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Food Ministry revises allocation of wheat to 12 states for subsequent 10 months

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After a pointy drop in wheat procurement this session resulting in drop in shares, the federal government has decreased allocation of wheat supplied to 13 states for the implementation of National Food Security Act (NFSA) throughout June 2022 until March 2023. Under the revised pointers, allocation of rice has been elevated underneath NFSA.

A communication by the meals ministry on Friday has said that revision in allocation of rice and wheat has been performed for the ‘management of foodgrains stock as per the norms’.

Allocation of wheat underneath NFSA has been decreased for Bihar, Jharkhand, Odisha, West Bengal, Delhi, Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Uttarakhand and Kerala to solely 85,320 tonne throughout June 2022 and March 2023 from the earlier norm of 0.21 million tonne (MT). The allocation of rice underneath NFSA to those states has been elevated to 2.04 MT from 1.9 MT.

The authorities’s wheat procurement within the present 12 months could also be lower than half the extent final 12 months, as market costs stay above the minimal assist worth (MSP) mounted by the federal government. Purchases of the grain by the Food Corporation of India (FCI) and different authorities companies on the MSP stood at near 18 MT on Friday, down 49% from the year-ago degree.

Earlier this month, the federal government had revised grain allocation underneath the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) from May to September 2022.

As per the revised guideline, through the remaining 5 months of section VI of PMGKAY, FCI has allotted 3.5 MT of wheat to states as per the sooner communication FCI was to provide 9 MT of grain.

Rice allocation throughout May-September this 12 months has been revised to 16 MT towards the sooner norm of 10.8 MT.

Launched in 2020 as a part of the Covid-19 aid measure, underneath the PMGKAY scheme 5 kg of grains are supplied free each month in addition to extremely subsidised foodgrain to greater than 81 beneficiaries underneath National Food Security Act.

“To mitigate scarcity like situation and to ensure availability of sufficient stocks as per stocking norms, it has been decided to revise allocation during May-September 2022,” in line with the meals ministry’s communication to states. This transfer to allocate extra rice than wheat got here after wheat inventory held with FCI as of May 1 dropped to a five-year low of 31 MT on May 1.

Sources informed FE that due to the low shares, the federal government decreased wheat supplied underneath the scheme with rice, whose shares are ample. As of May 1, FCI has 33.15 MT of rice whereas one other 20 MT is receivable from the millers. This is towards a buffer norm of 13.58 MT initially of April.

Source: www.financialexpress.com”