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Food ministry initiates steps to resolve storage, speedy movement of food-grains

22 Jun 2012 Evaluate

The Ministry of Food has initiated several steps for storage and speedy movement of food-grains from procuring states to consuming states, which comprise of increase utilization of existing storage capacity, creation of additional capacity, evacuation plan for vulnerable stocks and monitoring movement on daily basis.

Meanwhile, with the record production of food-grains and increase of minimum support price (MSP) along with better outreach for the procurement operations have resulted in highest ever procurement of food-grains this year. The central pool stocks as on June 1, 2012 were 823.17 LMT consisting of 501.69 LMT wheat and 321.48 LMT rice.

The central pool stocks of food-grains are stored both by Food Corporation of India (FCI) and State Government and their agencies and over the last five years; the storage capacity of FCI has increased from 238.94 LMT to 336.04 LMT, an increase of about 40 percent.

Moreover, wheat is stocked up both in covered and CAP and Katcha CAP storage of FCI and State Governments and their agencies and as on June 1, 2012, a quantity of 273.96 LMT wheat was in open storage both in scientific CAP (207.79 LMT) and Katcha (66.17 LMT). It can be seen that 87 percent of the total wheat stocks in central pool is stored in covered and CAP storage and can be considered as safe storage, whereas balance 13 percent is at a high risk since it is stored in Katcha places.

Further, the government is putting all its effort to look after the food-grains stored in Katcha cap which are vulnerable. With this, the capacity utilization figures of FCI godowns have significantly increased from 77 percent as on April 30, 2011 to 98 percent as on May 31, 2012.