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Speaking on the sidelines of "Massmerise", a one-day seminar organized by the Federation of Indian Chambers of Commerce and Industry last week here, Ram Vilas Pasan, Union minister of Food said, "The quality of rice starts deteriorating after 14 months. We, therefore, have directed FCI to clear all stocks within 18 months of procurement."
As against the buffer norm of 16.2 million tonnes and strategic reserves of 5 million tonnes, total foodgrains storage in the FCI godowns was reported at 57.38 million tonnes as on August 1. To evacuate space, however, the government has decided to release 10 million tonnes of wheat and 5 million tonnes of rice in open market.
Today, the average release period of rice and wheat stands at 24 months and 36 months respectively. Reducing it to 18 months will require FCI's prompt decision making and release of stocks.
"We have not received any official communication from the government. The decision might have taken place at the Ministry's level. But reduction in average release of stocks will be difficult to adhere to because of long duration of distribution time," an FCI official said and added, "Two-year average time for release of rice is normal".
Paswan was concerned with spoilage of foodgrains in FCI godowns. The government also lowered procurement target of foodgrains this year to 30 million tonnes as against 34 million tonnes target set and 26 million tonnes procured last year.
The government is also considering trifurcation of FCI into procurement, transportation and distribution to make the Corporation more accountable.
"We are focusing more on procurement and distribution. Transportation is not our foray and we do not want to put a focus on the same in future as well," said Paswan.
