It is being argued that India is struggling with overflowing foodgrains in warehouses. Discuss the statement in view of the existing buffer stock policy of India.

production

• Surplus Wheat production
• High production of coarse grains too

Reason → for overflow. (despite buffer policy (next page))

1. As stated above, → surplus production of food grain

2. High MSP on certain crops promote their production

(3) This is supplemented by availability of fertiliser and power subsidy → increase production (4) Lack of warehouses for storage (5) gaps in the demand-supply (6) Issues with the PDS (distribution system) (7) Lack of coordination amongs Food Corporation of India, state distributing agencies, etc (8) Infrastructural lags → Roads/bridges not fully developed in rural areas (9) High Logistic cost ≈ 14% of GDP (Economic Survey) (10) High Corruption in FCI

Existing Buffer Policy

diagram

• 1. Food corporation of India is main procurement Agency
• 1. Some state agencies also tasked with procurement
• 1. PDS made using Ration Card
• 1. Stock to be distributed under NFSA 2013, Antyodaya Yojna, etc

Way Forward

1. Integrating PDS with technology (online PDS system) → as per Wadhwa Committee recommendation
2. more warehouse construction → FCI said it would invest ≈ 100 crore by 2022 on more warehouse construction
3. Negotiable Warehouse receipt
4. eNAM for transparent market system ↓ less storage issue (more easy marketing) due to
5. Creating [Silo] storage system rather than Cap and Plinth
6. Improving Logistic → steps { Krishi Udan, Krishi Rail (for perishables) }