The Hindu : Andhra Pradesh News : Rice procurement hit

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Friday, Aug 10, 2007
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Andhra Pradesh

Andhra Pradesh

Rice procurement hit

Correspondent

Exports from Kakinada touch one million MT

Exporters hopeful of further rise in exports
While the FCI rejects, the same is being accepted for exports

Kakinada: As the rice exports picks up despite dollar crash against rupee due to the incentives extended by government, it has affected the rice procurement with the millers finding it lucrative to supply the rice to exporters rather than to FCI towards statutory levy. The rice exports to various countries from Kakinada port have touched one million MTs mark during last six months period ending June.

While 89,754 MTs of rice was exported in January, it went up steadily with 1,10,688 MTs in February, 2.,44,999 MTs in March and 2.33.428 MTs during April. It has further picked up in May with 3,02,620 MTs rice exported. The rice exporters are hopeful of further rise in rice exports in the next couple of months with the arrival of new crop in to the market.

Achievement

Contrary, the rice procurement was slow, with the rice millers preferring exporters than to FCI, unmindful of their levy obligation. Under the AP rice procurement (levy) order of 1984 rice millers have to necessarily supply 75 per cent of the rice milled by them to the FCI towards levy. East Godavari district was given 8,41,109 MTs, as the rice procurement target, both of raw rice and boiled rice, for the current year ending September.

But the actual achievement was 6,88,340 MTs that comes to 82 per cent and hardly 50 days is left to fulfill the target. There are over 440 trading rice mills in the district but most of them failed to comply with the Levy stipulation.

Specifications

The reasons being shown by them, according to official sources, tough specifications imposed by FCI making them to divert the stock to exports. While the FCI is rejecting the stocks on grounds of not satisfying the stipulated standards of fair average quality, the same is being accepted for exports after polishing using the sortex machines. However, the civil supplies officials are optimistic of reaching nearer to the target with a little shortfall, in view of the steady supplies, though not to the expected levels, from the millers’ daily.

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