Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Revamping foodgrain policy by CSC Sekhar    </title>
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THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the..."/>
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THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the..." />
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                            <br /><div align="justify">THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the chief economic adviser in the ministry of finance, has argued for foodgrain to be released in lots of much smaller size into the market, than is presently done by the FCI, to contain prices. He showed that this would not only bring down the prices faster but would also reduce the problem of grain resiphoning into government stocks by few profit-maximising (read unscrupulous) traders. He has mainly focused on the open market sales scheme (OMSS) of the food ministry.<br /><br />To devise an effective food management policy, a more comprehensive approach is needed in addition to the food release mechanism outlined above. Any stock has two channels &mdash; inflow and outflow. In the food economy these can be understood as procurement and release respectively. When the outflow is clogged or shows a lower rate than the inflow, then stocks accumulate. Consequently, these accumulated stocks (with the government) put an upward pressure on the market prices as the supply in the market place goes down. Notwithstanding the importance of using the stocks to stabilise prices, there is a need to focus on alternate ways of regulating the inflow. We need to rethink about the most important policy instrument &mdash; the price policy.<br /><br />Up to the early 1990s India had a dual pricing system &mdash; MSP and procurement prices. MSP is a floor price mainly intended to be a signalling device to the farmer and is announced before the sowing season. This is a cost-plus pricing strategy mainly based on the cost of production among other factors. On the other hand, the procurement price is mainly for acquiring grain for building up the stocks &mdash; buffer and operational stocks for PDS and other welfare programmes. Procurement price is announced before the harvest season and is not related to production costs but to factors such as prevailing prices, existing government stocks among others.<br /><br />In the early 1990s, the procurement price was abolished and presently MSP serves as the de facto procurement price. This led to a continually increasing MSP because of the rising costs of production. Since MSP is also the procurement price, this led to an increase in government procurement, which is resulting in episodes of large stocks as in 2002 and presently. Since the MSP is also linked to the issue price of the PDS, MSP has implications for the offtake from the PDS. A reintroduction of procurement price, therefore, needs to be given fresh consideration as a policy option. In fact, the PM&rsquo;s Economic Advisory Council had recommended this in 2008 (ET, Sept 8, 2008).<br /><br />The other policy option, perhaps a little difficult to implement at this stage, is the system of deficiency payments. In this system, a MSP is announced in the usual way. After the build-up of the desired stock level, the difference between the MSP and the market price is paid directly to the farmer as a deficiency payment whenever the market price falls below MSP. This has the advantage of precluding the need for stocking on government account without adversely affecting the farmer&rsquo;s incentive structure. Also, this eliminates the grain resiphoning .<br /><br />Another advantage is that through this system, price support can be extended to all the remaining commodities (other than rice and wheat), for which MSP is announced but little or no procurement takes place. There are about 22 such commodities at present. This can also help the states where FCI is not active in procurement. The deficiency payments system, which has worked well in many countries including the US for a long time, deserves a closer look. Perhaps, to start with it can be launched on a small scale in some states where procurement is not presently carried out.<br /><br />In addition to reforms of the price policy, efforts should be focused on improving the storage and warehousing facilities. As regards food release mechanism, Prof Basu&rsquo;s suggestion of releasing food to large number of traders in small lots is essential but care should be taken to avoid collusion among traders. Another reform needed immediately is of PDS. Beneficiary selection, diversion of foodgrain and inferior quality of foodgrain are some of the major problems with PDS.<br /><br />Perhaps, food stamp programme may need a look-in here. Studies have shown that foodgrain diversion and adulteration are linked to the gap between the market price and the PDS issue price. Since the issue price is, in turn, linked to the MSP, it is clear that the inflow, outflow, stock build-up and diversion from PDS are all interlinked. It is time for taking a comprehensive view of the price policy, procurement policy, storage and release mechanism, and PDS, rather than treating agriculture and food as separate components of the economy.<br /><br /><em>(The author is associate professor, Institute of Economic Growth, University of Delhi) </em><br /></div>                                                           
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    <br><a href="http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2010/12/18&PageLabel=8&EntityId=Ar00801&ViewMode" class="re" target="_blank">The Economic Times, 18 December, 2010, http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2010/12/18&PageLabel=8&EntityId=Ar00801&ViewMode</a><div class="clear"></div>
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THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the..."/>
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THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the..." />
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    <h1 class="cat-box-title">Revamping foodgrain policy by CSC Sekhar</h1>
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		 Published on</span><span class="text-date"> Dec 22, 2010</span>
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                            <br /><div align="justify">THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the chief economic adviser in the ministry of finance, has argued for foodgrain to be released in lots of much smaller size into the market, than is presently done by the FCI, to contain prices. He showed that this would not only bring down the prices faster but would also reduce the problem of grain resiphoning into government stocks by few profit-maximising (read unscrupulous) traders. He has mainly focused on the open market sales scheme (OMSS) of the food ministry.<br /><br />To devise an effective food management policy, a more comprehensive approach is needed in addition to the food release mechanism outlined above. Any stock has two channels &mdash; inflow and outflow. In the food economy these can be understood as procurement and release respectively. When the outflow is clogged or shows a lower rate than the inflow, then stocks accumulate. Consequently, these accumulated stocks (with the government) put an upward pressure on the market prices as the supply in the market place goes down. Notwithstanding the importance of using the stocks to stabilise prices, there is a need to focus on alternate ways of regulating the inflow. We need to rethink about the most important policy instrument &mdash; the price policy.<br /><br />Up to the early 1990s India had a dual pricing system &mdash; MSP and procurement prices. MSP is a floor price mainly intended to be a signalling device to the farmer and is announced before the sowing season. This is a cost-plus pricing strategy mainly based on the cost of production among other factors. On the other hand, the procurement price is mainly for acquiring grain for building up the stocks &mdash; buffer and operational stocks for PDS and other welfare programmes. Procurement price is announced before the harvest season and is not related to production costs but to factors such as prevailing prices, existing government stocks among others.<br /><br />In the early 1990s, the procurement price was abolished and presently MSP serves as the de facto procurement price. This led to a continually increasing MSP because of the rising costs of production. Since MSP is also the procurement price, this led to an increase in government procurement, which is resulting in episodes of large stocks as in 2002 and presently. Since the MSP is also linked to the issue price of the PDS, MSP has implications for the offtake from the PDS. A reintroduction of procurement price, therefore, needs to be given fresh consideration as a policy option. In fact, the PM&rsquo;s Economic Advisory Council had recommended this in 2008 (ET, Sept 8, 2008).<br /><br />The other policy option, perhaps a little difficult to implement at this stage, is the system of deficiency payments. In this system, a MSP is announced in the usual way. After the build-up of the desired stock level, the difference between the MSP and the market price is paid directly to the farmer as a deficiency payment whenever the market price falls below MSP. This has the advantage of precluding the need for stocking on government account without adversely affecting the farmer&rsquo;s incentive structure. Also, this eliminates the grain resiphoning .<br /><br />Another advantage is that through this system, price support can be extended to all the remaining commodities (other than rice and wheat), for which MSP is announced but little or no procurement takes place. There are about 22 such commodities at present. This can also help the states where FCI is not active in procurement. The deficiency payments system, which has worked well in many countries including the US for a long time, deserves a closer look. Perhaps, to start with it can be launched on a small scale in some states where procurement is not presently carried out.<br /><br />In addition to reforms of the price policy, efforts should be focused on improving the storage and warehousing facilities. As regards food release mechanism, Prof Basu&rsquo;s suggestion of releasing food to large number of traders in small lots is essential but care should be taken to avoid collusion among traders. Another reform needed immediately is of PDS. Beneficiary selection, diversion of foodgrain and inferior quality of foodgrain are some of the major problems with PDS.<br /><br />Perhaps, food stamp programme may need a look-in here. Studies have shown that foodgrain diversion and adulteration are linked to the gap between the market price and the PDS issue price. Since the issue price is, in turn, linked to the MSP, it is clear that the inflow, outflow, stock build-up and diversion from PDS are all interlinked. It is time for taking a comprehensive view of the price policy, procurement policy, storage and release mechanism, and PDS, rather than treating agriculture and food as separate components of the economy.<br /><br /><em>(The author is associate professor, Institute of Economic Growth, University of Delhi) </em><br /></div>                                                           
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    <br><a href="http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2010/12/18&PageLabel=8&EntityId=Ar00801&ViewMode" class="re" target="_blank">The Economic Times, 18 December, 2010, http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2010/12/18&PageLabel=8&EntityId=Ar00801&ViewMode</a><div class="clear"></div>
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        LATEST NEWS UPDATES | Revamping foodgrain policy by CSC Sekhar    </title>
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THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the..."/>
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THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the..." />
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    <h1 class="cat-box-title">Revamping foodgrain policy by CSC Sekhar</h1>
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                            <br /><div align="justify">THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the chief economic adviser in the ministry of finance, has argued for foodgrain to be released in lots of much smaller size into the market, than is presently done by the FCI, to contain prices. He showed that this would not only bring down the prices faster but would also reduce the problem of grain resiphoning into government stocks by few profit-maximising (read unscrupulous) traders. He has mainly focused on the open market sales scheme (OMSS) of the food ministry.<br /><br />To devise an effective food management policy, a more comprehensive approach is needed in addition to the food release mechanism outlined above. Any stock has two channels &mdash; inflow and outflow. In the food economy these can be understood as procurement and release respectively. When the outflow is clogged or shows a lower rate than the inflow, then stocks accumulate. Consequently, these accumulated stocks (with the government) put an upward pressure on the market prices as the supply in the market place goes down. Notwithstanding the importance of using the stocks to stabilise prices, there is a need to focus on alternate ways of regulating the inflow. We need to rethink about the most important policy instrument &mdash; the price policy.<br /><br />Up to the early 1990s India had a dual pricing system &mdash; MSP and procurement prices. MSP is a floor price mainly intended to be a signalling device to the farmer and is announced before the sowing season. This is a cost-plus pricing strategy mainly based on the cost of production among other factors. On the other hand, the procurement price is mainly for acquiring grain for building up the stocks &mdash; buffer and operational stocks for PDS and other welfare programmes. Procurement price is announced before the harvest season and is not related to production costs but to factors such as prevailing prices, existing government stocks among others.<br /><br />In the early 1990s, the procurement price was abolished and presently MSP serves as the de facto procurement price. This led to a continually increasing MSP because of the rising costs of production. Since MSP is also the procurement price, this led to an increase in government procurement, which is resulting in episodes of large stocks as in 2002 and presently. Since the MSP is also linked to the issue price of the PDS, MSP has implications for the offtake from the PDS. A reintroduction of procurement price, therefore, needs to be given fresh consideration as a policy option. In fact, the PM&rsquo;s Economic Advisory Council had recommended this in 2008 (ET, Sept 8, 2008).<br /><br />The other policy option, perhaps a little difficult to implement at this stage, is the system of deficiency payments. In this system, a MSP is announced in the usual way. After the build-up of the desired stock level, the difference between the MSP and the market price is paid directly to the farmer as a deficiency payment whenever the market price falls below MSP. This has the advantage of precluding the need for stocking on government account without adversely affecting the farmer&rsquo;s incentive structure. Also, this eliminates the grain resiphoning .<br /><br />Another advantage is that through this system, price support can be extended to all the remaining commodities (other than rice and wheat), for which MSP is announced but little or no procurement takes place. There are about 22 such commodities at present. This can also help the states where FCI is not active in procurement. The deficiency payments system, which has worked well in many countries including the US for a long time, deserves a closer look. Perhaps, to start with it can be launched on a small scale in some states where procurement is not presently carried out.<br /><br />In addition to reforms of the price policy, efforts should be focused on improving the storage and warehousing facilities. As regards food release mechanism, Prof Basu&rsquo;s suggestion of releasing food to large number of traders in small lots is essential but care should be taken to avoid collusion among traders. Another reform needed immediately is of PDS. Beneficiary selection, diversion of foodgrain and inferior quality of foodgrain are some of the major problems with PDS.<br /><br />Perhaps, food stamp programme may need a look-in here. Studies have shown that foodgrain diversion and adulteration are linked to the gap between the market price and the PDS issue price. Since the issue price is, in turn, linked to the MSP, it is clear that the inflow, outflow, stock build-up and diversion from PDS are all interlinked. It is time for taking a comprehensive view of the price policy, procurement policy, storage and release mechanism, and PDS, rather than treating agriculture and food as separate components of the economy.<br /><br /><em>(The author is associate professor, Institute of Economic Growth, University of Delhi) </em><br /></div>                                                           
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Home हिन्दी

Revamping foodgrain policy by CSC Sekhar

Published on Dec 22, 2010   Modified on Dec 22, 2010

THE issue of foodgrain management policy has assumed renewed importance with several reports in the media of large-scale wastage and diversion from the public distribution system (PDS). In a cogently-argued paper recently, Prof Kaushik Basu, a well-known economist and the chief economic adviser in the ministry of finance, has argued for foodgrain to be released in lots of much smaller size into the market, than is presently done by the FCI, to contain prices. He showed that this would not only bring down the prices faster but would also reduce the problem of grain resiphoning into government stocks by few profit-maximising (read unscrupulous) traders. He has mainly focused on the open market sales scheme (OMSS) of the food ministry. To devise an effective food management policy, a more comprehensive approach is needed in addition to the food release mechanism outlined above. Any stock has two channels — inflow and outflow. In the food economy these can be understood as procurement and release respectively. When the outflow is clogged or shows a lower rate than the inflow, then stocks accumulate. Consequently, these accumulated stocks (with the government) put an upward pressure on the market prices as the supply in the market place goes down. Notwithstanding the importance of using the stocks to stabilise prices, there is a need to focus on alternate ways of regulating the inflow. We need to rethink about the most important policy instrument — the price policy. Up to the early 1990s India had a dual pricing system — MSP and procurement prices. MSP is a floor price mainly intended to be a signalling device to the farmer and is announced before the sowing season. This is a cost-plus pricing strategy mainly based on the cost of production among other factors. On the other hand, the procurement price is mainly for acquiring grain for building up the stocks — buffer and operational stocks for PDS and other welfare programmes. Procurement price is announced before the harvest season and is not related to production costs but to factors such as prevailing prices, existing government stocks among others. In the early 1990s, the procurement price was abolished and presently MSP serves as the de facto procurement price. This led to a continually increasing MSP because of the rising costs of production. Since MSP is also the procurement price, this led to an increase in government procurement, which is resulting in episodes of large stocks as in 2002 and presently. Since the MSP is also linked to the issue price of the PDS, MSP has implications for the offtake from the PDS. A reintroduction of procurement price, therefore, needs to be given fresh consideration as a policy option. In fact, the PM’s Economic Advisory Council had recommended this in 2008 (ET, Sept 8, 2008). The other policy option, perhaps a little difficult to implement at this stage, is the system of deficiency payments. In this system, a MSP is announced in the usual way. After the build-up of the desired stock level, the difference between the MSP and the market price is paid directly to the farmer as a deficiency payment whenever the market price falls below MSP. This has the advantage of precluding the need for stocking on government account without adversely affecting the farmer’s incentive structure. Also, this eliminates the grain resiphoning . Another advantage is that through this system, price support can be extended to all the remaining commodities (other than rice and wheat), for which MSP is announced but little or no procurement takes place. There are about 22 such commodities at present. This can also help the states where FCI is not active in procurement. The deficiency payments system, which has worked well in many countries including the US for a long time, deserves a closer look. Perhaps, to start with it can be launched on a small scale in some states where procurement is not presently carried out. In addition to reforms of the price policy, efforts should be focused on improving the storage and warehousing facilities. As regards food release mechanism, Prof Basu’s suggestion of releasing food to large number of traders in small lots is essential but care should be taken to avoid collusion among traders. Another reform needed immediately is of PDS. Beneficiary selection, diversion of foodgrain and inferior quality of foodgrain are some of the major problems with PDS. Perhaps, food stamp programme may need a look-in here. Studies have shown that foodgrain diversion and adulteration are linked to the gap between the market price and the PDS issue price. Since the issue price is, in turn, linked to the MSP, it is clear that the inflow, outflow, stock build-up and diversion from PDS are all interlinked. It is time for taking a comprehensive view of the price policy, procurement policy, storage and release mechanism, and PDS, rather than treating agriculture and food as separate components of the economy. (The author is associate professor, Institute of Economic Growth, University of Delhi)

The Economic Times, 18 December, 2010, http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=ETNEW&BaseHref=ETD/2010/12/18&PageLabel=8&EntityId=Ar00801&ViewMode

Tagged with: PDS Right to Food Food Security

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