FCI and reducing inefficiencies
The inefficiencies of FCI and those related to transport, handling, etc. were discussed. Some of the important suggestions were as follows:
• The monopoly of FCI should be removed to help address its inefficiencies. FCI needs to be made more accountable, and reimbursed on cost norms rather than actuals.
• To reduce other related inefficiencies the following examples of Andhra Pradesh were given which could be emulated by others.
++ In order to reduce the expenditure on multiple handling, transport, watch and ward, etc., the Government of Andhra Pradesh (AP) was working out a scheme, in consultation with the FCI, for movement of stocks locally procured from the rice mills directly to the Mandal Level Stockist (MLS) points of A.P. State Civil Supplies Corporation. In deficit districts, to the extent possible, direct movement from the rail head to the FPS was also under consideration.
++ For proper accounting of inflow and outflow of stocks in Andhra Pradesh, supply chain management was also being computerised from FCI godowns to the MLS points.