Can FCI's subsidy wipe-out serve as a base for deeper food subsidy reforms?

If clearing of FCI's outstanding dues and loans does not spur further reforms, they will once again reach current levels in the next 4-5 years, say experts

The Central government had, in one stroke, allocated a staggering Rs 4.22 trillion as food subsidy for Financial Year 2020-21, topping it up with another hefty allocation of Rs 2.42 trillion for FY22.

The twin allocations will not only help clear the Food Corporation of India (FCI)'s outstanding and unpaid subsidy dues, but will also held service a significant portion of its unpaid loans from National Small Savings Fund (NSSF) along with interest due thereon. FCI has been been availing these loans to fund the subsidy allocation shortfall over the years.

This will mean that FCI, which has drawn huge