Source says govt food grain stock as on Nov 1 up 22% at 60.5 mln tn.

Food grain inventory in the central pool is at 60.48 mln tn as on Nov 1, over 22% higher on year. Rice stock rose 42% on year to 23.11 mln tn, while wheat stock was up nearly 13% on year at 37.38 mln tn. The sharp rise in rice stock was primarily due to its lower off take from the central pool by private players, and a higher carryover stock from 2018-19. Robust procurement of the food grain in 2018-19 (Oct-Sep) at 44.33 mln tn, as against 38.08 mln tn in the previous-year period, also aided the build up. As of Oct 1, the government had 24.9 mln tn rice in the central pool as carryover stock from the last year, according to data published on the website of the Food Corp of India.

Now, with the sharply higher food grain inventory with the government, the problem of shortage of storage space is expected to become more severe. To deal with the problem, the government is looking into ways to liquidate its rice stock. The Centre has been toying with ideas such as allocating additional grain to the public distribution scheme beneficiaries or diverting additional stock for production of ethanol. The Food Corp has also recommended lowering the offer price of rice under the open market sale scheme to 2,250 rupees per 100 kg from the current price of 2,785 rupees to encourage private purchases, another official had said. The government has earmarked 5 mln tn to be offloaded from the central pool. However, private purchases have remained subdued at only 100 tn out of the total 535,020 tn sold so far.

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