Economic Survey 2019-20 blames the 1955 EC Act and the Food Corporation as govt interventions that have undermined markets and held back agricultural growth.
Modi government has been transferring a part of its liabilities to FCI by giving it loans from NSSF and lowering the actual food subsidy in the budget.
A theme has not yet emerged for BJP & people see lack of a contest, which makes it unexciting. For all these reasons, 2024 is turning out to be an unexpectedly theme-less election.
I don’t think so. Because the procurement upto 90 to 95 percent of paddy and wheat is undertaken by state Govt. agencies in respective state and not by FCI. The so called subsidy is being regulated on the name of FCI as because as per the govt. Policy, these procured stock ( wheat and paddy (rice) )is being taken over by FCI to spread all over the country to meet the requirement at different stages at very low price. FCI’s role is also regulated to stabilize the cost by spreading stock in market on the so called floor price i.e, very less to economic price(MSP + statutory taxes etc), which is also being decided by ministry of Consumer affairs, govt. of India. It is relevant to mention that MSP is decided independently by CACP (govt of India). Moreover from the last 20 years govt. has introduced private players to procure stocks , but are fail to minimise the cost infact distress sale were promoted by these players as stocks were purchased not directly from the farmers. Govt. if ,really wants to minimise the cost of procurement, or to minimise the subsidy, eradication of Arhatia system (middle man) in procurement operations, stabilize/minimise the statutory taxes in the procuring state, uplift the NFSA rate ( RS. 2 for wheat and 3 for rice), eradicate the milling charges for raw rice, stop fake procurement by state agencies etc.
I don’t think so. Because the procurement upto 90 to 95 percent of paddy and wheat is undertaken by state Govt. agencies in respective state and not by FCI. The so called subsidy is being regulated on the name of FCI as because as per the govt. Policy, these procured stock ( wheat and paddy (rice) )is being taken over by FCI to spread all over the country to meet the requirement at different stages at very low price. FCI’s role is also regulated to stabilize the cost by spreading stock in market on the so called floor price i.e, very less to economic price(MSP + statutory taxes etc), which is also being decided by ministry of Consumer affairs, govt. of India. It is relevant to mention that MSP is decided independently by CACP (govt of India). Moreover from the last 20 years govt. has introduced private players to procure stocks , but are fail to minimise the cost infact distress sale were promoted by these players as stocks were purchased not directly from the farmers. Govt. if ,really wants to minimise the cost of procurement, or to minimise the subsidy, eradication of Arhatia system (middle man) in procurement operations, stabilize/minimise the statutory taxes in the procuring state, uplift the NFSA rate ( RS. 2 for wheat and 3 for rice), eradicate the milling charges for raw rice, stop fake procurement by state agencies etc.
Wonderful. These are the decisions that will take India forward. Just do it.