Rice stock to fall to 4.9 mt by Oct

While the wheat stock in the central pool is a cause for concern to the government that is importing wheat, the situation in rice is comparatively comfortable.

As on August 31, rice stock in the central pool was 6.9 million tonnes. With a monthly offtake of 2 million tonnes, rice stock would be 4.9 million tonnes on October 1, slightly lower than the buffer norm requirement of 5.2 million tonnes.

However, with the 2007-08 kharif rice procurement beginning from October 1, the rice situation would be comfortable. Food Corporation of India, the central government's foodgrain procurement agency, is set to start paddy and rice procurement and a target of 27.6 million tonnes for rice has been fixed.

For the 2007-08 procurement, the minimum support price (MSP) of common paddy has been fixed at Rs 645 a quintal, up Rs 25 from last year, while the MSP for Grade A paddy has been fixed at Rs 675 a quintal, up Rs 25 from the previous year.

Rice procurement till September 3 in 2006-07 (October-September) is 25 million tonnes, which is 8 per cent less than the year-ago period's figure of 27.2 million tonnes.

"The shortfall in procurement is mainly because the market rate of rice has gone up and rice millers are trying to evade their levy obligations.

"The food ministry has written to the food departments of Punjab, Uttar Pradesh, Uttaranchal, West Bengal and Orissa to ensure that their rice millers fulfil the levy obligation.

"By September end, we expect the current year's procurement is expected to touch 25.5 million tonnes," said Alok Sinha, chairman and MD.