Panel for fewer TPDS beneficiaries

Suggests outsourcing of grain storage, open-ended procurement system and entry of private players

Will the Narendra Modi government move for the privatisation of Food Corporation of India, cut the percentage of beneficiaries under the National Food Security Act and move for cash transfers in lieu of foodgrain — a move which was vehemently opposed by the Left parties and civil society groups when the National Food Security Act (NFSA) was passed unanimously in Parliament in 2013?

A high-level committee chaired by BJP leader and former Food Minister Shanta Kumar has recommended that the government “re-visit” the UPA’s National Food Security Act as well as the regime for minimum support price to farmers for the foodgrain procured from them for the Targeted Public Distribution System.

Releasing the report at a press conference here, Mr. Shanta Kumar said his party had supported the NFSA which came on the eve of elections in “majboori” (helplessness). “The UPA Bill,” he said, “was actually a National Voter Security Bill.”

The panel, which was asked to look into the “unbundling of the Food Corporation of India,” has suggested cuts in the number of TPDS beneficiaries, outsourcing of foodgrain storage, an open-ended procurement system and entry of private players into bulk handling of food grains.

The high-level committee has suggested that TPDS beneficiaries be reduced to 40 per cent from the current 67 per cent and the rationed grains be priced at 50 per cent of the minimum support price paid to farmers. Each beneficiary should be given 7 kg of grain instead of 5 kg under the Act, and cash transfers be introduced in a phased manner. It is estimated that this will reduce the foodgrain requirement under TPDS from 61.4 million tonnes to about 40 million tonnes.

The panel wants the FCI to hand over the procurement of wheat, paddy and rice to growing States such as Punjab, Haryana, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Odisha with the rider that they will not give bonuses to farmers over and above the MSP determined by the Centre. The surplus States must procure for deficit States. The States must also contain the taxes and statutory levies at three per cent of the MSP from the current two to 14.2 per cent in Punjab.

“With these major changes in the procurement, stocking, movement and distribution of grains, the FCI will transform itself into an agency for innovations in food management,’’ the report said.