Foodgrain Stock Highest Since 2016: Govt Data

According to data from the Ministry of Food, in May 2021, India’s grain stocks achieved the highest level since 2016, driven by wheat purchases from Punjab and Haryana.

Foods Corporation of India (FCI) stated that as of May 18, 2021, it purchased 850.3 metric tonnes of wheat and rice from farmers across India; Furthermore, it also purchased 260 metric tonnes of un-milled rice, bringing the total amount of grain in government warehouses inventory > 1,000 metric tonnes. This is 38% higher than the price of 527.9 MT of wheat and rice purchased by FCI in 2016. Over the years, this number has steadily increased. In May 2017, 524 MT were purchased, 607 MT were purchased in 2018, 642 MT were purchased in 2019 and 642 MT were purchased in 2020.

An official of the Ministry of Food stated that most of the purchases were in April-May 2021, where collections were through the doorstep.

The government purchases grains from farmers across the country in accordance with the PDS to provide rice and wheat in order to fulfil its obligations under the 2013 National Food Safety Act (NFSA), which requires 75% of the rural population and 50% of the urban population to provide grains subsidy. States such as Tamil Nadu, Chhattisgarh and Jharkhand have provided legumes and other foods under the NFSA to ensure food security for poor families. The

Ministry of Agriculture website shows that the most wheat is purchased from Punjab, followed by Madhya Pradesh, Haryana and Uttar Pradesh. Due to the good monsoon, the sown area of ​​wheat was 31.5 million hectares, an increase of 10% over last year. The Ministry of Agriculture said that the largest purchase of rice came from Punjab, followed by Haryana, Telangana and Andhra Pradesh.

As of May 13, 2021, Haryana transferred Rs. 14,693 crore (US$ 2.02 billion) as the minimum support price (MSP) for wheat directly into farmers’ accounts. In the same period, the Punjab government transferred Rs. 24,000 crore (US$ 3.29 billion) of MSP to farmers.

The increased purchase of resulted in the elimination of more food under the PDS. According to data from the Ministry of Food, 548.04 MT of wheat and rice were allocated, of which 310.04 MT were allocated to the states. As of May 21, 2021, 146 MT of edible grains have reached citizens in the country.

Source: IBEF