With the Food Corporation of India (FCI) and state agencies achieving a record procurement in both wheat and rice during the current season, things couldn?t have gone better for the new government as far the two critical food grains are concerned. The record procurement can be attributed to bumper production and higher support prices.
This comfortable buffer and reports of crunch in storage space could force the governm ent to lift ban on exports of non-basmati rice and wheat with quantitative restriction. The government has decided to allow 2 million tonne of wheat exports in principle.
According to official data, the FCI, has until now procured 22.69 million tonne wheat and 28.81.million tonne rice in the ongoing marketing season, surpassing the last year?s record.
Last year, the procurement was to the tune of 22.68 million tonne of wheat and 28.49 million tonne of rice. The government officials attributed the record procurement in wheat and rice to higher minimum support price (MSP) and good output of these crops.
The rice production in the country is estimated to be a record 99.37 millio n tonne in 2008-9 season. Wheat production is marginally less at 77.63 million tonne compared to last year?s record 78.57 million tonne.
The government had hiked MSP of wheat and rice last year to boost production and procurement. While wheat MSP was raised to Rs 1,080 a quintal from Rs 1,000 a quintal previous year, the support price of rice was increased to Rs 900 a quintal for common variety and Rs 930 a quintal for grade ?A? variety, including a bonus of Rs 50 a quintal.
