Government procurement of rice increased by 5 percent to close to 416 lakh tonnes
India’s rice procurement for the 2024-25 Kharif season rose 4.6% to 415.91 lakh tonnes, strengthening food security. The government targets 492.11-492.61 lakh tonnes, but concerns remain over storage and surplus management. Measures like OMSS and Bharat brand sales have had limited impact, highlighting the need for a long-term strategy to balance procurement and market stability.
iGrain India – The increase in rice procurement by the government, as reported for the 2024-25 Kharif marketing season, indicates a significant effort to ensure food security in India.
The procurement by the Food Corporation of India (FCI) reached 415.91 lakh tonnes, a 4.6% rise compared to the same period last year, showcasing a proactive approach toward strengthening the central pool of rice.
The set target for the season is between 492.11 lakh tonnes and 492.61 lakh tonnes, highlighting a significant effort to meet domestic demand, and possibly prepare for unforeseen challenges, including climate-related disruptions.
However, the increase in procurement has raised concerns over the safe storage and management of such large quantities of rice.
While the stock is enough to guarantee food security, the logistics of storage, withdrawal, and distribution are crucial.
The challenge lies in balancing procurement and ensuring that surplus stocks are utilized effectively, particularly through programs like the Open Market Sale Scheme (OMSS) and the sale of rice under the Bharat brand.
These measures, however, have had limited impact as the domestic market is already sufficiently stocked, and prices have stabilized.
Furthermore, critics highlight the need for a permanent withdrawal policy to address the surplus effectively.
With large quantities of rice being procured at the minimum support price (MSP) to benefit farmers, the government must ensure that the rice is used efficiently to avoid wastage while supporting the economy and the agricultural sector.
This complex issue underscores the need for a comprehensive long-term strategy to manage and utilize rice stocks in a manner that supports both food security and market stability.
To read more about Rice News continue reading Agriinsite.com
Source : Investing.com
