Govt plans rice reserve sale in local markets

RELATED NEWS Food price index up 14.55% YoY as on Nov 7 India may import rice from Thailand, Vietnam

India, the world's second biggest rice grower, plans to sell the grain in local markets from reserves to douse fears of shortage caused by the worst monsoon in three decades, Farm Minister Sharad Pawar said on Saturday.

The minister ruled out any plans to import rice from Thailand and Vietnam amid positive response to the government sponsored procurement programme in northern producing states.

India's worst monsoon in 37 years is expected to reduced this year's output of summer sown rice by about 15 million tonnes.

"We are not very eager to import rice as procurement scenario has improved recently," Pawar told reporters.

He said the government run rice purchase programme was getting positive response from growers in the main producing states like Punjab, Haryana and Uttar Pradesh.

Fearing the supply shortfall, India floated import tenders last month via three state owned companies to buy 30,000 tonnes of rice, but did not finally buy banking on healthy grain stocks.

"We have sufficient grain stocks, much higher than the buffer stocks," the minister said.

On Oct. 1, rice stocks at government warehouses were 84 percent higher year-on-year at 14.5 million tonnes, while wheat stocks were 23 percent more at 27 million tonnes.

Buffer stock for rice stands at 5.2 million tonnes, while the mandatory stock for wheat stands at 11 million tonnes.

Rice purchases by Indian grain procurement agencies since the start of new marketing year in October were 10% higher at 11.2 million tonnes.

The minister also said a contentious clause in a federal government order on sugarcane pricing was dropped as demanded by farmers' lobby.

On Thursday, thousands of Indian farmers protested against low state-set sugarcane price and forced adjournment of the first day of parliament.