Stock wastage

Wednesday, 19 February 2014 00:00 - - {{hitsCtrl.values.hits}}

It is shocking to read that annually about Rs. 440 billion worth of food stocks are wasted due to poor storage condition in India. At the same time there are areas where people face starvation, driving them to even to commit suicide. This situation could be rectified if stocks are properly stored and transported in good condition and on time. In Sri Lanka also material amount of food stuffs are wasted due to lack of storage and transport facilities. Even private companies do not concentrate much on proper storage. For example rice is eaten by rats, spoilage caused due to weather condition, water leakage, delays in transport, etc. Excess fish caught, vegetables produced due to bumper harvest are wasted. Even packing for transportation is not done properly. When steps are taken by the Government, much resistance is shown by the traders. It would seem that traders prefer wastage, so that the balance stocks could fetch a higher price. Strict laws should be introduced to prevent stock wastage. Stocks which require refrigeration also get spoilt due to short supply of electricity and the lack of alternate arrangements. Readers may remember the incident when gallons of blood kept in the Blood Bank had to be discarded as they were spoilt. Stocks are not sold before the expiry dates due to non-maintenance of proper stock levels taking into consideration: a.Re-order level b.Minimum stock level c.Maximum stock level d.Re-order quantity Hope proper attention would be drawn to this matter by all concerned parties. S.R. Balachandran BSc. FCA, FCMA (Sri Lanka)

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