According to local sources, Current instruction by the Food Ministry to the Food Corporation of India (FCI) to account the stocks in the books and warehouse is expected to posture problems to some state governments.
Rice stocks with the FCI as of October 1, 2013 amounted to around 23.1 million tons, more than thrice needed buffer standards of around 7.2 million tons. Still, the Food Ministry’s stock audits have uncovered that closely 6 million tons of rice worth about 10,000 crore (around $1.6 billion), or about 26% of the reported 23.1 million tons are missing.
Generally, FCI secures paddy and allocates particular millers to get the milled and resupply the milled rice to FCI warehouses. But, here, millers have not repaid around 6 million tons of milled rice to FCI since October 2012.
Stock audits indicate that most of the missing rice stocks have been classified in the states of Bihar, Chhattisgarh, Madhya Pradesh and Odisha. Whereas about 10.86 million tons of rice has been acquired in 201213 from these states, approximately 3.82 million tons of milled rice worth Rs.6,339 crore is still with millers. Likewise, of the 9.37 million tons of paddy obtained from these states in 2013-14, approximately 2.15 million tons of milled rice worth Rs.3,745 crore has to touched FCI warehouses.
The Food Ministry has supposedly inquired the FCI to recover the missing rice stocks from relevant states’ millers by this month end or write off the stocks at the cost of the respective state governments. This ways, the respective state governments need to stand huge costs if they cannot reimburse the rice from millers.
As of October 1, 2014 India’s rice stocks in the central pool mounted approximately 18.24 million tons which includes a milled equal of round 6.65 million tons of paddy, dejected about 21% from last year.