In spite of a 15 per cent decline in the kharif rice output, the government’s rice procurement in the ongoing kharif marketing season is marginally up at 14.85 million tonnes due to an increase in purchase from the ‘grain bowl’ states of Punjab and Haryana even though procurement is down in states like Uttar Pradesh (UP), Andhra Pradesh (AP).
Till date the government has procured 14.85 million tonnes rice in the October-September season, marginally up over last year’s corresponding purchase of 14.39 million tonnes. Rice procurement in the last season was at a record 33.6 million tonnes. For the current year, the government is targeting procurement of 26 million tonnes since kharif output is down.
The central government’s grain pool had rice stock of 25.16 million tonnes as on December 1, way above the buffer stock norm of 5.2 million tonnes. Annual rice consumption under various public distribution schemes is estimated at 25 million tonnes. “Even if we are able to procure 25 million tonnes this season, we will have a surplus of nearly 15 million tonnes when the procurement season begins in 2010. There is certainly no need to import,” said a government official.
In this current season, procurement is up in Punjab at 9.25 million tonnes (8.09 million tonnes last year), Haryana at 1.8 million tonnes (1.36 million tonnes) and Chattisgarh at 1.11 million tonnes (918,355 tonnes). However, procurement is down in other major rice producing states of U P at 1.1 million tonnes (1.45 million tonnes), AP at 728,509 tonnes (1.24 million tonnes) and Orissa at 351,817 tonnes (397,208 tonnes).
The country’s kharif rice output has been projected to be lower by over 15 per cent compared to last year’s output of 84.58 million tonnes, according to the first advance estimate of the agriculture ministry. Due to erratic rain in the kharif season, the overall acreage of paddy has declined by about 16 per cent to 31.54 million hectares.
The government has raised the minimum support price of paddy for the new kharif season by 11.76 per cent to Rs 950 a quintal for common grade paddy and by 11.36 per cent to Rs 980 for grade-A paddy. It also announced a bonus of Rs 50 on every quintal.