Record rice procurement likely this year

The government is set to repeat last year's record rice procurement in the 2006-07 (October-September) marketing season. Last year, the Food Corporation of India (FCI) had procured 27.66 million tonnes of rice. In the current year so far nearly 20 million tonnes have been procured. This is in sharp contrast to last year's low wheat procurement.

The procurement is on the back of a sizeable kharif crop and a bonus of Rs 40 a quintal, declared in time to prevent the wheat story from being repeated in rice. The bonus on top of the procurement price of Rs 610 a quintal for grade-A paddy has helped official agencies in procuring adequate rice for the central pool.

As on March 14 this year, FCI had procured 19.91 million tonnes, marginally lower than last year's corresponding figure of 20.74 million tonnes. Of the 19.91 million tonnes procured so far, 7.74 million tonnes have come from Punjab alone, while Andhra Pradesh has contributed 2.49 million tonnes, followed by Chattisgarh at 2.48 million tonnes.

According to second advance estimates by the Agriculture Ministry, rice production in 2006-07 is estimates at 90.13 million tonnes versus 91.79 million tonnes in 2005-06. Rice stock in the central pool was 13.96 million tonnes (as on February 28), 18 per cent above the buffer stock requirement of 11.8 million tonnes.

"This season we are witnessing a higher arrival of rice in states of Chattisgarh, Orissa and Andhra Pradesh. As things stand, rice procurement is likely to touch last year's record figure of 28 million tonnes", said Alok Sinha, chairman and managing director of FCI.

The record rice procurement comes at a time when wheat procurement was at a low of 9.23 million tonnes and government was forced to import 5.5 million tonnes wheat to meet its public distribution system requirements.