Challenges

1. High maintenance and administration costs for strategic Reserves
2. Losses associated with market stabilizing(price, supply)
3. High operational costs due to poor roads and scattered farmers
4. Losses attributed to stock shrinkage with time
5. Varying capacities of Cooperatives/ farmer organizations
6. FRA services farmers in productive but uneconomical areas because of distance from markets
7. Some designated crops are difficult to dispose off because of a weak processing industry and lack of marketing prospects.