Cabinet extends stock limits on paddy, rice for one more year

NEW DELHI: The Cabinet extended limits on stocks of paddy and rice that traders can hold by one more year to check hoarding and price rises.

The validity of stock limits on paddy and rice was to have expired this month.

"The Cabinet has extended the validity of central orders dated December 2012 in respect of paddy and rice for one year till November 30, 2014," sources said.

The objective of the orders fixing stock limits is to enable state governments to continue to take effective de-hoarding operations under the Essential Commodities Act.

Due to deficient rains in some states, the country's rice production is projected to drop to 92.32 million tonnes in the kharif (summer) season of the 2013-14 crop year (July-June) from 92.76 million tonnes last year.