The Government announced multiple food security related schemes to help people tide over the COVID-19 induced crisis. However, even accounting for the additional requirement, data indicates that the buffer stock levels with FCI are way beyond the requirement and this might only increase the storage & other associated costs. On 16 May 2020, Government of India announced distribution of food grains free of cost at 5 kg per month in a family under the Atma Nirbhar Bharat Package (ANBP), to nearly about 8 crore migrant labour who are not covered under NFSA or State PDS (Public Distribution System) schemes. This announcement was made to extend support for migrant families whose livelihood has been affected due to nationwide lockdown and its aftermath on account of COVID-19. Under this scheme, the food grains would be provided for the months of May & June of 2020. The government estimates the allocation of food grains under this scheme to be the tune of 8 Lakh Metric Tonnes (LMT). Prior to this, an additional 5 kg of food grains per month was announced to be provided to those under NFSA and to priority households under Antodaya Anna Yojana under Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) as part of COVID-19 relief measures. The initial provision was for 3 months (April-June’20) and the number of beneficiaries was pegged at 80 crores. On 30 June 2020, the Prime Minister announced extension of this scheme for another 5 months i.e. until November 2020. The total allocation for PMGKAY was 320 LMT (120 LMT for April-June’2020 and 200 LMT July-November’20). Hence the additional food grains which the Government has proposed to distribute under these two schemes is around 328 LMT. Similar to the distribution of food grains under PDS and various other schemes, these additional food grains would also be distributed from the stocks available with Food Corporation of India. However, does FCI have stocks to cater to this additional requirement? Current available stock is higher than the buffer requirement specified by government The Government of India determines the food grain stocking norms i.e. the level of stock to be kept in the Central pool. This stock is used to meet the operational stock requirement and for any exigencies. Operational Stocks refer to the food grains needed for monthly distribution under TPDS (Targeted PDS) & Other Welfare Schemes (OWS). The latest stocking norms are as per an order dated January 2015. The stocking norms are for specified for the beginning of every quarter and consist of operational stocks and strategic reserves. As per the information provided by FCI, the available stock of rice as on 28 June 2020, is 266.29 LMT. This is higher than the 135.4 LMT buffer stock to be maintained by 01 July 2020. Similarly, the available stock of wheat with FCI as on 28 June 2020 is 550.31 LMT, which is nearly double the 275.8 LMT limit of wheat that needs to be maintained by 01 July 2020 as per buffer stock norms. Increasing trend in the availability of Rice buffer stock in FCI Central Pool In addition to the maintenance of stocks beyond the required buffer limit, an increasing trend in the stock position is also observed over the years. In an earlier story, we analysed the trend of increase in the procurement of Rice and Wheat year on year, especially the record procurement in the current year. Analysis of the stock information of FCI shows an yearly increasing trend, when the quarter stock positions are compared. In 2016, the buffer stock of rice available on 01 January was 126.89 LMT, which increased to 134.75 LMT in the following year 2017. An increase is also recorded both in 2018 & 2019. As on 01 January 2020, the buffer stock of rice available was 237.15 LMT. Similar trend is observed in the stocks available on 01 April every year. In 2016, 221.61 LMT buffer stock of rice was available which increased every subsequent year. A total of 322.39 LMT of rice was available with FCI in central pool as on 01 April 2020. In 2016, 194.14 LMT of rice was available on 01 July 2016. The availability of stocks during this period has also increased in the subsequent years. On 01 July 2019, a total of 284. 21 LMT of rice was available. Bucking the trend, the stock available in 2020 during this period (as on 28 June) was lower than previous year at 266.29 LMT. However, it has to be noted that additional rice was distributed during April-June period in line with the support package announced due to lockdown. Furthermore, substantial amount of stock is in transit and is yet to be stocked in FCI Godowns, which could increase the available rice stock. The availability of rice stocks as on 01 October also followed a similar increasing trend over the years like the other quarters.
Television Journal
Data: Questions over storage & other costs as Food Grain stocks with FCI are way beyond the requirement
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