Suggested Reforms Procurement Side

♤ States which have gained sufficient experience (Andhra Pradesh, Chhattisgarh, Punjab, Haryana and MP) should be encouraged to procure for PDS directly from the farmers.

♤ FCI should focus on states which suffer from distress sale at prices much below MSP, and which are dominated by small holdings, like Eastern Uttar Pradesh, Bihar, West Bengal, Assam etc.

♤ Private sector should be encouraged to shoulder the responsibility of procuring, storage and distribution of PDS commodities.

♤ Negotiable warehouse receipt system (NWRs) should be taken up on priority and scaled up quickly.

♤ GoI should widen its procurement basket so as to incorporate adequate nutrient mix. It will prevent skewed incentive to wheat and rice only and promote crop diversification.

♤ A transparent liquidation policy is the need of hour, which should automatically kick-in when FCI is faced with surplus stocks than buffer norms.