Punjab faces worst-ever storage crisis

The slow movement of the grain has become the bone of contention between the Punjab Government and the Food Corporation of India (FCI). On an average,3 lakh MT of wheat has been moving out of the state per month since the 2008-09 procurement season,peaking to a maximum of 5 lakh MT in February. While reasons for the slow movement range from good production of wheat in many of the consuming states,adequate buffer stocks of previous years with the FCI to de-hiring of storage space in states,Punjab is not willing to shoulder the burden of handling huge quantum of stocks without provision for its storage and management.

“I have time and again brought it to the notice of the Union Government that we are in a crisis situation on storage of wheat. We procure the highest share for the central pool and also handle these stocks,but we cannot do it for an unreasonable period of time. It is for the Government of India to deal with the stocks or endorse a proper storage policy for Punjab. We had sought permission to export wheat to deal with the crisis as supervising huge stocks without scientific storage on open plinths against pilferage,vagaries of nature and other damages is not our core competency. But now international prices of wheat have been hit making exports unviable,” says Punjab Food and Supply Minister Adesh Pratap Singh Kairon.

The storage crisis has also been compounded by the declining share of the FCI in both wheat and paddy procurement in the state over the years. It now accounts for just 10 per cent of wheat and one per cent of paddy procurement,leaving it to the state procurement agencies to store most of the procured stocks.

Also,the allocation of trains for the FCI and state stocks is not proportionate to the stockholdings,says the state Government,adding that the agency should put in place both short-term and long-term annual movement programme.

Since it is the Centre that controls where Punjab stores wheat through allocation of funds for covered,open plinth and scientific storage (silos),the highest quantum of wheat is likely to end up on open plinths as they charge the least. Punjab has now worked out a realistic figure for hiring space for the stocks,bringing it to 50 paisa per quintal per month from the earlier 20 paisa. The cost is calculated on area you hire and not the area you use.

While this will enable the state to hire more private space for the coming season,Punjab’s woes are far from over.