Food stocks reach all-time high but left to rot in the open

Grand plans stuck with PPPs failing to add storage space

prasanna

Prasanna Mohanty | April 25, 2012




Come monsoon we will have the spectacle of food grain rotting in the open once again. And that is because while the government has failed miserably to add capacity to store, stocks of food grain is increasingly at an alarming rate.

According to the Food Corporation of India (FCI), the stock has reached an all-time high at 53.3 million ton (MT), as on March 1, 2012. The FCI and state agencies have a ‘covered’ capacity to store only 43.8 MT. That is, only 43.8 MT food grain is stored in proper godowns. The rest, 9.5 MT is lying in the open, with tarpaulin cover and wooden plinth for protection, called ‘CAP’ in FCI parlance.

Worse, the stock will rise to 75 MT by June 1. This is FCI’s projection which has rung alarm bells. What it means is this: By June 1, 31.2 MT (21.7 MT additional stock plus 9.5 MT) will be rotting in the open.

Procurement of food grain has been going on. There will be additional burden also because of the food security bill the government intends to pass and enforce from this year. But as far as capacity building is concerned to store the food grain, the government’s efforts have been tardy.

Just one example will suffice.

The food and civil supply ministry had planned to add 10 MT of covered storage capacity by the end of the 11th plan (2011-12). These were to happen with the help of private players in the PPP mode. The actual addition is less than 2 MT.

The plans were grand, tenders were issued and actual sanction was given for building 15 MT capacity. But the response of the private players has not been good. There were also grand plans of creating silos of 2 MT capacity. But it is still stuck at the planning stage.

Now the FCI has begun sending warning notes to the ministry, the central and state warehousing corporations to hire additional space keeping in mind the projected level of stock. The shortage is acute in procuring states – Punjab, Haryana, Andhra Pradesh, UP, Bihar and Odisha.

In 2008, the government had introduced a scheme of hiring storage space for a period of 5 to 10 years to quicken the pace. Shockingly, FCI’s internal communication shows it is still “at various stages of finalization”.

The ministry also has a problem of quick distribution of food grain because of which it keeps rotting in the open for years. Taking umbrage at this, two years ago the supreme court had asked the government to distribute rotting food grain free of cost to the starving millions. The government refused to oblige saying that it would cost the exchequer Rs 5,000 crore.

Since then, neither the distribution process improved nor proper storage facilities created.

Comments

 

Other News

What really happened in ‘The Scam That Shook a Nation’?

The Scam That Shook a Nation By Prakash Patra and Rasheed Kidwai HarperCollins, 276 pages, Rs 399 The 1970s were a

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

How to transform rural landscapes, design 5G intelligent villages

Futuristic technologies such as 5G are already here. While urban users are reaping their benefits, these technologies also have a potential to transform rural areas. How to unleash that potential is the question. That was the focus of a workshop – “Transforming Rural Landscape:

PM Modi visits Rosatom Pavilion at VDNKh in Moscow

Prime minister Narendra Modi, accompanied by president Vladimir Putin, visited the All Russian Exhibition Centre, VDNKh, in Moscow Tuesday. The two leaders toured the Rosatom Pavilion at VDNKh. The Rosatom pavilion, inaugurated in November 2023, is one of the largest exhibitions on the histo

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter