Restructuring FCI

By: Harveer Singhtwitter.com/iastoss+91-880-2009-420

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Must Know.

• The History of the FCI• The objectives and role of the FCI• The Shortcomings• Need for Change/ Reform etc.

• It was set up in 1965.• It operates through 5 zonal offices

and 24 regional offices

• Effective price support operations for safeguarding the interests of the farmers

• Distribution of foodgrains throughout the country for Public Distribution System

• Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security

• Regulate market price to provide foodgrains to consumers at a reliable price.

## Shanta Kumar Committee on FCI Restructuring

• Envisioned FCI as an Efficient Food Management Agency.

• Hand over all procurement operations of wheat, paddy and rice to Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab.

• Accept Surplus from these states- Deficit states.• Bring STATURORY LEVY to 3-4% of MSP.• FCI procurement should focus on eastern belt.• outsource its stocking operations - CWC, SW, Private

Sector , PEG scheme. (competitive bidding basis)

• Restructuring the NFSA. Diluting its scope and coverage from 67 to about 40 per cent population.

• In order to curtail leakages in PDS, government should defer implementation of NFSA in states that have not done end to end computerization.

• Central Issue Price revision.• It recommends end to end computerization of the entire food

management system, starting from procurement from farmers, to stocking, movement and finally distribution through PDS. It will help for real time basis monitoring in order to curb leakages.

• Introduce CASH TRANSFERS. Large Cities-> Grain Surplus-> Grain Deficit States (Cash and Grain)

• Phase out Cover and Plinth (CAP).• A transparent Liquidation Policy.• Direct cash transfer of input

subsidies (Rs 7,000) to farmers on a per hectare basis.

Thank You.

• For any feedback/query/word of thanks, the Tutor can be contacted at harveersinh@gmail.com