The Food Corporation of India (FCI), the central government's grain procurement and distribution agency, expects a total procurement of 27.5 million tonnes by September.
After wheat procurement touched an all-time high of 21.67 million tonnes (as on June 3) surpassing the earlier record of 20.6 million tonnes in 2001-02, there is a possibility of rice procurement also exceeding the earlier record of 27.6 million tonnes in 2005-06.
The government's rice procurement had slipped from 27.6 million tonnes in 2005-06 to 25.1 million tonnes in 2006-07.
"We have already crossed last year's total purchase in rice and we will buy 27.5 million tonnes in the whole season. Rice procurement is on in Andhra Pradesh, Orissa, West Bengal and Chattisgarh", said Alok Sinha, chairman and managing director, FCI. The procured rice is used for distribution under the various welfare schemes run by the central government.
Rice procurement is up in all major producing states except Haryana. Punjab is the leading contributor to the central pool with 7.84 million tonnes, followed by Andhra Pradesh at 5.77. Procurement, however, dipped in Haryana to 1.57 million tonnes from 1.77 last year.
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On March 31, the government imposed a complete ban on export of non-basmati rice. For the 2007-08 kharif 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.
Even while augmenting domestic availability of rice and easing inflation, the steps have also boosted government's rice purchase.