Rice, coarse cereals' procurement to rise

As sowing of paddy (de-husked rice) nears completion in most parts of the country, the central government is gearing to procure 35.3 million tonnes of rice from farmers in the 2011-2012 season, almost eight per cent more than the earlier year’s procurement. The rice procurement season starts from October.

The higher target is based on the agriculture ministry’s initial kharif rice production estimate of 82 mt for 2011-2012, about 1.7 per cent more than this year’s production of 80.65 mt. Officials said a decision to raise the procurement was due to the higher requirement under the proposed Food Security Act, expected to be operationalised by the next financial year.

After the Bill is enacted, the country will need to have annual grain (both rice and wheat) procurement of 61 mt. At present, it is 55-60 mt.

Officials said state governments have also been told to enhance procurement of coarse cereals, which the food ministry also proposes to distribute after the new Act comes into force. At present, it is mainly wheat and rice distributed at subsidised rates through the Public Distribution System. However, procurement of coarse cereals in large quantities in the coming crop year could be difficult, as initial estimates made by the agriculture ministry shows their production during the kharif season could fall by almost 20 per cent to 2.6 mt, as against 3.24 mt in 2010-2011. There has been a fall in sowing.

Officials said the food ministry plans to call a meeting with senior officials of states which can procure coarse cereals.

The food ministry has also decided to make states pay the minimum support price to farmers, including that for levy rice, through account payee cheques or directly to their bank accounts. “It will become mandatory from April 2012,” a senior food ministry official said.
 

STOCKING UP
State	Procurement  in 2010-11*	Procurement  in 2011-2012*
Andhra Pradesh	8.60	10.70
Bihar	0.90	0.95
Chhattisgarh	3.10	4.00
Gujarat	—	0.01
Haryana	1.30	1.74
Karnataka	0.20	0.52
Kerala	0.28	0.29
Madhya Pradesh	0.14	0.65
Maharashtra	0.31	0.16
Orissa	3.20	3.00
Puducherry	—	0.03
Punjab	8.50	8.20
Tamil Nadu	1.10	2.00
Uttar Pradesh	3.07	1.80
Uttarakhand	0.40	0.05
West Bengal	1.60	1.20
Total	32.70	35.30
*The initial estimates of rice procurement in million tonnes. SOURCE: Ministry of Food and Consumer Affairs

He said focus is being laid on improving procurement of rice from the eastern states of Assam, Bihar, West Bengal, Jharkhand and eastern Uttar Pradesh, which are big producers but contribute very little to the central pool.

West Bengal produces around 15 mt annually, the highest in the country, but contributes just 1.2-1.6 mt in a year to the pool.