WASTED: “Though the Shanta Kumar Committee has pointed out that FCI has excess stocks of food grains, it is not enough reason to curtail the existing food management system.” Picture shows damaged wheat sacks at an FCI open storage facility on the outskirts of Karnal in Haryana. Photo: Kamal Narang
WASTED: “Though the Shanta Kumar Committee has pointed out that FCI has excess stocks of food grains, it is not enough reason to curtail the existing food management system.” Picture shows damaged wheat sacks at an FCI open storage facility on the outskirts of Karnal in Haryana. Photo: Kamal Narang /Picture from The Hindu

TEXT AND PICTURE FROM THE HINDU FEBRUARY 17 2015 BY DEEPANKAR BASU AND DEBARSHI DAS


In the short run, the committee recommends that the National Food Security Act (NFSA) 2013 be curtailed. In particular, the NFSA entails providing subsidised food to about 67 per cent of the population, and the committee recommends that the coverage be brought down to 40 per cent. In the medium run, the committee recommends that the current public distribution system (PDS) be replaced by a cash transfer system. This will mean that the state will no longer have to be responsible for distributing food to vulnerable sections of the population. Hence, the state will no longer need to procure food from farmers, and store it. Since the current system of procurement, storage and transportation is primarily managed by the FCI, the medium term vision of the HLC implies that the FCI can, in due course, be folded up.

The overall thrust of the HLC’s recommendations, if implemented, would whittle down the operation of the FCI in the short run and completely dismantle…continue reading

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