Shanta Kumar Committee

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[GS3] Shanta Kumar report on FCI-restructuring, Buer

stock, PDS & Food security & Direct Benet Transfer
Posted ByMrunalOn 12/02/2015 @ 2:00 pm In Economy | 44 Comments
1.
2.
3.
4.
5.
What is Food security?

Origin of FCI
Timeline of Food management in India
Disturbing Numbers: FCI and Food Mismanagement
Shanta Kumar Committee on FCI restructuring
1. #1: Outsource procurement to State Governments
2. #2: Procurement Payment reforms
3. #3: Buer stock reforms
4. #4: Storage reforms
5. #5: Transport reforms
6. #6: Direct cash transfer to Farmer
7. #7: Direct cash transfer to Consumer
8. #8: Curtail National Food security Act (NFSA)
9. #9: Pink slips and VRS
6. Criticism against Shanta Kumar report
7. Appendix: FCI structure
8. Mock Questions for CSAT
What is Food security?

Food and agriculture organization (FAO) says Food security is made up of four
pillars viz. Availability, Aordability, Nutrition, and Stability.
Food security Pillar
food should be available in
sucient quantity at all
times and at all places
Food should be aordable
To poor people
Food should be nutritious
to ensure healthy
development of body of
mind.
In food prices and supply
must be stable. Otherwise
political and social unrest.
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What has India done to achieve it?

Union: MSP, fertilizer subsidy
States: cheap canal water and electricity
Together, they encourage farmers to produce
more grains.
Through Targeted-PDS and National Food Security
Act (NFSA), Government provides cheap grain to
poor.
Through Mid-day meal, Food-security Act,
Integrated-Child Development scheme (ICDS) and
half dozen other schemes, Government ensures
nutritious food to children.
FCI keeps buer-stock of grains. It can be sold to
open market or distributed among people during
high ination, natural disaster etc.
06/21/2015 11:18 AM
Origin of FCI
In the 50s and 60s, India faced major shortage of grains.
Our domestic wheat-production was very low. Our foreign exchange reserve
too was very low. We could not sustain wheat-import from global market from
our own. Therefore, we had to reply on American PL- 480 Food for peace
program. But the shipments were irregular.
Finally Government decided to end this humiliation by focusing on selfsuciency in food production.
We imported high yielding seeds (HYV) of wheat from Mexico, distributed
them to farmers along with subsidized fertilizers.
End result is known is Green revolution. You can read more about its
features, phases and limitations in NCERT Class 11 Economy, page 24
onwards.
Timeline of Food management in India
State Government begin enacting their Agricultural Produce Market
1950s Committee (APMC) Acts to protect farmers. But it fails to curb the
nuisance of middlemen, hoarding and ination. For more click me
Food corporation Act passed. Subsequently FCI setup in 1965. FCI falls
1964
under Ministry of consumer aairs, food and public distribution.
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1965
Agricultural Prices Commission begins prescribing minimum

support price (MSP) for staple food such as wheat and rice.
FCI was ordered to buy grains from farmers, at this price, IF farmer
couldnt sell his produce in open market.
1985
CACP: Commission for Agricultural Costs and Prices (CACP) under

Agriculture ministry, recommends minimum support prices (MSP)
based on certain economic criteria for 23 crops before each Rabi
and Kharif Season.
And for Sugar, Department of food and Public distribution decides
the Fair and remunerative price (FRP).
Thus 23 + 1 sugar = 24 agro-commodities covered under public
procurement system.
1997
Decentralized Procurement Scheme (DCP), introduced

Now on behalf of FCI, the respective state governments themselves
will procure foodgrains from farmers and distribute them among
poor beneciaries.
In theory, this ought to reduce transport cost and leakages but very
few states adopted it, that too for rice only.
1997
Targeted Public distribution system (TPDS)

Two tier pricing structure: BPL and APL.
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State Governments decide BPL and APL based Planning commission

guidelines.
2000
2003
2008
2010
2010
2013
Antyoday Anna Yojana: 25 kg foodgrain per family at the rate of Wheat

Rs.2 and Rice Rs.3 per kilo
Union Government drafts Model APMC Act, asks state governments to
adopt it. Although many states yet to implement.
Private Entrepreneurs Guarantee (PEG) Scheme under Department of
Food & Public Distribution (DFPD). Under this scheme, new godowns will
be constructed on PPP nance, FCI will hire private godown to store
public-procured food grain for contractual period of 10 years.
Nutrient Based subsidy (NBS) regime.
Under NBS, govt. gives subsidy based on weight of the dierent
Macro/micro nutrient in the fertilizer to companies, so they design
new product mixes with micro-nutrients, according to soil
requirement in each region.
Although #EPICFAIL Because Urea not covered in this system.
A new statutory body- Warehouse Development and regulatory authority
under consumer aairs ministry. It certies warehouses and resolves
disputes related to Negotiable Warehousing Receipts (NWR)
National Food security Act passed. click me for more detailed article
Disturbing Numbers: FCI and Food Mismanagement
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23
Is the number of crops for which, CACP announces minimum support

prices (MSP). This includes even non-food crops such as cotton and
jute. But
Only 6%
Of Indian farmers could sell their produce to Government

agencies.
Other farmers are either unaware, or lack the access to
MSP-system.
Only the big farmers in north-western states have beneted from
this MSP-procurement system.
40-60%
Of PDS-grains are siphoned o to blackmarket, says NSSO report

(2011)
FCI transports 25 lakh gunny-bags every day so imagine the
scam!
Best States Chhattisgarh, Andhra Pradesh and Tamil Nadu;
Most Bogus: Manipur, Diu-Daman, Delhi.
Double
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For the last 4-5 years, FCI has stored double the grains than
prescribed buer limits. Result? (1) shortage in open market and
thereby ination (2) rotten grains due to FCIs limited Storage
capacity.
06/21/2015 11:18 AM
8-12%
58%
1.15
lakh Cr.
YET
only 11
9 cr.
Was the food-ination in recent years, YET Government did not release
grains from its FCI-warehouses to increase supply and curb ination.
Of subsidized foodgrain doesnt reach BPL families. (Planning
commission, 2005)
Is the ocial budget allotment for implementing food security act, to
cover 67% of Indians (2014-15)
States have so far implemented food security act. Haryana, Delhi,
Himachal Pradesh, Rajasthan, Punjab, Karnataka, Chhattisgarh,
Maharashtra Chandigarh, Bihar and Madhya Pradesh. Other states are
given time extension because theyre yet to even identify the
beneciaries.
Is the number of agriculture households in India. 3/4th of them not
even aware of MSP system. (NSSO, 2012)
Bottom line is, FCI has failed in all three objectives because
Objective
1.Procurement
2.Storage
3.Distribution
Why fail?
Large number of farmers are out of the MSP regime.
Large quantity of food grain either siphoned o or gets rotten
Targeted PDS system has unacceptably high leakages.
In the light of these problems, Shanta Kumar Committee was setup
Shanta Kumar Committee on FCI restructuring
Chairman
Purpose
Shanta kumar- the ex-CM of Himachal Pradesh, Ex-Union

minister for Consumer aairs ministry and later rural
Development ministry.
Plus, 6 members whose names not important for exam.
How to Restructure FCI organization?
How to reform public procurement, food storage and
distribution?
Duration Setup in 2014-August, gave report in 2015-January.

UPSC Mains examination:
Relevance
GS2 Paper: Welfare schemes for vulnerable sections of the

population by the Centre; Issues relating to poverty and hunger.
GS3 Paper: Issues related to direct and indirect farm subsidies
and minimum support prices; Public Distribution Systemobjectives, functioning, limitations, revamping; issues of buer
stocks and food security.
hence this 15 page Ph.D article
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Lets check his recommendations one by one:
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#1: Outsource procurement to State Governments

Shanta says FCI must not handle grain procurement for entire India
Avoid these areas
Focus here
Punjab, Haryana, Andhra Pradesh,
Eastern Uttar Pradesh, Bihar, West
Chhattisgarh, Madhya Pradesh, Odisha Bengal, Assam
In the States, Market rate are
below MSP.
Small Farmers are exploited.
Their (Bogus) State governments
are inept and lack infrastructure to
procure grains from the farmers in
a transparent and ecient manner.
These state Governments already have

sucient experience, manpower and
infrastructure to procure grains for
their own PDS requirements.
So FCI should simply hand over

operations To the state
governments under decentralised
procurement system.
For short-term, give them
technical training and arrange
them nance through ADB-IFC
etc. international bodies.
FCI itself Procure grains from the

states, until the situation improves.
#2: Procurement Payment reforms

Popularise Negotiable Warehouse Receipt System (NWRs). Encourage farmer
to deposit his produce to an authorized-warehouse, get a receipt, and borrow
agriculture loan for next crop-cycle, from banks and cooperatives, by
pledging those receipts. Loan-Value of such receipts will be 80% of the MSP x
quantity stored in warehouse.
If market prices dip below MSP, government should only compensate farmer
for the losses incurred, but without procuring grain. i.e. let them store and
sell it to private players later on when market recovers.
If state government pays additional bonus over and above the MSP to its
farmers (mainly for vote-bank politics) still FCI should not procure more
grain from that state, once buer stock quota is lled. [At present FCI
indulging in open ended procurement i.e. all incoming grain is accepted,
even if buer stock is lled.]
FCI or third party must perform Quality check before accepting grains from
state government agencies and farmers. Dont accept substandard grains.
On FCI procurements, State government levy commission between 2% to
15%. There should x uniform rate for entire India just 3%.
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#3: Buer stock reforms

FCI is supposed to maintain buer stock of grains- to ward of any
emergency food-shortage situation during natural disaster, famine or war.
But over the years, FCI has overcrossed buer stock norms- leading to rotten
grain and shortage in open market. Observe following graph:
Why FCI did overcross Buer stock norms?

1. Lack of coordination. While FCI is basically a keeper of grains. But how
much grain should be stored as buer/backup for emergencies?- Consumer
ministry decides that.
2. For vote bank politics, Union Government always increases MSP for wheat
and rice each year. AND state governments too oer additional BONUS to
farmers above MSPs. Hence most farmers prefer to grow rice-wheat instead
of moving to vegetables and edible oils.
3. Given this oversupply of what and rice- the Market forces will oer lower
prices to farmers. So, big farmers from rich states approach FCI and state
procurement agencies.
4. Open ended procurement i.e. FCI doesnt have a quota in mind- whatever
wheat/rice the farmers/state agencies supply to FCI- it purchases all of it.
5. Ideally, FCI should sell-o the excess foodgrains, above the buer quota, to
open market- thatll increase retail-supply and stabilize prices.
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6. But there is no automatic-liquidation-rule. It all depends on Governments

mood.
Results?
1. Rotten wheat on one side+ food ination on other side=> Crores of rupee
wasted by both Government and consumers.
2. Government randomly bans export bans on wheat-rice during food ination,
without nding the underlying reasons. This hurts our export competitiveness
particularly in rice- where India is worlds largest exporter.
Shanta Kumars prescribed norms for Food-stocking
To implement Food security Act ~61MMT
Strategic Reserve
5 MMT
Sucient to import
Forex currency reserve
3 MMT wheat
2 MMT Rice.
=total 5 MMT foodgrain
Whenever FCI has grains above buer norms, it should automatically sell excess
stock in open market. a.k.a. Pro-Active Liquidation Policy.
No harm in importing
Reduce import duty on wheat and rice.
Instead of keeping excessive buer/backup storage, just store in moderate
quantity. And as and when required, simply import rice and wheat from world
market.
Same way, instead of transporting rice from Andhra Pradesh/Punjab to North
East, its cheaper to import rice from Myanmar to North East.
#4: Storage reforms

FCI should gradually outsource grain-storage function to central warehousing
corporation (CWC), state warehousing corporation (SWC), and private sector
players- under Private Entrepreneur Guaranty (PEG) Scheme) on competitive
bidding- give them contract to store FCI grains for 20 years.
Dont store grain in Cover and plinth godowns. Convert them into Silos
with Mechanized / robotic assemblies, with help of private sector. Madhya
Pradesh has already begun doing this.
End to End computerization and Online tracking of entire system from
procurement to retail distribution.
North East and Jammu Kashmir state Governments must create storage
capacity that can last for 3 months. So, even sustain during bad weather,
natural disaster and bandh-hartals, there is no shortage of food, even if
theyre cuto from rest of India.
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If grains are transported in containers, instead of gunny-bags, itll reduce

losses, get faster-turn-around time at railways and waterways.
Immediately after the procurement, give 6 months ration to
poor-beneciaries, with cheap-grain bins for storage. Result? FCI will have to
store less grain in its godowns. Juntaa themselves will take care of storage.
#5: Transport reforms

As far as possible, grain should be transported in containers. It should be
packed in gunny backs only at District HQ level- from where itll be
transported to retail outlets
Stop labourers from using iron hooks to lift gunny bags. Provide bags with
ears to eliminate hook-requirement.
As and where possible, use forklifts instead of manual labour.
Improved night security at rail-points, because >85% of PDS Grain is
transported through railways and maximum siphoning o occurs here.
Construct silos at mandis, and provide rail connectivity to them.
As and where possible, use inland water transport for moving wheat and rice.
Example from Visakhapatnam to north-east and Kerala. Improve rail
connectivity between such ports and their hinterlands.
#6: Direct cash transfer to Farmer

Present system
Government adopted Nutrient

based subsidy system (NBS)
But Urea kept out of this system.
Result: Soil degradation in
Punjab, Haryana, Rajasthan due
to excessive and mindless use of
cheap urea; even smuggling to
neighboring countries
Shanta Says
China gives direct cash subsidy to
farmer- according to per hectare
owned. Then farmer free to choose
crop, fertilizer, pesticides as per his
requirement.
Shanta recommends India too
should give Direct cash subsidy of
Rs.5,000 to 10,000 per hectre to
farmers UID linked Jan-Dhan
account.
Then Farmer will judiciously use N,
P and K fertilizers and even organic
manures, according to requirements
of his soil-crop requirements.
Hell grow vegetables, pulses,
non-cereals as per his business
wisdom and prevailing market
rates.
#7: Direct cash transfer to Consumer

Grain
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MSP
FCIs Real Cost
06/21/2015 11:18 AM
Rs./quintal (2014)
Rice
1360 (common grade)1400 (A grade) Rs. 3,000/quintal
Wheat 1400
Rs. 2,200/quintal
Suppose, Government wants to ensure all poor families get Rice at Rs.3 /kg.
MSP-PDS
regime
After considering procurement, storage, distribution and

leakages- the cost of delivering 1 kg rice to poor family is
Rs.30. [because FCIs real cost of handling 1 quintal rice Is
Rs.3,000]
And if Government sells it to them at Rs.3 /kg, then it means
30 3 = 27 Rupees subsidy cost.
NFSA wants to give rice at 3/kg but Tamil Nadu, Andhra
Pradesh and Chhattisgarh state government giving rice even
at cheaper rate. All such schemes need to be streamlined into
one.
Direct cash
transfer
Shanta Kumar says

Give Rs. 700/ month to Antyodaya family
Give Rs. 500/ month to Priority household.
Then, Let them purchase whatever cereal and non-cereal
foods they wish to purchase from market.
Governments subsidy burden will decline by 20-25% (30,000
to 35,000 crores in absolute gure).
The money thus saved, should be used in improving rural
infrastructure.
How to implement Direct Cash transfer?

First link Jan Dhan accounts with Adhar card UID numbers.
Money be transferred to lady of the house under Direct Benet transfer
(DBT)
Amount should be linked with ination index.
People will be given free choice to purchase whatever food they want- rice,
wheat, milk, vegetables.
First, begin this cash-transfer process in big cities with over 1 million
population. Then to states with grain surplus.
Complete this process within 2 to 3 years.
J&K and North-east State governments should be given the option to either
continue physical grain distribution or adopt cash transfer.
#8: Curtail National Food security Act (NFSA)

Food Security Act 2013
prescribes
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Shanta Kumar observes
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Cover 67% of Indian

population (such that, 50%
urban and 75% rural public
covered)
State Government to identify

the beneciaries, distribute
grains at subsidized rate and
if they fail theyve to give
money to the families.
Antyodya households (AAY)
the bottom strata of BPL
population will get 35 kg
grain per family on monthly
basis, at following price:
Government doesnt have the nancial

resources to cover so many people.
At max we should guarantee food security
to only the bottom 40% poor.
This target will comfortably cover all BPL
families and some of the Above poverty
line families.
So far only 11 states nished this process. Other

states given time extension to implement NFSA.
Yes continue that.
Rice: Rs 3/kg
Wheat: Rs 2/kg
Coarse Grain: Rs 1/kg
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Priority households- those

slightly better o than
AAY-BPL families- theyll get
grains at Rs 3/2/1/kg.
No. dont give so much subsidy. It should be

just 50% below MSP.
At present the MSP for wheat is ~14 Rs/kg
each. So, sell it to priority households at
Rs.7 per kg. (either physical grain through
PDS shop, or transfer required subsidy in
their account to enable them buy it at
market price. e.g. if market price is Rs. 30
then 30-7=Rs.23 cash transfer in account)
similar for rice and coarse grains.
Otherwise, Governments subsidy expense
will become unsustainable.
Priority households get 5kg

grain per person.
Under TDPS system, BPL families used to

get 7 kg per person. So, Food security act is
actually fooling them.
Better give 7kg/per person to priority
households. And assuming average family
size is 5 members- thus each Priority
household too will get 7 x 5=35 kg per
family per month- just like Antyodaya
households.
06/21/2015 11:18 AM
#9: Pink slips and VRS

Worker
FCIs top 350 babus
FCIs departmental laborer
Contractual Labour
Avg. monthly salary paid

Rs.4 lakhs per month!
~25,000 to 80,000/Hardly 10,000/-
Shanta Kumar recommends

First begin mechanization of operations- to reduce manual labour
requirements.
Reduce the number of Zonal and regional oces. Keep direct touch with
state agencies via e-governance modules.
Then give VRS to FCIs permanent sta.
At top level, hire executives from private sector (instead of replying
Generalist-IAS on deputation).
As and where possible simply outsource or hire dailywage contractual
laborers.
Result? Leaner and nimble FCI, low-cost of operations and higher economies
of scale.
Criticism against Shanta Kumar report

Since Shanta Kumar criticized FCI, then someone must criticize Shanta Kumar to
complete the Karma-Cycle. And who is more qualied to perform this religious
duty, than the columnists at theHindu newspaper? So lets begin:
Angry trade
union
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Shanta recommends FCI to hire contractual sta, close

regional oces and give VRS to employees. Trade union
leaders dont like it. Not one bit.
Survey method
wrong
Shanta says only 6% farmers beneted from MSP

procurement regime and nearly 50% of the foodgrains are
siphoned o from PDS system (NSSO, 2011).
But experts dispute the NSSO-survey methodology used in
deriving these numbers. (Jean Dreze, EPW)
Privatization
wrong
It is true that large number of farmers are not beneted

from public procurement, but FCI has not opened
branches outside selected regions.
So, instead of privatizing the operations, FCI should open
more oces at subdistrict level.
Poors left out
Shanta wants to reduce the coverage of food security act

from 67% population to only 40% population. he
prescribes that priority households should not be given
06/21/2015 11:18 AM
cheap grains at 1/2/3 rupees.

Many poor families will be deprived of their basic right to
food.
Instead of limiting the population under PDS, we should
approach universal PDS i.e. everyone rich or poor eligible
for subsidised food grains.
Bowing to
Imperial
Masters
Recall the WTO-Doha-round-10%-Food subsidy-peaceclause controversy. click for detailed article

It seems Shanta Kumar has tailored his numbers to pacify
the food-subsidy quota requirements under WTOs
agreement on Agriculture (AoA), and Modi-Obama deal to
innitely continue peace-clause was just an eyewash.
Farmer suicides
Given the UPAs trend of announcing bumper increases in

MSP each year- large number of farmers growing rice and
wheat.
Modi did not increase MSP for wheat and rice
signicantly after assuming power.
So, to cover those farmers losses and prevent any
distress sales and suicides, the state Government
announced higher bonus price above MSPs.
Now Shanta recommends Modi not to do open ended
procurement from such states, above buer stock limits.
This will catalyze distress sells and farmer suicides.
DBT idea is awed:

1. USA too uses similar food stamp program, but many poors misuse the
foodstamps for purchasing liquor and even narcotic drugs.
2. While food can be shared among family members, cash can be misused-Even
if cash transferred to lady of the house, there is no guarantee Indian husband
wont beat her up, loot the money and spend it on desi-liquor and gambling.
3. Yes, Brazil Mexico and other Latin American nations use Conditional cash
transfers but not only as a Supplement and not replacement for their
public distribution system.
4. Such Free cash will increase bidi and gutka usage among rural men and
women- every time they visit local kirana store. Sometimes even shopkeeper
will lure them saying he doesnt have chillar- so take this gukta pouch!
(Counter argument: with Rupay card the chillar problem will vanish, and
family can fulll use Rupay card every 45 days to claim accident insurance;
Double-counter argument: banking penetration still low-many tribal families
in remote areas will be left out for the lack of Jandhan account and outlets)
In short, Cash transfers are likely to bring in their trail predatory commercial
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interests and exploitative elements, eager to sell alcohol, branded products, fake
insurance policies, Saradha-like-ponzi schemes or other items that would
contribute very little to peoples nutrition or well-being. (Jean Dreze,
Indianexpress )
Appendix: FCI: Present structure

Board of directors
Main body
Daily
reghting
1.
2.
3.
4.
5.
chairman of the board

MD of Central warehousing corporation
MD of FCI
3 directors to represent union ministries
6 directors
MD of FCI from Delhi HQ
Chiefs of 5 zonal oces
Chiefs of 25 regional oces.
Manpower ~25,000 permanent sta and ~1 lakh contractual sta.

Now lets check Shanta Kumars major recommendations one by one:
Mock Questions for CSAT

Q1: Consider following Pairs of Committee vs their ocial mandate:
1. Shanta Kumar: Restructuring of national food security act, Mid-day meal
and other food distribution schemes.
2. Usha Thorat: Granting licenses to small banks
3. Nachiket Mor: Granting licenses to payment banks
Which of them are correctly matched?
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a.
b.
c.
d.
Only 1 and 2
Only 2 and 3
Only 1 and 3
all of them
Q2. Find correct statements

1. National food security act aims to cover 65% of Indian population.
2. Shanta Kumar Committee recommends this NFSA-coverage be reduced to
50% of Indian population only.
3. Both A and B
4. Neither A nor B
Q3. Arrange following in the correct chronological order
1.
2.
3.
4.
FCI
Target PDS system
food security Act
Nutrient Based subsidy (NBS)
Answer choices
a.
b.
c.
d.
1234
1243
2143
4123
Q4. Which of the followings are outside the purview of Agriculture

ministry?
1. FCI
2. Minimum support prices to farmers
3. Decentralized procurement system
Answer choices
a.
b.
c.
d.
Only 1 and 2
Only 2 and 3
Only 1 and 3
all of them
Q5. Private Entrepreneurs Guarantee (PEG) is administered by

a.
b.
c.
d.
Commerce ministry
Finance ministry
Consumer aairs ministry
agriculture ministry
Q6. Ocial mandate of FCI includes
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1. public procurement of foodgrains

2. storage of foodgrains
3. distribution of foodgrains
Answer choices
a.
b.
c.
d.
Only 1 and 2
Only 2 and 3
Only 1 and 3
all of them
Q7. Which of the following are recommended by Shanta Kumar Committee

on FCI restructuring
1. FCI alone should handle all procurement throughout India
2. Create a separate autonomous body to perform quality checks on the grains
procured by FCI
3. FCIs contractual sta should be converted into full-time permanent sta.
Answer choices
a.
b.
c.
d.
Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them
Q8. Which of the following are not recommended by Shanta Kumar

Committee on FCI restructuring
1. Coverage of National food security act should be widened.
2. Priority households under NFSA should be given more grain allotment
3. Antyodaya households should be given grains at 50% below the MSP
Answer choices
a.
b.
c.
d.
Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them
Q9. Shanta Kumar Committee on FCI restructuring has recommended

building Strategic reserve of foodgrains. Under which
a.
b.
c.
d.
5MMT grains to be stored in physical form

5MMT grains-equivalent to be stored in forex currency form
Both A and B
Neither A nor B
Q10. Shanta Kumar Committee on FCI restructuring has recommended
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which of the following measures?

a. To provide livelihood to jute industrial workers, FCI must transport grains in
only in jute gunny bags right from procurement to retail distribution chain.
b. To ensure employment to manual-laborers, FCI godowns should avoid usages
of forklifts and other mechanized instruments.
c. Both A and B
d. Neither A nor B
Q11. For cash transfer, which of the following are not recommended by
Shanta Kumar Committee?
1. Farmers be given subsidy on per hectare basis.
2. Direct benet transfer to PDS-Consumers must be rolled out rst in J&K and
North-east where leakages are maximum
3. Cash transfer should be made in the jandhan account of the patriarch of the
family
Answer choices
a.
b.
c.
d.
Only 1 and 2
Only 2 and 3
Only 1 and 3
None of them
Descriptive Questions for mains examination:

1. From the food-shortages of 1960s, India has moved into food-surpluses in
post-2010 period, but somehow the FCI-TPDS has not able to deliver on its
objectives very eciently. Critically examine the reasons and suggest
remedies.
2. Since its inception, FCIs procurement and buer norm practices have been
tonnage centric rather than farmer centric or poor centre. Discuss how it
has hurt Indian economy and people.
3. Shanta Kumar Committee has asked Government to reduce the coverage of
NFSA in the interest of scal consolidation. Justify your stand on this
recommendation.
4. To prescribe direct cash transfer as the panacea for the ills of poverty and
hunger, is an oversimplication of the problem. Elaborate.
5. Decentralization and private sector participation is essential for ecient
management of procurement and public distribution system of Modern
India. Elaborate.
6. Dene Food security and list the measures taken by Government of India to
ensure food security in India.
7. (interview) Apart from what Shanta Kumar recommended, what other
suggestions would you make for reforming PDS system in India? What if we
simply privatize FCI?
19 of 20
06/21/2015 11:18 AM
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URL to article: http://mrunal.org/2015/02/shanta-kumar-reportfci-restructuring-buer-stock-food-security.html
Copyright 2014 Mrunal. All rights reserved.
20 of 20
06/21/2015 11:18 AM

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Mrunal Summary: Shanta Kumar Report FCI refo...

[GS3] Shanta Kumar report on FCI-restructuring, Buer

What is Food security?

What is Food security?

What has India done to achieve it?

Mrunal Summary: Shanta Kumar Report FCI refo...

Agricultural Prices Commission begins prescribing minimum

CACP: Commission for Agricultural Costs and Prices (CACP) under

Decentralized Procurement Scheme (DCP), introduced

Targeted Public distribution system (TPDS)

Mrunal Summary: Shanta Kumar Report FCI refo...

State Governments decide BPL and APL based Planning commission

Antyoday Anna Yojana: 25 kg foodgrain per family at the rate of Wheat

Disturbing Numbers: FCI and Food Mismanagement

Mrunal Summary: Shanta Kumar Report FCI refo...

Is the number of crops for which, CACP announces minimum support

Of Indian farmers could sell their produce to Government

Of PDS-grains are siphoned o to blackmarket, says NSSO report

Mrunal Summary: Shanta Kumar Report FCI refo...

In the light of these problems, Shanta Kumar Committee was setup