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Informist, Wednesday, Apr. 16, 2025

 

--FCI: Food grain stocks 50.0 mln tn as of Apr 1 vs 37.7 mln tn year ago

--FCI: Wheat stocks 11.8 mln tn Apr 1 vs 7.5 mln yr ago, 13.4 mln month ago

--FCI: Rice stocks 38.2 mln tn Apr 1 vs 30.2 mln yr ago, 36.8 mln month ago 

 

NEW DELHI - Wheat stocks with Food Corp. of India as of Apr. 1 were 11.8 million tonnes, 57.3% higher from 7.5 million tonnes a year ago, data from the nodal procurement agency showed. However, on a monthly basis, wheat stocks with the Food Corp. were down 12% as on Apr. 1 from 13.4 million tonnes as of Mar. 1.

 

Apr. 1 wheat stocks were 4.3 million tonnes above the buffer norms for the quarter. According to the norms, minimum wheat stocks for Apr-Jun should be nearly 7.5 million tonnes--operational stock of 4.46 million tonnes and strategic reserve of 3.00 million tonnes. The government sets the buffer requirement of food grains for every quarter, and FCI has to maintain the mandated level. 

                                                

While the government has surplus wheat stocks compared to last year and above the buffer norm, prices remain firm on year. On Tuesday, the all-India average wholesale price of wheat was INR 2,838.5 per 100 kg, up nearly 5% from last year, but down 5% on month, according to the consumer affairs department. Month-on-month, prices are easing with arrivals of new crop to the market. 

 

According to market participants, wheat prices are higher than last year as the government reduced the allocation for open market sales for 2024-25 (Apr-Mar). Millers and processors had urged the government to release at least 5.0-6.0 million tonnes under open market operations to check prices. However, FCI wrapped up its open market sales last month with only 3.00 million tonnes. In FY24, FCI had sold a record 9.41 million tonnes to check prices in view of the General Elections.

 

"FCI is likely to have 4 million tonnes extra (in April) than last year," farm expert G.K Sood told Informist last month. "Instead of squeezing the market pipeline and keeping back extra wheat with FCI, the government should have released it to the market," he said.

 

However, in a respite to the market, the government has not extended the stock limit on wheat trade entities from Apr. 1. It has only mandated them to disclose the stock position every Friday. Earlier, a wheat trader or wholesaler could not stock more than 250 tonnes till Mar. 31. Retailers could only stock 4 tonnes per retail outlet. 

 

Meanwhile, the total food grain stocks with the FCI as of Apr. 1 were 50.0 million tonnes, up 32.6% on year from 37.7 million tonnes year ago. On Mar. 1, food grain stocks with the FCI were 50.2 million tonnes, according to the data. 

 

Rice stocks in the central pool were up 26.5% on year at 38.2 million tonnes as of Apr. 1, the data showed. The stocks were up nearly 4% from 36.8 million tonnes a month ago. The current rice stocks are far above the buffer norm of about 13.6 million

tonnes--operational stock of 11.58 million tonnes and strategic reserve of 2.00 million tonnes.

 

Despite allowing free rice exports, stocks remained at decade-high level due to an increase in paddy production in the country. To free up space, the FCI started to sell the grain twice a week under the open market sales scheme. But the offtake remained 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 the stocks, the Centre allowed states to buy the grain directly from the FCI through open market sales, without participating in the electronic auction.  End

 

Reported by Afra Abubacker

Edited by Vandana Hingorani

 

 

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