The government has admitted that there has been a mismatch between the procurement and storage of food grains and that it is making efforts to ease the pressure on godowns by encouraging exports and providing food grain to MNREGA workers as part of wages.
The Finance Minister in a brief statement has admitted that there has been less storage available for foodgrains this year and the government is making efforts to bridge the gap. These include providing several tax and other concessions to create more storage capacity, encouraging exports and providing foodgrain to MNREGA workers as part of their wages.
The FM has explained that earlier only 30-40% of the foodgrains were purchased by the government and the rest was sold in the market. However, of late since the MSPs have gone up, procurement has become the primary responsibility of central and state governments and their agencies, leading to storage shortages.
Commenting on the shortage of jute bags to store foodgrain, he stated that to augment their availability the government is trying to import them. While plastic bags had been banned, the government was following international norms for packaging of sugar, wheat and rice stored in biodegradable jute bags, he added.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: