Procurement of rice may dip 5.5%

While the government's wheat procurement is expected to go up 20 per cent, purchase of rice in 2006-07 (October-September) is estimated to decline by 5.5 per cent.

In 2005-06, the government had procured a record 27.5 million tonnes of rice. However, this year's procurement shows a decline.

As on June 11, the Food Corporation of India (FCI), the government's main foodgrain procurement agency, had purchased 23.61 million tonnes of rice, a decline of about 6 per cent over last year's purchase of 25.13 million tonnes.

According to the third advance estimates by the agriculture ministry, rice production in 2006-07 is seen at 91.05 million tonnes, marginally down from 91.79 million tonnes in the previous year.

Of the quantities procured, about 7.81 million tonnes is from Punjab (versus 8.85 million tonnes last year), 4.71 million tonnes from Andhra Pradesh (3.91 million tonnes last year), 2.64 million tonnes from Chhattisgarh (2.98 million tonnes last year), 2.25 million tonnes from Uttar Pradesh (2.75 million tonnes last year) and 1.77 million tonnes from Haryana (2.04 million tonnes last year).

However, the marginal drop in rice procurement is not a cause for concern as the 25.13-million tonnes stock with the government is more than double the 12.2-million tonnes buffer requirement.

"We are expecting a procurement of 26 million tonnes this year. Though procurement has dipped in Punjab, UP and Haryana, it has stabilised after better purchases from AP and Orissa," FCI Chairman and Managing Director Alok Sinha said.