Low production in paddy-growing states may help Punjab clear its pending stock
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....
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 countrys 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.
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.
Crisis of storing wheat:
Since between rice and wheat,it is the fairer grain that requires safer storage and the price differential between covered and open storage is substantial,nearly two-third of total Central pool wheat in the state is stacked on open plinths. Though vulnerable stocks piled up on low-lying fields and mandi yards have been cleared in September and those in rice mills and unscientific plinths are being moved out in October,still large quantity of wheat is in the open. A no-win situation for the Punjab Food and Civil Supply department and the FCI which pays state agencies for its storage.
Preserved,then sold as animal fodder:
The FCI pays Rs 216 per quintal per month for storage and maintenance of one-year-old wheat which compounds to Rs 447 per quintal per month if the storage period goes up to two years. Add to it the cost of treatments like fumigation to keep it fit for human consumption.
The longer open storage has resulted in loss of wheat worth millions of rupees to pilferage,rain,heat,rodents and pests and frequent treatments at times leave them just good enough to be sold as fodder for animals.
During years of longer storage between 1999 to 2005,nearly 5.79 lakh tonnes of wheat,rice and paddy lying with Punjab FCI was declared damaged while 7.56 lakh tonnes of wheat had rotted under the custody of five state procurement agencies and was auctioned as fodder for animals.