The Hindu Business Line : Rice stocks position to be reviewed: Yadav

THE Union Minister of Consumer Affairs, Food and Public Distribution, Mr Sharad Yadav, has said the Government would soon review the position of rice stocks in the Central pool in light of the significant decline expected in this year's kharif crop.

"We would not like to stop exports of rice from the Central pool all of a sudden, considering that developing overseas markets is not at all easy. At the same time, we will be continuously monitoring our stocks and domestic market conditions to ensure that no shortage develops in view of lower rice production this year," Mr Yadav told Business Line.

Rice stocks with the Food Corporation of India (FCI) stood at 21.94 million tonnes (m.t.) as on July 1, 2002, as against 22.75 m.t. at the same time last year. Since April 1, stocks have come down by almost 3 m.t, aided partially by exports of around 2 m.t. during the first quarter of the current fiscal.

The High-Level Committee on Long-Term Grain Policy, which submitted its report to the Minister late last month, had recommended that the policy of exporting foodgrains from the Central pool at highly subsidised rates "should be reviewed as soon as stocks come down to 17 m.t. and 22 m.t. for rice and wheat respectively".

Mr Yadav said the position with regard to wheat stocks was "highly comfortable", with inventories amounting to 41.07 m.t. as on July 1. "Also, the current revival in monsoon rains will add to the soil moisture and make conditions very favourable to the sowing of wheat. We can, therefore, expect yet another bumper rabi crop of wheat, which would hopefully make up for the losses in kharif rice production," he pointed out.

At the same time, he admitted that rice was a much more widely consumed cereal across the country and "we will have to ensure that no shortage of any kind develops here".

Mr Yadav reiterated the point that, as of now, the real problem to address was not the shortage of grains per se, but the absence of a "proper delivery mechanism", which ensures that foodgrains reached the drought-affected areas.

According to the Agriculture Ministry's latest estimates, a total area of 192 lakh hectares has so far been covered under rice in the current kharif season compared to last year's corresponding coverage of 264 lakh hectares. Going by the present trends, it looks unlikely that the total area would cross 350 lakh hectares as against the normal area of 406 lakh hectares for kharif rice.

Even assuming that average yields do not fall below the existing 1.9 tonnes per hectare, production of kharif rice this year would be in the region of 66-67 m.t. compared to last year's record 79.36 m.t. "A 15 per cent drop in output seems quite likely at the moment. It could even be 25 per cent, i.e. around 20 m.t., though that seems a rather extreme projection," said Dr Mangala Rai, Deputy Director-General, Indian Council of Agricultural Research (ICAR).

Krishi Bhawan officials are also drawing comfort from the fact that production in West Bengal and Punjab has not been badly affected. While West Bengal, the country's leading rice producer, has received reasonably good monsoon rains, the presence of assured irrigation has insulated the crop in Punjab from acute moisture stress.

"The paddy in Punjab does not seem to have really suffered from the absence of rains, though farmers have spent a lot of money on diesel and labour to keep the crop in good condition. Besides, the lack of rains and absence of cloudy weather may actually be beneficial because dry sunny conditions tend to boost the rate of photosynthesis," Dr Rai said.

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