HIGH LEVEL COMMITTEE RECOMMENDS UNIVERSAL PDS
FINAL
REPORT SUBMITTED TO GOVERNMENT
The High-Level Committee on Long
Term Foodgrain Policy has recommended a system of universal public
distribution system with uniform central issue prices for rice
and wheat for all consumers in all parts of the country. On the
role of FCI the Committee has expressed the view that the Corporation
should continue with procurement operations as at present and
should move into areas where reports of distress sale continue
to be received. FCI should change the way it carries on business
to enable fast commercial oriented decision making while introducing
better work culture and total quality management. The High Level
Committee on Long Term Foodgrain Policy constituted under the
Chairmanship of Prof. Abhijit Sen noted economist and former chairman
of CACP (Commission for Agricultural Costs and Prices) submitted
its final report to Shri Sharad Yadav, Minister of Consumer Affairs,
Food and Public Distribution here today. The Committee has made
far-reaching recommendations with regard to the policy in the
short and long run on foodgrains based welfare schemes, public
distribution system, minimum support prices and procurement policy,
policy on open market sales, export and import, role of private
trade and FCI.
With regard to purchase of foodgrains
on Minimum Support Prices, the Committee is for the continuation
of the MSP policy but with an immediate correction. It was recommended
that CACP should go strictly on the basis of C2 cost of production
(all cost including the imputed cost of family labour, owned capital
and rental on land) in more efficient regions. The Committee has
also recommended that MSP should have statutory status and CACP
should be made an empowered statutory body.
Lowering of C2 cost has been recommended
along with a compensation package to be given to State Governments
for compensating its cultivators, estimated at a total cost of
Rs. 3915 crore. The State Governments, the Committee has suggested
should be free to offer compensation to farmers by way of direct
per hectare transfer, subsiding premiums on insurance scheme on
crop incomes/yield; specific crop diversification schemes; and
other credit or input linked schemes to offset cost including
electricity.
To take care of States which impose
excessive levies on procurement on MSP, the Committee has recommended
that the central government should announce its policy by declaring
a procurement price inclusive of a uniform 4 per cent allowance
which should be maximum price payable for MSP purchases. At this
MSP price, the central government should underwrite open-ended
purchase of fair average quality grains to assure farmers an adequate
return on their costs.
The Committee has also recommended
a massive foodgrains employment programme, expansion of the existing
Antyodaya Anna Yojana Scheme to cover the entire destitute population,
central support for moving to a cooked mid-day meal scheme for
all school going children and strengthening programmes for women
and children.
The Committee has further recommended
that barriers to private trade should be eased. The Essential
Commodities Act should in normal circumstances apply only to situations
of natural disasters or other contingencies. However, it has recommended
that a new set of orders, on the lines of PDS (Control) Order,
2001 may be required to apply to those who voluntarily enter activities
encompassed in public procurement and distribution.
