FCI's rising debt stock

India's food management system needs a revamp

The growing indebtedness of the Food Corporation of India (FCI), which bodes ill for its financial health, is essentially the consequence of recurrent under-budgeting of food subsidy by the Union government, excessive stockholding and flawed grain procurement and distribution policies. Inadequate provisions for food subsidy in successive Union Budgets in the past few years have been compelling the FCI to borrow from the National Small Savings Fund and other sources. Open-ended grain procurement at the minimum support prices (MSPs) has, on the other hand, caused excessive accumulation of food stocks, requiring needless expenses on their upkeep. Furthermore, the annual increase