The Food Corporation of India (FCI) has procured 20.32 million tonnes (mt) of paddy in the current procurement season, of the arrival of 26.03 mt as on December 22. According to officials, on the back of an expected bumper crop, the corporation has plans to procure a record of 35.30 mt in 2011-12. The procurement data includes the procurement by FCI, state agencies which procure for central pool and levy rice (done by millers).
According to the FCI data, the procurement is faster than the corresponding period of last year. Last year at this time, FCI and state agencies had procured 18.04 mt of paddy of the total arrival of 22.33 mt. While, overall in financial year 2010-11, it procured 32.70 mt of rice.
Although the procurement season is almost over in Punjab and Haryana — the major contributors to the central pool — officials mentioned they were expecting to achieve the target from Andhra Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh, Bihar and Orissa from the kharif and rabi paddy crop.
According FCI data, various government agencies managed to procure 11.35 mt of paddy in Punjab this year as on December 1. From Haryana, it has procured 2.93 mt.
Earlier, a senior FCI official said the procurement target for 2011-12 had been kept on the higher side in view of higher production estimates. The agriculture ministry is expecting a record 102 mt of rice production in the 2011-12 crop year against 95.32 mt last year. If the food ministry achieves the procurement target, this would help the government meet the requirement under the proposed National Food Security Act.
It is worth mentioning that the government’s nodal procurement agency, FCI, has been procuring paddy (common) at Rs 1,080 per quintal and paddy (Grade A) at Rs 1,110 per quintal in the ongoing 2011-12 marketing year. Last year, it was Rs 1000 per quintal for common variety and Rs 1030 for the grade A variety.
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Buffer stock and storage
On the present buffer stock with FCI, a senior official mentioned that at present 27.06 mt of rice was lying with them, including the stock of state agencies as on December 1, 2011. Last year, it was 24.52 mt during the corresponding period. He said inter state movement of rice was going for the PDS system. In October, 17.14 mt of rice was moved out from FCI godown for PDS.
At present, it has record grain stock (including wheat and rice) of 54.12 mt against the storage capacity of 63 mt. In order to counter storage problems, the FCI has already allotted tenders to private players for creation of storage capacity under the centre’s Private Entrepreneur Guarantee Scheme (PEGS). The country may add about four mt of foodgrain storage capacity by the end of this year for the central pool. This would be part of the 15 mt of additional storage capacity to be created.