Topics: PDS — objectives, functioning, limitations, revamping | Buffer stocks & food security | Technology missions | Economics of animal-rearing | Food processing & related industries — scope, significance, location, upstream/downstream requirements, supply chain management
Questions
Q1. The Public Distribution System was introduced to make food grains available to the needy and marginalized sections. What are the issues involved in this system and suggest some reforms which can be implemented? (15 Marks)
Q2. What are the primary issues related to procurement and storage by the Food Corporation of India? Suggest some measures to improve storage facilities in India. (10 Marks)
Q3. India needs to accord more significance to nutritional security than food security. Comment. In this context, suggest a framework that should be adopted by the government to achieve nutritional self-reliance. (15 Marks)
Q4. Analyze the role of the fisheries sector in the food processing sector in India. (10 Marks)
Q5. The goal of doubling the farm income will depend on the growth of food processing industries. In the light of this statement, discuss the challenges faced by the food processing industry in India. (15 Marks)
Model Structures
Q1. PDS — Issues & Reforms (15 Marks)
Introduction
The Public Distribution System is a food security system which aims to distribute food grains and other food items at affordable prices to people fulfilling set criteria. Both central and state governments are involved — the Centre procures, stores and transports grains, and state governments distribute them.
Main Body
Issues in the PDS:
- Huge leakages result in black marketing — causing inflation and depriving target beneficiaries of their entitlements.
- FCI is mandated to store the grains, but many audits have pointed out the incapacity of godowns, resulting in rotting of grains.
- Large inclusion and exclusion errors due to corruption and negligence at lower levels — undue benefits for the non-entitled and losses for deserving beneficiaries.
- No limit to procurement even when demand is met or godowns are full — open-ended procurement creates shortage in the open market, fuelling inflation.
- PDS and MSP are interlinked, and both are major contributors to environmental issues like depletion of the groundwater table and salinization of soils.
Reform measures:
- Wadhwa Committee: Technology-driven PDS to plug leakages and ensure timely disbursal of food grains to targeted beneficiaries.
- One Nation One Ration Card for portability — migrants can avail food grains on ration cards of their home state.
- Aadhaar-linked authentication of beneficiaries to plug leakages and remove middlemen.
- Smart cards to prevent counterfeiting — done by states like Haryana and Andhra Pradesh.
- GPS technology to monitor the status and location of PDS trucks so that no food is diverted to middlemen.
Conclusion
PDS is indispensable in the long run because of the enormous benefits it entails. To make it more robust, steps like social audits, GPS-enabling and colour-coding of trucks in all states, and bio-fortification of food are needed to ensure nutrition security along with food security.
Q2. FCI — Procurement & Storage Issues (10 Marks)
Introduction
The Food Corporation of India (FCI) is primarily responsible for procuring and storing food grains to maintain buffer stock, supporting farmers with MSP, and ensuring food security through PDS. However, several challenges hinder FCI's operational efficiency.
Main Body
Issues in procurement and storage by the FCI:
- Inefficient procurement: Despite MSP, procurement is limited to a few crops and states — inequitable distribution of benefits and regional imbalance.
- Overstocking: Stocks often far exceed buffer norms — high carrying costs including storage, interest charges, and wastage losses.
- Lack of scientific storage: Gunny bags are still used instead of canisters or metal containers.
- Poor pest management: Modern Sanitary and Phytosanitary Measures for exports require sophistication that is absent.
- Substandard storage infrastructure: Leads to a high degree of spoilage and wastage.
- Non-adherence to First-In-First-Out (FIFO): CAG has noted grains harvested later are dispatched for PDS while earlier-procured grains remain in warehouses.
- Imbalanced storage facilities: Per CAG, 64% of total storage space is located in large procurement states — Punjab, Haryana, Andhra Pradesh, UP and Chhattisgarh.
- Modern methods like automation, silos and automatic pest control are not employed.
Measures to improve storage facilities:
- Modernization and upgradation of bulk grain handling infrastructure.
- PPP: Inviting private investment in modern storage facilities, as in the U.S.
- Scientific storage: Adopt silos and similar technologies to cut grain wastage significantly.
- Decentralized procurement: More states procuring locally reduces FCI's burden and saves transport and storage costs.
- Warehouse Receipt System: Negotiable warehouse receipts prevent distress sales and reduce the burden on FCI storage.
- Technology: GIS mapping for efficient storage management, tracking, and timely offloading of stocks.
- Adequate manpower and supervision for scientific, safe storage; implement Shanta Kumar Committee recommendations; increase accreditation of cold storage for perishables.
Conclusion
The effectiveness of FCI is crucial for India's food security. Procurement and storage issues must be addressed through technological solutions, international best practices, decentralization and private sector participation.
PSIR Test Series (16 Tests) + Mentorship
Questions prepared keeping in mind the changing nature of UPSC CSE
Q3. Nutritional Security over Food Security (15 Marks)
Introduction
Food security is defined as the availability of and access to food for all people, whereas nutrition security demands the intake of a wide range of foods providing the essential nutrients.
Main Body
Need to accord more significance to nutritional security:
- Persistence of undernutrition: Global Nutrition Report 2020 — 37.9% of children under 5 are stunted and 20.8% wasted; among adults, 22.5% are underweight.
- Micronutrient deficiency: NFHS-4 — 58.6% of children, 53.2% of non-pregnant women and 50.4% of pregnant women were anaemic (2016). National Nutrition Survey — zinc deficiency in 19% of preschool children and 32% of adolescents; Vitamin B12, A and D deficiencies range from 14% to 31%.
- Rising obesity and NCDs: Per 'Food and Nutrition Security Analysis, India 2019', energy and protein intake from cereals has decreased while consumption of oils, fats, fast food, processed food and sugary beverages has increased — driving obesity. Around 5.8 million people die per year in India from preventable non-communicable diseases.
- Without nutrition security, an active and healthy life for all is not possible — moving from food security to nutritional self-reliance requires a different strategy.
Framework to achieve nutritional self-reliance:
- Mainstream the nutrition dimension into national missions (Food Security Act, National Health Mission) with defined input and output parameters for monitoring; dovetail malnutrition schemes under one authority.
- Draw area production plans for animal husbandry and crops based on agro-ecological zones and the changing climate.
- Shift from incentivising a few crops through MSP to encouraging pulses, oilseeds, poultry products etc.
- Strengthen PDS and expand its commodity basket to include millets, pulses and oils.
- Improve quality of agricultural products — higher R&D expenditure, stringent enforcement of regulations, private-sector collaboration, extensive use of digital technologies.
- Raise fortified staples and micronutrient content in Mid-Day Meals; serve nutritious breakfast to elementary students as envisioned by NEP 2020.
- More frequent awareness campaigns such as the 'Eat Right India' initiative; tax unhealthy food and drinks heavily and discourage their advertisements.
- Create an ecosystem for collecting and converting used cooking oil (UCO) into biodiesel so it is not reused for edible purposes.
Conclusion
The National Nutrition Mission and ICDS are important measures in this context. They should be complemented by large-scale expansion of food fortification, equitable food distribution, proper maternal, infant and childcare practices, and adequate hygiene and sanitation.
Q4. Fisheries Sector in Food Processing (10 Marks)
Introduction
- India is the third largest fish-producing country, contributing 8% to global fish production, and ranks second in aquaculture production. (Fact-based) OR
- Contributing to food security, nutrition, and employment, fisheries has emerged as a vibrant sector of the country's economy.
Main Body
Role of the fisheries sector in the food processing industry:
- Contribution to processed food: Fish is a major component — canned fish, fish meal, fish oil, and frozen fish. Marine products, especially shrimp, have become a top agri-export commodity.
- Employment generation: Direct and indirect employment, particularly in ancillary industries like fish processing, packaging, and export.
- Culinary diversity: India's diverse culinary traditions offer processors the opportunity to develop value-added seafood products with unique Indian flavours.
- Diversification of the food industry: A range of processed and value-added products — canned fish, frozen seafood, fish fillets, fish oil, fishmeal — for domestic and international markets.
- Nutritional value: Fish and seafood are rich in essential nutrients, proteins and omega-3 fatty acids.
Challenges: Overfishing, climate change impacts, inadequate cold chain infrastructure, low processing levels, poor quality control, and lack of credit and insurance facilities.
Conclusion
The Pradhan Mantri Matsya Sampada Yojana (PMMSY) is a step in the right direction. Further, promoting public-private partnerships, providing credit facilities, investing in cold chain infrastructure, promoting R&D, and capacity-building of fishermen can transform the sector.
Q5. Food Processing Industry & Doubling Farm Income (15 Marks)
Introduction
The Food Processing Industry (FPI) consists of a series of operations on food or raw materials to change or preserve them, adding value for better price realisation. Indian FPI contributes around 9% of Gross Value Added in agriculture and 13% of India's exports. As India aims to double farm income, FPI has a critical role to play.
Main Body
Role of FPI in doubling farmers' income:
- Modern infrastructure: Facilities along the value chain through a cluster-based approach — e.g., Mega Food Parks.
- Cold chain and value addition: Integrated cold chain, preservation and value-addition facilities protect farmers from post-harvest losses of horticulture and non-horticulture produce.
- Technology transfer and agri-education: Entrepreneurs educate farmers and share technological know-how — a symbiotic relationship that improves farm productivity.
- Promotion of local varieties: Local and traditional processed foods sold nationally and internationally via e-commerce — e.g., Indian pickles add to the incomes of women farmers.
- Higher profits to farmers: Direct procurement from farm gates reduces intermediary cuts and transportation costs.
- Infrastructure development: 100% FDI is permitted through the automatic route in FPI — boosting rural infrastructure and reducing disguised unemployment in agriculture.
Challenges faced by FPI in India:
- Lack of standardisation and quality checks to ensure conformity with global standards.
- Administrative issues: Overlapping and diverging central and state laws result in ineffective functioning.
- Supply-related issues: Dependence on monsoon, land fragmentation, low land productivity — supply constraints hindering processing and sale.
- Inadequate infrastructure: Poor connectivity, low electrification, traditional transport, inadequate storage and cold chains — loss of farm produce.
- Legal restrictions: The APMC Act restricts open selling of farm produce, creating issues for farmers and FPIs alike.
- Lack of skilled manpower: Rural workers lack modern skills, so FPIs near farms face a shortfall of skilled labour.
Way forward:
- India processes less than 10% of its agricultural output — immense opportunity to boost processing levels and attract investment.
- Growth will be led by retail demand and health-conscious consumers — a strong crop value chain with adequate funding and technology, routed via the MSME sector.
- Agro Processing Clusters (Ministry of Food Processing) to develop modern infrastructure and common facilities; PM Kisan Sampada Yojana supports creation of food processing units, classified under agriculture for priority sector lending.
- ASSOCHAM estimates the sector can attract USD 33 billion investment and generate 9 million jobs.
Conclusion
The food processing industry plays a crucial role in connecting Indian farmers to consumers in domestic and international markets. The Ministry of Food Processing Industries is doing everything possible to encourage investment throughout the value chain.
PSIR Optional + Mentorship with Test Series
Comprehensive LIVE PSIR Optional Foundation Course for UPSC CSE by Neelam Bhatia