CCEA nod to maintain higher buffer stock of foodgrains

As per the revised norms, FCI has to maintain higher buffer stock and strategic reserves during the second and third quarter of the calendar year, while lower stocks in the first and last quarter of the year.

To avoid shortage of foodgrains once all states implement the food law, government on Friday approved raising buffer stock and strategic reserve limits of Food Corporation of India for both wheat and rice.      

For better management of foodgrains at FCI, the Cabinet Committee on Economic Affairs on Friday also constituted an inter-ministerial group to offload excess stocks, if any, in the domestic market through open sale or exports.

"The CCEA has given its approval to revise the buffer norms of foodgrains in the Central Pool as follows," an official statement said.

As per the revised norms, FCI has to maintain higher buffer stock and strategic reserves during the second and third quarter of the calendar year, while lower stocks in the first and last quarter of the year.

Higher stock of 41.12 million tonnes should be maintained in the second quarter as on July 1 instead of earlier limit of 31.9 million tonnes, while 30.77 million tonnes should be kept in the third quarter as on October 1 as against previous norm of 21.2 million tonnes, it said.

However, a marginally lower stock of 21.04 million tonnes is to be maintained in the first quarter as on April 1 as against 21.2 million tonnes.

Similarly, about 21.41 million tonnes stocks are to be kept in the last quarter as on January 1, as against 25 million tonnes.

The buffer stock norms have been revised as ‘the offtake of foodgrains under the Targeted Public Distribution System has increased significantly in the last few years’.

‘Further, the National Food Security Act has also come into force with effect from July 5, 2013".

In case the stock of foodgrains in the central pool is more than the revised buffer norms, ‘the CCEA has approved that the Department of Food and Public Distribution will offload excess stock in the domestic market through open sale or through exports’.

For this purpose an Inter-Ministerial Group consisting of Secretaries of the Food, Expenditure and Consumer Affairs Departments.

The government had last changed the buffer norms in 2005.

The foodgrains requirement under the food law is estimated to rise to 61.4 million tonnes, as against the current 54-56 million tonnes.

As of now, 11 states and Union Territories have implemented the food law, and the rest 25 are yet to roll out the scheme which aims to provide legal right on 5 kg of foodgrains per person per month at Rs 1-3 per kg.