Despite a prospect of a lower output this year because of a deficient monsoon, the rice procurement by Food Corporation of India (FCI) and state government-owned agencies in the kharif marketing season (2015-16) has seen a sharp increase of more than 31% so far in comparison to last year.
The government agencies have purchased more than 18 million tonne (MT) of rice equivalent of paddy since October 1 (when new procurement season began) till Tuesday, compared to 13.76 MT rice purchased from farmers during same period last year. Food ministry sources told FE that the higher procurement of rice is also attributed to fall in prices of common variety of rice in various mandis across the country.
“The farmers sold grain to government agencies rather than giving it the private traders in Punjab and Haryana, where procurement operations have completed,” an official said. Even basmati paddy prices is selling in the range of Rs 2,200 to Rs 2,800 per quintal in the mandis across Punjab and Haryana, while two years back the prices were around Rs 4,000 per quintal.
According to the latest data, of the total rice equivalent of paddy procurement in Punjab, the agencies have purchased 9.3 MT of rice from the farmers till now, thus surpassing even the target of 8.8 MT for the 2015–16 marketing season. In Punjab, which contributes the highest volume of rice and wheat to the central pool, 7.7 MT of rice was purchased during same period last year. In Haryana, state government agencies have purchased more than 2.8 MT of rice equivalent of paddy by now, thus surpassing the target of 2.3 MT set for the year. Other states which have commenced rice procurement include Uttar Pradesh (7.6 lakh tonne), Telangana (8.3 lakh tonne), Kerala (1.08 lakh tonne), among others. Even in Chhattisgarh, where the state government carries out the purchase of paddy from farmers, state agencies have purchased 1.7 MT of rice while in Odisha, more than 4 lakh tonne has been purchased till now.
Food ministry officials say that if the current trend continues, the overall rice procurement during the 2015–16 period would surpass the target of 30 MT. The agencies had purchased 32 MT of rice till in this period in the 2014-15 marketing year (October-September). Agencies buy paddy from the farmers, then the grain is given to millers for conversion into rice. The Cabinet Committee on Economic Affairs (CCEA) in June had increased the minimum support price (MSP) of the common variety of paddy by R50 to R1,410 per quintal for the 2015-16 kharif season. The hike in MSP was in line with the recommendation of the Commission for Agricultural Costs and Prices (CACP).
Meanwhile, the food ministry has asked agencies in the decentralised procurement states Madhya Pradesh, Chhattisgarh and Odisha, and other non-traditional states Bihar and Jharkhand to maximise the procurement of rice and coarse grains during next marketing season.