Panic sets in as rice output fails to keep pace with consumption
Last year, Indians consumed 88.25 million tonnes (mt) of rice, compared to an output of 92 mt, a gap of 4 mt.
By Prabha Jagannathan, TNN |
NEW DELHI: Last year, Indians consumed 88.25 million tonnes (mt) of rice, compared to an output of 92 mt, a gap of 4 mt. In 2005-06, rice consumption stood at 87.01 mt, against an output of 91.7 mt, a gap of 5 mt. The demand for rice has been going up at an average of 1 mt each year, according to the food ministry’s figures.
On the ballast of the National Food Security Mission (NFSM), the government has targeted an additional production of 10 mt by the end of the 11th Five Year Plan, which ends in 2011-12. Despite all the measures, the farm ministry’s estimates of kharif rice stood at only 80.15 mt compared to last year’s 80.11 mt.
Along with rabi rice, the overall production this year (07-08) is expected to be only marginally higher than last year’s level of 92.8 mt, against a production target of 97.43 mt. The government has pegged rice output at 115 mt by the end of 11th Plan period. While this is already proving difficult to achieve given the current production growth, the consumption by the end of 11th Plan period is estimated at 120 mt.
Meanwhile, paddy (unthreshed rice) procurement by FCI and other state agencies up to November 26 had reached only 12.72 mt, a substantial 7.4% lower than the same period last year. In terms of rice, buys for the country’s PDS and welfare programmes and for bolstering the food grain buffer stands at 8.91 mt, coming down by 8.2%.
“Procurement of more rice (from the domestic markets) is considered essential since rice is not available in large quantities internationally,” a food ministry note circulated to the Cabinet earlier this year stressed. Rice provides the crucial back up to wheat in the Centre’s food security basket. Last year, when the Centre was forced to import 5.5 million tonne of wheat, was a record rice production year and the government aggressively pushed rice into its key PDS and welfare programmes.
Earlier this year, rice imports was being considered by the government to bolster domestic rice buffer stocks. The proposal was shelved in May on fears that import could be costly on tight global supplies and as rice is not a highly-traded commodity globally. In fact, it was feared that mere issuance of an import tender could send the prices soaring.
The food ministry consequently decided to procure additional quantum from the domestic market to meet consumption demand. To make farmers loosen their fists, two separate bonuses were announced, bringing the minimum support price (MSP) of rice virtually at par with wheat. None of these measures seem to have worked in bridging the gap.
On the ballast of the National Food Security Mission (NFSM), the government has targeted an additional production of 10 mt by the end of the 11th Five Year Plan, which ends in 2011-12. Despite all the measures, the farm ministry’s estimates of kharif rice stood at only 80.15 mt compared to last year’s 80.11 mt.
Along with rabi rice, the overall production this year (07-08) is expected to be only marginally higher than last year’s level of 92.8 mt, against a production target of 97.43 mt. The government has pegged rice output at 115 mt by the end of 11th Plan period. While this is already proving difficult to achieve given the current production growth, the consumption by the end of 11th Plan period is estimated at 120 mt.
Meanwhile, paddy (unthreshed rice) procurement by FCI and other state agencies up to November 26 had reached only 12.72 mt, a substantial 7.4% lower than the same period last year. In terms of rice, buys for the country’s PDS and welfare programmes and for bolstering the food grain buffer stands at 8.91 mt, coming down by 8.2%.
“Procurement of more rice (from the domestic markets) is considered essential since rice is not available in large quantities internationally,” a food ministry note circulated to the Cabinet earlier this year stressed. Rice provides the crucial back up to wheat in the Centre’s food security basket. Last year, when the Centre was forced to import 5.5 million tonne of wheat, was a record rice production year and the government aggressively pushed rice into its key PDS and welfare programmes.
Earlier this year, rice imports was being considered by the government to bolster domestic rice buffer stocks. The proposal was shelved in May on fears that import could be costly on tight global supplies and as rice is not a highly-traded commodity globally. In fact, it was feared that mere issuance of an import tender could send the prices soaring.
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The food ministry consequently decided to procure additional quantum from the domestic market to meet consumption demand. To make farmers loosen their fists, two separate bonuses were announced, bringing the minimum support price (MSP) of rice virtually at par with wheat. None of these measures seem to have worked in bridging the gap.
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