Food stocks reduced to 78% of covered storage capacity with FCI

Foodgrains shares at the Food Corporation of India (FCI) have fallen to 78 percent of their total covered capacity this fiscal year, from 92 percent three years ago when wheat procurement fell last year and a large batch of grain was sold under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Storage capacity as of June 30, 2019 was 379.5 lakh tons (lt), while inventory was 365.33 lt, according to the 24th report of the Standing Committee on Food, Consumer Affairs and Public Distribution, which was submitted to Parliament on Tuesday. However, capacity utilization decreased to 89 percent as of June 30, 2020 and 88 percent as of June 30, 2021.

However, due to the 57 percent drop in wheat procurement and the distribution of approximately 800lt of additional grain under the PMGKAY program (between April 2020 and June 2022), the inventory continued to fall to 324.01lt from the storage capacity of 413lt on March 30. June. 2022.

Rent cheap

The Ministry informed the Committee that the FCI continuously evaluates and monitors the storage capacity and based on the storage gap assessment, storage capacities are created/leased. The ministry further explained that hiring/creating companies from warehouses/private investors is more cost-effective than building FCI’s own capacity.

“Own capacity, once established at a certain location/location, cannot be moved when needed at another location due to changed sourcing pattern or change in consumption of food grain due to consumer preferences, etc. adjusted and readjusted as required. Therefore, creating/recruiting capacity by attracting private investment is preferred,” the ministry told the panel.

According to FCI’s own assessment, renting godowns from warehouses/private investors is more cost-effective than building up FCI’s own capacities.

The panel has asked the Ministry to explore the possibility of building mini-godowns in Jammu and Kashmir, Andaman & Nicobar and Lakshadweep to ensure an uninterrupted supply of essential goods to the people living there.

In a further recommendation, the parliamentary committee also called on the Ministry of Food to raise the matter with the railways without delay in order to address the problem of the shortage of empty rakes. “The Committee notes with concern that FCI is facing a shortage of empty rakes for grain transport (loading/unloading) under PDS in Madhya Pradesh, Chhattisgarh and Odisha. Such a shortage could prompt FCI to opt for road transport, which is costly compared to rail transport,” it said.

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