Govt plans to restructure FCI for improving PDS

The government today said it will give priority to restructuring of state-run Food Corporation of India (FCI) for improving the public distribution system (PDS).
"Government is committed to reforms in the food sector. Restructuring FCI, reducing transportation and distribution losses and efficacy of PDS would be taken up on priority," Union Finance Minister Arun Jaitley said in his budget speech.
The BJP in its manifesto for the 2014 General Elections had promised to unbundle the FCI into three separate entities -- one each for procurement, storage and distribution -- to bring about efficiency in administration and reduce food inflation.
In the last week of May, Food Minister Ramvilas Paswan had held a meeting with senior officials of the Corporation to understand its working and role in the PDS, where the issue of unbundling was also mentioned.

The FCI was set up under the Food Corporation Act, 1964 to fulfill the objectives of the food policy, which are effective price support operations for safeguarding interests of farmers, distribution of foodgrains throughout the country for public distribution system and maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure national food security.
Meanwhile, Jaitley in his budget speech added," The government also intends to overhaul the subsidy regime while providing full protection to the marginalised."
The Finance Minister also proposed to overhaul the subsidy regime, including food and petroleum subsidies, and make it more targeted while providing full protection to the marginalised, poor and SCs/STs.