In Focus: Shanta Kumar Committee Report
Subject: Economy
Sector: Agriculture
Recent News: PIB, Dated June 3
CNA references: 1( Dated June 3 )
Insights into the Shanta Kumar Committee Report
The Shanta Kumar Committee Report makes several significant recommendations, the most notable of which is the suggestion that the Food Corporation of India (FCI) should transfer all procurement operations of wheat, paddy, and rice to states that have demonstrated adequate expertise and infrastructure for the task. These states include Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha, and Punjab.
The report further suggests that the FCI should only accept surplus produce from these states after their own needs under the National Food Security Act (NFSA) have been met. The FCI should then focus its efforts on aiding states where farmers are forced to sell their produce at prices significantly below the Minimum Support Price (MSP), such as Eastern Uttar Pradesh, Bihar, West Bengal, Assam, etc.
The report emphasizes the need for an agreement between the FCI and the states regarding costing norms before each procurement season. It suggests that states should be clearly instructed by the center that if any bonus is given on top of the MSP, the grains will not be accepted by the Center under the central pool. The report also advocates for stringent quality checks and standards for the produce. Any produce that does not meet these standards will not be accepted into the central pool.
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