The government on Thursday said it proposed to restructure the Food Corporation of India that procured, stored and distributed foodgrain to identified beneficiaries under the Targeted Public Distribution System.
Presenting his budget proposals for the food sector, Union Finance Minister Arun Jaitley said the government was committed to reducing transportation and distribution losses and enhance the efficacy of the Public Distribution System.
Food Security Act
Although Mr. Jaitley did not mention the National Food Security Act in his budget proposals, he said the government was committed to provide wheat and rice at "reasonable prices" to the weaker sections of the society.
The food subsidy allocation has been enhanced to Rs. 1,15,000 crore from Rs. 90,000 crore in the 2013-14 budget.
"Even if due to inadequate rain, there is a marginal decline in agriculture production, stocks in the Central pool are adequate to meet any exigency. When required, the government shall undertake open market sales to keep prices under control," he said.