Critically examine the need of FCI procurement policy in aftermath of three farms bills passed.

  • January 11, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPS Topics
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Approach:

Introduction

Food Corporation of India is the primary organisation for ensuring food security despair critical role the looming crisis of hunger and starvation during the covid-19 primary duty is to undertake purchase to transport distribute and sell food grains

Body

  1. Functional challenges

The food corporation of India faces numerous challenges

Operationally expensive inefficient and corrupt

Lack proactive liquidation policy and a vast buffer of food grains and no place to store them

FCI conducts open and procurement which means a government will by any quantity

The current system of liquidation of excess stocks through open market sales screen or true export market is extremely Ad-Hoc and slow

  1. Farm bills and the new norm for FCI
    • With the advent of the new farm reforms and the central government proclaiming that MSP will stay the financial burden of FCI will continue
    • The procurement cost to the farmers in states like Punjab haryanamadhya Pradesh chhattisgarh and Andhra Pradesh are given a margin higher than 50 % of cost
    • Whether form in APMC act the need for FCI to pay the commission agents are are taken away
    • Earlier gunny bags a procured crore rate contract fixed by the jute commissioner on the basis of tariff commission formula
    • Huge stock of unused grains are a burden of FCI with the conditions of harvest clear then the procurement guidelines are needed to redefine the the standards
    • Earlier the full form of APMC act the commission the market different for different state hence a change in MSP was needed now with a single market access by apmc act help fCI to procure at common rate which needs new policy guidelines
    • New reforms allows private sector players to take part in contract bases with the farmers power FCI can tie up with private parties to handle the huge stock of of food grains
    • New essential commodities act allows application of act under exceptional circumstances a new guidelines to FCI for procurement at such extreme situation is needed
    • FCI must the model procurer for the farmer producer organisation that are encouraged to emerge after the farm bills
    • Guidelines for laying a ppp or a special purpose vechile between FCI and farmer producer organisation and private play corporates are needed hence the guidelines has to be addressed by the new procurement policy
    • New policy for implementing the the recommendations of Shanta Kumar committee essential after the new bills

Conclusion

(Give the recommendations of Shanta Kumar committee)

FCI needs to act as a guardian for the farmers  in case of any e option cost in the contract by private players and and sure them getting the income, which makes the policy an urgent need

Critically examine the need of FCI procurement policy in aftermath of three farms bills passed. economy