UP procures 3.1 mn tonne paddy

A bumper paddy crop estimated at 14.5 million tonne has helped Uttar Pradesh beat its paddy procurement target this season. Together, state agencies and the Food Corporation of India (FCI) have already procured about 3.1 million tonne by February 28, as against the target of 2.6 million tonne for 2008-09, said an FCI official.

The state agencies procured about 2.3 million tonne as against the target of 1.8 million tonne, while the estimated corresponding figures for FCI stood at about 900,000 tonne and 800,000 tonne.

About 6 million hectare was under paddy cultivation this season and the total production is estimated at 14.5 million tonne, as against last year’s 11.7 million tonne. During 2007-08, the procurement figure of kharif crop was 2.25 million tonne against the target of 1.8 million tonne, the official said.

The paddy procurement season commenced on October 1 through February and a total of 2,300 procurement centres were set up. The government had engaged agents (arhtia) to boost procurement by giving 1.5 per cent commission on the minimum support price (MSP) of Rs 900 per quintal (including a bonus of Rs 50). About 5,000 commission agents were registered with the UP Mandi Parishad.

UP Rice Millers Association executive director PC Kanodia told Business Standard that the levy rice target was also revised downwards due to the bumper procurement. Under the levy rice system, UP millers give 75 per cent of rice to FCI and state agencies for public distribution system.

“Earlier, the levy rice target was 1.5 million tonne. However, due to the bumper direct purchase, it is likely to be around 1.2 million tonne,” Kanodia said.