Notwithstanding the prospect of a lower output this year because of deficient monsoon, rice procurement by Food Corporation of India (FCI) and state government-owned agencies in the kharif marketing season 2015-16 has seen an increase of close to 25% so far in comparison to last year.
The government agencies have purchased more than 12.22 million tonne of rice since October 1 (when new procurement season began) till now, compared to 9.7 mt rice purchased from the 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 prefer to sell their grain to agencies rather than giving it the private traders in Punjab and Haryana,” an official said.
As per the latest data, out of the total rice equivalent of paddy procurement in Punjab, the agencies have purchased 8.3 mt of rice from the farmers till now, thus surpassing even the target of 8.8 mt for 2015–16 marketing season. In Punjab, which contributes the highest volume of rice and wheat to central pool, 7.5 mt of rice was purchased during the same period last year.
In Haryana, the 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 (1.7 lakh tonne), Telangana (2 lakh tonne), Kerala (76,933 tonne) etc.
The food ministry officials say that if the current trend continues, the overall rice procurement during 2015–16 period would surpass the target of 30 mt. The agencies had purchased 32 mt of rice so far in 2014-15 marketing year (October-September). Agencies buy paddy from the farmers, thereafter the grain is given to millers for conversion into rice.
The rice procurement in states like Chhattisgarh, Odisha, West Bengal and Assam would commence at the end of next month.The Cabinet Committee on Economic Affairs (CCEA) in June had increased the minimum support price (MSP) of common variety of paddy by Rs 50 to Rs 1,410 per quintal for 2015-16 kharif season. The hike in MSP was based onthe 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.
The FCI has been preparing a policy for involving private sectors in the procurement of rice in eastern states.