· Food management policy involves
o Procurement
o Distribution
o Maintian buffer
o Price stability
· This is done with help of tools like
o Minimum support price
o Central issue price
· The nodal agency for implementing policy is FCI
· FCI currently holds 45.8 mn tonnes of food grains which is more than twice the approved buffer stock
WHY the surplus?
· Ban on export of food grains
· Inability to distibute foodgrains to the poor
· Open ended procurement policy
CONSEQUENCES
· FCI lakcs the storage capacity for surplus.
· As a result it is forced to store them in private godowns or leave it open
· This has lead to rotting of grains and huge holding costs for FCI
WAY AHEAD
Reorder the procurement and food management policies
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