Purchases to end this month in 5 states; more buys many not be desirable: Experts.

By BL New Delhi Bureau.

Rice procurement across the country has reached 45.84 million tonnes (mt) as of February 28, after the 2024-25 marketing season began on October 1. This is 5 per cent higher from 43.84 mt a year ago. However, considering that the kharif season’s rice production has been estimated at record 119.93 mt this year, the current procurement has already crossed 38 per cent of output and more purchases may not be desirable for the government, experts said.

According to the latest official data, rice procurement in Bihar, which ended on February 15, reached 2.63 mt against 2.06 mt a year ago. Other States where procurement ended in February included Uttar Pradesh at 3.86 mt, up 8 per cent from 3.58 mt a year ago and in Madhya Pradesh it ended at 2.92 mt, higher from 2.82 mt a year ago.

Rice procurement is scheduled to end this month in Tamil Nadu, Andhra Pradesh, Kerala, Maharashtra and Odisha.

Oozing confidence

In Chhattisgarh, where procurement ended on January 31, the Centre bought 7 mt against 7.4 mt a year ago. However, the Centre and State later on resolved the higher procurement issue and the final accepted quantity of purchases was reported at 8.3 mt last year.

As the Food Corporation of India (FCI) needs about 41 mt rice annually to run all the government’s welfare schemes, the Centre was very confident of buying good amount of rice due to record output and had even fixed a target to buy 49.56 mt from kharif crop. Last week, the Centre also said that the rice procurement target from Rabi crop has been estimated at 7 mt.

The government had purchased a total of 52.54 mt of rice in 2023-24 from all kharif, rabi and zaid seasons.

The Agriculture Ministry is yet to release the revised crop production estimates for the 2024-25 crop year (July-June) where rice production from both kharif and rabi seasons combined is announced. In 2023-24, rice production from Rabi season was 14.6 mt and from zaid season, it was 9.97 mt.

Key to food security

Rice procurement is key to the government food security programme as it had substituted wheat in the public distribution programme in many states in 2024-25 when there was a drop in the procurement of wheat from target. “Higher rice procurement is good for the government as it can fall back on the bulging stock in case the procurement of wheat falls amid supply side concerns now,” said an industry expert.

The FCI has procured 11.63 mt in Punjab, which is 6 per cent lower from last year’s 12.43 mt and in Haryana it is 3.6 mt against 3.95 mt in 2023-24. The target in Punjab was 12.4 mt and in Haryana was 4 mt this year.

In Telangana, the rice purchase ended higher at 3.62 mt as against 3.17 mt. Kharif season’s rice procurement in Odisha, which will continue until March 31, has reached 4.41 mt as of February 28, which is 15 per cent higher from 3.83 mt year-ago. There is also good purchase in Andhra Pradesh, where it will end this month, and now stood at 1.45 mt as against 1.33 mt year-ago.

West Bengal, a leading producer of kharif paddy, has more than doubled to 1.85 mt from 0.74 mt year-ago. Purchases in the state will continue until April 30. Rice procurement in Tamil Nadu has reported 32 per cent surge at 1.42 mt from 1.08 mt year-ago.

Published Date: March 4, 2025