CM Shanta Kumar committe : FCI Report

In Punjab and Haryana, as in rest of the country, the Food Corporation of India is a key player in foodgrain procurement, but the report of the High Level Committee, headed by former Himachal CM Shanta Kumar, to restructure the FCI has triggered massive panic in Punjab and Haryana.

This report has come after six months of consultations.

If Shanta panel's recommendations accepted, Punjab will suffer a revenue loss of Rs 2,500 crore every year. But the danger is even bigger. Farmers are panicked about FCI virtually absenting itself from procurement. The report says FCI must now focus on UP, Bihar, WB and Assam where farmers sell in distress. It says it should stop procuring in Punjab, Haryana etc.

Punjab and Haryana are worried with withdrawal of FCI from purchasing wheat/rice and also worried by any sharp fall in double-digit cess

The report claims that only 6% of farmers gain by selling to procurement agencies, and the targeted PDS suffers leakages of 46.7%.

It recommends deregulating the fertiliser sector, decontrol of Urea, providing direct subsidy to farmers, and outsourcing storage operations. It also wants to get rid of massive FCI staff by giving them option of voluntary retirement. It wants end to bori (gunny bag) system and instead says grain movement should be via containers.

These are huge and shocking developments for Punjab and Punjabi farmers. One BKU faction has already gone and submitted memorandum. The issue is set to find a lot of traction in the coming days.

Our panelists will include ---

1. Balwinder Sidhu, Commissioner, Agriculture, Punjab

2. Ravinder Singh Cheema, Vice Chairman, Punjab Mandi Board

3. Dr Ranjit Singh Ghuman, expert on political economy of agriculture, CRRID

4. Balbir Singh Rajewal, President of Bharti Kisan Union

Report error