This view of the minister assumes added importance as he is a member of the Group of Ministers currently deliberating on the issue. Here are the excerpts of the interview:

What is your response and solution to the current storage problem when FCI and other and other agencies say there is not enough storing space ?
The remedy is simple. We should have a rational policy for foodgrains procurement, storage and distribution. This can be the only permanent solution to the problem. For seeking immediate disposal of stocks, the government should distribute foodgrains to states currently affected by recurring drought like Rajasthan, Gujarat, MP and parts of Orissa. A part of the stock can be kept as contingency for relief measures in places likely to be affected by natural calamities. Foodgrains stock can be utilised for various food-for-work programmes. Government should also think of distributing some foodgrains to the identified poor at more subsidised rates. There is a need to segregate the stocks in the central pool. The good quality of grains can be distributed for human consumption and the poor quality of grains can be distributed as fodder and for industrial use. The government is trying to export some grains from the accumulated stock. Let us wait and see if exports can pick up.

What is your proposal for streamlining the policy of procurement, storage and distribution of foodgrains ?
The operations of FCI and other central procuring agencies are currently limited to only certain regions of the country. Farmers all over the country are working hard and are producing grains of good quality. The FCI is unable to procure them as it has not yet set up adequate infrastructure in these places. As a result the farmers often sell their produces below the minimum support price (MSP).

The possible solution to this problem can be that all the states be allowed to procure, store and distribute foodgrains with the help of subsidy from the central government. I am sure that the state governments can carry out these operations more effectively as they are more closely associated with the farmers and have intimately knowledge about the areas of surplus and deficit production.

This policy will also help the states to plan for development of agriculture and rural development more effectively. Experiences have shown that when the Centre receives reports of farmers going for distress sales in some states, FCI is called upon to intervene. The FCI team very often do not go to the actual remote areas where farmers are doing distress sales.

Don't you thinks that the food subsidy bill is likely to increase on account of such a policy ?
Not at all. Rather there will be a considerable saving on the subsidy bill. The food subsidy will be more targeted.

The grains will be procured in the surplus areas of every state and distributed to the nearby deficit areas. There will be a considerable saving on subsidy earmarked for long distant transport of grains. The grains grown in the states or in the adjacent states are more preferred by the people in the area. Besides farmers in all states will be encouraged to produce more as they will be assured of remunerative prices.

Why are the selling prices of foodgrains in the central pool more costlier than the open market prices?
The FCI is conducting direct procurements in certain states in north and northwestern parts of the country. It has storage facility in these areas. The cost of transporting grains from these areas to the far-flung regions of the country adds up to the high selling prices of grains held in the central pool.

Another factor is the high level of mandi taxes paid by FCI in procuring grains in Punjab. Mandi taxes should be kept at rational levels so that it does not adversely affect the selling prices of PDS grains which are meant for the poor or unduely inflate the food subsidy bill.