The Union Food Ministry has asked the State Governments to lift foodgrains stocks that would help them meet their public distribution system requirement for six months. This would create intermediate storages to bring down stock holding in the Central pool, according to the Union Minister of State for Food and Public Distribution, Prof. K.V. Thomas.
The Ministry has also waived the freight component of the foodgrain price under the Open Market Sale Scheme. These measures are aimed at bringing down the bulging buffer stocks that are over 82 million tonnes.
Exports will also be stepped up with shipments targeted at Iran and Iraq. However, ‘Karnal bunt’ infestation is a concern, he said.
Addressing media persons at a seminar on food safety standards, Prof Thomas said that the Group of Ministers overseeing food has decided to allocate an additional 50 lakh tonnes of foodgrains, mainly rice and wheat, for the below-poverty-line segment under the public distribution system. The normal allocation will be around 550-580 lakh tonnes for the public distribution system, he said.
The decision follows the huge build up of stocks and the anticipated high production during the current year.
Current buffer stocks with the Food Corporation of India are three times the mandatory holding norms , the Minister said.
During the current year wheat production is estimated at about 90.23 million tonnes with procurement estimated at 37. million tonnes for the public distribution system. Rice production will be over 103.4 million tonnes with procurement at about 35.31 million tonnes.
The Minister said that storage losses have been cut to about a fraction of a percentage, less than one lakh tonnes out of the total stock. Five years ago, the loss was estimated at about 2.5 per cent of storage. One area of concern is the 6.1 million tonnes of wheat stored in the open – ‘ kachaa ’ storage – without adequate protection. This was a concern in new wheat growing areas such as Madhya Pradesh, Uttar Pradesh, West Bengal and Rajasthan, he said.
The food subsidy for the year is estimated at about Rs 88,000 crore. The economic cost of procurement of rice, for instance, is about Rs 21.10 a kg. But the Central Government supplies it to State Governments for Rs 5.65 a kg for supply over the public distribution system to the population below the poverty line. This represents a subsidy of Rs 18.50 a kg of rice, he said.
Our Kochi Bureau reports: Flour millers in the South have lauded the Centre’s move to waive the freight component for open sale of wheat. The decision will help deliver wheat at a lower price to consumers, they said.