The Hindu Business Line : Rice procurement crosses 304 lakh tonnes

NEW DELHI: Rice procurement by the Food Corporation of India and other state agencies have touched a new record with over 304 lakh tonnes of foodgrain purchased so far this season, about 18 per cent up over the same period last year.

The procurement has reached 304.32 lakh tonnes till Friday compared to 258.32 lakh tonnes in the same period of the previous marketing season (October-September), according to official data. However, the daily rice purchase has come down to over 49,964 tonnes against 29,179 tonnes in the same period last year.

The record rice procurement in the 2008-09 marketing season is the result of bumper output, coupled with higher support prices, experts believe. The Minimum Support Price (MSP) of rice for 2008-09 was Rs 850 for the common variety and Rs 880 for 'Grade A '.

Later, the government announced Rs 50 as bonus above the MSP. On the back of record procurement, which led to higher availability of rice in the Central pool, the government allowed export of 25,000 tonnes of non-basmati rice to South Africa.

According to official data, India is estimated to have produced a record 98.89 million tonnes of rice in 2008-09 season against 96.69 million tonnes in the previous season. - PTI

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