The Hindu Business Line : Rice procurement gap narrows down

New Delhi, Dec. 26 While wheat may be giving the Centre sleepless nights, there is some comfort for it on the rice front, though. The Food Corporation of India (FCI) and State agencies have procured 119.27 lakh tonnes (lt) of rice during the current marketing season (October-September) as on Wednesday, which is marginally below the 120.78 lt purchased over the corresponding period of the 2006-07 season.

With the progressive procurement gap narrowing down to about 1.5 lt – against 6-7 lt till a month ago – there is some possibility of total purchases during this season touching last season’s level of 250.75 lt, even if not the record 276.56 lt of 2005-06.

As on November 1, rice stocks in the Central pool amounted to 106.51 lt, lower than the 125.11 lt for the same date of last year. To deal with the shortfall, the Centre has taken several emergency measures, including a ban on export of all non-basmati rice with effective from October 9 (subject to a minimum export price of $425 per tonne free-on-board, a condition that was imposed with effect from October 31).

In addition, some States – particularly Andhra Pradesh and Chhattisgarh, which have reported very good crop this year – have clamped down on rice movement outside their States, while others such as Punjab and Haryana have imposed a 75 per cent levy on millers. With the export route, too, closed (during 2006-07, the country shipped out 37 lt of non-basmati, besides the 10.4 lt of basmati), the bulk of the surplus rice is now ending up in FCI godowns.

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