Committee Report for FCI restructuring submitted to PM
The High Level Committee for Restructuring of Food Corporation of India (FCI), on Wednesday, submitted its report to the Prime Minister. The Prime Minister, in response to that, has asked the Department of Food and Public Distribution to expeditiously give their comments on the report, so that it can then be implemented in a time-bound manner. The Committee was aimed at examining the present day administrative, functional and financial structure of FCI and modus operandi of its various operations. The Committee was also required to suggest a model for restructuring FCI to improve its operational efficiency and financial management, and suggest measures for overall improvement in management of food grains by FCI. The eight-member Committee, chaired by Member of Parliament from Himachal Pradesh Shanta Kumar has finalized the report after discussing with various stakeholders and FCI officials. The terms of reference of the panel was to study various models of restructuring or unbundling of FCI and to suggest the best-suited model to improve its operational efficiency and financial management. According to the sources, the report has gone beyond the terms of reference and it recommends for the major overhaul of FCI. The Ministry of Consumer Affairs created a Committee in August 2014 in view of restructuring FCI, owing to functional and cost inefficiencies that occurred in the Corporation, say sources. It is noteworthy here to mention that the reconstruction of FCI structure was NDA’s promise, with an aim to separate the procurement, storage and distribution activities, so as to reduce wastage and improve the functioning of Public Distribution System. According to the sources, the Committee report may also focus on reorientation of FCI’s role in minimum support price operations and look into efficient storage models, low-cost options of food grains and up gradation of technology. The Minister for Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan, was also present on the occasion. Ashok Gulati, Member of the Committee, made a presentation on the various recommendations of the report.
This article was published on January 21, 2015.