So far in 2013-14 marketing year, the rice procurement by Government stood at 16.36 million tonne (MT) which is lagging behind by 8% over last year. This fall in procurement is due to lower production estimate and relatively strong open market prices. The procurement in eastern and southern states was also delayed by late rains and is expected to pick up this month.
The government’s nodal procurement agency, Food Corporation of India (FCI), had procured 17.78 MT rice in the same period of 2012-13 marketing year (October-September). Of the total rice procured so far, FCI has purchased 8.1 MT in Punjab, 2.46 MT in Chhattisgarh, 2.39 MT in Haryana and 1.54 MT in Andhra Pradesh. Currently, spot prices of common grade rice are ruling in the range of Rs 1,835-3,750/quintal in major producing states.
The rice production is estimated to be lower at 92.32 MT during the kharif (summer) season of 2013-14, as against 92.76 MT in the year-ago season. The government has set 34.5 MT as target for rice procurement for 2013-14, as against 34.1 MT last year. In 2011-12, it was a record 35.06 MT. The market experts after looking at the procurement trends are of the view that total rice procurement could reach 32 MT.