More Stories

In Wednesday's "[I] FCI lost 36,000 tn foodgrain worth INR 1.15 bln in transit in Apr-Sept" story, the seventh paragraph should read the Food Corp. of India's grain storage in godowns in 2021-22 as 142 million tonnes. It was incorrectly mentioned as 14.2 billion tonnes.

A corrected version follows:

[I] CORRECTS: FCI lost 36,000 tn foodgrain worth INR 1.15 bln in transit Apr-Sept

Informist, Wednesday, Oct. 23, 2024

NEW DELHI — The Food Corp of India lost 36,000 tonnes of foodgrains worth INR 1.15 billion in transit in the first six months (Apr-Sept) of the financial year 2024-25. So far, FCI has lost about 0.2% of the 20.6 million tonnes of foodgrains transported from surplus to deficit states.

Three decades ago, transit losses were nearly 2% and the agency has reduced transit losses with better packing and handling measures, an FCI official said. In 2023-24, FCI's moved 43.4 million tonnes and lost 71,000 tn foodgrain. 

Though FCI has been benchmarking its operations with global standards, India falls short of models to adopt due to its large size, year-round transport, and population requirements, the official added. 

The pandemic years 2020-22 saw the highest foodgrain movement as the government widely distributed free foodgrains across the country. In 2021-22, FCI transported 64.7 million tonnes of foodgrains and lost about 0.2% of it, incurring INR 4.04 billion losses. Launched during the COVID-19 pandemic, Pradhan Mantri Garib Kalyan Anna Yojana scheme provides 5 kg of wheat or rice per month to the poor for free of cost. 

According to FCI, transit losses majorly occur due to moisture and temperature variations, multiple handling, spillages, poor railway infrastructure, and en-route theft, among others. In 2021, a standing committee found that India's foodgrain loss in transit and storage during 2017-21 was 411,810 tonnes, which could have fed 82.3 million people if distributed well. 

While FCI has been making transit losses, data shows the agency is booking storage gains. As of Sept. 24, the foodgrain storage gain was 19,000 tn or 0.05% of the 38.0 million tonnes received in godowns, the data showed. From 2014-15, FCI storage losses are nil. Instead, it has been making storage gains on account of weight gained during storage. 

"Storage gains are higher in wheat than in rice. Wheat absorbs moisture as it is a live grain used as a seed," the official said. Wheat being hygroscopic tends to gain weight whereas rice loses moisture, resulting in weight loss, according to the agency. Even during the pandemic, FCI made storage gains as foodgrains in godowns topped 142 million tonnes in 2021-22 and saved 325,000 tonnes in storage, the data showed. 

Storage losses happen due to moisture loss, spillage, and prolonged storage, according to FCI. "We have been making storage gains by increased monitoring and improved operational practices," the official said. To control storage losses, the nodal agency reviews storage losses periodically and has increased inspections at depots registering higher losses. Deployment of security, CCTV, and strict disciplinary actions for unjustified losses has been adopted, according to FCI. End

Written by Afra Abubacker

Edited by Vidhi Verma

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000  

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.