Food Corporation manages to control storage losses

The storage and distribution losses of grain in Food Corporation of India (FCI), government’s grain procurement and distribution agency, has been falling gradually over the years even as the quantities of grain procurement is on the rise.

In 2008-09, when the agency handled record volumes of wheat and rice, its combined losses from storage and distribution came down by 22 per cent over the previous year to Rs 233.91 crore. “This has been possible due to measures like barbed wire fencing of godowns, security inspections, adoption of 50 kg bag (instead of 100 kg bag) and transit insurance of stocks,” said an official at FCI.

Storage and transit losses (as a per cent of the total grain stored or moved) stood at 0.13 and 0.40 per cent, respectively, in 2008-09. This was against a target of 0.18 and 0.40 per cent, fixed by government. For 2009-10, the government has fixed a target of 0.20 per cent of storage losses and 0.40 per cent of transit losses.

“For the last two years, we have been procuring and handling record quantities of both wheat and rice. In such a situation, the decline in storage and transit losses is an encouraging sign,” he added. Procurement of wheat and rice last year stood at a record 58.5 million tonnes, breaking the previous year’s record of 51 million tonnes.

Storage losses take place due to loss of moisture in grain, deterioration of stocks, fungus infestation in stocks, rodent problem, and spillage from gunny bags for inadequate stitches and prolonged storage. FCI transports 27-28 million tonne of food grains over an average distance of 1,500 km annually. The food grain surplus from mostly northern states is transported across the country. Transit losses are incurred because of pilferage and theft during transportation of foodgrains, lowering of moisture content in long transit, multiple handling, use of hooks by labour, etc.