The Shanta Kumar Committee’s recommendations to unbundle the Food Corporation of India are in tune with U.S.-led demands raised in the World Trade Organization



For example, the report asserts that only six per cent of all farmers have benefited from Minimum Support Price (MSP) through sale of food grains to an official procurement agency, according to data of the National Sample Survey Organisation’s 70th round. But analysts have found discrepancies between the survey’s estimates of the food grains sold to official procurement agencies and the actual amount of grains procured by official agencies for that year.

For kharif, the NSSO survey estimates that 13 million tonnes were sold to a procurement agency while the actual procurement that year by government agencies was 34 million tonnes. For rabi, the gap is even larger: 10 million tonnes estimated in the survey while the actual amount procured by an official agency was 38 million tonnes.

Selling at distress prices

Why did the Shanta Kumar Committee overlook these…continue reading


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