Challenge for Modi govt: Amid slowdown, foodgrain stock hits record high; this may be the solution

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Published: January 18, 2020 12:31:30 PM

Even as food inflation hit six-year high in December last year, the Modi government now faces a challenge to manage the all-time high stock of foodgrains.

5 trillion dollar economy, economy news, North East, India, goal, Industry news, Act East Policy, Look East PolicyThe retail inflation for the month of December 2019 has sharply spiked to 7.35 per cent from 5.54 per cent in November.

Even as food inflation hit six year high in December last year, the Modi government now faces a challenge to manage the all-time high stock of foodgrains. The stock has reached a record high of 75.51 million metric tonnes as on January 1, 2020. The wheat has been sown this rabi season in 330.20 lakh hectares, 33.23 lakh hectares more than last year and the highest ever since 1950-51, The Indian Express reported. It was during FY15 that the highest area sown under wheat was recorded at 314.70 hectares. “Higher area (under wheat) is reported from the states of Madhya Pradesh (19.07 lakh ha), Gujarat (5.61 lakh ha), Rajasthan (4.49 lakh ha), Maharashtra (3.86 lakh ha), West Bengal (0.74 lakh ha) Jharkhand (0.50 lakh ha), Karnataka (0.40 lakh ha) and Himachal Pradesh ( 0.40 lakh ha)”, the ministry said in a statement. The states of Bihar (0.64 lakh ha), Uttar Pradesh (0.43 lakh ha), Jammu & Kashmir (0.31 lakh ha), Chhattisgarh (0.20 lakh ha), Haryana (0.18 lakh ha) and Punjab (0.12 lakh ha) reported les area.

The retail inflation for the month of December 2019 has sharply spiked to 7.35 per cent from 5.54 per cent in November. It is the highest rate of retail inflation witnessed since July 2014. The area under pulses has been reported at 157.33 lakh ha, 7.80 lakh ha more than the last year (149.53 lakh ha) in the current rabi season. The states of Maharashtra, Rajasthan, Gujarat, Chhattisgarh, Jharkhand, Telangana, Uttar Pradesh, Uttarakhand and Bihar reported higher numbers. However, Madhya Pradesh, Andhra Pradesh, Karnataka, West Bengal, Assam, Odisha, Haryana, Meghalaya and Tamil Nadu reported less numbers.

The Ministry of Consumer Affairs, Food and Public Distribution recently wrote to the Ministry of External Affairs to take the surplus foodgrain and donate it as humanitarian aid to other countries. The latest data available on the Food Corporation of India (FCI) website shows the total foodgrains stock in the central pool as on January 1, 2020 is about 75.51 million tonnes. This is the highest ever.

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