- Procurement:
- Open-ended procurement leads to huge buffer stocks.
- FCI is bound to procure all stock offered by farmers at MSP.
- This leads to more than double the mandated stock.
- Storage:
- Huge storage cost and wastage due to excess stock.
- Reliance on old conventional storages (CAP).
- Need for modernization (silos, better mechanization).
- Distribution:
- Inefficiencies in distribution.
- Leakages and corruption in the PDS.
- High cost of engaging large number of workers (loaders).
- Financial Burden: Current food grain economy is riddled with economic inefficiencies.