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India's rice procurement dropped by 48% in the first half of October 2024 compared to last year, with only 20.7 lakh tonnes purchased. The decline is attributed to commission agents' protests in Punjab and storage issues. This year's procurement target is lower at 485.11 lakh tonnes, compared to 521.27 lakh tonnes in 2023-24. Haryana and Punjab saw significant drops in purchases, while Tamil Nadu showed a 17.1% increase. Delayed procurement and alternate sales options for farmers contributed to the reduced arrivals. With higher paddy acreage and ongoing negotiations, the government is considering adjusting targets based on procurement progress.

Key Highlights

* India's rice procurement dropped by 48% in early October 2024.

* Punjab and Haryana witnessed major declines in purchases.

* Commission agents' protests and storage issues impacted procurement.

* Tamil Nadu saw a 17.1% rise in rice procurement during the same period.

* The government's procurement target is 485.11 lakh tonnes for 2024-25.

India's rice procurement saw a significant 48% decline in the first 15 days of October 2024, with purchases amounting to only 20.7 lakh tonnes compared to 39.4 lakh tonnes during the same period last year. The reduced procurement has been largely attributed to protests by commission agents in Punjab, demanding higher commissions, and inadequate storage facilities, which hampered smooth purchases in key states.

Rice procurement targets for the 2024-25 season have been set lower at 485.11 lakh tonnes, down from 521.27 lakh tonnes in 2023-24. Punjab and Haryana, traditionally top contributors, reported a 64% and 42% reduction in procurement respectively. In contrast, Tamil Nadu saw a 17.1% rise in purchases, indicating regional variations in procurement activities.

Other contributing factors include the delayed arrival of crops in states like eastern Uttar Pradesh, where harvest usually begins in November, and farmers opting to sell outside government channels for better prices. The ongoing negotiations over commission rates and procurement terms continue to add pressure on the government’s efforts to meet its target.

The total paddy acreage was 2.5% higher at 414.50 lakh hectares this season, suggesting potential availability despite current procurement challenges. The government may adjust its target based on how the procurement progresses across different regions.

Finally

India's rice procurement struggles amid protests and storage constraints, with ongoing efforts to meet lower targets and adjust strategies accordingly.

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