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Challenge for Food Corporation of India: Rising stocks, cost, & push to procure -Harish Damodaran

-The Indian Express

At the projected economic cost of Rs 29.94/kg for wheat and Rs 42.94/kg for rice, the corresponding per-kg PDS consumer subsidy in the coming fiscal would work out to Rs 27.94 and Rs 39.94, respectively.

The Food Corporation of India’s (FCI) “economic cost” of wheat sold through the public distribution system (PDS) is budgeted to go up to Rs 29.94 per kg and that of rice to Rs 42.94 per kg in 2021-22, from their corresponding current levels of Rs 27.40 and Rs 39.99 per kg.

These numbers are significant, given that under the National Food Security Act (NFSA) of 2013, 81.35 crore persons, accounting for over 67% of the country’s population, are entitled to receive 5 kg of PDS wheat or rice per month at Rs 2 and Rs 3 per kg, respectively.

Also, the political pressure from the farmer protests may force stepped-up procurement by the government.

At the projected economic cost of Rs 29.94/kg for wheat and Rs 42.94/kg for rice, the corresponding per-kg PDS consumer subsidy in the coming fiscal would work out to Rs 27.94 and Rs 39.94, respectively.

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