Government Weighs Alternatives For Excess Rice Stock of 18 Mn Tonnes

ENA Sectors 2024-05-14 17:01:37 New Delhi, May 14 (KNN) The Indian government is grappling with a substantial surplus of over 18 million tonnes of rice stored in the godowns of the Food Corporation of India (FCI). This excess stock is draining the exchequer due to the high costs associated with warehousing and maintenance. Initially, the government had considered revising the specifications for the rice distributed free to the poor under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY). The proposed revision involved procuring rice with 10 per cent and 15 per cent broken grains separately, ensuring better quality rice for the beneficiaries. However, this proposal was rejected as it was deemed too expensive and labour-intensive due to the lack of necessary machinery like sifters and graders. The government is now exploring alternative solutions to address the surplus rice stock. The proposals under consideration include increasing the allocation of rice under PMGKY, providing free rice to employees of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), and reducing the price of rice under the open market sales scheme (OMSS). Typically, the government procures around 12.5-15 million tonnes of excess rice annually, which is then distributed through various welfare schemes and sold in the open market under OMSS. However, for the past two years, the government has struggled to find buyers due to the high price set for rice under OMSS, which is higher than the market price of the same variety. During the 2023-24 Kharif season, the FCI procured 46.3 million tonnes of rice against the annual requirement of 40 million tonnes for welfare schemes. As of April 1st, the government had a total stock of 31.8 million tonnes of rice, exceeding the norm of 13.5 million tonnes by 18.3 million tonnes. Maintaining higher-than-required stocks involves additional storage facilities and substantial maintenance costs. The government is actively seeking viable alternatives to address this issue and efficiently manage the excess rice stock. (KNN Bureau) 37802 https://knnindia.co.in/news/newsdetails/sectors/government-weighs-alternatives-for-excess-rice-stock-of-18-mn-tonnes 2024-05-14 17:01:37 knnindia.co.in Government Weighs Alternatives For Excess Rice Stock of 18 Mn Tonnes