The Hindu Business Line : Variance in buffer stock norms for grains confuses trade

IN addition to concern over rising prices, there is confusion in the grains market about the minimum stock norms fixed by the Government as the numbers displayed on the Web site of the Department of Food and Public Distribution are at variance with those of the Food Corporation of India (FCI).

Until this afternoon, the Food Ministry's Web site showed minimum stock of wheat that should be available with the Central pool as of July 1 at 14.3 million tonnes, even as the FCI Web site, over the last few days, has been showing 17.1 mt.

Players in the grain market were confused as to which number to go by. Stock numbers have become important in the context of rising wheat prices. According to the FCI Web site, as of April 1 it had 6.55 mt as against the minimum buffer norm of 4.0 mt.

However, in recent days, there have been reports that the actual stock as of April 1 was just a little over 4 mt (4.06 mt to be precise). So, in addition to confusion over the size of wheat production, there is uncertainty over minimum stock norm as also opening stock.

In the last session of Parliament, Dr Akhilesh Prasad Singh, Minister of State in the Ministry of Agriculture as well as Ministry of Consumer Affairs and Food, while replying to a question on the Government's buffer stocking policy announced that new norms had been adopted from April.

As of July 1, wheat buffer stock should be 17.1 mt. The revised buffer norms for the remaining period of the 10th Five-Year Plan period have been finalised by the Government based on the realistic requirement of foodgrains under the existing and new schemes, he added.

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