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Informist, Tuesday, Sep 10, 2024

 

--FCI: Food grain stocks 57.5 mln tn as on Sep 1 vs 49.3 mln tn yr ago

--FCI: Wheat stocks at 25.1 mln tn as on Sep 1 vs 26.0 mln tn yr ago 

--FCI: Rice stocks at 32.3 mln tn as on Sep 1 vs 23.3 mln tn year ago

 

MUMBAI - As of Sep 1, the government's rice stocks with Food Corp of India were the highest since 2005 for the third straight month, according to data from the nodal food procurement agency. Rice stocks rose nearly 39% on year to 32.3 mln tn in September, but were down 1.3% on month, the data showed.  

Amid ample rice stocks with the Centre, the government in August allowed states to buy the grain directly from the FCI through open market sales, without participating in the electronic auction. In June last year, the government discontinued the sale of wheat and rice under the open market sales scheme to states to control food inflation and protect consumers.

 

Under the open market sales scheme, the government fixes the price of rice and wheat and sells these to bulk buyers such as states and private millers through electronic auctions.

 

Later in August, the government also allowed ethanol distilleries to participate in FCI's weekly rice auctions, and allowed them to buy a maximum of 2.3 mln tn of rice from the auctions. In July 2023, the government had stopped grain-based distilleries from producing ethanol using rice procured from FCI.

 

So far, paddy sowing in the country has been above normal in the ongoing kharif season. As of Monday, the area under paddy was up 4% on year at nearly 41 mln ha, against the normal of 40.2 mln ha, according to the data from the agriculture ministry.  

 

The current rice stocks are also far above the Jul-Sep buffer norm of 13.5 mln tn--operational stock of 11.5 mln tn and strategic reserve of 2 mln tn. 

 

As of Sep 1, total food grain stocks with the FCI were 57.5 mln tn, down 3.5% on month but up nearly 17% on year. On Sep 1 2023, food grain stocks with the FCI were 49.3 mln tn, according to the data.  

 

Meanwhile, the government's wheat stocks have fallen below the Jul-Sep buffer norms. Wheat stocks with the Centre were 25.1 mln tn as on Sep 1, 3.3?low the buffer norm of 27.58 mln tn. Wheat stocks were down 3.4% on year and over 6% lower than last month's stocks, according to the data.   

 

According to buffer norms, the minimum wheat stocks for Jul-Sep should be 27.58 mln tn--operational stock of 24.58 mln tn and strategic reserve of 3 mln tn. The government sets the buffer requirement of food grains for every quarter, and the FCI has to maintain the mandated level.

 

The fall in wheat stocks is mainly due to lower procurement by the government during Apr-Jun. The government could not meet its wheat procurement target of 30-32 mln tn for rabi marketing season 2024-25 (Apr-Mar). Procurement of wheat by the government ended on Jun 30, with the Centre managing to buy 26.60 mln tn from farmers, slightly more than 26.20 mln tn last year.  End

 

Reported by J. Navya Sruthi

Edited by Avishek Dutta

 

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