JOIN USToo much food, but too little to eat
Come April, the wheat harvesting season, the mandarins of government are a worried lot.
This year, their worry is compounded as there are virtually no godowns to store fresh arrivals in major wheat growing states, raising fears of wastage of huge quantity of foodgrains. By the Union Food Ministry’s own admission, the Food Corporation of India (FCI), the apex procurement body which distributes foodgrains under welfare schemes, is nonplussed as all its godowns are overflowing with uncleared stocks of wheat procured during the previous season.
The government proposes to procure 75 million tons of wheat by June 1, against the total storage capacity of 63 million tons (including 25 mt in open storage covered with plastic sheets). This means, as much as 37 million tons of wheat will be in the open, vulnerable to damage due to rain.
Food Minister K V Thomas says foodgrains storage crisis was due to procurement exceeding targets because of record production and encouraging purchase policy. While the country had produced 160.89 MT of foodgrains in 2010-11, it has jumped to 193.64 MT in 2011-12, he said.
The UPA Government’s National Food Security Scheme (NFSS) under which it proposed to provide highly subsided foodgrains to the poor, is also responsible for the hugh stockpile. The government wanted to create a comfortable bufferstock of foodgrains before the scheme became operational. The plan boomeranged as the launch of the scheme was delayed and foodgrains remain piled up in godowns.
As the administrative machinery failed to anticipate the huge arrivals, a blame game has begun. Officials in the Food Ministry point fingers at major wheat growing states like Madhya Pradesh and Rajasthan for failing to foresee bumper crop. To clear the stockpile, both Thomas and Agriculture Minister Sharad Pawar suggested distributing foodgrains to beneficiaries under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in lieu of wages. It was rejected by Rural Development Minister Jairam Ramesh citing absence of a mechanism which could result in pilferage.
As the MGNREGS Act emphasises on paying cash wages, several civil rights activists have also opposed giving foodgrain which they fear would end up in flour mills. Agro scientist M S Swaminathan moots a national grid of grain storages, starting with storage at the farm level in well designed bins, extending to rural godowns and regional ultra-modern silos to reduce post harvest losses and ensure food safety. Though there was a suggestion to distribute foodgrains to poor at a subsidised price, initially it was shot down by Finance Minister Pranab Mukherjee fearing increase in the food subsidy bill, which has already touched Rs 80,000 crore a year.
Subsidy outgo
However, Prime Minister Manmohan Singh intervened and an expert group led by PM’s Economic Advisory Council Chairman C Rangarajan was formed. The panel suggested export of 2 MT of wheat and additional supply of 13 MT of grain via ration shops and in the open market. The release would cost a subsidy outgo of Rs 16,790 crore.
As the price in the international market is much lower than the procurement price, many in government feel export would be more of a burden than profitable. But, under pressure to reduce the growing stockpile, the government has started export. The Centre will also approach the states to offtake foodgrains to distribute to the poor through ration shops.