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Sunday, May 13, 2012

Food inflation fear could recede: Govt’s foodgrain stocks up by 21% as of May 1, 2012

New Delhi, May 13: The government’s foodgrains stocks rose by 21 per cent to 71.21 million tonnes as of May 1 from 59.2 million tonnes in the year-ago period, according to the Food Corporation of India (FCI).
Wheat stocks increased to 38.19 million tonnes (MT) from 31.37 MT a year earlier, the FCI said on its website. Rice stocks rose to 33 MT from 27.76 MT, it said.
Wheat and rice reserves with the government are much higher than the required norm of 21.2 MT as of April 1.
FCI, the nodal agency that undertakes procurement and distribution of foodgrains, has maintained maximum foodgrains stock in northern and southern parts of the country.
The government’s grains inventory has built up due to record production and procurement in last few years. This year too, the FCI is targeting to buy a record 35 MT of rice and 32 MT of wheat.
The country is poised for an all time record harvest of rice and wheat at 102.75 MT and 88.31 MT, respectively, this year. 

Source: The Hindu Business Line
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