Food Corporation of India directed to provide grains to NGOs

Food Corporation of India directed to provide grains to NGOs

Part of: GS Prelims and GS – II – Role of NGOs; GS-III – Marketing of agricultural produce

In News:

• The Government has directed Food Corporation of India to provide wheat and rice to NGOs.
• The food grains will be provided at the Open Market Sale Scheme (OMSS) rates without going through the e-auction process.

Key takeaways:

• FCI has network of more than 2000 godowns in the country.
• Large network of godowns will ensure smooth supply of food grains to these organisations in this hour of crisis posed by COVID-19. 
• It will help relief camps in their philanthropic work of feeding poor and migrant workers.

Important value additions:

The Food Corporation of India (FCI)

• It was setup under the Food Corporation’s Act 1964.
• The objectives are:

• • Effective price support operations to safeguard the interests of the farmers.
  • Distributing foodgrains throughout the country for Public Distribution system.
  • Maintaining satisfactory level of buffer stocks to ensure National Food Security.
• Since its inception, FCI has played a significant role in maintaining food security in the country.

Open Market Sale Scheme (OMSS) 

• It refers to selling of foodgrains by Government/Government agencies at predetermined (decided in advance) prices in the open market from time to time.