Foodgrain stocks with the state-owned Food Corporation of India (FCI) declined marginally to below the 70-million-tonne (mt) mark for the first time in the last few months.

As per the latest data released by FCI, the corporation, at the start of the month, had rice stocks of more than 29 mt while more than 40 mt of wheat was in its godowns.

This is a drop from the 74 mt of foodgrain with FCI at the start of July.

?For the next few months, we will be able to liquidate a large chunk of foodgrain stocks through selling in the market and disbursement under the Targeted Public Distribution System (TPDS),? an FCI official told FE.

At close to 70 mt, the foodgrain stocks still far exceed the requirement under the buffer stock and strategic reserve norms of 32 mt.

The FCI has storage capacity in excess of 62 mt, out of which close to half is hired. During the next few months, the stocks may be liquidated to an extent.

Kharif rice procurement would only commence from October and the government has set a procurement target of 34 mt for the 2013-14 season.

?The storage crunch faced by FCI is not likely to be solved in the near future if the food security Bill is not taken up for implementation during the next few months,? a food ministry official said. Implementation of the National Food Security Bill, 2013, would ensure more than 61 mt of highly subsidised foodgrains are distributed to 67% of the country population.

The proposed legislation on food security would be taken up for discussion in Parliament next week, after food minister KV Thomas introduced the Bill in the Lok Sabha on Wednesday.

The corporation distributes subsidised foodgrain to more than 40 crore people under TPDS at present. Meanwhile, in a bid to get rid of excess wheat stocks, the FCI has started the tendering process for shortlisting private agencies, which would purchase 8.5 million tonne of foodgrain under the Open Market Sale Scheme (OMSS). The stocks procured from the 2011-12 season would be sold under OMSS till March 2014.

FCI has also approached the Cabinet to allow exports of about 2 million tonne of wheat during current year.