Government to increase foodgrain allocation for public distribution system

The central government has decided to consider an increase in the allocation of foodgrains to states / union territories on the basis of their demand. The PDS offtake is low in some states that are unable to absorb additional allocation of foodgrains due mainly to the additional subsidy burden.

The additional allocations will be made out of unlifted savings of ad hoc additional allocation of 5 million tonnes of foodgrains made in July 2012 for distribution to below poverty line (BPL) families, minister for consumer affairs, food and public distribution system, K V Thomas informed the Lok Sabha in a written reply today.

The minister said the lower offtake in some states could be attributed to the states' inability to absorb additional allocations because of the additional subsidy burden on that account, shortage of stocks at some FCI depots due to movement bottlenecks, among others.

He said that the record procurement of rice and wheat during the past few years and the consequent surplus stocks of foodgrains in the central pool have resulted in shortage in covered storage space.

Considering the increased procurement of foodgrains, the government has formulated a scheme for construction of storage godowns through private entrepreneurs, Central Warehousing Corporation (CWC) and state warehousing corporations (SWCs), he said. The scheme envisages creation of about 18.11 million tonnes in 19 states through private entrepreneurs and CWC and SWCs.

The 12th Plan has made an allocation of Rs568.17 crore to the Food Corporation of India (FCI) for construction of storage godowns in the North Eastern region. This is likely to result in the construction of about a 5.4-lakh tonne storage capacity.

To tide over the problem of shortage of storage space, FCI also hires storage space from CWC / SWCs / government agencies and private parties, he added.