BENGALURU: The overall rice production in the country is down by about nine percent. This is bad news for the Karnataka government, which is struggling to procure rice for its ambitious Anna Bhagya scheme. If market forces prevail, Karnataka would have to pay through its nose during this distress period.
Paddy growers, who usually sell their produce soon after its harvest, seem to have adopted a wait and watch policy now. The reason is rice output in Karnataka is expected to be down by almost 14%, according to experts and prices are expected to increase sharply. “In this uncertain situation, no rice miller comes forward to buy. The shortfall may lead to further increase in the prices of rice,” FKCCI president Ramesh Lahoti said.
According to the Food Corporation of India, it procured only 103 lakh tonnes of rice till October 31 compared to 114 lakh tonnes procured during the same period last year, a shortfall of 11 lakh tonnes. The state-wise figures indicated that of the large rice producing states, Punjab recorded the sharpest decline. The annual rice procurement dropped to 62.47 lakh tonnes, a decline of about 13%. The procurement in Tamil Nadu dipped by a whopping 41% to 3.06 lakh tonnes. Former FCI chairman DV Prasad said there is a substantial dip in rice production owing to nature’s vagaries.
‘Drop in rice output a big challenge’
Food security experts said the reduction in rice output will be a big challenge to the union and state governments. Some wondered that it may even affect the 5kgrice per person offered by the union government to the states under the food security programme.
The experts said Chatisgarh, one of the states with surplus rice production, could have issues with regard to supply of rice to Karnataka. They said Chatisgarh offered Rs 3,600 per quintal of paddy, which is about Rs 1,400 over and above the union government’s procurement price.
The final cost of rice could, by default, be about Rs 50 per kg. “The other major rice producing state is Telangana. But because of the assembly elections in that state, Karnataka may not be able to get rice till December 3. It is only post December 3, depending on the government formation, Karnataka may get rice from Telangana,” the experts said.