Slow purchases in some states drag rice procurement for central pool

By Sanjeeb Mukherjee

Rice procurement for the central pool remains sub-par for the 2023-24 season starting in October due to slow purchases in Chhattisgarh, Telangana and Madhya Pradesh, where farmers awaited clarity on the bonuses announced by political parties during poll campaigns.

In Andhra Pradesh and Telangana, procurement usually picks up from January when there’s more clarity on the procurement numbers. Till January 7, data shows around 49.05 million tonnes of rice have been procured, around 11.4 per cent lower than against the same period last year.

The rice procurement season continues till September 2024, giving ample time for the stocks to match last year’s level or at least reach the targeted 52.13 million tonnes in 2023-24. Central pool rice stocks as of December 16, 2023 were estimated to be around 47.53 million tonnes (including unmilled paddy lying with the millers), six times more than the buffer and strategic requirement on January 1 each year of 7.61 million tonnes.

This article has been republished from The Business Standard.