Paddy procurement for central pool rises 6.8%

The data indicate that this year, the government will actively procure paddy to fill up its stocks, as the central pool stocks of rice were 19% lower and the stock of un-milled paddy was 16% less as on October 1 compared with last year, said Rajiv Yadav, senior vice president at Origo Commodities, which focuses on commodity supply chain, post-harvest management, trade and finance.

While procurement from Punjab, Haryana and Tamil Nadu increased this season, that in Uttar Pradesh, one of the top producers of the grain, was lower from last year. Till November 7, the state’s contribution was 12.39 million tonnes against 14.63 million a year earlier.

A deficiency in rainfall during monsoon (June-September) had led to lower paddy acreage in UP, causing a fall in production.

The government aims to procure 77.13 million tonnes of paddy during the ongoing kharif marketing season. The actual procurement in the previous season was 75.93 million tonnes.

Paddy is a summer as well as winter crop. However, 80% of it is produced during the kharif, or summer, season.

Under the central pool, paddy is procured at a minimum support price and is used for various welfare schemes. The procurement is undertaken by FCI and various state agencies on its behalf.