The Food Corporations Act, 1964
The Food Corporations Act, 1964
Background:
India faced serious challenges regarding food security, procurement, storage, and distribution of food grains post-independence. To address these challenges and ensure the availability of food grains at reasonable prices, the government established the Food Corporation of India (FCI) through the Food Corporations Act, 1964.
Objective:
The primary objective of the Act is to provide for the establishment of the Food Corporation of India and to regulate its functions for effective procurement, storage, movement, and distribution of food grains to stabilize prices and ensure food security in India.
Key Provisions of the Act:
Establishment of the Food Corporation of India (FCI):
The Act establishes the Food Corporation of India as a corporate body.
FCI is tasked with managing the procurement, storage, preservation, movement, and distribution of food grains.
Functions of FCI:
Purchase of food grains for distribution under various schemes.
Maintaining buffer stocks to stabilize the food supply.
Regulating food grains to avoid scarcity and price fluctuations.
Ensuring fair prices to farmers and availability of food grains to consumers.
Authority and Powers:
The Act grants FCI authority to enter into contracts, acquire property, and manage warehouses and transport facilities.
It can also appoint agents and officers to carry out its functions.
Control and Supervision:
The Central Government exercises control over FCI and can issue directions.
Annual reports and accounts are submitted to the government.
Financial Provisions:
The Act empowers FCI to manage its funds, borrow money, and operate bank accounts.
It also provides for audit and accountability measures.
Importance of the Act:
Food Security: It plays a critical role in ensuring national food security by managing food grain stocks.
Price Stabilization: Helps in stabilizing food grain prices and protects farmers and consumers.
Buffer Stocks: Maintains buffer stocks to deal with emergencies like droughts or shortages.
Distribution: Facilitates fair distribution of food grains through the Public Distribution System (PDS).
Summary Table: The Food Corporations Act, 1964
| Aspect | Details |
|---|---|
| Enactment Year | 1964 |
| Purpose | Establish Food Corporation of India (FCI) to manage procurement, storage, and distribution of food grains |
| Main Objective | Ensure food security, stabilize prices, and maintain buffer stocks |
| Key Provisions | - Establishment of FCI as a corporate body- Powers to procure, store, and distribute food grains- Government control and supervision- Financial management and accountability |
| Functions of FCI | Procurement, storage, movement, distribution, and price regulation of food grains |
| Impact | Major contributor to India's food security and effective public distribution system |
| Significance | Helps protect farmers' interests and consumers by ensuring fair prices and availability |
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