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HomeNewsWheat stock with FCI lowest since 2018, but higher than buffer norm

Wheat stock with FCI lowest since 2018, but higher than buffer norm

NEW DELHI:

Wheat stock

with Food Corporation of India (FCI) has dropped below 100 lakh tonne for the first time since 2018, falling to 97 lakh tonne this month, due to low

procurement

during past two years and record sale of the cereal in open market to keep prices under check. However, in case of

rice stocks

,

FCI

is currently holding more than four times the

buffer norm

.

Despite wheat stock plummeting, even at current level, it is higher than statutory buffer stock requirement at this point of time. As per norm, in April, FCI must have 74.6 lakh tonne of the foodgrain.

Screenshot 2024-03-13 005333

“The stock is enough to meet National Food Security requirement and it’s more than the buffer norm. Procurement season has also started from March 1 and we are expecting much better procurement than past two years,” said an official.
Govt has estimated wheat procurement to be around 320 lakh tonne and will put govt in a comfortable position.

In June 2023, govt started selling wheat in open market to increase its availability and check prices. By Feb end, FCI had sold over 90 lakh tonne as market intervention. Open market sale has been discontinued since public procurement has started. In case of rice, current stock with FCI is around 270 lakh tonne, excluding close to 30 lakh tonne of grain receivable from millers. As per buffer norms, FCI must keep around 136 lakh tonne rice as on April 1.