The buffer stock of foodgrains was far in excess of norms between 1993-96 and 1998, resulting in excessive carrying cost which ranged between Rs 450 crore and Rs 1,853 crore during 1993-98, the CAG said in its latest report on Food and Consumer Affairs.

While the recommended stock of foodgrains on July one of every year was 223 lakh tonne, the Food Corporation of India (FCI) had foodgrains stocks between 223.70 lakh and 356.64 lakh tonne during 1993-99, it said. It said maintenance of huge buffer stock requires carrying costs, which had risen from Rs 450.69 crore in 1992-93 to Rs 1,853.48 crore in 1994-95 and about Rs 1,104 crore during 1997-98.

"Thus, the increase in the level of procurement year to year, declining offtake, increasing carrying costs of buffer stock, the trend of progressively rising Minimum Support Price (MSP), point to the need for review and rationalisation of food management through the FCI," the CAG report said. "The need for a serious scrutiny is paramount in view of the widespread perception, that the Public Distribution System (PDS) served the interests of producing and food surplus states more than the targeted beneficiaries, as the implementation of the PDS is marred by several inefficiencies," it said.

Pointing out that there has been diversion of large quantities of subsidised foodgrains, CAG said commodities under the Public Distribution System (PDS) valued at Rs 84.37 crore were misappropriated in 12 states.

"A significant portion of subsidised foodgrains and other essential commodities did not reach the beneficiaries, due to their diversion in the open market", the CAG said in its latest report on Food and Consumer Affairs.

In 16 states and Andaman and Nicobar Islands, 18.47 lakh tonne of foodgrains were diverted to purposes not connected with PDS and to other departments, organisations and schemes, it said.

(PTI)