Paddy procurement for federal food security system is likely to decline 6-8% in India as farmers are harvesting a lower yield after heavy rains in September had hit the harvest-ready crops in the northern states.
Farmers are harvesting a lower yield per acre in key Rice producing states of Punjab, Haryana and UP. The drop in yield has fueled the price of Paddy and likely to reduce government purchase of the cereal by 20-30% compared to the last season as crop maturity has been affected.
The overall decline in output of Paddy is likely to impact export of Non-Basmati Paddy from India.
The total output is likely to touch 160-165 lakh tonnes this season as rains seemed to have checked the possibility of record output, principal secretary of Punjab Food and Supplies, said.
The September rains had affected Paddy at the pollination stage and early-sown Basmati at the time of maturity. The state government had pegged the total output of Paddy at around 200 lakh tonnes this year, after the initial crop estimates indicated a bumper harvest.