Foodgrain target may not be met

The UPAâ€™s commitment to a beefed-up PDS and other welfare programmes such as Food for Work may have been heavily behind the Railway minister Laloo Yadavâ€™s rather optimistic foodgrain freight target for 2004-05, which is set at 44.79 million tonnes (MT). Realistically speaking, the actual tonnage hauled is likely to be at least three million tonnes below the target. That clearly indicates that the earnings from foodgrain freight for the Railways in 2004-05 will fall below the 12% of the total that it accounted for in 2003-04. To boot, far from beating the 03-04 high, the Railways would be hauling grain to the tune of well below the level of drought year 2002-03, which stood only at 45.60 m tonnes. On account of the governmentâ€™s decision to cap foodgrain exports for the entire year alone, foodgrain freight is set to fall by three million tonnes, sources said. In addition, grain procurement major FCI has set in motion extensive price support measures in non-traditional areas, apart from procuring from these regions to move grain to drought prone areas in the south. That is designed to save the FCI money on freight and they estimate that up to end March 2005, this could cost the Railways another 8 million tonnes in domestic grain movement on public account. Roughly, that would account for about 11 million tonnes lower than last year in foodgrain hauled by the Railways, and, consequently, less freight earnings . So where is the Railways looking to get more foodgrain to that its target for the year (44.79 million tonnes) stays on even keel and make up at least 8 million tonnes? For this, the Railways is banking heavily on the UPAâ€™s pronouncements on a strengthened PDS (meaning, of course, more domestic and interstate grain movement), and intensive beefing up of welfare programmes such as Food for Work. Although exports from the Central pool have been capped now, the Railways are keenly awaiting the Commerce ministryâ€™s new foodgrain export policy for the private sector. Sources counted that the policy will be tied up within a month, thus triggering off noticeable rail movement of grain on private account. Foodgrain gets almost the lowest grading for revenue earning commodities on rail, but the Railways also hopes to increase volumes also by catering to domestic private sector needs. â€œWe were unable to meet demands from private traders and flour millers last year due to pressure from PDS and exports. We plan to meet the demands this time,â€� sources said. For 2004-05, around 60% of the expected PDS and welfare programme grain movement to drought struck Karnataka and Maharashtra, as well as pre-monsoon grain stocking by the North-east has already been completed in May. But the Railways expects grain for drought relief to carry on through another two months. In addition, low rains in June have accounted for continued drought relief movement projections to select regions through this year.

Foodgrain target may not be met

The UPA's commitment to a beefed-up PDS and other welfare programmes such as Food for Work may have been heavily behind the Railway minister Laloo Yadav's rather optimistic foodgrain freight target for 2004-05, which is set at 44.79 million tonnes...

More from our Partners

Popular Categories

Hot on Web

In Case you missed it

Top Searched Companies

Latest News

Download ET APP

Follow us on

become a member