Tag Archives | procurement

Thailand Extends Buying Scheme, Risks Adding to the Rice Pile

After recently discovering massive losses in the current rice scheme, the Thai government approved a new plan that will lower prices and quantities. With 17 million tonnes in storage and another 10 million set to arrive, however, the government is still at risk to lose in storage, depreciation, and logistics costs. http://in.reuters.com/article/2013/09/03/thailand-rice-intervention-idINL4N0GZ1FC20130903

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17,000 Tonnes of Grain Wasted in 3 Years

A Times of India report states that at least 17,546 tonnes of foodgrains were damaged between 2009-10 and July 2012 in Food Corporation of India godowns. The total food loss of foodgrains, fruits, and vegetables equates to nearly $7 billion per year, estimated to be able to feed 70 million Indians. http://articles.economictimes.indiatimes.com/2013-08-26/news/41455227_1_storage-capacity-foodgrain-tonnes  

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India Prepares to Guarantee Right to Food for 800 Million People

The National Food Security Act is heavily criticized by policymakers and academics who disagree with the decision to expand a grain program already riddled with fraud and waste. In India, it is widely known that about 40% of grain in the supply chain doesn’t reach its intended end, instead rotting in storage, eaten by rodents, […]

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Upper House Warned Losses Risk Worsening

In a testimony to the Senate committee investigating the massive losses recently discovered in the Thailand rice scheme, a finance official admitted to corruption in every step of the rice pledging process. http://www.bangkokpost.com/business/news/358014/supa-says-rice-purchases-riddled-with-graft

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Why the Food Security Bill is Good Politics, Bad Economics

The Indian government passed the long pending National Food Security Bill as an ordinance. The controversial bill has incited much debate over the feasibility and impact of guaranteeing food grains to nearly 800 million Indians living in poverty. One question is whether the grain procurement and storage system can support the bill’s execution. http://www.ndtv.com/article/cheat-sheet/why-the-food-security-bill-is-good-politics-bad-economics-387468

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NRPC Wants Pledge Price Ceiling Cut

Government officials debate the accuracy of loss figures for Thailand’s rice-scheme, and what steps they will take to maintain fiscal discipline for pledged paddy. The Finance Ministry reports a loss of $4.4 billion USD in the first year of the rice-scheme, with some unsold grain rotting in warehouses. http://www.bangkokpost.com/news/local/355589/rice-purchase-payouts-face-cuts

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Haryana: Left to Rot, 22,000 Quintals of Wheat Declared Unfit for Human Consumption

22,000 quintals of wheat are found to be rotting in Haryana, India, where adequate storage is not available. The grain has been declared unfit for human consumption, leading many to blame the government procurement process. http://ibnlive.in.com/news/22000-quintals-of-wheat-declared-unfit-for-human-consumption/398377-3-240.html

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Govt Looks at Changing Long-Term Grain Procurement Policy

The Indian government now procures over 35% of the country’s marketable surplus grain, up from past levels of 25-30%. Given the strains on subsidies, storage capacity, and private retail markets, officials are beginning to craft long-term adjustments to the current open-ended policy. http://www.business-standard.com/india/news/govt-looks-at-changing-long-term-grain-procurement-policy/491888/

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FCI to Transport Grains Within India via Bangladesh

In coming months, the Food Corporation of India (FCI) will attempt its first ever cross-border river grain transport. India gained permission from Bangladesh to use the Ashuganj river port in transporting grain first by barge and then by truck from Kolkata to the northeast state of Tripura. Over the next 2-3 years, the FCI will […]

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Government Faces Storage Space Issue Ahead of Rice Procurement Season

At the start of the Indian procurment season, the government is still facing severe storage shortages. The large bumper crop is overwhelming current capacities that still hold much of last year’s procurement. Government reactions include plans to add more storage capacity, release additional grain to the open market, and export to neighboring nations. Meanwhile, significant amounts of grain continue […]

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