Paddy procurement at 17 mt, up 9% so far

So far in 2012-13, paddy procurement is nine per cent more than in 2011-12, according to sources in the Food Corporation of India (FCI). If the trend continues, the rise in pan-India procurement in 2012-13 might be about 14 per cent.

On the basis of paddy arrivals in different states, FCI expects rice procurement of 40 million tonnes (mt) in 2012-13, compared with 35 mt in 2011-12. Punjab is likely to contribute about a quarter to the central pool, retaining the top position among states. Andhra Pradesh is expected to be second in the list.

State agencies procure paddy and supply this to rice millers.

FCI lifts the rice from these mills for public distribution. So far in 2012-13, an estimated 17 mt of paddy has been procured, of which FCI’s procurement stands at only 6,00,000 tonnes. In Punjab and Haryana, paddy procurement is in its final stage.

STATE-WISE CONTRIBUTION Rice buying for central pool (in mn tonnes)
Punjab	8.5
Andhra	8.0
Chhattisgarh	4.4
Uttar Pradesh	4.0
Odisha	3.0
Haryana	2.7
West Bengal	2.0
Others	7.2
Source: Food Corporation of India

In Andhra Pradesh and Chhattisgarh, procurement has already commenced.

Unlike wheat (for which procurement is completed in a month), the procurement of paddy is staggered over four months (October to December). Harvest periods vary across states.

Storing such stocks may pose a challenge to agencies. FCI sources said the Centre had approved 18.1 mt of additional storage space. Of this, the construction of 13 mt had been sanctioned across 19 states and 2 mt had been earmarked for silos.

The rice is transported to agencies five to six months after milling. This coincides with the regular movement of grain from procuring to consuming states.

As paddy sold to state agencies at the minimum support price of Rs 1,280 a quintal is lucrative for farmers, they sell paddy in the open market only when it is not accepted by agencies, owing to concern on quality.