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The paper empirically maps the annual distribution commitment (61.43 MMTs) of the government with the procurement pattern of rice and wheat, for each quarter, to estimate the quarterly operational stocking norms. In addition to the 61.4 MMTs grains, needed to meet the operational needs, the country also stocks for strategic needs. The paper proposes creation of 10 MMTs of grains in this regard- five MMTs to be procured from the domestic market and the remainder from the international market on a need basis. By re-introducing the concept of fungibility between the operational and strategic stocks and by utilizing the dynamics of the procurement pattern, the paper shows that the 61.4 MMTs of annual grain procurement will be sufficient for both the operational and strategic stock needs of the country.