States not lifting grain,Centre faces storage crunch

“We are staring at huge quantity of foodgrain. We want to release storage space. When fresh grain is coming,we want some vacant space for it,” Thomas told The Indian Express,explaining the need for states to lift the allocated grains.

The ministry’s granaries are overflowing and the ban on export of foodgrain has only worsened the situation. As on June 1,the Central pool stock stood at a record 65.59 million tonnes against the buffer norm of 31.9 million tonnes. The ministry has 63.36 million tonnes of storage space,including hired and Cover and Plinth storage facilities. Only 57.49 million tonnes of this is covered storage space. The ministry plans to add 15 million tonnes of storage space under a PPP arrangement,but these facilities are unlikely to be created before the end of 2012.

The Centre had hoped that allocating an additional 20 lakh tonnes of foodgrain to states would free some space to store the newly procured wheat. Riding on a record harvest,the wheat procurement this year has reached an all time high of about 27 million tonnes.

The states,however,are not coming forward to lift the grains,despite the fact that it is being given at prices based on MSP of 2009-10 under Open Market Sale Scheme (OMSS),and there is no restriction on its distribution through PDS.

In his letter,Thomas suggested to the states various ways the additional foodgrain can be used. “A state can also use this wheat/rice for distribution to educational institutions,SC/ST/Women hostels and hostels of schools,colleges,universities,jails,old age homes,police,paramilitary forces,staff canteens and other institutions,” he wrote.

Also,Thomas noted,since the prices are based on MSP of 2009-10 (rice at Rs 16 a kg and wheat at Rs 11 a kg),the states can make a profit by selling the foodgrain in retail markets as the prevailing market rates are higher (Rs 23 and Rs 15 respectively).