Experts say the panel’s suggestions on public distribution system overlooked reforms undertaken by states
New Delhi: The high-level committee on restructuring of the Food Corporation of India (FCI), which suggested sweeping changes in the procurement and distribution of foodgrains, may have based its conclusions on inflated leakages in the public distribution system (PDS), experts say.
The panel recommended that coverage under the National Food Security Act (NFSA) be reduced from 67% of the population to 40%.
It suggested that the government begin direct cash transfers of food subsidy because the existing delivery mechanisms lead to a leakage of as much as 47%, meaning a large chunk of the subsidized grains does not reach intended beneficiaries.
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