FCI told to clear stock within 18 months of procurement

Food minister Ram Vilas Paswan says quality of rice starts deteriorating after 14 months, hence the directive

The food ministry has directed Food Corporation of India (FCI) to clear stocks within 18 months from the date of procurement. Speaking on the sidelines of a seminar organised by the Federation of Indian Chambers of Commerce and Industry here, Union food minister Ram Vilas Paswan said, “The quality of rice starts deteriorating after 14 months. We have, therefore, directed FCI to clear all stocks within 18 months of procurement.”

Against the buffer norm of 16.2 million tonnes (mt) and strategic reserves of five mt, total food grain stocks in FCI godowns were reported at 57.38 mt as of August 1. The government has decided to release 10 mt of wheat and five mt of rice in the open market. Currently, the average release period of rice and wheat stands at 24 months and 36 months, respectively.

“We have not received any official communication from the government. The decision might have taken place at the ministry level. But reduction in average release of stocks will be difficult to adhere to because of the long distribution time,” an FCI official said, adding, “An average time of two years for release of rice is normal.”

The government is concerned about spoilage of food grain in FCI godowns. For this year, it has lowered the food grain procurement target from 34 mt to 30 mt. Last year, procurement stood at 26 mt.

The government is also considering dividing FCI into procurement, transportation and distribution segments. “We are focusing more on procurement and distribution. Transportation is not our foray and we do not want to focus on this in the future, too,” Paswan said.