With grain purchase picking up pace in Chhattisgarh and Madhya Pradesh, deficit in paddy procurement so far this season (October-September) has narrowed to 5% at 62.44 million tonne (MT) on year from 13% as of December 31. Chhattisgarh and Madhya Pradesh governments recently promised a bonus over the minimum support price (MSP). 

Officials said paddy procurement increased by 20% in January. In Chhattisgarh, paddy purchase by state government agencies is up 26% to 11 MT on year. Madhya Pradesh has contributed 8.75 MT to procurement so far.

BJP, which recently returned to power in Chhattisgarh, has promised a procurement price of `3,100/ quintal for paddy, including a bonus, against MSP of `2,183. quintal.

In Punjab and Haryana, where the procurement of paddy has been completed, total purchase from farmers stands at 18.54 MT and 5.88 MT, respectively, which is higher than previous year.

Paddy procurement is under way in several other states, including Odisha (4.82 MT), Telangana (4.73 MT), Bihar (2.34 MT), Andhra Pradesh (1.84 MT) and West Bengal (0.91 MT), a significant contributor to central pool stocks.

In August, 2023, the government set a 52.1 MT rice (77.4 MT paddy) purchase target for the kharif season, compared to 49.5 MT procured in the previous season.

During the 2022-23 season, Food Corporation of India and state agencies procured over 56.94 MT of rice in both kharif and rabi seasons. Kharif rice production in India is estimated at 106.31 MT, a 3.7% decline due to uneven monsoon distribution.

Currently, FCI holds 22.15 MT of rice stocks, excluding 36 MT receivable from millers. The rice stock is against the buffer of 13.58 MT for April 1.

The government needs about 41 MT of rice annually for free supply to beneficiaries under Pradhan Mantri Garib Kalyan Anna Yojana. 

This year’s grain procurement is being closely monitored due to uneven monsoon rainfall which may impact the rice output in 2023-24 crop year (July-June) despite higher area under paddy cultivation. 

Rice procured from grain-surplus states is also used for keeping a buffer stock with FCI. After paddy is procured from farmers by FCI and state agencies, it is handed over to millers for conversion into rice. Paddy to rice conversion ratio is 67%.