Riding on record output and handsome procurement price, the government’s rice purchase in the ongoing Kharif marketing season (October-September) is up by about 18 per cent over last year’s corresponding purchase. Procurement as on March 9 stood at 24.36 million tonnes.
Procurement by the end of this season is likely to touch a new record of 29-30 million tonnes, surpassing the earlier high of 28.4 million tonnes. The country’s rice output in 2008-09 is also estimated at an all-time record of 98.89 million tonnes.
Punjab has been the largest contributor to the rice stock at 8.38 million tonnes, followed by Andhra Pradesh, Uttar Pradesh and Chattisgarh. Procurement is up in all top-producing states except in Haryana and Chattisgarh.
The low purchase in Haryana has come on account of a shift by some farmers to superior rice varieties, including basmati, said an official at Food Corporation of India. “We are hopeful of touching a new record of 29-30 million tonnes in rice purchase,” he added.
With a ban in place on export of non-basmati rice, the interest of exporters is negligible. The government had imposed this ban in March 2008 as part of its inflation control measures. The empowered group of ministers, which last week, gave in-principle approval to removal of wheat export ban, has ruled out a relaxation in rice export ban.
The government has set a procurement price of Rs 930 a quintal for Grade A variety of paddy and Rs 900 a quintal for the common variety for the current season. Both these prices are an increase of 20 per cent over previous season. For the 2008-09 season, a mandatory declaration of rice purchase exceeding 10,000 tonnes needs to be made to the state government while purchase exceeding 25,000 tonnes need to be declared to the union department of food.
The concerned state government is required to submit a monthly report to the union department of food. Even while augmenting domestic availability of rice and easing inflation, the steps have also boosted the government’s rice purchase.