The state-owned Food Corporation of India (FCI) wasted more than Rs 370 crore over a period of six years by not utilizing available storage space in Punjab and Haryana, the Comptroller & Auditor General of India (CAG) said.

FCI is the government's nodal agency for procurement, storage as well as distribution of food grains in the country.

In its latest report, which was tabled in Parliament on Tuesday, CAG said, "Failure to utilise the vacant storage space due to short planning of direct delivery of wheat resulted in avoidable expenditure of carryover charges of Rs 375.52 crore during the period 2006-07 to 2011-12."

The national auditor also noted that FCI's failure to adhere to the first-in-first-out principle led to damage of more than 1 lakh tones of wheat worth Rs 121.9 crore.

The state government agencies collect wheat for a Central Pool, which they then move to FCI. A carryover charge is paid by FCI for the amount of wheat that it doesn't takeover after June 30 of each year. According to the national auditor, FCI could have avoided expenditure of Rs 375.52 that it paid even as it had storage space for the wheat.

The CAG report also condemned the government for its failure to define a precise policy on buffer stock.