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Rice exports from FCI stocks

Our Bureau

NEW DELHI, Dec. 8

THE Government has decided to allow rice exports of up to two million tonnes from the Food Corporation of India's (FCI) stocks. The exports would be routed through public sector trading companies, including State Trade Corporation (STC), MMTC and Project s and Equipment Corporation (PEC).

This follows its earlier decision to set a quantitative ceiling of two million tonnes for exports of wheat for the current fiscal, again from FCI's stocks and to be routed through STC, MMTC and PEC. The decision has been taken in order to relieve pressur e on storage space being faced by FCI and State Government agencies.

As on November 1, the total stocks of rice with the Central pool amounted to 179.88 lakh tonnes, against last year's corresponding level of 132.51 lakh tonnes, with those for wheat being 264.98 lakh tonnes and 184.80 lakh tonnes, respectively.

The Government also announced major concessions to the Andhra Pradesh farmers on norms pertaining to paddy procurement. The permissible admixture in the case of `Swarna Masuri' variety of paddy has been enhanced from 10 to 13 per cent to enable millers t o pay farmers a remunerative price for this popular variety grown in the State.

But more significantly, FCI and State Government agencies have been directed to enter the market and jointly procure up to 10 lakh tonnes of paddy to prevent large-scale distress sale of paddy by farmers. According to officials, the move is significant b ecause hitherto almost 100 per cent of procurement in Andhra Pradesh was being done in the form of rice through levy imposed on millers, rather than through direct purchases of paddy.

During the ongoing 2000-01 kharif marketing season (October-September) so far, a total quantity of 10.72 lakh tonnes of rice has been procured from the State, against 6.22 lakh tonnes purchased during the corresponding period last year. Of the 10.72 lakh tonnes procured, the bulk (10.70 lakh tonnes) has been purchased in levy form. FCI has been asked to procure another 10 lakh tonnes of rice in January and nine lakh tonnes in February.