Rice procurement to hit a record 28 million tonnes

The government’s rice procurement in the 2007-08 Kharif marketing season (October-September) has touched an all-time high of 27.9 million tonnes (MT) and is likely to touch 28 MT, when the season ends on September 30.

This is against a target of 27.6 MT. The rice procurement had slipped from 27.6 MT in 2005-06 to 25.1 MT in 2006-07.

“We expect the final procurement to touch 28 MT in the current year,” said Alok Sinha, chairman and managing director, Food Corporation of India.

The record rice procurement might enable the government to undertake the open market sale scheme (OMSS) for rice as it is doing for wheat at present. On August 21, the cabinet committee of economic affairs approved OMSS for both wheat and rice while leaving the decision on timing and quantity of intervention to the committee of secretaries.

With a weight of 2.45 per cent in the wholesale price index, the 25-30 per cent jump in rice prices and inflationary pressures had prompted government to take measures like a ban on export of non-basmati rice (in March this year). Earlier this month, the export of Pusa-1121 non-basmati rice was permitted. A purchase of record 22.54 MT wheat has already been made this year.
 

NEW PEAK Figures in million tonnes
Kharif marketing	Rice procurement  season (Oct-Sep)
2001-02	21.20
2002-03	15.80
2003-04	22.90
2004-05	24.50
2005-06	27.60
2006-07	25.10
2007-08 (as on Sept 24 ’08)	27.90

The combined grain procurement is at a record 50.44 MT.of non-basmati rice (in March this year). Earlier this month, the export of Pusa-1121 non-basmati rice was permitted. For the 2007-08 kharif season, a mandatory declaration of rice purchase exceeding 10,000 tonnes needs to be made to the state government while purchase exceeding 25,000 tonnes need to be declared to the union department of food. Even while augmenting domestic availability of rice and easing inflation, the steps have also boosted the government’s rice purchase.

For the 2007-08 kharif season, a mandatory declaration of rice purchase exceeding 10,000 tonnes needs to be made to the state government while purchase exceeding 25,000 tonnes needs to be declared to the Union agriculture ministry. Even while augmenting domestic availability of rice and easing inflation, the steps have also boosted government’s rice purchase.