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Low production in paddy-growing states may help Punjab clear its pending stock

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    While other states are giving out distress signals of foodgrain scarcity, triggered by drought and flood fury, Punjab is not only looking at a good harvest but also hoping to gain from this adversity. With forecasts for paddy-growing states such as West Bengal, Uttar Pradesh and Bihar predicting lower than targeted production of the staple this year and paddy crop of Andhra Pradesh being hit by floods, Punjab will be feeding deficient states as well as the country’s Public Distribution System. This will bring it a much-needed relief from the problem of storing its plenty.

    Starting October, movement of Central pool stocks out of the state has picked up to 15 lakh metric tonnes (MT) per month, including 7.5 lakh of wheat and rice each. For a state which has the task of storing and preserving huge stocks — a total of 145 lakh MT of Central pool stocks (111 MT wheat and 35 lakh MT rice) were lying in the state as on October 1 and another 137 lakh MT paddy is likely to be procured during the ongoing season — higher off-take by the Food Corporation of India (FCI) is helping to ease off its storage crisis.

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    “Since the last three months, the FCI has been moving 9.5 lakh MT of food stocks out of the state on an average. From October, the movement has gone up to 15 lakh MT per month,” said Aseem Chhabra, Deputy GM, Punjab FCI. Even at this pace, Punjab will be left with 53 lakh MT of wheat by the time fresh procurement starts in April 2010.

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