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{{Short description|Government-appointed committee in India}}

The '''Shanta Kumar Committee''', officially known as the '''High-Level Committee on Reorienting the Role and Restructuring of the Food Corporation of India (FCI)''', was a government-appointed committee in India established in August 2014 to review and recommend reforms for the [[Food Corporation of India]] (FCI). Chaired by [[Shanta Kumar]], a former [[Chief Minister of Himachal Pradesh]] and senior [[Bharatiya Janata Party]] (BJP) leader, the committee submitted its report to Prime Minister [[Narendra Modi]] in January 2015. The committee's recommendations focused on improving the efficiency of FCI's operations in procurement, storage, and distribution of food grains, as well as restructuring India’s food security system.

== Background ==
The [[Food Corporation of India]], established in 1965, is a statutory body responsible for ensuring [[food security]] through procurement, storage, and distribution of food grains under the [[National Food Security Act, 2013]] (NFSA).<ref>{{Cite web |title=Food Corporation Of India {{!}} Official Website of Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, Government of India |url=https://dfpd.gov.in/food-corporation-of-india/en#:~:text=The%20Food%20Corporation%20of%20India,into%20a%20stable%20security%20system. |access-date=2025-08-22 |website=dfpd.gov.in}}</ref>

Over the years, FCI faced challenges such as inefficiencies in procurement, high operational costs, and issues with storage and distribution.<ref>{{Cite journal |last=Mogale |first=D. G. |last2=Kumar |first2=Sri Krishna |last3=Márquez |first3=Fausto Pedro García |last4=Tiwari |first4=Manoj Kumar |date=2017-02-01 |title=Bulk wheat transportation and storage problem of public distribution system |url=https://www.sciencedirect.com/science/article/pii/S0360835216305058 |journal=Computers & Industrial Engineering |volume=104 |pages=80–97 |doi=10.1016/j.cie.2016.12.027 |issn=0360-8352|hdl=10578/18936 |hdl-access=free }}</ref>

In response, the [[Government of India]], under Prime Minister Narendra Modi, formed the Shanta Kumar Committee on 20 August 2014, to suggest measures for restructuring FCI and improving food grain management.<ref name=":0">{{Cite web |date=2014-08-20 |title=Govt forms panel to study restructuring of FCI - BusinessToday |url=https://www.businesstoday.in/latest/economy-politics/story/food-corporation-of-india-restructuring-ram-vilas-paswan-136656-2014-08-20 |access-date=2025-08-22 |website=Business Today |language=en}}</ref>

The committee included six members and a special invitee, with notable members such as agricultural economist [[Ashok Gulati]].<ref name=":0" />

== Objectives ==
The committee was tasked with:<ref name=":1">{{Cite web |title=Recommendations of High Level Committee on restructuring of FCI |url=https://pib.gov.in/newsite/PrintRelease.aspx?relid=114860 |archive-url=https://web.archive.org/web/20250320222700/https://pib.gov.in/newsite/PrintRelease.aspx?relid=114860 |archive-date=2025-03-20 |access-date=2025-08-22 |website=www.pib.gov.in}}</ref>

• Examining the administrative, functional, and financial structure of FCI.

• Suggesting models to improve FCI's operational efficiency and financial management.

• Reorienting FCI's role in [[Minimum support price (India)|Minimum Support Price]] (MSP) operations, storage, and distribution under the Targeted Public Distribution System (TPDS).

• Proposing cost-effective models for storage and movement of food grains and integration of the supply chain.

The committee conducted extensive consultations with Chief Ministers, Food Secretaries, and other stakeholders across various states, and invited public suggestions through newspapers.

== Key recommendations ==
The Shanta Kumar Committee's report, submitted on 20 January 2015, proposed several reforms to enhance FCI's efficiency and address food security challenges.<ref>https://www.isaeindia.com/publication/download-pdf/9</ref>

Key recommendations included:<ref name=":1" /><ref>https://sansad.in/getFile/annex/237/Au2323.pdf?source=pqars</ref>

1. '''Reduction in NFSA Coverage''': The committee recommended reducing the coverage of the [[National Food Security Act, 2013|National Food Security Act]] from 67% to 40% of the population to focus subsidies on the most vulnerable. It also suggested increasing the per-person grain entitlement from 5 kg to 7 kg and linking subsidised prices to MSP to control [[fiscal deficit]]s.<ref name=":2">{{Cite web |last=Jitendra |date=2015-01-22 |title=Reduce food security benefits from 67% to 40% population, says panel on restructuring FCI |url=https://www.downtoearth.org.in/environment/reduce-food-security-benefits-from-67-to-40-population-says-panel-on-restructuring-fci--48344 |access-date=2025-08-23 |website=Down To Earth |language=en}}</ref>

2. '''Decentralised Procurement''': FCI should hand over procurement of wheat, paddy, and rice to states with sufficient infrastructure and experience, such as [[Andhra Pradesh]], [[Chhattisgarh]], [[Haryana]], [[Madhya Pradesh]], [[Odisha]], and [[Punjab]]. FCI would accept surplus grains from these states for distribution to deficit states, focusing its own procurement efforts on states with weak procurement systems, such as [[Eastern Uttar Pradesh]], [[Bihar]], [[West Bengal]], and [[Assam]].

3. '''Outsourcing Storage''': The committee proposed outsourcing FCI's stocking operations to agencies like the [[Central Warehousing Corporation]], State Warehousing Corporations, and private sector entities under the Private Entrepreneur Guarantee (PEG) scheme.

4. '''Direct Benefit Transfers''': It recommended adopting cash transfers for MSP and food subsidies, starting in cities with populations over one million, to reduce costs associated with procurement, storage, and distribution. The committee estimated savings of ₹33,000 crore through this method.

5. '''Negotiable Warehouse Receipt System''': The committee suggested promoting a Negotiable Warehouse Receipt System, allowing farmers to store produce in authorized warehouses, obtain receipts, and secure loans against them (up to 80% of MSP value). This would reduce distress sales and compensate farmers for market prices below MSP without FCI procuring excess grains.

6. '''Ending State Bonuses''': The committee advised stopping bonuses on MSP paid by states to farmers, arguing that such bonuses distort procurement and lead to inefficiencies.

== Reception and impact ==
The committee's recommendations sparked significant debate. Supporters, including Shanta Kumar, described the reforms as a "magic wand" for addressing farm and hunger distress, emphasising efficiency and cost savings. However, critics, such as the [[Communist Party of India]] (Marxist), argued that the recommendations, particularly the reduction in NFSA coverage, would undermine food security by limiting access to subsidised grains and reintroducing flawed [[Above Poverty Line]] (APL) and [[Below Poverty Line]] (BPL) classifications. They also criticised the committee's reliance on questionable data, such as an NSSO survey claiming only 6% of farmers benefited from MSP, which conflicted with actual procurement figures.<ref name=":2" /><ref>{{Cite web |title=Communist Party Of India (Marxist) |url=https://cpim.org/cpim-opposes-shantakumar-committee-report/ |access-date=2025-08-23 |language=en}}</ref><ref>{{Cite web |title=CPM opposes Shanta Kumar committee recommendations |url=https://www.tribuneindia.com/news/archive/community/cpm-opposes-shanta-kumar-committee-recommendations-34385/ |access-date=2025-08-23 |website=The Tribune |language=en}}</ref>

The government considered the recommendations, with Union Minister [[Ram Vilas Paswan]] emphasising streamlining FCI operations in line with the report.<ref>https://www.pib.gov.in/PressReleasePage.aspx?PRID=1573682</ref><ref>https://sansad.in/getFile/annex/235/Au1464.pdf?source=pqars</ref><ref>{{Cite web |last=Mrunal |date=2015-02-12 |title=Summary: Shanta Kumar Report FCI reform & Food security |url=https://mrunalmanage.wpcomstaging.com/2015/02/shanta-kumar-report-fci-restructuring-buffer-stock-food-security.html |access-date=2025-08-23 |website=Mrunal |language=en-GB}}</ref>

Some suggestions, such as direct benefit transfers, influenced schemes like the PM Kisan Samman Nidhi Yojana.<ref>{{Cite web |last=Arnimesh |first=Shanker |date=2020-09-22 |title=Only 6% ‘elite’ farmers opposing the bills, says BJP veteran who recommended farm reforms |url=https://theprint.in/india/only-6-elite-farmers-opposing-the-bills-says-bjp-veteran-who-recommended-farm-reforms/508265/ |access-date=2025-08-23 |website=ThePrint |language=en-US}}</ref>

== Criticism ==
The committee's report was criticised for its perceived bias toward privatisation and market-driven approaches. Critics argued that reducing NFSA coverage and promoting cash transfers could weaken the [[Public Distribution System (India)|Public Distribution System]] (PDS) and exclude vulnerable populations. The recommendation to limit FCI’s procurement role was seen as potentially harmful to farmers in states with weak procurement infrastructure.<ref>{{Cite web |title=The Criminal Approach of the Shanta Kumar Committee Report {{!}} Peoples Democracy |url=https://peoplesdemocracy.in/2015/0208_pd/criminal-approach-shanta-kumar-committee-report |access-date=2025-08-23 |website=peoplesdemocracy.in}}</ref>

== References ==
{{Reflist}}

{{DEFAULTSORT:Shanta Kumar Committee}}
[[Category:2014 establishments in India]]
[[Category:Government of India]]

Shanta Kumar Committee - Revision history

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