Reluctance of UP, Bihar and WB to avail Subsidized Foodgrains from FCI inflicts a loss of Rs.300 Crore to IR

Reluctance of UP, Bihar and WB to avail Subsidized Foodgrains from FCI inflicts a loss of Rs.300 Crore to IR

New Delhi: Reluctance of Uttar Pradesh, Bihar and West Bengal to avail subsidized foodgrains from the Food Corporation of India (FCI) has put the railways in a spot.

The national transporter is suffering a loss of around Rs 90 crore every month as FCI has drastically cut down the loading of foodgrains after the three states reduced off-take, sources said.

The substantial cut in loading target is due to the food ministry and FCI’s failure to take up the issue with the these states, which have the maximum number of poor and have been the biggest taker of subsidized foodgrains, said a top government source.

He said the loading target was slashed by FCI without prior information to the railways that led to large number of rakes lying idle.

FCI attributed it to a sudden cut to reduced off-take of its foodgrains by these states, saying they would compensate the shortfall through local procurement.

A senior official found the food ministry and FCI’s indifference to the issue intriguing.

“At a time when FCI has a stock of around 24 million tonnes of wheat procured this year under relaxed norms which have a shorter shelf life of 8 to 10 months, the Centre and FCI must act to transport the wheat from Punjab and Haryana to consumer states at the earliest,” he said.

“Food grain loading of railways is at an all-time low and its wagon capacity is being wasted,” said another official adding that the railways has already lost around Rs 300 crore in three months of the lean season (March-August).

The railways has also warned that it would not be possible for it to meet the higher demand for transportation of food grains in coming months to make up the shortfall as there would be demand for wagons for transporting imported fertilizers and other commodities.