Shanta Kumar Committee: Recommendations for FCI, PDS, MSP, and Food Security Reforms
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The Shanta Kumar Committee was established in August 2014 to review the operations of the Food Corporation of India (FCI).
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Chaired by Shanta Kumar, its primary goal was to enhance India's food security and improve agricultural stock management.
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Key areas of focus for its recommendations included reforms in the Public Distribution System (PDS), Minimum Support Price (MSP) policy, and the introduction of cash transfers.
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The committee aimed to foster a more efficient and reliable food economy for the nation.
- ●Formed: August 2014
- ●Chairperson: Shanta Kumar
- ●Mandate: Examine the working of the Food Corporation of India (FCI)
- ●Key Focus Areas: PDS changes, MSP policy, cash transfers, food security reforms
Public Distribution System (PDS)
The Public Distribution System (PDS) is a government-sponsored network of fair price shops that distributes essential commodities, such as food grains (wheat, rice), sugar, and kerosene, at highly subsidized prices to eligible beneficiaries, primarily the economically weaker sections. Its core objective is to manage food scarcity and ensure food security, especially for vulnerable populations.
Simple Analogy: Think of PDS as a government-run, subsidized grocery store chain designed to make basic food items affordable and accessible to those who cannot afford market prices.
Food Corporation of India (FCI)
FCI serves as the central agency responsible for the procurement, storage, and distribution of food grains under various government welfare schemes, including the National Food Security Act (NFSA). It plays a crucial role in maintaining buffer stocks to ensure food security, stabilize market prices, and provide price support to farmers.
National Food Security Act (NFSA), 2013
The committee's proposals for PDS reforms and food security directly impact the implementation and effectiveness of the NFSA, which legally entitles a significant portion of the Indian population to subsidized food grains.
Agricultural Subsidies and Fiscal Burden
Recommendations concerning MSP and PDS have profound implications for government expenditure and the fiscal deficit, as food subsidies represent a substantial component of the Union Budget.
Exam Relevance
GS Paper III: Economy, Food Security, Agricultural Policy
General Awareness: Indian Economy, Government Schemes
General Awareness: Economic & Social Issues, Government Policies
General Awareness: Indian Economy, Current Affairs
Previously Asked (PYQs)
Which one of the following is not the most likely measure the Government/ RBI takes to stop the slide of Indian rupee?
Answer: Following an expansionary monetary policy
Consider the following statements: 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
Answer: 1 and 3 only
Which of the following are associated with 'Planning' in India? 1. The Finance Commission 2. The National Development Council 3. The Union Ministry of Rural Development 4. The Union Ministry of Urban Development 5. The Parliament Select the correct answer using the code given below.
Answer: 2 and 5 only
Expected Questions
- ★UPSC may ask: 'Critically analyze the key recommendations of the Shanta Kumar Committee (2014) regarding the Public Distribution System and their potential impact on food security and fiscal management in India.'
- ★SSC/Banking may ask: 'Who chaired the committee formed in 2014 to examine the working of the Food Corporation of India?' or 'Which of the following was a primary focus area of the Shanta Kumar Committee recommendations?'
Topic Frequency
Medium to High for UPSC (as part of broader food security/agricultural policy), Medium for SSC/Banking (direct factual questions).
Key Terms
A government-managed system for distributing subsidized food and non-food items to eligible beneficiaries.
A price fixed by the Government of India to protect producer-farmers against excessive fall in price during bumper production years.
The central agency responsible for procurement, storage, and distribution of food grains for public welfare schemes.
Must Remember
- •The Shanta Kumar Committee was formed in August 2014.
- •Its mandate was to examine FCI's functioning and propose reforms for PDS, MSP, and food security.
- •The committee aimed to create a more efficient and dependable food economy.
Exam Tips
- •Understand the basic functions and challenges of FCI, PDS, and MSP.
- •Relate the committee's recommendations to broader government policies on food security, agricultural welfare, and fiscal sustainability.
- •For UPSC, focus on the 'why' and 'how' of the recommendations and their potential impacts. For other exams, prioritize factual details like the committee's name, year, and main objectives.