Business Daily from THE HINDU group of publications
Wednesday, Jun 21, 2006
Business Daily from THE HINDU group of publications Wednesday, Jun 21, 2006 |
|
|
|
|
|
|
|
|
|
|
Home Page
-
Agricultural Policy Agri-Biz & Commodities - Rice Govt to hike paddy procurement price Harish Damodaran
Timely support The expected announcement of a Rs 50 per quintal bonus well ahead of the marketing season — indeed, just as paddy transplanting operations have commenced — is significant in the light of the delayed decision vis-à-vis wheat.
New Delhi , June 20
The Union Government is set to announce an all-time-high Rs 60 per quintal increase in the procurement price for paddy during the forthcoming 2006-07 kharif marketing season (October-September). Of the Rs 60 per quintal rise, Rs 10 would be by way of a higher minimum support price (MSP), while farmers are to additionally receive a bonus of Rs 50 per quintal. The effective procurement price — slated for approval at the next meeting of the Cabinet — would work out to Rs 630 per quintal for common paddy and Rs 660 per quintal for `Grade A' paddy, highly placed sources said. The expected announcement of a Rs 50 per quintal bonus well ahead of the marketing season — indeed, just as paddy transplanting operations have commenced — is significant in the light of the delayed decision vis-à-vis wheat. In the latter case, the approval for a Rs 50 per quintal bonus came on April 21, by which time more than 80 per cent of the crop had already been marketed. As a result, the Food Corporation of India (FCI) and State agencies have been able to procure hardly 9.25 million tonnes (mt) of wheat during the 2006-07 rabi marketing season (April-June), against 14.79 mt last year. "After the fiasco in wheat, they do not want to take any chances this time," the sources added.
Rice procurement
The move to hike procurement price substantially comes even as total rice procurement in the ongoing 2005-06 season has crossed a record 26 mt and is slated to end up touching 27 mt. Unlike wheat, there is no problem with regard to procurement or public stocks in rice. As on April 1, rice stocks in the central pool, at 13.67 mt, were more than the minimum buffer norm of 12.20 mt, whereas the corresponding figures for wheat amounted to 2.01 mt and four mt, respectively. Besides the rise in paddy procurement price, the Cabinet is also scheduled to clear the proposed inclusion of coarse grains for distribution through ration shops. Currently, only wheat and rice are issued under the public distribution system. But with Central pool stocks of coarse grains close to one mt, the Government feels it would be possible to use these to partially offset the shortfall in wheat supplies, particularly in Karnataka and Maharashtra.
Related Stories: More Stories on : Agricultural Policy | Rice
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
