Rice procurement may hit last season record

The government, in the current marketing season, is likely to repeat the record procurement of rice achieved in the last season (October-September).

This is on the back of a good kharif crop and a bonus of Rs 40 a quintal, declared in time to prevent the wheat story from being repeated in rice.

The government had procured a record 28 million tonne rice in the 2005-06 marketing season, while the country had produced 91 million tonne rice.

This year, the kharif crop of rice is estimated at about 75 million tonne.

The procurement of rice for this marketing season has already begun. About 8.66 million tonne of kharif rice has been procured by the Food Corporation of India (FCI) and other state agencies as on Wednesday (November 8), marginally lower than the 8.85 million tonne procured till the corresponding period last year.

Of the 8.66 million tonne rice procured, about 6.95 million tonne has come from Punjab alone, while Haryana has contributed 1.41 million tonne.

Last year too, Punjab was the biggest contributor with 8.85 million tonne.

The announcement of a bonus of Rs 40 a quintal on top of the procurement price of Rs 610 a quintal for grade-A paddy is likely to help the official agencies in procuring adequate rice for the central pool.

The total rice procured in 2005-06 was 27.67 million tonne, against the anticipated level of around 23 million tonne.

In contrast, the government agencies could procure only 9.2 million tonne wheat against an expectation of 15-16 million tonne.

Consequently, the government had to sign contracts for importing 5.5 million tonne wheat.

The Centre expects to procure 25-27 million tonne rice in the ensuing marketing season under price support operations. "We expect to procure higher quantities in the states of Andhra Pradesh, Bihar, Chattisgarh, West Bengal and Orissa. Senior officials are visiting different states to ensure that quality rice is procured," an FCI official said.