Major Recommendations on FCI Revamp

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The high-level committee headed by Shri Shanta Kumar for restructuring of the Food Corporation of India (FCI) has submitted its report.

Major recommendations of Committee:

  • FCI to outsource all procurement operations to States that have gained sufficient experience.
  • FCI to move to the Eastern UP, Bihar, West Bengal, Assam etc. where small and marginal farmers suffer most from distress sale.
  • Quality check through transparent and mechanical process.
  • Outsourcing of stocking operations to CWC, SWCs, private sector under PEG scheme on competitive basis.
  • Convert old conventional storages to Silos.
  • Gradually phase out cover and plinth (CAP) with no grain stocks remaining in CAP for more than three months.
  • Mechanization of operations in Food Storage Depots.

Introduce a pro-active liquidation policy to off-load stocks in the market whenever they are in excess of buffer norms and greater flexibility to FCI needed to operate in OMSS and export markets.

  • De-notification of depots, fixing ceiling on incentives per worker and VRS to Departmental Labour.
  • Condition of contract labour should be improved by giving them better facility.
  • FCI to reorient into an agency for innovation in foodgrain management system.
  • Use of HDPE rather than jute bags for packaging. End to End Computerization of food management system – Automation of FCI Operations.

Its now upto the centre to decide which recommendations are worth implementing.

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