House panel recommends timely construction of more FCI godowns
The Parliamentary Standing Committee, led by DMK MP Kanimozhi Karunanidhi, recommended enhancing Food Corporation of India’s (FCI) storage capacity by constructing dedicated godowns and evaluating cost-effectiveness against rented facilities. The panel criticized FCI’s slow progress, urged better planning, and advocated supporting domestic oilseed farmers and fortified rice distribution to combat malnutrition. Improved budget planning was also recommended.
NEW DELHI: The Parliamentary Standing Committee on Consumer Affairs, Food, and Public Distribution, led by DMK MP Kanimozhi Karunanidhi, has recommended measures to enhance the storage capacity of the Food Corporation of India (FCI). These include plans to construct dedicated godowns and conduct a study on the cost-effectiveness of FCI’s own storage compared to hired facilities.
The FCI, a public undertaking, has failed to meet its target for constructing new godowns, relying instead on rented spaces from private parties. The panel has recommended conducting a detailed analysis to evaluate the expenses associated with rental liabilities for hired storage facilities versus the costs of maintaining own storage in the states.
“It will provide valuable insights into the true cost-effectiveness of FCI’s storage strategy and enable informed decision-making regarding future investments in storage infrastructure,” the report said.
In the report on demand for grants for 2024-25 placed in Parliament, the committee also recommended the ministry of food and consumer affairs to formulate an implementation strategy to achieve the new storage construction targets and solve storage-related issues in timely manner.
Though reasons cited for slow pace of construction were delay in land acquisition from the state governments, harsh topographical conditions and inclement weather, the panel suggested the ministry to put in place better planning and management. The report said that against the target of godown construction with 50,100-tonne capacity in 2023-24, the FCI could achieve only 1,760-tonne capacity, utilising Rs 52.75 crore.
The panel also recommended a balanced approach to ensure sustainability of domestic oilseed farmers and consumer price stability. “There is a sense of unpredictability among oilseeds farmers as government’s policy to import cheaper edible oil discourages them to grow domestically,” the report said. The panel recommend that the department monitor and define import duty structures, stock management and strengthen domestic oilseed production.
Meanwhile, the committee has recommended that the ministry ensure a meticulous implementation of the scheme of distribution of fortified rice across the country. “The emphasis should be on the distribution of fortified rice to those states where rice is a staple food to eradicate malnutrition and improve the overall health and well-being of vulnerable populations,” the report said.
However, the panel found a disparity in budget estimation and actual expenditure under the capital section during the previous year. It recommended that the ministry adopt a more accurate and informed approach while preparing future budget estimates.
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Source : The New Indian Express
