Question : Departmental Labour System in FCI

(a) whether the Government has constituted a high level committee to suggest economic measures to have a check on corruption rampant in the Food Corporation of India (FCI), if so, the details thereof;

(b) whether the Committee had recommended to discontinue Departmental Labour System or its services in a phased manner;

(c) if so, the details thereof along with the reasons therefor; and

(d) the action taken by the Government on the recommendations of this committee?

Answer given by the minister

MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(SHRI DANVE RAOSAHEB DADARAO)

(a): No Sir.
(b)&(c): A High Level Committee (HLC) headed by Shri Shanta Kumar, Hon’ble Member of Parliament was appointed by the Govt. of India in 2014 for suggesting restructuring or unbundling of FCI with a view to improve operational efficiency and financial management. This Committee had inter-alia recommended that the departmental labour be gradually phased out.
(d): DCP status has been granted to the States where movement and storage is handled by the State Government which has reduced the dependence on Departmental labour of FCI. The datum of departmental labour has been revised from 105 Bags per worker per day to 135 Bags per worker per day which has resulted in reduction of incentive to about 30%.
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