145;Forget change, let146;s keep FCI146;

If you8217;re still hoping the government will finally review the functioning of the Food Corporation of India, in the manner ex-FM Yashwan...

If you8217;re still hoping the government will finally review the functioning of the Food Corporation of India, in the manner ex-FM Yashwant Sinha promised in his Budget speech two years ago, just forget about it.

A high level committee on the Long Term Grain Policy, which submitted its report to Food Minister Sharad Yadav, has recommended that no change be made in FCI8217;s functioning 8212; Sinha had said FCI8217;s role would be curtailed, and eventually most procurement would be done by private firms 8212; as 8216;it has performed its role reasonably well8217;.

As a sop to the reform agenda, the committee has, however, added that FCI should 8216;change the way it does business to enable fast commercial oriented decision-making8217; 8212; how a government-run entity is to suddenly transform itself, is not stated. It has further stated that the FCI8217;s role should be confined to procurement of major cereals for the public distribution system, that is rice and wheat and price support operations in coarse cereals should be handled by State agencies.

With very large leakages taking place in the PDS system thanks to the large price difference in grain supplied for the Above Poverty Line APL citizens and the Below Poverty Line BPL ones, the committee has recommended a return to the old system of PDS, where there was just one price for all citizens.

It has also asked the government to immediately 8216;rationalise8217; minimum support price policy on the basis of cost of production.

The committee recommended that an additional subsidy meant for poor consumers or persons in relatively backward regions should be given in cash to States.

8220;The fiscal impact under universal PDS will be small8221;, Sen said after submitting the report. Other recommendations for streamlining the PDS include setting up of an independent watchdog body, relaxation of restrictions on eligibility to be a licensed fair price shop dealer, effective implementation of the PDS Control order, 2001 and greater responsibilities to panchayati raj bodies. Prof Sen also stated that the food subsidy which was last year to the tune of Rs 27,000 crore, will go up to Rs 35,000 crore this year.

Story continues below this ad

Among the short term measures, the committee has recommended to give statutory status to MSP, removal of existing bottlenecks in the decentralised procurement system. It also recommended that the allocation under Sampoorna Gramin Rozgar Yojana scheme should be doubled and the expansion of the Antyodaya Anna Yojana be initiated.

Talking to The Indian Express,, Union Food Minister Sharad Yadav said: 8220;The high-level committee report will be sent to a FCI committee for consideration. We will also undertake inter-ministerial meeting and seek public viewpoint before taking any decision on the report.8221; However, Yadav did not give any time-frame for the process.