Report on Food Corporation of India Restructuring Submitted

Shri Shanta Kumar headed the high-level committee for restructuring the Food Corporation of India (FCI) has submitted the report. Shri Raosaheb Patil Danve, Minister of State for Consumer Affairs, Food and Public Distribution, gave this information in a written reply in Rajya Sabha last month.

Major Recommendations Of Committee Are:

• FCI to outsource all procurement operations to States that have gained sufficient experience.
• FCI to move to the Eastern U.P., Bihar, W.B., Assam etc. where small and marginal farmers suffer most from distress sale.
• Quality check through transparent and mechanical process.
• Outsourcing of stocking operations to CWC, SWCs, private sector under PEG scheme on competitive basis.
• Convert old conventional storages to Silos.
• Gradually phase out cover and plinth (CAP) with no grain stocks remaining in CAP for more than three months.
• Mechanization of operations in Food Storage Depots.
• Introduce a pro-active liquidation policy to off-load stocks in the market whenever they are in excess of buffer norms. Greater flexibility to FCI needed to operate in OMSS and export markets.
• De-notification of depots, fixing ceiling on incentives per worker and VRS to Departmental Labour.
• Condition of contract labour should be improved by giving them better facility.
• FCI to reorient into an agency for innovation in foodgrain management system.
• Use of HDPE rather than jute bags for packaging.
• End to End Computerization of food management system - Automation of FCI Operations.

The Minister said that the Government is examining these recommendations and a decision to implement the acceptable recommendations of the Committee will be taken shortly.

Source: Medindia