Discuss the challenges associated with buffer stocks management in the context of food security in India. भारत में खाद्य सुरक्षा के संदर्भ में बफर स्टॉक प्रबंधन से संबंधित चुनौतियों पर चर्चा कीजिए।

Q.10 Discuss the challenges associated with buffer stocks management in the context of food security in India. भारत में खाद्य सुरक्षा के संदर्भ में बफर स्टॉक प्रबंधन से संबंधित चुनौतियों पर चर्चा कीजिए।

Ans: Buffer stocks refer to a collection of certain commodities like rice, wheat, etc. In India, the stocking of food grains was first implemented during the 4th Five Year Plan in 1969. In order to carry out the objectives of the Food Policy, the Food Corporation of India was established in 1964 under the Food Corporation Act

Challenges associated with buffer stocks management in India

1. High Cost of Logistics and Administration: The Agricultural Ministry and FCI have difficulty adjusting the budget to make money available for the effective creation and operation of the storage units because the majority of the funds are allocated for purchasing the buffer stocks.
2. Dual Wastage: In India, a significant portion of the population is dying from hunger while at the same time, enormous amounts of food inventories degrade due to improper storage techniques.
3. Issues with warehousing include a lack of adequate storage space and other infrastructure following the purchase.
4. Wastage: In open, outdoor storage, rats, frost, and rain frequently cause the food grains to spoil, costing the government a great deal of money.
5. Transportation problems: Moving grains to and from the FCI godowns is quite expensive.
6. The losses are also increased by spills and deterioration that occur during shipment.
7. Diversion and theft: The buffer stockpiles may occasionally be taken and given to ghost recipients, alcoholic beverage manufacturing facilities, and illicit markets.
8. By doing this, a large portion of the population is starved while others gain from the buffer stockpiles of food grains in place of the target population.
9. The practice of trade distortion: Many Western industrialised nations view the government’s purchase of food grains and upkeep of buffer stockpiles as a trade-distorting activity. Regarding the same, they drag India to the WTO.
10.  A skewed pattern of crop output results from integrating buffer stocks with MSP for staple grains like rice and wheat. These crops require a lot of water to grow, so more fertiliser needs to be applied for them to be more productive. This compromises the nutritional security of India by impacting crop diversity in addition to the environment. Farmers who live in areas where it is difficult to grow rice and wheat will likewise be more likely to grow rice and wheat.
11.  Open-Ended Procurement: The open-ended procurement of the food stocks further complicates the proper storage and consumption of the buffer stocks in the absence of an accurate estimate of the overall buffer stock needed to run the PDS and in emergencies
12. Market Distortions: Buffer stock management can have implications for market dynamics. Releasing buffer stocks in large quantities can create downward pressure on market prices, affecting farmers’ incomes. On the other hand, inadequate release of buffer stocks during periods of high demand can lead to artificial scarcity and price volatility.

Source : Indian Express Link -1  , Link-2

Keywords: Food Policy, storage units, Dual Wastage, trade distortion, nutritional security

Question of the Day:

1. Globalization has led to the integration of the Indian economy with the global market. Analyze its impact on India’s trade and industry.

Keywords: Globalization , FDI , Exports , IT Sector , Trade Deficit , Competitiveness