NEW DELHI: The Centre on Wednesday said it may have to import rice -- the first time in 20 years -- to make up the shortfall in kharif crop even though it has surplus stock in godowns. Finance minister Pranab Mukherjee made this statement amid reports of the Opposition planning to put the government on the mat over rising food prices during Parliament's winter session beginning on Thursday.
"We have started the rice season, which began in October, with surplus stocks. Even for wheat, the government has surplus stocks. Since there is a projection that there would be some shortfall in the kharif crop, to make it up we may have to make some imports, but exactly what quantum and at what point of time we will decide later," Mukherjee said.
Mukherjee also heads the ministrial panel set up to monitor foodgrain prices. The panel is expected to take stock of the situation on Friday. Rising prices of foodgrain have been causing concern among the ruling coalition partners, with cost of items such as potato rising 100% in the last one year or so. Prices of pulses too have risen to nearly Rs 100-mark for some varieties.
According to government estimates, kharif rice output is likely to fall nearly 18% to 69.45 million tonnes due to poor monsoon, leading to a shortfall of about 15 million tonnes in 2009-10. The southwest monsoon this year was 23% below normal, the worst in 37 years.
On Tuesday, commerce minister Anand Sharma, who too is a member of the ministerial panel, had said the government was in talks with top rice-exporting countries such as Thailand for buying the staple grain without involving private traders. State-run trading houses -- MMTC, STC and PEC -- are awaiting the government's direction on the bids they have received against global tenders for import of 30,000 tonnes of rice. Last month, the three state-run trading firms received 18 bids ranging from $373 to $599 per tonne.
But many question public announcements of the government's intent to import such huge quantities since suppliers jack up prices to much higher than the domestic rates. According to the US Department of Agriculture (USDA), India, the second largest rice producer in the world, may import as much as 200,000 tonnes of rice if there is greater price parity to meet domestic demand.
Source : TOI