Capping of FCI acceptance of procured stocks within the state-wise norms of National Food Security Act (NFSA), measures to make Food grain Management system more efficient, decentralization of procurement in the major public procurement states and ramping up of Negotiable Warehousing Receipts are some far-reaching steps.
Further, the case for direct cash subsidy for fertilizers has been proposed towards judicious usage of inputs by farmers as per soil requirements and towards curbing the subsidy bill. Moreover, unbundling of the corporation, outsourcing of operations to specialized agencies including the private sector, thrust on PPP projects, FDI for grain storage as well as modern silo structures, will pave the way forward for a professional approach.
ASSOCHAM recommends that the following additional steps shall further assist in reforming the Indian agricultural & food security scenario:
Subsidies rationalization to be directed towards productive asset creation in rural areas and towards aiding farmers to efficiently connect with markets Identification of beneficiaries for direct benefit transfers needs to be transparent Lower stocking as per buffer norms along with reduction of state levies and incentives for private participation in the public food system will help contain market aberrations and promote private sector contribution to efficiently aid the Government's efforts to ensure food security for all Setting up of strong directional guidance for subsidy rationalization coupled with GST and APMC regulatory changes shall aid creation of a transparent & efficient national market for food grains.
ASSOCHAM is confident that the Committee has taken bold steps including improving of public food system efficiency, bringing substantial savings to the exchequer, improving, promoting crop diversification and effectively balancing the farmer & consumers' needs.
Powered by Capital Market - Live News
