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FCI revamp ruled out

June 26, 2003 19:16 IST

The central government on Thursday ruled out the restructuring of the Food Corporation of India and instead asked the states to remove the shortcomings in the public distribution system.

"The question of restructuring the FCI does not arise. Only its functioning will be improved under the existing framework. States must improve the functioning of PDS and the Centre is prepared to offer all possible assistance for the purpose," Food Minister Sharad Yadav said on Thursday.

After undertaking a nationwide tour to study India's food management, he said there are numerous state agencies involved in handling and distribution of foodgrains before they reach the fair price shops.

Regular review of Below the Poverty Line and Antyodaya Anna Yojana families was not being done so as to include eligible families and to delete the ineligible.

The FCI structure cannot be tinkered with at this critical stage as it will take years to come up with an alternative arrangement he said, adding at best the existing administrative mechanisms can be improved.

He expressed concern that in many states foodgrains were not being made available to beneficiaries during the first week of the month for which allotment was made.

The minister said issues such as these will be discussed threadbare in an all party meeting next month to be presided over by Prime Minister Atal Bihari Vajpayee.

Other shortcomings to be deliberated upon include irregular supply, inadequate or non-availability of PDS commodities at the fair price shops and low purchasing power of BPL families.
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