Minimum Support Prices for Agricultural Produce

What is ‘Storage Gain’ in Wheat?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Storage gain in wheat

Mains level : NA

Punjab’s state procurement agencies (SPAs) are seeking a waiver of ‘storage gain’.

What is ‘storage gain’ in wheat?

  • Wheat, considered a ‘living grain’, tends to gain some weight during storage.
  • This is known as ‘storage gain’ and it mostly happens due to absorption of moisture.
  • There are three parts of the grain — bran (outer layer rich in fibre), germ (inner layer rich in nutrients) and endosperm (bulk of the kernel which contains minerals and vitamins).
  • The moisture is mostly absorbed by the endosperm.

Who compensates whom for ‘storage gain’?

  • State procurement agencies, which purchase and store wheat at their facilities, are required to give one kg wheat extra per quintal to the Food Corporation of India (FCI).
  • While 20% of wheat, procured by the FCI and the SPAs, is moved immediately after procurement.
  • It is usually on the remaining 80%, which is moved out after July 1 every year that storage gain has to be accounted for due to longer storage duration.

 

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