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Informist, Wednesday, Feb. 12, 2025

 

--FCI: Food grain stocks 50.2 mln tn as of Feb 1 vs 34.3 mln tn year ago

--FCI: Wheat stocks 16.2 mln tn Feb 1 vs 13.3 mln yr ago, 18.4 mln month ago

--FCI: Rice stocks 34.0 mln tn as of Feb 1 vs 21.0 mln tn yr ago

 

MUMBAI – Wheat stocks with Food Corp. of India as of Feb. 1 were 22% higher from a year ago at 16.2 million tonnes, data from the nodal procurement agency showed. However, on a monthly basis, stocks of the staple grain were down 12% from 18.4 mln tn as of Jan. 1, as the government offered more of the commodity at weekly auctions.  

 

On Feb. 5, the FCI increased the quantity to be sold under the open market sales scheme to cool wheat prices, offering 250,000 tonnes against the 150,000 tonnes offered earlier. The average selling price of FCI's wheat at the auction fell to INR 2,646.4 per 100 kg, the lowest since December.

 

But the wheat stocks were above the buffer norms for this quarter. According to the norms, minimum wheat stocks for Jan-Mar should be 13.8 million tonnes – operational stock of 10.8 million tonnes and strategic reserve of 3 million tonnes. The government sets the buffer requirement of food grains for every quarter, and the FCI has to maintain the mandated level.

 

As of Feb. 1, total food grain stocks with the FCI were 50.2 million tonnes, up 46% on year and 6% on a monthly basis. On Feb. 1 last year, food grain stocks with the FCI were 34.3 million tonnes, according to the data. 

 

The rise in total foodgrain stocks was majorly due to an increase in rice stocks with the FCI. Rice stocks in the central pool were up 62% on year at 34 million tonnes as of Feb. 1, the data showed. The stocks were up nearly 17% from 29.1 mln tn a month ago. 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.

 

Despite allowing free rice exports, stocks remain at the highest level in a decade due to an increase in paddy production in the kharif season. To free up space, the FCI started to sell the grain twice a week under the open market sales scheme. But the offtake continues to be slow amid the availability of paddy from the new crop across the country.  

 

The government also allowed ethanol distilleries to participate in FCI's weekly auctions of rice. 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.  End

 

Reported by J. Navya Sruthi

Edited by Avishek Dutta

 

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