FCI Races Against Time

by The_unmuteenglish

CHANDIGARH, June 16 — With the wheat procurement season wrapped up, the Food Corporation of India (FCI) is now at its busiest, scrambling to create storage space ahead of the upcoming kharif season by dispatching rice from Punjab’s overflowing godowns to other states.

In May alone, FCI shifted 10 lakh metric tonnes (LMT) of rice from Punjab, and another 14 LMT is scheduled for dispatch by the end of June. These movements are part of a broader logistical effort to avoid the storage crisis witnessed last year.

“We are working to ensure there is enough space created for receiving rice deliveries from the next produce, which begins arriving in December,” said B Srinivasan, General Manager, FCI Punjab Region. “Till then, we are targeting an average movement of 8 to 10 LMT of rice out of the state every month.”

As of mid-June, FCI has received 96 LMT of milled rice — about 82% of the targeted stock — from paddy procured during the 2024 season. Srinivasan said they expect to complete the intake from all rice mills by the end of July. This is expected to clear the decks for millers to receive fresh paddy in the next procurement cycle.

Last year’s delay in lifting rice stocks caused severe bottlenecks. With godowns packed to capacity, millers refused to accept fresh paddy in October, citing lack of space for storage. The crisis triggered a domino effect, slowing down procurement operations.

At present, Punjab’s FCI godowns have only 7 LMT of free space available. While this year’s rice delivery has reached 96 LMT, godowns are still holding 60 LMT of older rice stock, in addition to 100 LMT of wheat stored in both covered and plinth facilities.

Unlike rice, which must be stored indoors and urgently moved to make space for the next crop, wheat can be kept in open plinth storage using scientific methods. This distinction puts pressure on FCI to prioritise rice dispatches.

With kharif procurement season just months away, FCI’s race to empty godowns will be key to ensuring seamless intake and avoiding another storage logjam.

 

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