Forum for Many Views

The Food Corporation of India     (FCI) is sometimes considered to be an inefficient organisation whose activities are to be curtailed. But the paper by Madhura Swaminathan (EPW, December 25, 1999) does not support this view. It has even been attributed by some that the inefficient working of the FCI is partly responsible for the high level of food prices in India. Whatever may be the criticism against FCI, it has to be admitted that the corporation plays an important role in the food economy of India.

While provision of food subsidy is an important element of the food security system in India, an equally important role is played by food procurement and buffer stock operations. Since agricultural production is subject to wide fluctuations due to climatic factors, left to market forces there is likely to be wide fluctuations in foodgrains prices in India. To bring about stability in foodgrain prices in the country it is necessary to maintain an adequate level of buffer stock.