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LATEST NEWS UPDATES | ‘No storage space for 12m tonnes of grain from June’

‘No storage space for 12m tonnes of grain from June’

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published Published on May 18, 2012   modified Modified on May 18, 2012

-The Times of India

Food Corporation of India (FCI) has warned that unless the government can distribute 750 lakh tonnes of food grain, there will be no storage space for the bumper harvest being currently procured, the food ministry told Rajya Sabha on Monday.

The crisis of plenty has been engaging the government for a while as it is under pressure to distribute food grain to the poor or intervene in some manner to cool inflation, and the FCI alarm provides the clearest indication of the scale of the problem.

TOI had reported on the FCI notice that central and state storages would be overflowing by the beginning of June. The food ministry in a separate answer told RS that at present, a total storage capacity of 627 lakh tonnes exists with FCI and the states, of which 85% was used by the end of March.

By the first week of June, there would be no space to store 12 million tonnes of food grain that is being procured with high minimum price and bonus offered by states boosting procurement to record levels.

This 627 lakh tonnes include storage space in proper godowns and outside on plinths. Government standards require that food kept outside on plinths must be disposed of within a year to prevent them from deteriorating.

The note had warned, “It is clear that FCI and state agencies will be faced with unprecedented problem of shortage of storage capacity resulting in large stock of wheat in CAP (in the open) in Punjab, Haryana and Madhya Pradesh. It is also possible that substantial quantity may have to be stored in unscientific plinths.”

The government has been unable to take a call on further export of grains or distribution under PDS though the food ministry had mooted a proposal almost a month back. The decision was deferred at the GoM led by finance minister Pranab Mukherjee with concerns about the subsidy bill for the year overshooting budgeted levels. Following up, PM Manmohan Singh held a meeting with the food and agriculture ministers but the decision was deferred again. A final call is yet to be taken.

The Times of India, 15 May, 2012, http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2012/05/15&PageLabel=12&EntityId


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