Agri Commodities

Over 700 LMT Paddy Procured, 97 Lakh Farmers Benefitted

Over 700 LMT Paddy Procured, 97 Lakh Farmers Benefitted

Located in Asia, India is the second largest producer of rice in the world. It is also the leading Rice Exporter with a mammoth 40% share in the global rice trade. RICE is the major food-crop which remains in high demand throughout the year. Indian basmati rice is famous for its fine quality and fragrance. Thus, it is procured in large quantities globally. 

Various factors affect the export-import of crops such as the geo-political environment, weather conditions etc., all of which remained volatile during the year 2022 and hampered trade and commerce. The Russia-Ukraine war hampered the supply chain of food crops which led to global food shortage and drove up prices. 

The erratic weather conditions in India also affected the rice production in 2022-23. Owing to adverse weather conditions, the Prime Minister of India who in the aftermath of Russia-Ukraine war committed to feed the world later had to impose a ban on wheat and 20% export duty on all varieties of rice, except parboiled rice to prioritize the domestic food requirements of the country. 

Paddy Procurement In Current Kharif Marketing Season 2022-23 

Although the ban on rice and wheat exports still continues, India is witnessing a bumper harvest this marketing season, thanks to efforts of farmers and favorable weather conditions. Owing to bumper production, the Government of India (GOI) regularly holds meetings to lift the ban on rice and wheat exports that it imposed last year. As per the Ministry of Consumer Affairs, Food and Public Distribution on Tuesday stated that, paddy procurement in current Kharif season has surpassed 700 LMT, with farmers receiving MSP of around 1,45,845 crore. 

It also added that, the procurement of paddy for the Kharif Marketing Season (2022-23) is proceeding satisfactorily, with over 702 LMT of paddy purchased as of 20 February. 

As a major section of Indian farmers are involved in paddy farming, therefore, about 96 lakh farmers benefited from the ongoing Kharif Marketing Season procurement activities, which have resulted in an MSP outflow of Rs 1,45,845 crores, which money transferred straight into their accounts. 

According to the government, all preparations are in position for smooth procurement procedures. “Rice supply against the acquired paddy is about 218 LMT in the Central Pool up to 20 February. Sufficient rice supply is now present in the Central Pool to satisfy the country’s needs.” 

A total of 765.43 LMT Paddy (514 LMT Rice) is expected to be bought for the present KMS 2022-23 Kharif crop, up from 749 LMT Paddy (503 LMT Rice) acquired amid the previous KMS 2021-22. (Kharif Crop).

The Bottom Line 

As the farmers of India are gaining benefit in the paddy sector, it could be concluded that the production and sale of paddy is great. At the next Food Secretaries’ conference on March 1, 2023, the expected purchase of Paddy for the Rabi crop of Season 2022-23 will be confirmed. With the addition of the Rabi crop, the ministry estimates that around 900 LMT paddy would be procured throughout the whole Season 2022-23. 

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