Jan 22 2015 : The Times of India (Delhi)
Cut food security coverage to 40% from 67% of popn: Panel
Dipak Kumar Dash & Surojit Gupta
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New Delhi:
TNN
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The government should reduce coverage under the National Food Security Act (NFSA) to 40% of the population from 67% and defer implementation of the scheme in states which have not complied with the rollout conditions, a panel appointed by Prime Minister Narendra Modi has recommended.The panel headed by for mer food minister Shanta Kumar submitted the report to the PM on Wednesday. Re forming the subsidy regime is a key plan of Modi's economic reforms.
It has recommended far reaching changes in the functioning of the state-run Food Corporation of India and the minimum support price (MSP) regime. It has suggested that the foodgrain under NFSA for those below the poverty line should be raised to 7kg per person from the current norm of 5 kg. A panel headed by former food minister Shanta Kumar has called for moving to a direct cash transfer regime for food subsidy and estimated that the savings on food subsidy could be as much as Rs 30,000 crore per year. “Move to cash transfer and start with 53 million-plus cities.The states which are deficit in grains should be given the option of either grain or cash,“ said a source.
The panel has also suggested that fertilizer subsidy should be paid to farmers directly on per hectare basis which comes to around Rs 7,000 per hectare. “This will result in saving nearly Rs 10,000 to Rs 15,000 crore annually in fertilizer subsidy ,“ the source said. There should be a liquidation policy which will kick in immedi ately when the stocks go beyond the buffer stock limit. At present, FCI sells in open market or exports after approval cabinet which some experts say raises its carrying cost. “FCI should get a free hand,“ the source said.
The panel has recommended that the name of FCI be changed. “The new of FCI will be akin to an Agency for Innovations in Food Management System with a primary focus to create competition in every segment of food grain supply chain, some procurement to stocking to movement and finally distribution in public distribution system so that the overall costs of the system are substantially reduced, leakages plugged and it serves large no of consumers and farmers,“ the source said.
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It has recommended far reaching changes in the functioning of the state-run Food Corporation of India and the minimum support price (MSP) regime. It has suggested that the foodgrain under NFSA for those below the poverty line should be raised to 7kg per person from the current norm of 5 kg. A panel headed by former food minister Shanta Kumar has called for moving to a direct cash transfer regime for food subsidy and estimated that the savings on food subsidy could be as much as Rs 30,000 crore per year. “Move to cash transfer and start with 53 million-plus cities.The states which are deficit in grains should be given the option of either grain or cash,“ said a source.
The panel has also suggested that fertilizer subsidy should be paid to farmers directly on per hectare basis which comes to around Rs 7,000 per hectare. “This will result in saving nearly Rs 10,000 to Rs 15,000 crore annually in fertilizer subsidy ,“ the source said. There should be a liquidation policy which will kick in immedi ately when the stocks go beyond the buffer stock limit. At present, FCI sells in open market or exports after approval cabinet which some experts say raises its carrying cost. “FCI should get a free hand,“ the source said.
The panel has recommended that the name of FCI be changed. “The new of FCI will be akin to an Agency for Innovations in Food Management System with a primary focus to create competition in every segment of food grain supply chain, some procurement to stocking to movement and finally distribution in public distribution system so that the overall costs of the system are substantially reduced, leakages plugged and it serves large no of consumers and farmers,“ the source said.
For the full report, log on to http:www.timesofindia.com
