FCI Reports Record Surplus in Central Pool Buffer Stocks
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: Procurement was primarily viewed as a food security and deficit-management tool to prevent famines. NOW: It has become a complex surplus-management challenge, with combined wheat and rice stocks reaching nearly three times the required buffer norms.
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BEFORE: The Economic Cost of Food Grains was manageable within the allocated food subsidy budget. NOW: The massive 58.4 million tonnes of combined stocks have inflated carrying costs (storage, interest, and handling), severely straining the fiscal deficit.
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BEFORE: Buffer norms dictated a maximum January 1 requirement of 21.4 million tonnes of combined rice and wheat. NOW: Actual combined stocks surpassed 58.4 million tonnes, highlighting a severe policy disconnect regarding the limits of open-ended procurement.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the Food Corporation of India (FCI) and buffer stocks? 1. The Economic Cost of food grains to the FCI includes only the Minimum Support Price (MSP) paid to farmers. 2. The Shanta Kumar Committee recommended restructuring the FCI to reduce physical grain procurement and encourage direct cash transfers.