Asking the states to streamline procurement, storage and distribution of foodgrains, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, today said with ten per cent improvement in efficiency, Rs 7,000 crore can be saved every year.
“A ten per cent improvement in efficiency could save Rs 7,000 crore. This will also reduce the cost to the exchequer while expanding the entitlement system as formulated in the Food Security Bill,” he said here while addressing a conference here on ‘Targeted Public Distribution System and Storage’.
The two-day conference, which saw the participation of ministers and senior officials from all the states, was marked by brainstorming in the run-up to the expected enactment of the Food Security Bill.
The Food Bill, pushed by the UPA Chairperson, Ms Sonia Gandhi, has been introduced in Parliament and is being examined by the Parliamentary Standing Committee on Food.
“We are on the verge of moving to a further stage with the Food Security Bill. However, a lot of work has to be done like modernisation of storage, increasing foodgrains production further and using latest technology for efficient distribution,” Mr Ahluwalia said.
He said the state governments will have to play a key role in all these steps.
“In the 12th Plan (2012-17) we should put in place a monitorable set of ideas to see how much progress we have met in the field of food security,” he said.
“Besides increasing production even further, we also need to spread procurement and this is a very important aspect of food security. Eastern states will have to take special steps in this regard,” the Plan panel deputy chief said.
Use of end-to-end computerisation has led to elimination of bogus ration cards and with the use of the Aadhaar unique national card, the distribution system could be built up further.
“Besides technology will ensure efficient management of the supply chain and grievance redressal,” Mr Ahluwalia said.
According to him, with the enactment of the Food Security Bill there will be an increase in the storage requirement.