CCEA may consider tomorrow increasing FCI's buffer stock level

NEW DELHI: The Cabinet is likely to consider tomorrow a proposal to allow state-run FCI to maintain higher foodgrains stock up to 53 million tonnes in a year for ensuring smooth implementation of the food security law.

As per the existing norms, the Food Corporation of India (FCI) maintains a maximum foodgrains stock of 26 million tonnes. The buffer norms of foodgrains have not been revised since April 2005.

According to sources, "the Cabinet Committee on Economic Affairs ( CCEA) is scheduled to meet tomorrow. The proposal on revision of buffer norms of foodgrains in the central pool is on the agenda of the meeting."

The Food Ministry has proposed revision in the buffer norms keeping in mind the likely increase in sale of foodgrains under the public distribution system (PDS) with the implementation of the food law, that gives a legal right over highly subsidised foodgrains.

In the CCEA note, the Ministry has suggested an increase in the quantity of foodgrains to be maintained as buffer stock to be in the range of 31-53 million tonnes, which would be sufficient to demand for 9 months to one year, sources said.

The storage of higher buffer stock would increase the maintenance cost, thereby the overall food bill cost, they added.

Besides, the CCEA is expected to discuss the Food Ministry's proposal on allocating extra foodgrains to states for meeting demand during festivals and natural calamities.

It is also likely to consider Agriculture Ministry's proposal on implementation of the national programme for bovine breeding and dairy development during the 12th Five Year Plan period.