Question

disadvantages of Food Corporation of India​

Answer 1

Answer:

Role of Food Corporation of India​:

The role of Food Corporation of India is to maintain sufficient buffer stock in the country and price stabilisation . FCI purchases food grains mainly from surplus states such as Punjab, Haryana and supplies them to deficit states. ... The Supply of Food grains to army is also done by FCI.

Explanation:

Disadvantages:

India is agriculturist country. More than 70% of our population is directly and indirect involved in agriculture and agriculture related (allied )activities. Agriculture is thus the most imporatant economic activity.  

Taking into consideration the importance of agriculture Government of India established Food Corporation of India, which takes care of purchase, transportation by railways and providing railway sidings and storage of food grains, construction of godowns for storring food grain stocks and financing the related activities by way of subsidies and distribution of food grains through public destribution system.  

All these activities are most important and capital expenditure involved in these activities is vary large, equilly important is to stabilise prices of food grains.The corporation store and make buffer stock available to maintain prices to avoid scaresity.