India revised the buffer norms for food grains

16/01/2015,

The Government of India decided to revise the buffer norms for rice and wheat in the Central Pool (food grains stocks procured by Central Government and State Governments through minimum support price operations), which remained unchanged since 2005. Buffer stock and strategic reserves will be maintained at higher levels during the second and third quarter of the calendar year (from 31.9 to 41.12 million tonnes and from 21.2 to 30.77 million tonnes respectively), while stocks will be lower in the first and last quarter of the year (from 21.2 to 21.04 million tonnes and from 25 to 21.41 million tonnes respectively). The revision has been introduced to align reserves to the distribution needs under the National Food Security Act, which is estimated to rise to 61.4 million tonnes of food grain against the current 54-56 million tonnes. In addition to revising the buffers norm, the Cabinet Committee on Economic Affairs (CCEA) decided to offload excess stocks, which are currently close to 49 million tonnes or double the current official target, through open market sales or exports. Cutting excess stocks will allow reducing inflation in food grain prices and storage costs.

Country: India