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Finance and Accounts

BUDGET AND COST

Subsidy

 Food subsidy has three elements. Consumer subsidy i.e. the difference between Economic cost and Central Issue Price (CIP) under different schemes of GoI multiplied by quantity of food grains issued under different schemes. Second part is Buffer Carrying Cost i.e. a part of the operation cost apportioned to buffer stock based on excess stock held over and above operation stock (four months sale). Third part includes subsidy on coarse grains, regularization of operation losses of Food Corporation of India and other non-plan allocation to State Govts. Subsidy incurred by FCI and subsidy received from GoI with arrear subsidy for six years are as following:

Subsidy Position of FCI

 (Rs in Crore)

Year

Opening
Balance
(1st April)

Subsidy claimed For the year

Subsidy received during the year

Closing
Balance
(31st March)

2018-19

1,35,822

1,20,447

70,098

1,86,171

2019-20

1,86,171

1,32,608

75,000

2,43,779

2020-21

2,43,779

2,16,833*

4,62,789

-2,177

2021-22

-2,177

 

2,07,359*

2,08,924@

-3,742

2022-23 (RE)

-3,742

 

1,86,195&

 

2,00,219.20

-       

2023-24 (BE)

-       

1,38,137&

10,000.00^

-       


*
It includes subsidy to PMGKAY Scheme for the year 20-21 & 21- 22 amounting to Rs 84,317 Cr & 96,645 Cr, respectively

@ Total Subsidy Rs. 208929 Cr received in FY 21-22 which includes an Amount of Rs. 46458835.00 for Arrears for differential cost of stock during period of 25.03.2000 to 30.03.2000 of Odisha by theOrder of High court of Odisha

& 95% subsidy

^As on30.04.2023

 

 Economic cost

Economic Cost is the total cost to FCI. It consists of Acquisition Cost and Distribution Cost. Acquisition cost consists of Minimum Support Price (MSP) plus procurement incidental cost. Procurement incidentals are expenses incurred during procurement till the foodgrains reach the first point of godown. The elements are state taxes, commission to arathias or societies, bagging materials, mandi labour, transportation from mandi to depot etc. Methodology followed for Calculation of Economic Cost are based on the GoI circular to apportion the operational cost of FCI into Buffer Carrying cost and Distribution cost. Distribution cost becomes the part of the Economic cost whereas the Buffer carrying cost becomes the part of Buffer subsidy.

Operational Cost: Operational Cost of FCI is categorized under the following elements:-

1. Transportation Cost/Freight                 2. Handling Charges
3. Storage Losses                                   4. Interest cost
5. Operational Losses                              6. Administration Charges

 

All the above elements of Operational Cost of FCI are further apportioned between Buffer Cost and Distribution Cost based on the principles provided in the Ministry Circular No.F.3 (3) FF.I/77 dated on 31st Jan, 1979.

ELEMENT-WISE BREAK-UP OF ECONOMIC COST OF QTY. SOLD 2021-22

 

 

 

 

 

 Rate Rs./qtl. 

 

 

 

 

 

 Amount Rs.crore

S.No.

COMMODITY

 WHEAT

 RICE

 

SALES QUANTITY (Lakh Tonnes)

                                   448.03

 

                                                        320.43

 

 

 Rate

 Amt. 

 %

 Rate

 Amt. 

 %

1

Pooled cost of Grain

   1,915.70

      85,829.00

        77.64

   2,731.89

      87,538.00

        76.68

2

Procurement Incidentals

A

Statutory /Obligatory cost

 

 

 

 

 

 

i)

Mandi /Statutory charges

         73.97

         3,314.00

          3.00

         77.96

         2,498.00

          2.19

ii)

Commission to Arthiya & Societies

         38.02

         1,703.00

          1.54

         55.60

         1,782.00

          1.56

iii)

Gunny Cost

         84.64

         3,792.00

          3.43

      136.99

         4,390.00

          3.85

iv)

Milling Charges & Driage Allowance

                -  

                      -  

               -  

         40.22

         1,289.00

          1.14

 

Total

      196.63

         8,809.00

          7.97

      310.77

         9,959.00

          8.74

B

Labour & Transport charges

i)

Mandi Labour

         17.05

            764.00

          0.68

         24.68

            791.00

          0.70

ii)

Forwarding charges

           1.29

               58.00

          0.05

                -  

                      -  

               -  

iii)

Internal Movt.

         24.19

         1,084.00

          0.98

         44.37

         1,422.00

          1.25

 

Total

         42.53

         1,906.00

          1.71

         69.05

         2,213.00

          1.95

C

Storage & Interest charges paid to State Agencies

i)

Storage Charges

           2.13

               95.00

          0.09

           3.16

            101.00

          0.09

ii)

Interest

         14.44

            647.00

          0.59

         57.93

         1,856.00

          1.63

iii)

Previous year Arrears Exp.

           3.05

            137.00

          0.12

           8.53

            273.00

          0.24

 

Total

         19.62

            879.00

          0.80

         69.62

         2,230.00

          1.96

D

Administrative charges to State /Agencies

         27.06

         1,212.00

          1.10

         52.27

         1,675.00

          1.47

E

Others

 

 

 

 

 

 

i)

Fortifying Cost

                -  

                      -  

               -  

         14.71

            471.00

          0.41

ii)

 Guarantee Fee

                -  

                      -  

               -  

                -  

                      -  

               -  

 

Total

                -  

                      -  

               -  

         14.71

            471.00

          0.41

F

Margin towards Cost & Profit

                -  

                      -  

               -  

                -  

                      -  

               -  

 

Total Procurement Incidentals
(A+B+C+D+E)

      285.84

      12,806.00

        11.58

      516.42

      16,548.00

        14.53

3

Acquisition cost

   2,201.53

      98,635.00

        89.22

   3,248.31

   1,04,086.00

        91.18

4

Distribution cost

 

 

 

 

 

 

i)

Freight

      133.84

         5,996.00

          5.42

      156.49

         5,014.00

          4.39

ii)

Handling charges

         50.74

         2,274.00

          2.06

         50.74

         1,626.00

          1.42

iii)

Storage Charges

         39.59

         1,774.00

          1.60

         39.59

         1,269.00

          1.11

iv)

Interest

         17.90

            802.00

          0.73

         26.26

            841.00

          0.74

v)

Shortages

         (3.79)

          (170.00)

        (0.15)

         13.38

            429.00

          0.38

vi)

Administrative Overheads

         27.72

         1,242.00

          1.12

         27.72

            888.00

          0.79

 

Total Distribution cost

      266.00

      11,918.00

        10.78

      314.18

      10,067.00

          8.82

5

Economic cost

   2,467.53

   1,10,553.00

      100.00

   3,562.49

   1,14,153.00

      100.00

6

Sales realisation

      441.21

      19,768.00

 

      274.22

         8,787.00

 

7

Subsidy

   2,026.32

      90,785.00

 

   3,288.27

   1,05,366.00

 

 

ELEMENT-WISE BREAK-UP OF ECONOMIC COST OF QTY. SOLD 2022-23 (RE)

 

 

 

 

 

 

 Rate Rs./qtl. 

 

 

 

 

 

 Amount Rs.crore

S.No.

COMMODITY

 WHEAT

 RICE

 

SALES QUANTITY (Lakh Tonnes)

                                                  240.00

                                                     360.00

 

 

 Rate

 Amt. 

 %

 Rate

 Amt. 

 %

1

Pooled cost of Grain

   1,974.59

   47,391.00

     74.38

   2,913.26

   1,04,877.00

     75.51

2

Procurement Incidentals

 

 

 

 

 

 

A

Statutory /Obligatory cost

 

i)

Mandi /Statutory charges

         47.89

     1,149.00

       1.80

         81.56

         2,936.00

       2.10

ii)

VAT / Purchase Tax

 

                  -  

            -   

                -  

                      -  

            -  

ii)

Commission to Arthiya & Societies

         39.94

         959.00

       1.51

         55.53

         1,999.00

       1.44

iii)

Gunny Cost

      138.43

     3,322.00

       5.21

      154.55

         5,564.00

       4.01

iv)

Milling Charges & Driage Allowance

 

                  -  

            -  

         48.44

         1,744.00

       1.26

 

Total

      226.26

     5,430.00

       8.52

      340.08

      12,243.00

       8.81

B

Labour & Transport charges

 

i)

Mandi Labour

         19.80

         475.00

       0.75

         27.22

            980.00

       0.71

ii)

Forwarding charges

           1.43

           34.00

       0.05

                -  

                      -  

            -  

iii)

Internal Movt.

         28.01

         672.00

       1.05

         46.11

         1,660.00

       1.20

 

Total

         49.24

     1,181.00

       1.85

         73.33

         2,640.00

       1.91

C

Storage & Interest charges paid to State Agencies

 

i)

Storage Charges

           3.43

           82.00

       0.13

           4.16

            150.00

       0.11

ii)

Interest

         17.63

         423.00

       0.66

         37.14

         1,337.00

       0.96

iii)

Previous year Arrears Exp.

                -  

                  -  

            -  

                -  

                      -  

            -  

 

Total

         21.06

         505.00

       0.79

         41.30

         1,487.00

       1.07

D

Administrative charges to State /Agencies

         10.04

         241.00

       0.38

         48.12

         1,732.00

       1.25

E

Others

 

i)

Fortifying Cost

                -  

                  -  

            -  

         36.75

         1,323.00

       0.95

ii)

 Guarantee Fee

                -  

                  -  

            -  

                -  

                      -  

            -  

 

Total

                -  

                  -   

            -  

         36.75

         1,323.00

       0.95

F

Margin towards Cost & Profit

                -  

                  -  

            -  

                -  

                      -  

            -  

 

Total Procurement Incidentals
(A+B+C+D+E)

      306.60

     7,357.00

     11.54

      539.58

      19,425.00

     13.99

3

Acquisition cost

   2,281.18

   54,748.00

     85.92

   3,452.84

   1,24,302.00

     89.49

4

Distribution cost

 

 

 

 

 

 

i)

Freight

      207.46

     4,979.00

       7.81

      161.83

         5,826.00

       4.19

ii)

Handling charges

         62.42

     1,498.00

       2.35

         66.33

         2,388.00

       1.72

iii)

Storage Charges

         48.63

     1,167.00

       1.83

         63.69

         2,293.00

       1.65

iv)

Interest

         27.75

         666.00

       1.05

         55.00

         1,980.00

       1.43

v)

Shortages

      (13.21)

      (317.00)

     (0.50)

         15.28

            550.00

       0.40

vi)

Administrative Overheads

         40.67

         976.00

       1.53

         43.22

         1,556.00

       1.12

 

Total Distribution cost

      373.72

     8,969.00

     14.08

      405.35

      14,593.00

     10.51

5

Economic cost

   2,654.90

   63,717.00

   100.00

   3,858.19

   1,38,895.00

   100.00

6

Sales realisation

      174.72

     4,193.36

 

      320.25

      11,529.00

 

7

Subsidy

   2,480.18

   59,523.64

 

   3,537.94

   1,27,366.00

 





Economic cost of Wheat

Rate Rs/QTL

Year

Pooled Cost Of Grain

Procurement Incidentals

Acquisition Cost

Carryover Charges

Distribution Cost

Economic Cost

1979-80

                              134.78

                                               -  

                    134.78

                                  -  

                        22.66

                157.44

1980-81

                              119.55

                                        21.31

                    140.86

                                  -  

                        29.05

                169.91

1981-82

                              143.29

                                        22.32

                    165.61

                                  -  

                        37.87

                203.48

1982-83

                              151.75

                                        24.28

                    176.03

                                  -  

                        43.91

                219.94

1983-84

                              162.44

                                        24.17

                    186.61

                                  -  

                        46.87

                233.48

1984-85

                              155.72

                                        26.31

                    182.03

                             5.52

                        51.89

                239.44

1985-86

                              150.27

                                        31.61

                    181.88

                           11.24

                        53.19

                246.31

1986-87

                              160.70

                                        34.81

                    195.51

                           16.46

                        61.23

                273.20

1987-88

                              165.35

                                        34.13

                    199.48

                           13.20

                        62.05

                274.73

1988-89

                              183.66

                                        36.36

                    220.02

                             3.58

                        72.38

                295.98

1989-90

                              184.95

                                        40.31

                    225.26

                             4.74

                        76.33

                306.33

1990-91

                              204.68

                                        54.50

                    259.18

                             9.84

                        87.48

                356.50

1991-92

                              211.20

                                        68.95

                    280.15

                           18.74

                        91.90

                390.79

1992-93

                              295.51

                                        73.05

                    368.56

                           15.52

                     120.02

                504.10

1993-94

                              325.31

                                        73.04

                    398.35

                           16.24

                     117.44

                532.03

1994-95

                              334.80

                                        88.31

                    423.11

                           22.55

                     105.51

                551.17

1995-96

                              351.04

                                        89.70

                    440.74

                           30.61

                     112.60

                583.95

1996-97

                              374.82

                                      120.80

                    495.62

                           48.51

                     118.40

                662.53

1997-98

                              483.46

                                      130.17

                    613.63

                           16.06

                     168.15

                797.84

1998-99

                              517.43

                                        99.27

                    616.70

                           24.27

                     159.37

                800.34

1999-00

                              518.08

                                      117.06

                    635.14

                           50.37

                     202.00

                887.51

2000-01

                              542.41

                                      128.20

                    670.61

                           46.72

                     166.15

                883.48

2001-02

                              591.61

                                      134.68

                    726.29

 

                     126.65

                852.94

2002-03

                              600.86

                                      137.63

                    738.49

 

                     145.51

                884.00

2003-04

                              610.80

                                      138.20

                    749.00

 

                     169.69

                918.69

2004-05

                              613.47

                                      182.74

                    796.21

 

                     222.80

             1,019.01

2005-06

                              636.11

                                      171.20

                    807.31

 

                     234.54

             1,041.85

2006-07

                              728.27

                                      180.15

                    908.42

 

                     269.36

             1,177.78

2007-08

                              903.30

                                      164.02

                1,067.32

 

                     244.43

             1,311.75

2008-09

                              955.54

                                      179.62

                1,135.16

 

                     245.42

             1,380.58

2009-10

                          1,017.36

                                      206.88

                1,224.24

 

                     200.37

             1,424.61

2010-11

                          1,064.32

                                      212.38

                1,276.70

 

                     217.65

             1,494.35

2011-12

                          1,119.18

                                      235.68

                1,354.86

 

                     240.39

             1,595.25

2012-13

                          1,219.41

                                      263.35

                1,482.76

 

                     269.81

             1,752.57

2013-14

                          1,271.11

                                      286.41

                1,557.52

 

                     350.80

             1,908.32

2014-15

                          1,317.82

                                      346.57

                1,664.39

 

                     386.85

             2,051.24

2015-16

                          1,406.15

                                      367.08

                1,773.23

 

                     354.16

             2,127.39

2016-17

                          1,467.49

                                      367.26

                1,834.75

 

                     362.23

             2,196.98

2017-18

                          1,587.90

                                      303.91

                1,891.81

 

                     406.11

             2,297.92

2018-19

                          1,676.02

                                      280.86

                1,956.88

 

                     402.85

             2,359.73

2019-20

                          1,785.72

                                      285.58

                2,071.30

 

                     551.78

             2,623.08

2020-21

                          1,847.92

                                      283.67

                2,131.59

 

                     600.16

             2,731.75

2021-22

                          1,915.70

                                      285.84

                2,201.53

 

                     266.00

             2,467.53

2022-23 (RE)

                          1,974.59

                                      306.60

                2,281.18

 

                     373.72

             2,654.90

2023-24 (BE)

                          2,074.69

                                      315.83

                2,390.52

 

                     312.53

             2,703.05

* From 2001-02 onwards Carryover Charges becomes the part of Buffer Subsidy.

 

 

 

 

 

 

 

Economic cost of Rice

Rate Rs/QTL

Year

Pooled Cost Of Grain

Procurement Incidentals

Acquisition Cost

Distribution Cost

Economic Cost

1979-80

150.98

0

150.98

22.66

173.64

1980-81

154.22

10.05

164.27

29.05

193.32

1981-82

176.31

9.54

185.85

37.87

223.72

1982-83

195.26

9.94

205.2

43.91

249.11

1983-84

217.67

11.11

228.78

46.87

275.65

1984-85

226.99

19.93

246.92

51.89

298.81

1985-86

231.47

20.6

252.07

53.19

305.26

1986-87

239.75

17.7

257.45

61.23

318.68

1987-88

250.45

15.07

265.52

62.05

327.57

1988-89

279.79

17.51

297.3

72.38

369.68

1989-90

320.65

21.57

342.22

76.33

418.55

1990-91

338.3

31.74

370.04

87.48

457.52

1991-92

372.45

32.69

405.14

91.9

497.04

1992-93

433.72

31.53

465.25

120.02

585.27

1993-94

500.4

40.25

540.65

124.45

665.1

1994-95

537.77

58.13

595.9

98.81

694.71

1995-96

581.38

54.1

635.48

127.34

762.82

1996-97

628.62

67.47

696.09

161.97

858.06

1997-98

701.39

54.23

755.62

181.66

937.28

1998-99

747.59

56.04

803.63

191.6

995.23

1999-00

831.24

56.06

887.3

187.5

1074.8

2000-01

877.27

69.86

947.13

189.94

1137.07

2001-02

911.53

66.81

978.34

119.62

1097.96

2002-03

945.64

61.67

1007.31

157.72

1165.03

2003-04

990.89

30.68

1021.57

214.52

1236.09

2004-05

988.6

58.48

1047.08

256.51

1303.59

2005-06

1028.2

39.12

1067.32

272.37

1339.69

2006-07

907.94

193.66

1101.6

289.58

1391.18

2007-08

1037.13

214.91

1252.04

297.82

1549.86

2008-09

1233.1

226.87

1459.97

280.76

1740.73

2009-10

1346.55

288.6

1635.15

184.92

1820.07

2010-11

1446.55

313.07

1759.62

223.49

1983.11

2011-12

1512.2

350

1862.2

260.74

2122.94

2012-13

1633.83

383.76

2017.59

287.28

2304.87

2013-14

1762.01

463.53

2225.54

389.97

2615.51

2014-15

1851.44

594.72

2446.16

497.42

2943.58

2015-16

2004.06

618.17

2622.23

503.24

3125.47

2016-17

2075.16

597.21

2672.37

432.59

3104.96

2017-18

2291.03

481.55

2772.58

507.73

3280.31

2018-19

2443.28

450.4

2893.68

550.42

3444.1

2019-20

2555.77

467.65

3023.42

696.64

3720.06

2020-21

2665.86

479.27

3145.13

794.13

3939.26

2021-22

2731.89

516.42

3248.31

314.18

3562.49

2022-23 (RE)

2913.26

539.58

3452.84

405.35

3858.19

2023-24 (BE)

3046.14

562.1

3608.24

309.81

3918.05

 

Economic cost of Wheat
Rate Rs/QTL
Year Pooled Cost Of Grain Procurement Incidentals Acquisition Cost Carryover Charges Distribution Cost Economic Cost
1979-80                               134.78                                                -                       134.78                                   -                           22.66                 157.44
1980-81                               119.55                                         21.31                     140.86                                   -                           29.05                 169.91
1981-82                               143.29                                         22.32                     165.61                                   -                           37.87                 203.48
1982-83                               151.75                                         24.28                     176.03                                   -                           43.91                 219.94
1983-84                               162.44                                         24.17                     186.61                                   -                           46.87                 233.48
1984-85                               155.72                                         26.31                     182.03                              5.52                         51.89                 239.44
1985-86                               150.27                                         31.61                     181.88                            11.24                         53.19                 246.31
1986-87                               160.70                                         34.81                     195.51                            16.46                         61.23                 273.20
1987-88                               165.35                                         34.13                     199.48                            13.20                         62.05                 274.73
1988-89                               183.66                                         36.36                     220.02                              3.58                         72.38                 295.98
1989-90                               184.95                                         40.31                     225.26                              4.74                         76.33                 306.33
1990-91                               204.68                                         54.50                     259.18                              9.84                         87.48                 356.50
1991-92                               211.20                                         68.95                     280.15                            18.74                         91.90                 390.79
1992-93                               295.51                                         73.05                     368.56                            15.52                      120.02                 504.10
1993-94                               325.31                                         73.04                     398.35                            16.24                      117.44                 532.03
1994-95                               334.80                                         88.31                     423.11                            22.55                      105.51                 551.17
1995-96                               351.04                                         89.70                     440.74                            30.61                      112.60                 583.95
1996-97                               374.82                                       120.80                     495.62                            48.51                      118.40                 662.53
1997-98                               483.46                                       130.17                     613.63                            16.06                      168.15                 797.84
1998-99                               517.43                                         99.27                     616.70                            24.27                      159.37                 800.34
1999-00                               518.08                                       117.06                     635.14                            50.37                      202.00                 887.51
2000-01                               542.41                                       128.20                     670.61                            46.72                      166.15                 883.48
2001-02                               591.61                                       134.68                     726.29                        126.65                 852.94
2002-03                               600.86                                       137.63                     738.49                        145.51                 884.00
2003-04                               610.80                                       138.20                     749.00                        169.69                 918.69
2004-05                               613.47                                       182.74                     796.21                        222.80              1,019.01
2005-06                               636.11                                       171.20                     807.31                        234.54              1,041.85
2006-07                               728.27                                       180.15                     908.42                        269.36              1,177.78
2007-08                               903.30                                       164.02                 1,067.32                        244.43              1,311.75
2008-09                               955.54                                       179.62                 1,135.16                        245.42              1,380.58
2009-10                           1,017.36                                       206.88                 1,224.24                        200.37              1,424.61
2010-11                           1,064.32                                       212.38                 1,276.70                        217.65              1,494.35
2011-12                           1,119.18                                       235.68                 1,354.86                        240.39              1,595.25
2012-13                           1,219.41                                       263.35                 1,482.76                        269.81              1,752.57
2013-14                           1,271.11                                       286.41                 1,557.52                        350.80              1,908.32
2014-15                           1,317.82                                       346.57                 1,664.39                        386.85              2,051.24
2015-16                           1,406.15                                       367.08                 1,773.23                        354.16              2,127.39
2016-17                           1,467.49                                       367.26                 1,834.75                        362.23              2,196.98
2017-18                           1,587.90                                       303.91                 1,891.81                        406.11              2,297.92
2018-19                           1,676.02                                       280.86                 1,956.88                        402.85              2,359.73
2019-20                           1,785.72                                       285.58                 2,071.30                        551.78              2,623.08
2020-21                           1,847.92                                       283.67                 2,131.59                        600.16              2,731.75
2021-22                            1,915.70                                       285.84                 2,201.53                        266.00              2,467.53
2022-23 (RE)                           1,974.59                                       306.60                 2,281.18                        373.72              2,654.90
2023-24 (BE)                           2,074.69                                       315.83                 2,390.52                        312.53              2,703.05
* From 2001-02 onwards Carryover Charges becomes the part of Buffer Subsidy.