Rice Procurement up by 12%, UP Records a 60% Decline

Rice procurement increased by 12% to 114.33 million tonnes in the first month of the current procurement season (October to September). Thanks to the states of Punjab and Haryana. Grain purchases in these two states increased by 8% compared to the same period last year. In Uttar Pradesh, which is the largest Kharif rice producer, purchases fell by 60% to 22,557 tonnes.

The target for Kharif-grown rice this season is set at 518 against 510 for 2021-22. Rice procurement increased by 12% in the first month of the current procurement season (October to September) to 114.33 million tonnes.

Depleting grain supplies in the country and delays in rice harvests in states other than Punjab and Haryana have pushed India's food corporations to push for early shelling of paddy.

The Indian government wants Punjab to start hulling rice on November 10th. The shelling season generally ends from late November to March. The FCI has made a request to this effect to the state government.

Interestingly, in 2022 in Punjab, FCI's direct rice sourcing is 1.67 LMT, while intrastate rice sourcing is 127 LMT (only 1.3%), which is almost negligible. FCI sources say they are buying at the same level as last year. Thus, FCI is pushing for early milling of paddy in Punjab keeping depleting stocks on mind, and wants Punjab to get going by November 10.