FCI won’t buy Telangana’s 1.5 million tonne of par-boiled rice under public distribution system

With excess stocks of par-boiled rice with the Food Corporation of India under the public distribution system, the government on Monday declined to take possession of the Telangana government’s demand to lift around 1.5 million tonne (mt) of par-boiled rice under the Central pool.

 Sudhanshu Pandey, secretary food and public distribution, said against an annual demand of around 2.8 mt of the par-boiled in the country — mostly consumed in Telangana, Andhra Pradesh, Kerala, Tamil Nadu and Jharkhand–, the corporation had 4 mt of grain stocks as on April 1.

 “Given that shelf-life of par-boiled rice is around 1.5 years, we are not in the position to accept additional amount of grain under the central pool from Telangana,” Pandey said. He said that the Telangana government was informed well in advance about the Centre’s decision.

 Sources said in a meeting August, 2021, the centre had informed the states that no par boiled rice will be accepted in the central pool from kharif marketing season (June-July) for 2021-22 from any state due to high stock level and procurement of par boiled rice by consuming states such as Bihar, Tamil Nadu, Kerala and West Bengal.

In the 2020-21 season, out of the total procurement of 8.83 mt of par boiled rice by FCI, 4.88 mt of rice procured in Telangana and other key states which contributed to the central pool stocks were Odisha (1.7 mt), Chhattisgarh (1.5 mt) and Andhra Pradesh (0.42 mt).

 Food ministry officials said as a special case in 2020-21, Telangana was permitted to procure 4.88 mt of par boiled rice and subsequently the state government had communicated stating that that no par-boiled rice to be delivered by Telangana government to FCI.

Sources said that production of rice in par-boiled consuming states such as Jharkhand, Kerala and Tamil Nadu has increased resulting in lesser requirement of par-boiled rice from surplus states such as Telangana. Telangana follows a decentralised procurement policy where surplus rice after meeting the state’s requirement are delivered to FCI for further movement to rice deficit states.

Telangana chief minister K Chandrashekhar Rao on Monday commenced a dharna in Delhi for demanding that FCI should procure entire quantity of paddy produced in the state as like Punjab. 

The state government has been demanding that FCI fixes procurement targets for the entire year at one go, which would help states to plan an appropriate cropping pattern.  However, the central government decides the quantum of rice and wheat to be procured from the states twice annually ahead of the kharif and rabi seasons.

Sources also said that during the food secretary’s meeting held in February, 2022 for discussing arrangements for procurement of rice/paddy for the rabi crop 2021-22 crop year, Telangana government did not furnish any procurement estimates. Total Rice procurement in Telangana under the central pool has increased significantly from 3.6 mt in 2016-17 to 9.5 mt in 2020-21. FCI had procured all time high 4.88 mt of par boiled rice during 2020-21 (crop year).