FCI finally gets leeway in grain storage

Total physical stock as on November 1 was 43 mt against the total covered storage capacity of 55 mt

For the first time in many years, foodgrain stocks in the central pool are much less than the entire covered storage capacity available with the Food Corporation of India (FCI), thanks to some reduction in procurement and efficient management.

This, as some officials said, effectively means the bulk of the rice procured from farmers in the 2014-15 season that started from October might not be stored in the open as has been the practice in previous years.

According to the latest data, foodgrain stocks in the central pool as of November 1 are 53 million tonnes, of which wheat was 30.13 mt and rice was 13.6 mt. Of this, 9.59 mt is custom-milled rice, with millers and not yet physically come to the Corporation but to gradually flow in over the next few months.

SOME RELIEF

• Grain stock below storage level in Food Corporation of India
   
• New rice arrivals will not have to be kept in open
   
• Low stock due to fall in procurement, offloading of grains
   
• Corporation plans to further augment storage capacities
   
• Rice purchase in 2014-15 below last year's so far

This means the total physical rice and wheat stock with FCI as on November 1 was around 43 mt. Against this, the total covered storage capacity with FCI and state agencies is around 55 mt.

Officials said even if the entire paddy with mills is handed over to FCI in the next few months, none of it needs to be stored in the open or even in covered area plinth (CAP). The latter is a temporary storage facility, built by constructing a raised platform and covering the grain bags with weather-resistant polythene.

In an ideal situation, foodgrains in CAP should not be kept for more than six months. Due to paucity of space, FCI has been keeping grain under CAP for periods much longer than six months.

In total, the Corporation has storage capacity of 73 mt, of which 55 mt is covered.

“We had to strategically keep some space vacant for fresh rice arrivals which will begin in full swing from December onwards. But, since the past few years, it was becoming increasingly difficult due to bumper wheat procurement. However, this year, due to low wheat purchase in 2013-14 and proper management, we can keep the space vacant without much ado,” a senior FCI official said.

He said some wheat was under CAP, which could be moved in. FCI wasn't doing so as wheat can be stored in semi-open areas for long.