A crisis of food management
A food management crisis is brewing in the country. A bumper rabi crop has stretched the storage capacity of the state and Central governments.
Within three months, the kharif output will hit the market. By then it will be late in the day to save food from perishing.
By April, the stocks of wheat and rice were more than dou- ble what is required under the buffer stock norms and the strategic reserve combined. By June they had crossed the storage capacity–closed and open. Anecdotal evidence says it all: In Andhra Pradesh, grains are being stored in schools leaving students stranded. In Madhya Pradesh, food is being dumped on sand bags. In Punjab, the crisis is well known–it has been around for a decade now.
With rains around the corner, it is a foregone conclusion that we will see heavy wastage this year.
Much of the problem has to do with the uncertainty around the National Food Se- curity Bill (NFSB). Once en- acted, it has been projected that demand for wheat and rice will shoot up to 80 million tonnes. At the moment the Bill is still in the realm of debate. But this has not prevent- ed officials from being cau- tious. It is considered better to store food instead of exporting it. The fear being that once ex- ported, it will take another cropping cycle before the gov- ernment can lay its hands on meaningful quantities again.
This is a wrong-headed way of managing these stocks. It is much better to allow exports –without any limits. The money that will accrue from these sales can be kept aside.
In the meantime, the govern- ment can go in for future con- tracts for the supply of wheat and rice in global markets.
That way, food can be saved from rotting and at the same time its availability ensured for a later date when NFSB is implemented. The time for taking that decision, however, is now–it cannot be post- poned any longer as once the monsoon strikes, there will be waste and buyers will certain- ly insist on price discounts. A loss of value is quite likely. Yet even at this late hour, some- thing can be salvaged.
Creation of storage infra- structure is one area where governments have paid less than required attention. Ad hocism prevails: instead of sparing money and land to build permanent storage, ele- vated plinths–that offer little protection against the ele- ments–are preferred. These should be avoided as they have proven more or less use- less. A crash programme to create storage capacity is essential now.
Should foodgrains be exported or let to rot? Tell us at views@livemint.com