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Our Bureau

New Delhi, Oct 16 The Centre, on Thursday, approved a Rs 50/quintal bonus for paddy, over and above the already declared minimum support price payable during the current 2008-09 kharif marketing season (October-September).

The decision, taken at the meeting of the Cabinet Committee on Economic Affairs here, would effectively raise the official procurement price to Rs 900 a quintal for common paddy and Rs 930 a quintal for Grade ‘A’ varieties. These rates are applicable for the entire 2008-09 marketing season, an official release stated.

Although below the Rs 1,000-1,050 a quintal range, recommended by the Commission for Agricultural Costs & Prices, the final approved prices still work out Rs 155 more than the Rs 745-755 a quintal levels for 2007-08.

The bonus announcement — which was in the air for the past few weeks — is expected to spur procurement by the Food Corporation of India and State agencies. The current season has so far seen lower market arrivals, with farmers holding back their crop in anticipation of the decision.

As on Thursday, only 48.37 lakh tonnes (lt) of paddy had arrived in the mandis of Punjab, as against 60.14 lt during the corresponding period of the 2007-08 season. Haryana, too, has reported lower cumulative arrivals of 13.82 lt, compared to last year’s 14.43 lt.

As a result, overall rice procurement during the ongoing season, at 37.74 lt till Thursday, has been marginally below last year’s progressive figure of 37.87 lt. The 2007-08 season on the whole had seen a record 285.02 lt of rice procured for the Central pool.

That the current lag has been mainly due to the delay in bonus announcement is borne out by the very low levels of market arrivals as well as private trade purchases.

Rice millers and dealers have till now bought just 10 per cent of the total paddy arrivals in Punjab (compared to last season’s corresponding 23 per cent) and 16.5 per cent (31.7 per cent) in the case of Haryana.

“The private trade is not interested in buying this year because of the ban in exports of non-basmati rice and also the non-likelihood of any rise in prices that make purchases worthwhile. And now with the bonus, we will see all the paddy arrivals flowing into the FCI godowns,” sources pointed out.

More Stories on : Rice | Agricultural Policy

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