Govt rice purchases cross 27 mn tonnes so far

Rice procurement has crossed 27 million tonnes in 2009-10, down by about three per cent over the last year's due to low production.

Food Corporation of India (FCI), the nodal agency for procurement and distribution of foodgrains, and state agencies had procured 27.93 million tonnes of rice in the corresponding period of the previous marketing year, which runs from October to September.

The Centre had procured a record 33.68 million tonnes of rice in the entire 2008-09 marketing year.For the 2009-10 marketing year, it kept the procurement target lower than the previous year at 26 million tonnes, in view of lower quantum of rice production in the 2009 kharif season due to droughts that hit over 300 districts of the country.

With procurement surpassing the initial target of 26 million tonnes, FCI now expects rice procurement by the government in the 2009-10 marketing year to reach the 30 million-tonne mark.

Rice procurement from Chhattisgarh has also increased by nearly 20 per cent to 3.07 million tonnes so far this year, from 2.54 million tonnes in the corresponding period of the previous year.On the other hand, rice procurement from Andhra Pradesh -- a major contributor -- has declined to 4.63 million tonnes so far this marketing year from 5.64 million tonnes in the same period last year.
    
Similarly, the government's rice purchases from Uttar Pradesh so far this year stand at 2.62 million tonnes from 3.66 million tonnes a year ago.
    
Rice procurement from Orissa so far this year has also decreased by six per cent to 1.94 million tonnes against 2.01 million tonnes in the same period last year.
    
The government procures foodgrains at a fixed minimum support price 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 including a bonus, for the 2009-10 marketing year.
   
India's rice production is estimated to decline to 87.56 million tonnes in the 2009-10 marketing year from the record level of 99.18 million tonnes in the previous year.