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Informist, Monday, Mar. 24, 2025

 

NEW DELHI – The Food Corp. of India lost 65,000 tonnes of foodgrain worth INR 2.09 billion in transit as of Feb. 25 in 2024-25 (Apr-Mar). This accounts for 0.17% of the 38.2 million tonnes of foodgrain transported from surplus to deficit states. According to FCI, transit losses are inevitable as the agency moves most of foodgrains through railways.

 

The government has set the benchmark for transit losses of foodgrains at 0.2% in FY25, as per the government's memorandum of understanding with the agency. According to FCI, transit losses occur due to multiple handling, spillages, poor railway infrastructure, en-route theft, and moisture and temperature variations, among others.

 

"FCI moves about 600 lakh MT (60 million tonnes) of food grains every year from surplus states to deficit states...to ensure national food security," according to the parliamentary standing committee's report on the consumer affairs ministry. 

 

"Average lead of movement is 1,500 KM and 50-60 rakes are dispatched every day each carrying about 3,000 MTs of wheat or rice. During such massive movement of stocks across the country some transit losses occur and these operational losses are inevitable," the report said, citing the Department of Food. However, due to consistent efforts and the introduction of High Security Cable Seal, transit losses are curtailed to the barest minimum level, it added

 

Three decades ago, transit losses were nearly 2.0%, and a decade back it was 0.4%, FCI data showed. In FY21, FCI lost 149,000 tonnes of foodgrain worth INR 4.27 billion, which had been brought down to 71,000 tonnes worth INR 2.17 billion in FY24, the committee said. 

 

Experts have been urging the government to shift towards direct benefit transfer for better efficiency and accountability in distributing food subsidies. "By transferring subsidies directly to the beneficiaries' bank accounts, DBT (direct benefit transfer) minimises leakage, reduces administrative costs, and ensures that the intended recipients receive full benefits," according to the Indian Council for Research on International Economic Relations. 

 

Though the agency is making transit losses, it is booking storage gains. As of Feb. 25, the foodgrain storage gain was 56,000 tonnes, or 0.08% of the 71.5 million tonnes kept in godowns, the data showed. From FY15, FCI storage losses are nil. Instead, it has been making storage gains on account of weight gained during storage. Wheat being hygroscopic tends to gain weight whereas rice loses moisture, resulting in weight loss, according to the agency.  End

 

Reported by Afra Abubacker

Edited by Tanima Banerjee

 

 

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