Paddy procurement lacks fizz in Uttar Pradesh

So far, less than one per cent of the target achieved

Paddy procurement in the current season has failed to gather steam in Uttar Pradesh and less than one per cent of the target has so far been achieved.

Against the target of 2.5 million tonnes (MT) of paddy in kharif procurement season during October-February, only 20,000 tonnes had been procured, according to latest available data. Paddy is a major crop grown in the state.

Even last year, paddy procurement had fallen 30 per cent short of the target. Against the target of 2.5 MT, the state could only procure 17.5 MT in 2012-13.

However, a senior food and civil supplies department official told Business Standard that the procurement would pick up as the season advances.

“Presently, paddy procurement is occurring chiefly in Moradabad, Bareilly and Kheri districts. In rest of the places, the process would gather pace from November-end,” he claimed.

Food Corporation of India (FCI) would procure 10 per cent of the 2.5 MT target, while the rest would be procured by state agencies.

Against the total of 3,250 procurement centres to be set up, only about 2,600 are currently functioning, which could be a major deterrent for lower procurement.

Uttar Pradesh paddy acreage and production stand at 5.964 million hectares and 15.30 MT respectively.

The warehousing capacity in UP stands at 3.765 MT and FCI is tasked with preparing an action plan for storage of rice.

The custom milling of rice would also start in due course. Under custom milling, the government procures paddy from farmers and gets it milled by paying incidental charges.

Further, rice millers also have the obligation of 25 per cent rice levy, which is collected for public distribution system. The millers want abolition of levy, citing lower realisation.

There are about 1,000 large rice mills in UP, while the number of smaller units is about 3,000. A large mill has a capacity to mill three-four tonnes paddy per hour.