Govt may buy record 35 mn tonne rice this year

NEW DELHI: The government is expected to buy a record 35 million tonne rice from farmers in the 2011-12 marketing year ending September for supply through ration shops and other exigencies.

The Food Corporation of India ( FCI) is the nodal agency that undertakes procurement and distribution of foodgrains in the country.

"Rice procurement will touch a record 35 million tonne in the ongoing marketing year. Last year, we had procured 34.19 million tonne," FCI Chairman and Managing Director Siraj Hussain said.

Rice procurement, which started from July 2011, has so far reached 20 million tonne, he said.

Of this, maximum procurement has been undertaken in Punjab at 77,31,325 tonne, followed by Chattisgarh at 30,55,224 tonne and Andhra Pradesh at 25,40,245 tonne, the FCI data showed.

FCI is procuring rice that was grown in the 2010-11 crop year (July-June). The country's rice output was a record 95.98 million tonne last year.

The state-run agency is buying common variety rice at Rs 10 per kg and 'A' grade variety grain at Rs 10.30 per kg.

However through ration shops, the government is selling the same grain at Rs 5.65 per kg to families that are below poverty line (BPL), and at Rs 8.30 per kg to families of above poverty line ( APL) category.