NEW DELHI: The government has asked states and UTs to withdraw rice and wheat under the free food grain scheme from the Central Fund three months in advance (till June) and distribute them to beneficiaries immediately. This directive comes at a time when government warehouses are overflowing with stocks of rice and wheat and there is little space available to store the fresh wheat that will begin in the coming weeks.“In view of the upcoming procurement season in the country and the consequent hurdles faced by the states/UTs for efficient logistics and storage, it has been decided that the states/UTs will lift the food grains allocated up to June 2026 under the NFSA in advance and distribute them among the beneficiaries immediately,” the Food Ministry said in a communication to the state food secretaries.It also directed Food Corporation of India (FCI) to ensure sufficient availability of food grains in its warehouses. The FCI has also been asked to coordinate with states on necessary measures to ensure early lifting of foodgrains.As of Thursday, FCI has rice stocks of 37.2 million tonnes (MT) and wheat stocks of 23.5 MT. Officials said the combined stock of the two food grains is around 60.7 MT, which is 185% more than the required margin of 21 MT as on April 1. The current stock excludes around 39 MT of rice that is yet to be received from millers.Officials said the one-time advance distribution of foodgrains to over 80 crore beneficiaries will serve a dual purpose: increasing the availability of space to store newly procured foodgrains and reducing stress on the supply chain at a time when the government is working to address energy-related issues due to the war in West Asia.Due to the current open procurement policy, rice stocks in the central fund are increasing even though the government is offloading the key food grain on the open market, liberal allocations to states and even supplies for ethanol manufacturing.
