Sunday 12 February 2012
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Food grain causes problem of plenty

Ajith Athrady, New Delhi, DH News Service:

Even as political parties go all out to dole out food grain at cheap prices to voters, the ministry of food is unable to decide how to clear the commodity stacked in godowns all over the country.

Owing to a bumper crop this year, the ministry officials are in a quandary whether to go ahead with the lifting of the export ban or wait till the new government assumes office at the Centre, as pressure has been mounting on them to allow the export of food grain.

"If we lift the ban, then we may incur the wrath of the new government as it might need huge stocks of food grain to fulfill the poll promises," an official in the ministry told Deccan Herald.

As per data, the food stocks with the government till date is 13.9 million tonnes (mt) of rice and 14.99 mt of wheat. Another 20 mt of wheat is expected to arrive, as the state-run agencies are procuring the commodity from farmers under the minimum support price (MSP).





Though the country's requirement of food grain in terms of the public distribution system, National Rural Employment Guarantee Scheme and the mid-day meal scheme was just 13 mt of rice and 4.5 mt of wheat, it was not clear how the government became indecisive on the fate of the surplus food stock, said the official.

Moreover, the record increase in MSP for wheat to Rs 1,080 a quintal has resulted in the expansion of wheat cultivation in many states leading to increase in production. Though the officials argue that the lifting of the ban on wheat would ease the burden of the surplus crop, they are worried that it would be counter productive to the new government.

The big challenge before the government is to store food grain. The government has already received complaints regarding rotten food grain due to poor storage facility. By allowing the export, farmers may benefit due to increase in the selling price, officials argue.

The government banned the export of wheat and non-basmati rice in February 2007 and April 2008, respectively, to maintain adequate supply of food grain in the country.

The Congress has promised to give to 25 kg of food grain at Rs 3 a kg to families of below poverty line, while the BJP has assured voters of 35 kg of wheat/rice per family at Rs 2 a kg.

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