Statement (i) is incorrect: The committee recommended that FCI should shift its procurement focus away from the traditional 'western' (specifically north-western like Punjab/Haryana) states where procurement is strong, towards Eastern/Southern states to broaden the base of procurement. Statement (ii) is correct: The committee suggested decentralizing procurement by enabling and encouraging capable states like Punjab, Haryana, Andhra Pradesh, and Chhattisgarh to handle procurement themselves instead of FCI. Statement (iii) is incorrect: The committee proposed limiting state levies to a uniform 3-4% but recommended they should be compensated for necessary services rather than being included in the Minimum Support Price (MSP). Levies are costs added to the MSP paid by the procuring agency.
Shanta Kumar Committee has submitted its report to Shri Modi for restructuring the Food Corporation of India (FCI). Considering the following suggestions, choose the incorrect answer: (i) The procurement policy by Food Corporation of India should be centered on the western region where minimum support price is given to farmers. (ii) The Food Corporation of India should give the right to purchase wheat and rice to four states. These states are - Punjab, Haryana, Andhra Pradesh and Chhattisgarh. (iii) A uniform tax at a minimum rate of 3% and maximum rate of 4% has been proposed on wheat and rice. It should be included in the minimum support price.
Asked in HPPSC HPAS Prelims 2014 · Topic: Agriculture and Allied Sectors (Food Security and Public Distribution System (PDS))
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