Rice procurement down at 26.4 mt on lower kharif output

NEW DELHI: Rice procurement by the Government in the current marketing year, ending September 2010, has so far fallen by about three per cent to 26.42 million tonnes compared with the same period previous year, on account of lower production. Food Corporation of India, the nodal agency for procurement and distribution of foodgrains, and state agencies had procured 27.25 mt in the corresponding period previous season, which runs from October to September. The Centre had procured a record 33.68 mt in the entire 2008-09 season. For the 2009-10 marketing year, it kept the procurement target lower than that of the last season at 26 mt in view of less production in the 2009 kharif season on account of drought that hit over 300 districts of the country. With procurement surpassing the initial target of 26 million tonnes, FCI now expects procurement in the 2009-10 marketing year to reach 30 mt. The largest rice contributor to the central pool this season so far has been Punjab, where procurement has increased by about 10 per cent to 9.27 mt compared with 8.46 mt a year ago. Procurement from Chhattisgarh has also increased by 20 per cent to 3.06 mt so far this season from 2.54 mt in the same period last year. FCI has procured 27 per cent more rice from Haryana so far this season, lifting 1.81 mt as against 1.42 mt in the corresponding period last year. On the other hand, procurement from Andhra Pradesh — a major contributor — has declined by 20 per cent to 4.22 mt so far this season from 5.26 mt in the same period last year. Similarly, purchases from Uttar Pradesh so far this season stand at 2.59 mt down 27 per cent from 3.54 mt a year ago. Procurement from Orissa so far this season has also decreased by five per cent to 1.88 mt against 1.92 mt in the same period last year. The Government procures foodgrains at a fixed minimum support price (MSP) to protect farmers from market fluctuations. The MSP for common grade of paddy has been decided at Rs 1,000 per quintal and at Rs 1,030 per quintal for grade A variety, both includ ing a bonus, for the 2009-10 marketing season. India’s rice production is estimated to decline to 87.56 mt in the 2009-10 season from the record level of 99.18 mt in the previous season.