BackFCI to invite stakeholder suggestions on restructuring
The decision came at the first meeting of a high-level committee set up to recommend models to restructure the foodgrain management agency
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New Delhi: A high-level committee set up to recommend ways to restructure state-run Food Corporation of India (FCI) on Monday decided to invite suggestions from the public and from stakeholders, including private sector firms, on the management of foodgrains.
FCI is the nodal agency for the procurement and distribution of foodgrains.
On 20 August, the Centre had set up a high-level committee to suggest various models to restructure FCI, which plays a key role in strengthening the public distribution system (PDS).
“This was our first meeting and we discussed a number of issues at length," said former food minister Shanta Kumar, who is chairman of the committee.
At the meeting, it was decided to invite suggestions from the public and stakeholders on restructuring FCI’s key functions with a view to further strengthen and integrate the supply chain of foodgrains, according to an official statement.
The committee also decided to invite private sector firms to make a presentation on “international best practices in storage and handling of foodgrains" before the committee at its next meeting, on 15 September.
The stakeholders who will be asked for responses include non-governmental organizations (NGOs), farmer associations, rice and flour millers, handling and transport contractors and government bodies associated to food management, agriculture, storage and logistics.
Meanwhile, people familiar with the matter said economists and academicians who are members of the committee are of the view of that more private participation in storage and distribution of grains needs to be explored to avoid wastage and bring in cost efficiency.
They also said that during the deliberations, it was noted that there is a need to explore the option of paying subsidies directly to beneficiaries and involve private parties in the distribution of foodgrains.
The meeting was attended by all members, including FCI chairman and managing director C. Viswanath, electronics and information technology secretary Ram Sewak Sharma, former Commission for Agricultural Costs and Prices chairman Ashok Gulati and G. Raghuram, dean, Indian Institute of Management, Ahmedabad.
During the meeting, FCI officials said that of the total funds allocated to them, only 2%, which is the administrative cost, is under their control and that the remaining 98% depends on minimum support price (MSP). PTI
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