The government is expected to have an abundant stock of rice, FCI has increased its procurement by 5%

The central government is expected to have an adequate stock of rice, which will prevent any significant pressure on prices. The Food Corporation of India (FCI) has purchased a total of 416 lakh metric tons of rice from states between October 2024 and January 2025, which is 5% higher than last year. Telangana saw an increase in rice procurement, while Punjab and Haryana recorded a decrease. The Ministry of Agriculture estimates that Kharif rice production for 2024-25 will increase by 6% to a record 1199.3 lakh metric tons, compared to 1132.6 lakh metric tons last year. According to FCI, rice procurement for the central pool during October 2024 to January 2025 was 415.91 lakh metric tons, about 5% higher than the same period last year. Experts believe that this purchase is sufficient to handle any unexpected events, especially in light of climate change concerns. However, managing the increasing stock is proving challenging, as there is no permanent off-take policy in place. A former FCI official suggested that a permanent off-take policy should be implemented to manage surplus rice, as the current purchases exceed the annual needs of the public distribution system. Additionally, there are concerns over selling fortified rice to distilleries for ethanol production, which could have been avoided if there were a proper policy in place. This season, rice procurement has concluded in Telangana, Chhattisgarh, Gujarat, and Uttarakhand, while in Uttar Pradesh, it will continue until the end of February. FCI has procured about 7% more rice from Uttar Pradesh compared to last year, while procurement from Punjab and Haryana has decreased. The Ministry of Agriculture's estimates indicate that rice production in this season will increase by 6% to reach 1199.3 lakh metric tons, compared to 1132.6 lakh metric tons last year.

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