FCI’s wheat stocks down to a 14-year low

At the beginning of this month, wheat inventories in the central pool owned by the Food Corporation of India (FCI) and state agencies fell to 25 million tonnes (mt), the lowest level since 2008. In comparison to the buffered standard of 20.5 mt, estimations indicate that by October 1 the wheat stock will be about 22. 9 mt. However, the FCI has a healthy 24.65 mt of rice inventories as of September 1, 2022. By October 1, rice stock might drop to 20 mt, which is still more than twice the 10.2 mt buffer required. More than 12 mt of rice that millers have yet to deliver is not included in the current stocks.

The cumulative foodgrain stocks at the start of this month were 49.65 mt compared to the buffer stock limit of 30.7 mt for October 1, even though the government has not yet decided whether to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) until September 30.

The PMGKAY program, which was introduced in April 2020 as a part of the Covid-19 alleviation measures, provides 5 kg of grains free of charge to more than 800 million beneficiaries each month. Additionally, under the National Food Security Act, these people receive an equivalent amount of highly subsidized food grains (NFSA).

Despite a previous order that grain lifting is finished by August 31, the food ministry has now permitted states to lift foodgrains for distribution under PMGKAY for this month till September 30.

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