UPSC Mains – What are the objectives of Buffer Stock in India, and how do they affect food security? Additionally, discuss the key issues and challenges associated with the storage of buffer stock.

Introduction:

Buffer stock, introduced during the 4th Five Year Plan (1969-74), functions as a reserve of essential commodities, including food grains and pulses. Governed by the “Food grain stocking norms” set by the Government of India, it represents the stock level in the Central Pool, addressing operational requirements and emergencies.

Body:

Objectives of Buffer Stock in India:

1. Ensure Food Security: To meet the prescribed minimum buffer stock norms, ensuring a steady supply of food grains.
2. Monthly Release: For the monthly release of food grains to supply through the Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS).
3. Emergency Situations: To address emergency situations arising from unexpected crop failures, natural disasters, etc.
4. Price Stabilization: For market intervention to stabilize prices and enhance supply, preventing open market price fluctuations.
5. Minimum Support Price (MSP): Procurement at MSP ensures that farmers are not adversely affected by producing more.
6. Consumer Interest: During deficits, the gradual release of buffer stocks safeguards consumer interests, enabling access to nutritional requirements at reasonable prices.

Impact on Food Security:

1. Availability: Buffer stocks ensure a consistent supply of food grains, mitigating shortages during events like deficient monsoon rainfall.
2. Accessibility: Contributes to price stability, preventing sudden spikes, and ensuring affordability, especially during economic uncertainties.
3. Distribution: Facilitates efficient distribution through channels like public distribution systems (PDS) and targeted welfare schemes.
4. Stability: Provides stability to the food security framework, acting as a safeguard during global price volatility or disruptions in supply chains.

Key Issues and Challenges associated with the Storage of Buffer Stock:

1. Oversupply and Skewed Cropping: Surplus food grain stockpiles due to imbalanced cropping patterns and excess production driven by higher MSPs.
2. Lack of Coordination: Inadequate coordination between the Food Corporation of India (FCI) and the Consumer Ministry, leading to excess buffer stocks.
3. Open-ended Procurement: The absence of automatic liquidation rules results in procuring excess food grains without selling in open markets.
4. Storage Challenges: Inadequate godowns, outdoor stacks vulnerable to damage, pilferage, and lack of storage facilities.
5. Poor Quality and Wastage: Insect infestation, microbiological contamination, and inadequate facilities contribute to poor shelf life, causing high wastage.
6. High Government Costs: The fiscal burden of procuring, carrying, and maintaining excess stock adds to the food subsidy bill.
7. Economic Burden on FCI: Price disparity between FCI’s cost and sale price impacts financial sustainability.
8. Limitations on Buffer Stocks: Perishable goods like fresh milk and meat cannot be stored in buffer stocks, limiting effectiveness.
9. Focus on MSP over Inflation: The current mechanism prioritizes MSP for farmers over actively addressing inflation, reflecting a counter-cyclical policy emphasis.

Way Forward:

1. Procurement: Delegate wheat, paddy, and rice procurement to states with expertise and established infrastructure.
2. Food Security: Postpone NFSA implementation in states lacking end-to-end computerization and vigilance committees to curb pilferage.
3. Beneficiaries: Streamline and target beneficiaries more effectively by reducing the current 67% to 40%.
4. Storage: Outsource stocking operations to diverse agencies to enhance efficiency and capacity, including the Central Warehousing Corporation, State Warehousing Corporation, Private Sector under the PEG scheme, and state governments.

Conclusion:

Reforms, technological upgrades, and modern storage practices recommended by committees like Shanta Kumar and Ashok Dalwai should be promptly implemented. Enhancing coordination and adopting efficient storage practices will contribute to a more effective buffer stock management system, ensuring sustained food security for the nation.

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