Business Standard

Lockdown helps faster delivery of foodgrain by FCI

In 11 days, corporatio­n moved three times more grain than the same period last year

- SANJEEB MUKHERJEE

Since a day before the nationwide lockdown, the Food Corporatio­n of India (FCI) has delivered 1.16 million tonnes (mt) foodgrain to several states, including Uttar Pradesh, Bihar, and West Bengal. According to a senior FCI official, this is nearly three times what the corporatio­n had delivered during the correspond­ing period last year.

The FCI is also looking at moving 6 mt foodgrain this month alone, nearly 2.5 times what it had delivered in April last year, the official said.

Since March 24, a day before the 21day lockdown was imposed, around 1.33 mt of wheat and rice were loaded from producing states, such as Punjab and Haryana, of which around 1.16 mt have reached designated states until Friday. The remaining is in transit.

A near-absence of passenger traffic on the railway network through which more than 85 per cent of the foodgrain is moved out annually from producing states and easy availabili­ty of rakes facilitate­d this movement of foodgrain. “Goods trains are mainly carrying FCI’S foodgrain,” the official said.

The FCI’S responsibi­lity is to deliver the goods at its designated depots within a state, and thereafter it is the state’s responsibi­lity to transport it further right up to ration shops. Identifica­tion of beneficiar­ies, issuance of ration cards, and supervisio­n and monitoring of ration shops —all fall within the purview of the state administra­tion. “We are planning to move out around 6 mt of foodgrain this month from producing states. In April last year, we had moved around 2.6 mt,” the FCI official said.

The movement of such a large quantity is necessitat­ed as the Centre has decided to give 5 kg of wheat and rice extra to all the beneficiar­ies (around 820 million people) under the National Food Security Act. As of April 1, the FCI had a foodgrain stock of 56.24 mt, of which rice was 31.64 mt and wheat 24.60 mt.

Besides, helping the distributi­on of foodgrain through ration, the FCI is offloading surplus stock to bulk users under the open market sales scheme (OMSS) through e-auction. This will enable private flour millers to process the same into atta and other eatables ahead of the arrival of the new crop.

So far, the FCI has received bids for the purchase of 0.14 mt of wheat and 77,000 tonnes of rice from private traders and food processing companies. Because of the Covid-19 pandemic, the FCI has allowed states to lift a fixed quota of grain at a reserve price under the OMSS, without participat­ing in the e-auction.

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