Govt's Paddy Procurement Increased By 13% at 38 mn tonnes Till December 11: FCI

According to the most recent Food Corporation of India (FCI) data, procurement of paddy for the central pool in the ongoing 2022-23 Kharif marketing season was 13% higher at 38.06 million tonnes as of December 11, compared to 33.62 million tonnes a year earlier.

The data indicates that this year, the government is actively procuring paddy to replenish its stocks, said Tarun Satsangi, assistant general manager at Origo Commodities, which focuses on commodity supply chain, post-harvest management, trade and finance.

According to trade sources, the government's paddy stocks will be 5% higher this year than last, reaching 80 mt.

While procurement from Punjab, Haryana, and Tamil Nadu increased over the previous season, it was lower in Uttar Pradesh, one of the top grain producers. UP's contribution was 20.02 million tonnes as of December 11, compared to 23.77 million tonnes the previous year.

A lack of rain during the monsoon season (June-September) reduced paddy acreage in Uttar Pradesh, causing production to fall.

Procurement in Punjab and Haryana is nearly complete, while it is still ongoing in Chhattisgarh, Uttar Pradesh, and Telangana. During the current Kharif marketing season, the government hopes to purchase 77.13 million tonnes of paddy.

The previous season's total procurement was 75.93 million tonnes. Paddy is a summer and winter crop. 80% of it is produced during the Kharif or summer season.

Paddy is purchased at a minimum support price and used for various welfare schemes through the central pool. FCI and various state agencies handle the procurement on its behalf.