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Saturday, May 28, 2011

Tackling food wastage : BUILD EFFICIENT SUPPLY CHAIN

Food wastage is a matter of concern and the government is still struggling for a solution. Pained by the damage last year, the Supreme Court suggested free grain distribution among the poor. Now BJP leader and former Union Food Minister Shanta Kumar wants the government to give six months’ ration to the poor in one go instead of the monthly supplies to cut the storage costs and waste. On the face of it, the idea looks attractive. However, the problem is the poor do not have the cash for bulk food purchases even at the highly subsidised rates. Secondly, those surviving on Rs 20 a day cannot be expected to spare money for storage arrangements.




In fact, even farmers are often forced to sell their entire produce to repay their debt, buy necessities or fund social ceremonies. Poverty is a hurdle. Then there is the problem of bulk transportation. The Railways is ill-equipped to meet the challenge. Grain stocks keep lying in the railway yards for months before these are moved out of Punjab, Haryana and western UP. Even the public distribution system is unable to handle large supplies. As things are, Mr Shanta Kumar’s well-meaning suggestion, it seems, is impractical but those benefiting from diversion of subsidised PDS food items would welcome it.



The Centre has appointed a committee under Planning Commission member Abhijit Sen to study the feasibility of silos under the public-private partnership model. Given the large-scale pilferage and corruption in grain handling by government agencies, there is no alternative to encouraging private investment in building efficient supply chains, including warehouses, for carrying and storing not just food grains but fruits, vegetables and other perishable items as well. Eminent economist Kaushik Basu advocates food coupons for the poor for buying ration in the open market to avoide PDS and FCI corruption. Since the proposed food law will substantially inflate the government’s food subsidy bill, there is need to put in place an efficient food management system.



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