States told to build godowns for grains under Food Law

Centre today directed the state governments to take immediate steps for constructing intermediary godowns at block level under employment guarantee scheme MGNREGA to ensure additional storage facilities for effective implementation of National Food Security Law.
In a joint letter to all Chief Ministers, Union Rural Development Minister Jairam Ramesh and Food Minister K V Thomas said the states can construct intermediary godowns through MNREGA scheme.
"We request you to take immediate steps to identify locations in each block where storage is needed, identify land required and ensure that works are taken up under MNREGA after following the due process laid down under the MNREG Act, 2005," the letter said.

It said that Schedule-I of MNREGA has just been expanded to include construction of foodgrains storage facilities for implementation of National Food Security Act and expressed hope that the decision would help in creation of additional food storage facilities for "effective implementation of the National Food Security Act, 2013".
The Government said such intermediate storage at the grassroots level, apart from being a primary component in the entire supply chain, would also help reduce leakages considerably.
"We expect that these facilities are built by the line departments or Zilla/Block panchayats, the wage:material ratio (60:40) will apply at the block level," the letter said.

The Centre's direction came, days after it announced its decision to set up intermediary godowns, which are generally created at block level, for efficient and smooth distribution of foodgrains via Public Distribution System.
Government said it has long been felt the need for the creation of intermediate storage facility at Zilla/Block/ Village panchayat levels. The state governments are required to provide land, while the Centre will bear the entire construction cost.
Presently, in many states, foodgrains are lifted from FCI storage depots and sent directly to the fair price shops, resulting in 25-30 per cent leakage and pilferage.