The Food Corporation of India (FCI) has made it clear to the Telangana Government it would be willing to procure white rice from the State even as it expressed its inability to buy parboiled rice as it has more-than required stocks of the latter in its warehouses.
“We had communicated our decision well in advance to the Telangana Government. In fact, we had consulted with the State government while fixing the procurement volume,” said Sudhanshu Pandey, Union Secretary, Food and Public Distribution.
Pandey was responding to a query from BusinessLine on views from rice traders that Telangana was allegedly trying to mislead on the rice procurement issue since FCI was willing to buy any amount of white rice.
Issue politicised
The State government has told the farmers that the FCI will not procure parboiled rice that will hit the markets in the rabi harvest season starting April next and they would have to switch over to some other crop.
Last season, FCI was reluctant to procure parboiled rice but later, it decided to buy an additional two million tonnes (mt) . However, for the coming rabi season it has made its stand clear that it will not procure parboiled rice.
The issue has been politicised with the ruling Telangana Rashtra Samithi (TRS) staging protests on Friday protesting against the decision to not procure parboiled rice.
On the other hand, Opposition parties in the State point out that procurement of kharif rice is yet to begin in the State. They have launched a separate agitation demanding immediate commencement of operations.
Surplus stocks
“Not only Telangana but even from Chhattisgarh, parboiled rice procurement is not being done. We have surplus stocks that can meet the demand for the next four years,” the Food Secretary said.
One of the reasons for FCI to cut its parboiled rice purchase is that many States have developed their own variety and use their own decentralised procurement system (DCP) for their own consumption.
“Kerala and Bihar have their own parboiled rice and use their DCP. Therefore, there is no demand from the central pool (for parboiled rice). What do we do after procuring it?” he wondered.
Telangana should adhere to the understanding reached with the Centre, he said.
Problems of ‘brokens’
Rice traders said the problem for the Telangana Government is if farmers opt to produce more white rice, they get more brokens. “It is a technological issue. Only the State can address it. Telangana Government has to ensure its rice mills are modernised. Instead, it is passing the buck to the Centre,” said a trader, who did not wish to be identified.
A Delhi-based trade analyst said, on condition of anonymity, many mills in North India were modernised, whereas mills in Telangana were “age-old” ones. One of the reasons for Telangana farmers to produce parboiled rice could be because it is exported to African destinations, which are the main buyers of the variety.
“In that case, the State government should work out a scheme with rice exporters, instead of putting pressure on the Centre,” said the trader.
Food Secretary Pandey said more brokens of white rice were an issue. “Telangana farmers cultivate high-yielding varieties but these break up easily during milling. In order to avoid this, they steam the paddy so that they gain in yield as well as price. Efforts have to be made to reduce the broken contents,” he said.
Procurement target
Also, people in Telangana do not consume parboiled rice. Therefore, parboiled is being produced for others’ consumption but it has now hit a hurdle with consuming States coming up with their own mechanism, traders said.
Rice millers in Telangana have said FCI has sought fortification of rice if the foodgrain has to be procured, but traders point out that the Centre has come out with a detailed note on fortification of rice.
On reports of a reduction in rice and paddy procurement, the Food Secretary denied there was any cut in the purchase target. “All States had agreed on the procurement target at the kharif conference. The same States are now trying to push more showing different data,” he said.
The data of some States on rice production are different from the Ministry of Agriculture and Farmers’ Welfare data. For example, procurement of rice from Punjab has been fixed at 17 million tonnes (mt) against a record purchase of 13.59 mt last season (July 2020-June 2021).
From Telangana, the total procurement was 9.45 mt. Traders’ views on the record procurement in Punjab is that old stocks have been recycled and paddy from Uttar Pradesh also found its way into the State.
Testing of age of rice
Rice is procured at the minimum support price fixed by the Centre and this year, it has been fixed at ₹1,940 a quintal for the common variety.
On the other hand, the FCI’s decision to go in for testing the age of the rice is yielding good results. “We are insisting on testing the age of rice. It is yielding very good results and this has enabled us to put an end to recycling of old stocks,” Pandey said.
On allegations that the Centre had fixed a cap on paddy procurement from each farmer, the Food Secretary said it was fixed by the States themselves.
Punjab and Haryana have reportedly fixed a limit of procuring 2.5 tonnes per acre. This has upset farmers but traders point out that this was being done by the States to ensure maximum farmers derived the benefit and also avoid recycling of old stocks.
The Agriculture Ministry has estimated kharif rice production at a record 107.4 mt this season, while the US Department of Agriculture has pegged the output for the entire season at a new high of 125 mt against 122.27 mt last season.