The rice stocks held by the Food Corporation of India (FCI) currently is close to four times the buffer for July 1, despite a 7% fall in procurement in the current season (October-September) compared to the same period last season. At the beginning of the month, FCI held 53.47 million tonne — 31.75 MT of rice stocks and 21.72 MT of grain receivable from millers. The stock is against the buffer of 13.54 MT July 1.
Officials said the current stock will be enough to meet the requirements for the public distribution if no fresh purchase under minimum support price (MSP) is carried out next season (2024-25).
Sources told FE that the new government will have to take a call on this surplus rice stock.
The paddy procurement by the government agencies has crossed 68.59 MT (45.95 MT in terms of rice) in the current season – 2023-24 so far which is 7% lower than the same period in the last fiscal.
In addition, the agencies are targeting to purchase around 10 MT of rice in the ongong rabi marketing season in Odisha, Telangana, Tamil Nadu and Andhra Pradesh, which is expected to bolster grain stock further.
The government had purchased a total of 56.87 MT of rice in the 2022-23 season.
The FCI requires around 40 MT of rice annually to distribute to 800 million beneficiaries of under Pradhan Mantri Garib Kalyana Anna Yojana (PMGKAY)
A year ago, rice stock held with FCI was lower at 26.5 MT, as FCI has supplied additional grain free to the beneficiaries under PMGKAY.
Officials said that FCI so far has received purchase indent for 1.5 MT of rice from the agencies such as Nafed, NCCF and Kendriya Bhandar for selling ‘Bharat’ rice. About 0.71 MT of grain has been lifted by these agencies.
In February, the government had launched retail sale of ‘Bharat’ rice in 10 kg bag at Rs 29/kg across the country which was aimed at improving supplies and ensuring availability at affordable rates.
However there has been lukewarm response to the open market sale of rice to bulk buyers by FCI.
Retail rice prices rose by 12.69% in March, marginally higher from the previous month. The government has banned exports of white rice and imposed 20% export duties on par-boiled rice to improve domestic supplies.
As per the second advance estimate of foodgrains production, rice output is projected to decline 123.8 MT from 125 MT in the previous crops year because of patchy monsoon rains last season.
However, this projection of rice output does not include summer crop output, which will be reflected in the third advance estimate of foodgrians production to be released in June.