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Question

Consider the following statements regarding Shanta Kumar committee’s report on restructuring of FCI:-

1. It recommended that FCI procurement should focus on southern belt of the country where farmers do not get MSP.

2. FCI should outsource its stocking to central and state government agencies only.

3. FCI should hand over its procurement operations of wheat, paddy and rice to Ministry of trade and commerce.

4. It recommended strict implementation of Original National Food Security Act (NFSA).

Which of the above statements are correct?


A

1, 2 and 4 only

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B

1, 3 and 4

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C

None of these

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D

All of these

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Solution

The correct option is C

None of these


(source: PIB)In first statement it is Eastern Belt and not southern belt, thus it is incorrect. In the second statement FCI should outsource its stocking to central warehousing corporations (CWC), state warehousing corporations, Private sector under private Entrepreneur Guarantee scheme. Thus 2nd statement is also incorrect.

In 3rd statement the committee recommended to hand over procurement of paddy, wheat and rice to Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab as they have sufficient experience and reasonable infrastructure for procurement. Thus a 3rd statement is also incorrect.

The committee recommended restructuring of NFSA hence 4th statement is also incorrect.

Government is examining the recommendations made by the committee on Food Corporation of India. With regard to recommendations on the Public Distribution System the stand of the Government is as under-

Recommendations-

  • to defer implementation of NFSA in States that have not done end to end computerization; have not put the list of beneficiaries online for anyone to verify, and have not set up vigilance committees to check pilferage form Public Distribution System (PDS).
  • to reduce coverage from 67 percent of population to 40 percent; raise allocation to priority households form 5 kg to 7 kg per person per month.
  • to gradually introduce cash transfers in Targeted Public Distribution System (TPDS), starting with large cities with more than 1 million population; extending it to grain surplus States, and then giving option to deficit States to opt for cash or physical grain distribution.

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