HYDERABAD: The state government is forced to auction 15 lakh tonnes of boiled rice in the open market to clear stocks lying in rice mills and godowns.
The government had procured 92 lakh metric tonnes of paddy from farmers for MSP (minimum support price) in the recent Rabi and sent it for milling from which 60 lakh tonnes of boiled rice was produced.
But the Food Corporation of India (FCI) procured only 24.75 lakh tonnes of boiled rice for the public distribution system (PDS).
Following Chief Minister K. Chandrashekar Rao's repeated requests to Union minister for food and PDS Piyush Goyal during his recent Delhi visit, the FCI agreed to procure an additional 20 lakh metric tonnes, leaving nearly 15 lakh tonnes in rice mills and godowns.
The government is likely to incur Rs 3,000 crore losses on paddy procurement in Rabi season. It is compelled to clear stocks in rice mills and godowns as kharif procurement will begin soon and there would be a need for space for milling and storage.
Officials sources said the TS Civil Supplies Corporation, which procured paddy from farmers, will now have to dispose off 15 lakh unprocured rice stocks in the open market irrespective of the bidding price.
The state government repeatedly requested the Centre to procure at least 50 lakh tonnes of rice after FCI agreed to procure only 24.75 lakh tonnes. The FCI finally communicated to the state government on Saturday that it will procure an additional 10 lakh tonnes following Rao's request but made it clear that it is for the last and final time that it will procure additional rice and asked the state government not to make such requests in future.
The state government had paid Rs 17,300 crore to 15 lakh farmers to procure 92 lakh tonnes of paddy. The government has already suffered Rs 7,500 crore loss on procurement since the state’s formation.
