Committee on restructuring of FCI meets for first time

A high level committee, set up to recommend ways to restructure state-run FCI, today met for the first time and discussed issues and challenges related to storage and distribution of foodgrains.
Food Corporation of India (FCI) is the nodal agency for procurement and distribution of foodgrains. On August 20, the Centre had set up a high-level committee to suggest various models to restructure the FCI, which plays a key role in strengthening public distribution system (PDS).
"This was our first meeting and we discussed the number of issues at length," said Shanta Kumar, Former Food Minister and sitting Member of Parliament from Himachal Pradesh.

Kumar did not give further details about the deliberations in the meeting.
Sources said economists and academicians, who are members of the committee, were of the view of that more private participation in areas of storage and distribution of grains need to be explored to avoid wastage and bring in cost efficiency.
Sources also added during the deliberations a point was also raised there is need to explore the option of paying subsidy directly to the beneficiaries and involve private parties in distribution of foodgrains.

Next meeting is likely to be held on September 15, they added.
The meeting was attended by all the members including Food Corporation of India (FCI) Chairman and Managing Director C Viswanath, Secretary Electronics & IT Ram Sewak Sharma, former CACP Chairman Ashok Gulati and Dean IIM Ahmedabad G Raghuram.

Dean School of Economics University of Hyderabad Gunmadi Nancharaiah, Punjab was represented by State Food Secretary D S Grewal and Chattisgarh was represented by Joint Secretary Finance Avinash Champawat, were other members present in the meeting.
The meeting was also attended by the all executive directors of the corporation.
During the meeting FCI officials also presented the constraints faced by them and added that out of total funds allocated to them only 2 per cent which is the administrative cost is under their control remaining 98 per cent is depends on minimum support price (MSP).
Restructuring of FCI is a campaign promise of government.

Finance minister Arun Jaitley, in his Budget 2014-15 speech had said: "The government is committed to reforms in the food sector. Restructuring the FCI, reducing transportation and distribution losses and efficacy of the PDS would be taken up on priority.