FCI’s purchases ample to tackle any ‘unforeseen eventuality’

By Prabhudatta Mishra

Rice purchase by the Food Corporation of India (FCI) for the Central Pool stock during the October 2024-January 2025 period was 41.591 million tonnes (mt), up by 4.6 per cent from 39.747 mt in the year-ago period. Experts say the procurement is ample to tackle any unforeseen eventuality amid concerns over climate change. However, the government is finding it difficult to manage the bulging stock amid no permanent offtake policy.

“It is good to have the robust procurement as farmers are getting the minimum support price for their paddy. However, a permanent offtake policy should be devised to dispose of the surplus as the purchases are exceeding the annual requirement for the public distribution system,” said a former head of the Food Corporation of India (FCI).

He called the current open market sales policy and selling Bharat rice as ad hoc steps insufficient to bring down the stock near buffer and strategic reserve norm. “The decision to sell fortified rice to distilleries for ethanol making is a waste of public money, which is avoidable. Had there been a policy, the paddy could have been directly sold to distilleries,” he observed.

Karnataka target raised

Meanwhile, the Centre last month raised the target of kharif rice procurement, which begins in October, after Karnataka informed it that it could buy 0.5 mt for the Central Pool against the earlier target of 0.15 mt However, no grain has been bought so far by the State. The revised all-India rice purchase target is 49.561 mt against 49.211 mt earlier from the kharif-grown crop.

Procurement in Punjab, Haryana and other Northern States was completed in December while will continue until end of February in Uttar Pradesh. The purchase season ended this month in Telangana, Chhattisgarh, Gujarat and Uttarakhand.

The Food Corporation of India (FCI) has been able to buy 11.631 mt in Punjab (including Chandigarh), which is 6.4 per cent lower from last year’s 12.431 mt and in Haryana, it is 3.599 mt against 3.949 mt in 2023-24. The target in Punjab was 12.4 mt and in Haryana was 4 mt in the 2024-25 marketing year.

Up in Telangana

According to latest data, rice procurement in Chhattisgarh has been reported at 7 mt as targetted until January 31, which is 15 per cent higher from 6.097 mt an year ago as the State pays bonus over and above the paddy MSP of ₹2,325/quintal. Last year, the FCI took over extra quantity purchased by the State after the season got over as a result the final procurement was 8.3 mt, officials said.

Telangana’s rice purchase is up by 13 per cent at 3.574 mt from 3.165 mt, Uttar Pradesh has reported 7 per cent higher procurement at 3.622 mt from 3.396 mt, Madhya Pradesh has seen 3 per cent surge at 2.916 mt from 2.823 mt. But it is lower by 2.4 per cent in Maharashtra at 0.564 mt from 0.578 mt.

Even rice purchase in Andhra Pradesh, which was affected due to flood and cyclone a few months ago, has reported 16 per cent increase at 1.375 mt against 1.188 mt a year ago. Another major improvement is seen in Bihar, where the rice procurement is up 21 per cent at 1.680 mt from 1.386 mt.

Rice procurement in Odisha, which was initially drastically lower, has inched up as the State government has announced to buy at ₹3,100/quintal by paying from its own Budget the bonus amount above the MSP. Purchases until January 31 reached at 2.954 mt against 2.988 mt in the year-ago period.

West Bengal has reported higher purchase, as procurement in the State reached 1.364 mt against 0.598 mt a year ago. Tamil Nadu reported 0.573 mt purchase since it started from September 1 against 0.425 mt in the year-ago period, up by 35 per cent.

The Agriculture Ministry has estimated the kharif rice production to reach a record 119.93 mt in 2024-25 from 113.26 mt year-ago, up by 6 per cent.

Published Date: February 3, 2025