More Stories

Informist, Monday, Dec. 16, 2024

--FCI: Wheat stocks at 20.6 mln tn as of Dec. 1 vs 19.2 mln tn yr ago

--FCI: Rice stocks at 28.03 mln tn as of Dec 1 vs 18.4 mln tn year ago 

--FCI: Food grain stocks 48.63 mln tn as of Dec. 1 vs 37.5 mln tn yr ago  

NEW DELHI – The government's wheat stocks with Food Corp. of India were at 20.6 million tonnes as of Dec. 1, up 7.3% from a year ago, according to data from the nodal food procurement agency. This is the first consecutive year-on-year rise in wheat stocks in 12 months. In November, wheat stocks had risen 2% on year to 22.3 million tonnes. 

Considering the rise in FCI wheat stocks, the government on Nov. 28 allowed FCI to sell 2.5 million tonnes of wheat in 2024-25 (Apr-Mar) to millers and processors under the open market sales scheme. Since Dec. 4, FCI has sold almost all the 200,000 tonnes of wheat offered so far, through weekly auctions. Wheat supply in the market is tight as FCI delayed offloading the grain from its godowns amid lower procurement and falling stocks. 

Though wheat stocks as of Dec 1 have fallen 7.6% on month from 22.3 million tonnes in November, it is well above the buffer norm of 13.8 million tonnes--operational stock of 10.8 million tonnes and the strategic reserve of 3 million tonnes. The government sets the buffer requirement for food grains, and the FCI has to maintain the mandated level.

As of Dec. 1, total food grain stocks with the FCI were 48.63 million tonnes, up nearly 30% on year, according to the data. Total food grains in government warehouses have risen on the back of rising rice stocks. Rice stocks at the Centre's pool were up 52.3% on year at 28.03 million tonnes as of Dec. 1, the data showed. 

Amid ample rice stocks with the Centre and higher than normal paddy acreage in the kharif season, the government in October removed curbs on exports of non-basmati white rice, parboiled rice, brown rice, and paddy. In July 2023, the government had prohibited the export of non-basmati white rice due to concerns over lower paddy acreage and to control soaring rice prices.

Along with removing the curbs on rice exports, the government also allowed ethanol distilleries to participate in FCI's weekly auctions amid high stocks. In an effort to reduce stocks, the Centre also allowed states to buy the grain directly from the FCI through open market sales, without participating in the electronic auction.

The current rice stocks are far above the buffer norm of 7.6 million tonnes – operational stock of 5.6 million tonnes and strategic reserve of 2.0 million tonnes. End

Reported by Afra Abubacker

Edited by Saji George Titus

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 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

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