Today, the stocks of wheat and rice are in excess of 417 lakh tonnne (wheat 217 lakh tonnne, rice 200 lakh tonnne).

Buffer stocks as on October 1 should be 65 lakh tonne of rice and 116 lakh tonne of wheat. We are carrying excess stocks of 135 lakh tonne of rice and 100 lakh tonne of wheat, according to a report by The Associated Chamber of Commerce and Industry of India.

Stocks of foodgrains are lying scattered in the FCI godowns all over the country. Some of them are not even properly covered and lying open in fields, covered with simple plastic covers or tarpaulins.Every year the FCI spends over Rs 5000 crore as carrying cost of these excess stocks. A grant of Rs 10,000 crore is given to the FCI every year, which is being utilised by FCI for procurement and storage. For lack of storage facilities the FCI shifts its stocks from one state to another. The public distribution system distributes 7 lakh tonne of rice and 2 lakh tonne of wheat every month according to the report.

A stable long-term government policy on exports is needed. Exports are not regular as the government has an inconsistent policy for foodgrains.Poor infrastructure also needs to be tackled.The government has already taken some steps to salvage the present situation. The Group of ministers has decided to allow 2 million tonne of wheat for exports. The STC, MMTC and PEC have been given the permission to export. The price has been fixed as Rs 4150 per metric tonne (PMT) for export.In Andhra Pradesh the FCI has about 15.50 lakh tonne of rice and 4.85 lakh tonne of wheat lying in the godowns.