Commodity Online
NEW DELHI: India's procurement of rice and wheat has exceeded the buffer norms and would be in a fairly comfortable position with respect to availability of food grains by 2009. Both rice and wheat procurement as on Septmember 24 is above the buffer norms.

The rice procurement in Kharif Marketing Season (KMS) 2007-08, as on 24.9.2008 was 279.05 lakh tonnes as against the overall procurement of 251.07 lakh tonnes in KMS 2006-2007, representing an increase of 11.14% over the previous year.

Government has estimated the stock of wheat as on 1-4-2009 will be 60.04 lakh tonnes compared to the buffer norms of 40.00 lakh tonnes. Similarly it is estimated that the rice stock will be 64.52 lakh tonnes as on 1-10-2008, against the buffer norm of 52.00 lakh tonnes.

Non-basmati Rice export banned w.e.f. 1.4.08, along-with fixation of Minimum Export Price (MEP) at US$ 1200/tonne and export duty of Rs.8,000/Tonne for basmati rice (w.e.f. 10.5.08), increased availability of rice, moderating domestic rice price spike. Thus, as against 2.75 Million Tonnes and 0.49 Million Tonnes of Non-Basmati and basmati rices, respectively, exported in 2007-08 (April-16th Sept., 2007), only 0.59 Million Tonnes and 0.47 Million Tonnes were exported in the corresponding period in 2008-09.

Recently, however, PUSA 1121 non-basmati rice of 2008 Kharif crop has been allowed for exports w.e.f. 16.9.2008 to ensure remunerative prices to the farmers, subject to observance of non-tariff conditionalites related to prior shipment, APEDA registration, FOB fixation @ US$1200/Tonne and port-of-shipment stipulation through 6 ports only.

Availability of sugar in festival months
Government has released 12 lakh tonnes of non-levy sugar quota for the month of September 2008. In addition, it is expected` that 4-5 lakh tonnes of non-levy sugar would be sold by sugar factories out of the dismantled first buffer stock of 20 lakh tonnes as well as at least 4.5 lakh tonnes of non-levy sugar from dismantled second buffer stock of 30 lakh tonnes.

Thus, the total availability of non-levy sugar in the month of September 2008 is expected to be about 20-21 lakh tonnes, which would be sufficient to meet the demand for sugar in the ensuing festival season. The Government has already released 2.08 lakh tonnes of levy sugar for distribution in the Public Distribution System for the month of September 2008. The Government has also made advance allocation of 2.27 lakh tonnes of levy sugar for the month of October 2008. The above releases include festival quota of 57000 MTs.

The Government has also decided that any unsold/undespatched stocks out of dismantled first and second buffer stock and unsold/undespatched normal monthly quota which are required to be sold/dispatched by 30th September, 2008 would be converted into levy sugar, besides invoking penal action under the Essential Commodities Act, 1955. In this regard, an order dated 8th September 2008 has also been issued.

In view of the above measures taken by the Central Government, ex-mill prices have declined by Rs.10 to Rs.115 per quintal over the week ending 5th September 2008. During the week under review, ex-mill prices have declined by Rs.5 to Rs.80 per quintal in Maharashtra, Andhra Pradesh, Tamil Nadu & Karnataka over the week ending 12th September 2008.

Edible oil stock augmentation for PDS Distribution: Under the scheme for distribution of subsidized edible oils, out of 10 lakh tonnes of subsidised edible oils to be distributed during 2008-2009 through State Governments, so far, orders have been placed for 3.12 lakh tonnes of edible oils.

Of this, 2.28 lakh tonnes of edible oil has been shipped. Till 22.09.2008, 2.27 lakh tonnes of edible oil has already landed in the country and about 1.15 lakh tonnes have so far been distributed to various States by Central PSUs.

Distribution of subsidized imported edible oils have already started in Andhra Pradesh, Chhatisgarh, Himachal Pradesh, Maharashtra, Orissa, Tamil Nadu, West Bengal, Sikkim and Nagaland.

Distribution of subsidized imported edible oils is likely to commence shortly in Delhi, Rajasthan, Karnatka, Uttar Pradesh & Pondicherry.

Edible oil has been contracted by PSUs for distribution upto November/December, 2008. Decrease in wholesale prices of edible oils: Due to various measures taken by the Government, good kharif crop of oilseeds expected and fall in international prices of edible oils, the wholesale prices of soyabean oil, mustard oil and RBD Palmolein have declined by 7.78%, 4.39% and 12.55% respectively since last month (from 22.08.2008 to 22.09.2008).

Decrease in the international prices of edible oils: The international prices of major edible oils, namely, crude palm oil and soyabean oil have declined by 19.28% and 14.85% respectively since last one month (from 22.08.2008 to 22.09.2008).