Rice procurement tails wheat, falls 3% in 2012-13

FCI purchased around 34.1 million tonnes of rice from farmers in 2012-13

After an almost 32 per cent drop in wheat procurement, government’s rice purchases in 2012-13, too, have fallen by three per cent to 34.1 million tonnes (mt) primarily because of low procurement in main producing states of Andhra Pradesh and Uttar Pradesh. The rice procurement season runs from October to September.

However, experts said this is unlikely to have any impact on the ambitious National Food Security Bill as stock in state-run warehouses is much more than the required quantity.

In FY14, government has purchased around 26 mt of wheat till September, as against 38.1 mt in the whole of FY13. Though officially the wheat procurement season lasts till March, but more than 96 per cent of the crop is purchased in the first four months itself. The low procurement this year was because of increased purchases by private traders and a fall in overall wheat production.

Meanwhile, Food Corporation of India (FCI) purchased 34.1 mt of rice from farmers in 2012-13, while last year it had purchased 35 mt. The decline in procurement has been in Andhra Pradesh, where purchases fell from 9.6 mt to 6.45 mt, while in Uttar Pradesh it fell from 3.35 mt to 2.28 mt.

“Procurement has dropped because of increased purchases by private traders and also low output,” a senior government official said.

Ashok Gulati , chairman of the Commission for Agriculture Costs and Prices (CACP) told Business Standard that the drop in procurement of paddy is good as the government has ample stocks and this is not reflective of any long-term trend.

According to FCI data, rice stock in central pool was estimated to be 21 mt, three times more than the required quantity of seven mt, while wheat stock was estimated to be 38.3 mt, as against the required quantity of 14 mt. The data showed that rice procurement in Punjab, Haryana and Chhattisgarh remained higher than the previous year.

The government's rice purchase from Punjab rose to 8.55 mt in 2012-13 from 7.73 mt in the previous year.

In Chattisgarh , it grew to 4.8 mt from 4.11 mt, while procurement from Haryana increased to 2.5 mt from 1.6 mt in the review period, according to the FCI data.

FCI and state procurement agencies procured common variety paddy at Rs 1,250 a quintal and A-grade variety paddy at Rs 1,280 last year. Procured paddy was later milled into rice. The country had harvested 104.4 mt of rice in the 2012-13 marketing year.