Govt’s grains stocks at a record 91 MT; Stockpile to offer cushion against shortfall in output
India’s foodgrain stocks have reached a record 91.6 million tonnes, including 51 million tonnes of wheat and 40 million tonnes of rice, providing a strong buffer against potential El Niño-related production losses. The surplus is sufficient for food distribution, open market sales and ethanol allocation.
The government’s current rice and wheat stocks are at a record 91.6 million tonne (MT) which is likely to offer a cushion against any possible shortfall in the production of foodgrains due to the El NinoEl Nino risks.
At present, the Food Corporation of India (FCI) has 40 MT of rice and 51 MT of wheat against a buffer of 13.54 MT (rice) and 27.58 MT (wheat) MT for July 1 respectively. Current rice stock excludes over 27 MT of rice yet to be received from the millers by the corporation.
“We have hugely surplus grain stock sufficient to meet the supplies under the public distribution system and to carry out an open market sale scheme,” an official said. In addition, adequate rice would be allocated for ethanol manufacturing, according to an official.
Massive stockpile is against possible decline in grain production
This is massive stockpile is against possible decline in grain production in the ongoing kharif seasons due to the sluggish progress of monsoon so far. Inadequate rainfall is likely to delay sowing of paddy and yield may get impacted if India Meteorological Department’s (IMD) forecast of ‘below-normal’ rainfall in the monsoon season (June-September) comes true.
The corporation supplies around 36-38 MT of rice and 18-20 MT of wheat annually under the free ration scheme or Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to around 810 million people. Procurement of rice and wheat under the minimum support price (MSP) from farmers has been in the range of 75 to 80 MT in the last many years leading to a piling up of stocks.
At present, the FCI has 51 MT of wheat as the central pool stock against a buffer and strategic reserve norm of 27.58 MT for July 1. The current wheat stock with the government agencies, is highest since June 1, 2021. High stock is mainly because of close to 35 MT of wheat procured during 2026-27 marketing season (April-June), the highest level in the last four years.
“Such stocks typically peak in April-May, and the current levels are quite healthy compared to the historical levels seen during this period,” rating agency ICRA had earlier stated in its southwest monsoon outlook report.
Farmers have commenced sowing of kharif crops including paddy, pulses and oilseeds following the onset of the monsoon earlier this month.
Officials said the quantum of rains following the met department’s forecast of ‘below normal’ rains in the ‘monsoon core zone’ consisting of most of the rainfed agriculture areas in the country, would be crucial for grain production. However experts say that the nature of the spread and distribution of monsoon rains across the four months would be crucial for crop yield.
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Source : Financial Express
