FCI annually supplies 38 MT of rice for supply to the beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana.

Written by Sandip Das.

Despite a sluggish commencement of procurement because of storage crunch in Punjab, the government’s paddy procurement drive this season (2024-25) in major producing states has crossed 48.3 million tonne (MT), marginally higher on year.

Officials said the paddy purchase operations for the current season (October-September) got a boost in the last six weeks after the government evacuated surplus rice stocks from Punjab, the biggest contributors to the central pool grain stock.

The procurement has given a boost to rice stock held with a central pool currently at 60.59 MT, several times more than the buffer norm. As on Thursday, FCI and agencies hold 28.65 MT of rice stocks, excluding 31.94 MT receivable from millers. The rice stock is against the buffer of 7.61 MT for January 1.

So far, the Food Corporation of India and state government agencies have purchased 48.3 MT of paddy at Minimum Support Price (MSP) from farmers mostly in Punjab (17.35 MT), Chhattisgarh (8.89 MT), Haryana (5.37 MT), Telangana (4.26 MT), Uttar Pradesh (3.86 MT), Madhya Pradesh (2.48 MT and Odisha (1.28 MT).

The agencies are aiming to buy 49.21 MT of rice (73.27 MT of paddy) in the current kharif season from key grain surplus states against 52.4 MT (78.16 MT of paddy) purchased from the farmers 2023-24.

The purchase by agencies which commenced from October 1 was initially slow in Punjab and Haryana because of lack of storage space. Officials said purchase by agencies have been completed in Punjab and Haryana, while other states farmers are still brinng in their produce is expected to continue to March, 2025.

With the centre evacuating surplus rice from Punjab in the phased manner, procurement has picked pace last month with states like Chhattisgarh, Telangana, Andhra Pradesh and Uttar Pradesh reporting higher MSP purchases compared to previous year.

In Punjab, which contributed the highest 17.35 MT of paddy to the central pool grain stock, the procurement by the agencies is 6% less than a year ago.

The agriculture ministry has projected the kharif rice production to reach a record 119.93 MT in 2024-25 crop year (July-June), against 113.26 MT in 2023-24 crop year.

FCI annually supplies 38 MT of rice for supply to the beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana.

Key contributors to central pool rice stock include – Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Odisha, Andhra Pradesh and Telangana. Kharif season accounts for around 80% of the total rice purchase during this season. Procurement in eastern and southern states would commence in December.

The rice procured from grain surplus states is also used for keeping a buffer stock with FCI. After paddy is procured from the farmers by FCI and state agencies, it is handed over to millers for conversion into rice. Paddy to rice conversion ratio is 67%.

Published Date: January 4, 2025