee period
The Department of Food and Public Distribution formulated a scheme for construction of storage godowns through private entrepreneurs. For the consuming areas , storage capacity is to be created to meet the four months
23
requirement of PDS and other schemes. For the procurement areas , the storage capacity will be built to ensure adequate storage in case of good harvesting season . The guarantee period has been further increased to 10 years and 9 years for CWC/SWC. (August 2010). A capacity of 152.97 lakh tones is to be created under the scheme.
NATIONAL POLICY ON BULK HANDLING STORAGE AND TRANSPORATATION OF FOOD GRAINS
With a view to minimize storage and transit losses and to introduce modern technology , the Government had approved the National Policy on Bulk Handling , Storage and Transportation of food grains for integrated bulk handling and transportation facilities are to be created at identified locations in procuring and consuming areas through private sector participating on Build-Own-Operate(BOO).
M/s Adani Agri Logistics Ltd. , has been formed as Special Purpose Company (SPC) for the project as per requirement of RFP (Request For Proposal) document and the service agreement of the project executed between FCI & SPC on 28.6.2005 . The project was to be complete within 36 months as per agreement dated 27.06.2008.
REASONS FOR FAILURE OF PEG SCHEME 2005
1. Response to this scheme was very poor as the maximum rate allowed by FCI to CWC was Rs.3.80 per qtl. per month for the year 2004-05.
2. Due to poor response to tenders floated in Punjab , Haryana , Bihar and Jharkhand, the Government revised the scheme and allowed a guarantee of 7 years.
24
3. Due to possibility of quoted rates being higher than this , FCI has been authorized to accept rates higher than Rs.4.78 per qtl. Per month.
4. The Government has decided that CWC/SWC can construct godowns on their own land for which 6 years guarantee may be given.
5. The Government has also notified a similar 7 years guarantee scheme for Decentralized Procuring State(DCP).
25
Policies adopted by the Government of India to ensure adequate supply of food grains
1. 10 yrs guarantee scheme making a storage capacity of 152.97 LMT (CMC+SWC).
2. In short term private parties godowns are taken under lease on contractual basis.
3. Private Warehousing Scheme.4. Tender are invited for private participation for building of short term
warehouses.5. Storage facilities being mechanized and modernized to augment storage
capacity.6. Increase in the construction of Silos.7. Increased in the Bill Owned Operate (BOO) concept of contracting of
warehouses.8. Parliamentary efforts through Food Security Bill.
Buffer Stock Norms
The buffer stocks are required to:
Feed TPDS and other Welfare Schemes. Ensure food security during the periods when production is short of normal
demand during bad agricultural years and; Stabilized prices during period of production shortfall through open market
sales.
26
The total annual stock of food grain in the Central Pool is distributed over different quarters of the year depending upon off take and procurement . The seasonality of production and procurement is thus a decisive factor in determining the minimum norm of food grains stocks required in a particular quarter of the year. For working out buffer stocking norms and making recommendations for policy decisions , the Government has been setting up , from time to time, Technical Groups under the Chairmanship of Union Food Secretary.
STORAGE LOSSES
The storage loss is revealed as and when the stock of food grain in a stock is completely issued or claimed and presents the difference between the stock balance as per books and physical stock balance.
REASON OF STORAGE LOSS
Loss of moisture Insect infestation and sliding down of stocks Fungus infestation and deterioration of stocks Bird trouble Rodents Bleedings/Spillage of grain from gunny bags for inadequate stitches/weak
texture Prolonged period of storage
TRANSIT LOSSES
The difference between the dispatch and receipt weight represent the transit loss at the time of movement of stocks from procuring centre to the consuming centre- either by rail or road.
REASONS FOR TRANSIT LOSSES Pilerage and theft en route Drainage of moisture during long transit Use of hooks by labour Weak texture of gunnies and bursting of bags Spillage through wagon holes and flap doors/cleaves at loading and unloading
points Spillage and theft at transshipment points
27
Different modes of weightment
LOSS STATISTICS FOR LAST 10 YEARS
YEAR Storage % of loss Transit % of loss
2000-01 0.42 0.84
2001-02 0.25 0.61
2002-03 0.38 0.57
2003-04 0.28 0.50
2004-05 0.19 0.48
2005-06 0.16 0.43
2006-07 0.20 0.43
2007-08 0.21 0.39
2008-09 0.10 0.35
2009-10 0.27 0.48
28
2010-11 0.29 0.50
2011-12 0.28 0.57
This shows decrease in losses in relative terms. The decrease in losses prompted FCI to take regressive and cautious steps in order to minimize them . In other words, FCI has done a good job by keeping the percentage low.
PROBLEMS
1. Damage to food grains caused due to prolonged storage. The more the storage period the more quality of food garins will be hampered.
2. Due to regional disturbances, FCI is facing problems in North East Zones which affects the movement of food garins from one place to another . Further , it is amplified that due to limited storage capacity which gets acute during the monsoons due to breaches in roads , landslides , cloud brust and washing away of bridges etc , the stock position is not able to meet the requirements of TPDS (APL, BPL,AAY).
3. FCI should explore the possibility of utilizing the storage capacity for keeping wheat and rice stock instead of storage dead stocks articles like wooden crates , gunnies , polythene covers , SPL rolls , and chemicals etc. This way loss occurred due to open storage can be minimized.
4. Steps taken by FCI for augmentation of storage capacity are only for a short term .
5. Loss to FCI on account of theft , pilferage etc must be reduced.
29
RECCOMENDATIONS
Planning of a long term sustainable solution for storage capacity. Creation of various types of storage structures. Mechanization and modernization of new and existing godowns. Modernization of existing and nonfunctioning of concrete silos. Need of funds for bringing state of art technology. Making integrated storage spaces which involves space for both bulk storage
and open storage. Increase the impact and importance of PEG model and other various PPP
schemes for bringing private participation. Storage structures differ by region depending on climatic conditions. Thus a one
time planning required for creation of new storage systems according to their respective areas.
Emphasis should be laid down on the existing research wing i.e. Indian Grain Storage Institute at Hapur, (UP) for the creation of more sustainable scientific storage systems.
Need of funds for creation of better infrastructure.
Other Welfare Schemes are meant for the weaker section of the society and in the event of any loss on this account that should not be branded as loss because FCI is followed the policies of the Government of India which loss is compensated by the Government in the shape of subsidy.
30
RESEARCH STUDY-KEY CHALLENGES FACING FCI
Methodology
Based on the discussions with various management staff and study of various reports a list was prepared highlighting various areas that needs to be addresses to improve the efficiency of FCI.
A questionnaire was prepared and 28 management staff was provided the list to identify 5 most critical areas to be addresses and rank them.
The opinions of management staff were consolidated and the critical challenges wre categorized in Three groups.
Top 5 challenges facing FCI Next 5 challenges facing FCI Other areas for improvement
QUESTIONNAIRE: KEY CHALLENGES FOR ORGANIZATIONNameDepartmentDesignation/Grade
Please identify 5 most critical challenges facing FCI, in your opinion.An indicative list is given below-you may choose from that or write any other critical challenge not mentioned in the indicative list.
CHALLENGES REMARKS
A
31
B
C
D
E
Indicative list
1 Expansion of network
2 Improveing procurement efficiency
3 Minimising loss/write off of grain inventory
4 Maintaining high grain quality
5 Maintaining higher shelf life of grains
6 Augmentation of storage capacity
7 MIS –quality and timeliness
8 Level of technology adoption
9 Image building
10 Induction of modern technology
11 Improving delivery efficiency at depots
12 Introduce state of art financial management
13 Development of Norms for SL/TL
14 Dispatch of goods as per movement plan
15 Manpower shortage
16 Modern Management Techniques
32
17 Labour issues
18 Exploring new markets for procurement
19 Simplification of procedured
FINDINGS
30 management staff participate in the exercise . 19 key challenges were identified and each respondent picked up top 5 challenges as per their perception.
The top 5 challenges in ranking of importance.
Augmentation of storage capacity Image building Minimizing loss/write off of grain inventory Maintain high grain quality Adhering to movement of grains as per movement plan
Next 5 challenges identified
Expansion of network Level of technology adoption MIS quality and timeliness Improving procuring efficiency Maintaining higher shelf life of grains
Other challenges to be addressed
Development of norms for SL/TL Improvement delivery efficiency of depots Manpower shortage Modern management techniques Labor issues
33
Exploring new markets for procurement Simplification of procedures
RECOMMENDATION
Top management should review the opinions about key challenges Create special task force teams and try to address them on priority basisCorporate Social Responsibility (CSR) In FCI
CSR is a concept whereby organizations serve the interests of society by taking responsibility for the impact of their activities on customers , employees , shareholders , communities and the environment in all aspects of their operations . Corporate Social Responsibility is a Company’s commitment to operate in an economically , socially and environmentally sustainable manner , while recognizing the interest of its stakeholder . CSR extends beyond philanthropic activities and reaches out to the integration of social and business goals . These activities need to be seen as those which would , in the long term , help secure a sustainable competitive advantage.
By virtue of nature of its operations, major chunk of the activities of the Food Corporation of India lie under the ambit of social responsibility, such as, providing MSP to farmers , ensuring availability of food grains to vulnerable sections of the society etc.
However , FCI is commited to CSR activities beyond its domain of operations . Food Corporation of India has organized training programmes on storage techniques and quality check of food gains for State Agencies staff at depot level . Training programmes were also organized for farmers for capacity building in storage and quality check . These training were conducted by Institute of Food Security , Gurgaon , Haryana in consultation with the Director , IGMRI , Hapur. A total of 383 State officials and 700 farmers have been trained in these programmes . In addition to that , Food Corporation of India also provided scholarships to the needy sportsperson . Under this activity , a total of 112 scholarships were granted.
CSR in FCI comprises three main components :
Training to farmers Sports scholarships Training to state officials
34
Training is conducted by a specialized institute named IGMRI ( Institute of Grain Management and Research Institute ). Where training is conducted 16 lakhs for the State Official and 17 lakhs for farmers.
Achievements of CSR initiatives are during 2010-11
700 farmers were trained on Grain Storage techniques and quality control 480 state officials were trained 65 centres of FCI were provided with rain water harvesting 16 establishments of FCI had solar panels installed
FCI is not a profit making company by nature of its opertations . However , FCI has fixed target under CSR as follows:
I. Training of State agencies staff on storage / QC at Depots level – Target Rs. 16 Lakhs budgeted.
II. Capacity building training to farmers on storage , QC etc- Rs. 17 lakhs budgeted III. Grant of scholarships to Sportsperson – Rs 40 Lakh budgeted
Sustainable Development (SD)
Sustainable development (SD) is a pattern of resource use , that aims to meet human needs while preserving the environment so that these needs can be met not only in the present , but also generation to come.
In its endeavour for sustainable development , Food Corporation of India FCI has made a modest beginning by creating ‘Rain Water Harvesting’ mechanisms at 65 establishments for which an amount of Rs. 188.93 lakhs has been spent during 2010-11.
Further , to harness the potential of renewable non-convention energy, FCI has installed solar panels at 6 centres for which an amount of Rs. 114.41 lakh has been spent.
35
RESEARCH ON CSR AWARENESS
METHODLOGY:
A questionnaire was circulated to 30 to understand the perception of CSR. The questionnaire was designed to get an answer on the importance of CSR , and, the awareness about initiatives of FCI.
QUESTIONNAIRES-PART B(PLEASE ANSWER AS PER YOUR OPINION)
1 I understand what Corporate Social Responsibility means (briefly explain, if your answer is “yes”)
2 Do you understand what CSR activities involve?
3 Is there any need to carry out such activities?
4 I feel my organization is doing adequate CSR activities. (Briefly explain, if you know the CSR activities performed by your organization)
36
5 Do you feel FCI is playing an important roles ? If so, briefly explain , why you feel so
FINDINGS
Majority of respondents felt that the existence of FCI itself is CSR and hence there was no need for any separate CSR acitivity.
Awareness about CSR initiatives of FCI (farmer training , sports scholarship etc) is low . Very few respondents had immediate recall of the initiatives in their response.
Bulk of respondents believed what FCI is doing as a core activity is CSR.
RECCOMENDATIONS
Management should take steps to increase the awareness of CSR activities.
37
BIBLOGRAPHY
http://fciweb.nic.in/ Notes and various reports provided by FCI staff Various written and reading material provided by managers. Various Monthly ,Quarterly, Annual Reports prepared by FCI Interviews and various discussions with various department heads.
38
