Food Storage Problems in India

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We have one good news for our country straggling we have bumper crop but food inflation is going high , it is not going to happen the crisis in food management has been underline again and again

We have weakest link storage in supply chain.

The combination of storage capacity of food corporation of India , central warehousing corporation of India the various state warehousing corporation adds up to 63.63 million tonnes that is even less than the 65.60 Mt grain stock listed in the central pool in I Jan 2011

More over the problem of storage is compounded as the prices are not determined by the demand and supply of market. The government fixed minimum support price (MSP) for key crop that is usually might higher than open market. For instance, in 2010 -11 the open market price for wheat was less than Rs. 1000 per quintal, while the MSP was Rs 1180 per quintal

This of course, results in the huge pile up of stock with the government which it finds difficult to store and manage

The inefficient public distribution system and its many leak ages add to the problem further it causes problem in export market too.

Government need to make plane keeping in mind of all condition not only for vote we have surplus of food grains but we don’t have storage capacity

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