Mains-69: Public Distribution System, Buffer Stocks and Food Security

9 Comments

  1. dksharma

    October 4, 2015 at 8:06 pm

    Sir
    According to NFSA, rice, wheat and coarse cereal each are given at subsidised rate to the beneficiaries subjected to maximum 5 kg. this 5 kg is maximum of each or all three contained together should not exceed 5kg?

    • Suresh Soni

      October 5, 2015 at 11:29 am

      Hello DK, its 5KG per person.

  2. dksharma

    October 4, 2015 at 8:19 pm

    Sir
    As per figures, there is a surplus food grain ( that too left in open yard for rotting) in the FCI stores.
    Being a Public sector undertaking, why FCI never thought of exporting the surplus grains and add gains so received to exchequer? These gains can be further utilised positively in other ways like reducing burden of subsidy, minimising virtual losses occurred through procurement of over priced grains (when MSP increased through political interventions) etc.

    • Suresh Soni

      October 5, 2015 at 11:36 am

      They had tried several times to export. But you can’t export something on profit which you already bought at some subsidized price.

  3. ramsmca0609

    October 7, 2015 at 5:53 am

    Under “Foodgrains Management and Public Distribution System” section-
    The famine ended with Mother Nature bestowed with some better amount of rice in 1944.
    Please let me know what is Mother Nature?

    • Suresh Soni

      October 7, 2015 at 9:26 am

      Hello Ram, The famine ended in 1944 because Bengal thankfully delivered a strong rice harvest not by any policy intervention but by good rains and natural reasons. My idea was to say this.

    • ramsmca0609

      October 7, 2015 at 9:46 am

      Thanks Sir. Sounds good…

  4. Moriarty

    October 7, 2015 at 10:17 am

    Sir
    Regarding the issues with FCI, one point you have mentioned is that FCI has to pay a hefty sum as interest and the diseconomies of scale have seeped-in. Could you please elaborate this part?

    • Suresh Soni

      October 7, 2015 at 10:33 am

      Hello, It was discussed by Shantakumar Panel. The problem with FCI is that any nonpayment of subsidy amount by the Government would put it in financial problem. Every now and then it is forced to borrow. When it borrows from banks, it needs to pay interest. Check this news about this. It also releases Bonds. FCI Bonds are Gild edged bonds, AAA-rated, backed by government guarantee.

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