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Addressing opportunities for household food security in the emerging economy

Published by:
Publication date
Type of Publication:
Articles & Journals
Focus Region:
Asia and the Pacific
Focus Topic:
Nutrition / Food Systems
Type of Risk:
Managerial & operational
Gopal, K.S.

The country is groaning with food stocks. The Food Corporation of India can neither store nor sell and is accumulating more. With rising cost of procuring, storing, and not being able to sell, the central subsidy to FCI has reached a staggering 14000 crore rupees. The finance ministry and policymakers want to cut this rising subsidy. The Finance Ministry has announced that management of the public distribution system including procurement, storage, and sale must be handled by the State Government. To induce this the Ministry has offered financial support to states but they are not inclined to shoulder the responsibility. The Antodaya scheme will make only a marginal dent on its stocks. The FCI cannot export the grain as its prices are much higher than global prices not in the domestic market as their price is higher. The offer of the FCI to give rice and wheat at procurement prices has no takers in the states. Some states like Andhra Pradesh wants the central issue price to be reduced in order to reduce its own subsidies.