Status of grains in the central pool and upcoming plans

06-Feb-2025 10:52 AM

Status of grains in the central pool and upcoming plans

★ The government has estimated food subsidy expenditure of Rs. 2.03 lakh crore for the next financial year, a 3% increase from the previous year's revised estimate. Strategies to control food subsidy include selling surplus rice to states and allocating it for ethanol production.

Key updates from the Ministry of Food:

★ State governments can purchase up to 12 lakh tons of rice.

★ Ethanol distilleries can buy 24 lakh tons of rice at a subsidized rate of Rs. 2,250 per quintal, down from Rs. 2,800.

★ The sale of grains under OMSS (Open Market Sale Scheme) will continue to reduce storage costs.

★ Handling costs for rice and wheat have increased slightly in FY 2024-25.

★ The Food Corporation of India (FCI) distributes 360-380 lakh tons of rice and 180-200 lakh tons of wheat annually under the PMGKAY scheme, with total procurement exceeding 750 lakh tons.

★ FCI's central pool stock includes 496.9 lakh tons of grain, which is well above the buffer stock requirement of 214.1 lakh tons.

★ The government's focus is on reducing the cost of surplus grain storage while maintaining control over food subsidies through strategic measures like market sales, ethanol use, and free grain distribution to beneficiaries. This aims to manage financial pressures despite rising MSPs.