The CAG audit of Food Corporation of India (FCI) flagged several loopholes in the public distribution system, such as wastage of foodgrain, high payments to labourers and avoidable interest expenses due to delay in release of food subsidy funds by the government. FCI is a central agency tasked with procuring foodgrains from farmers, distributing them under the subsidized PDS and maintaining buffer stocks. The government spends over Rs1.4 trillion per year on food subsidy. Some FCI proxy labourers earn Rs2-3 lakh per month: CAG reportIn several depots in northern India, the CAG said, even labourers suffering from chronic diseases earned Rs90,836 to Rs3,05,311 in the three months between January and March 2016. In addition to improper labour management, the CAG also found that FCI incurred avoidable expenses towards interest payments on funds it raised from external sources, as the food subsidy reimbursement from the government did not come on time.

Source: Mint August 04, 2017 20:00 UTC