Govt's rice procurement down 8% at 16.39 mn tonne

Government's rice procurement is lagging behind by 8 per cent over last year at 16.36 million tonne so far in the 2013-14 marketing year due to lower production estimate and relatively strong open market prices.
Food Corporation of India, government's nodal procurement agency, had procured 17.78 million tonne rice in the same period of 2012-13 marketing year (October-September).
"Procurement is happening very slowly in most states as open market prices are relatively ruling strong due to lower kharif crop estimate," a senior Food Ministry official said.
Procurement in eastern and southern states was also delayed by late rains and is expected to pick up this month, the official added.

The rice production is estimated to be lower at 92.32 million tonne during the kharif (summer) season of 2013-14, as against 92.76 million tonne in the year-ago season.
Currently, spot prices of common grade rice are ruling in the range of Rs 1,835-3,750/quintal in major producing states, according to traders.

Of the total rice procured so far, FCI has purchased 8.1 million tonne in Punjab, 2.46 million tonne in Chattisgarh, 2.39 million tonne in Haryana and 1.54 million tonne in Andhra Pradesh, as per FCI data.
The government has set 34.5 million tonne as target for rice procurement for 2013-14, as against 34.1 million tonne last year. In 2011-12, it was a record 35.06 million tonne.

Looking at the procurement trends, market experts are of the view that total rice procurement could reach 32 million tonne.