Policies for managing peak stock of food grains for effective distribution: A case of the Indian food program

The Indian food program has encountered a significant shortfall in storage due to slow expansion of storage facilities in comparison with procurement. The open storage of food grains results in substantial loss and deterioration of quality. While increasing storage capacity is a viable but costly and time consuming option, the adoption of policies for peak storage reduction would go a long way towards effective food grains management. On this background, this study proposes policy adoption for peak storage reduction for effective inventory management. A dynamic simulation model was built by replicating the complex flow process and incorporating the process variability for finding the bottleneck and significant factors. It was found that steep wheat procurement is the critical bottleneck factor for peak storage requirements. Two practical and straightforward, yet effective policies are proposed from the few existing strategies for peak storage reduction owing to the constraints associated with the food program. With the actual data of the food program, reduction in peak stock was estimated for the recommended policies, including the operational cost saving in storage. The practical implications of these policies within the system were also discussed. Through peak reduction, the use of open storage can be significantly reduced, and this leads to better food grains management for effective food distribution.