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India's foodgrains stocks decline by 1.9%

Foodgrains stocks of the country have declined by 1.9 per cent to 597.83 lakh (59.8 million) tonnes in August compared to 609.19 lakh (60.9 million) tonnes in the same month last year.

Rice stocks declined by over 20 lakh (2 million) tonnes to 201.25 lakh (20.1 million) tonnes from 222.04 lakh (22.2 million) tonnes during the same period, according to the official data. There are indications that rice stocks can fall further by 80 lakh (8 million) tonnes to 120 lakh (12 million) tonnes by August 2003.

By October one this year when the kharif marketing year begins, the overall grain stocks will be lower at around 560 lakh (56 million) tonnes, according to the data.

"Fall in current kharif rice output is yet to be fully ascertained, procurement will begin only next month yet with improvement in offtake, both for domestic consumption and export has led to decline in rice stocks by 9.7 per cent as on August one to 201.25 lakh (20.1 million) tonnes," official sources said.

The macro-grain scenario of "large stocks", however, remains the same due to which India will continue to trade in the international market, they said.

However rice procurement this kharif is targeted at 160 lakh (16 million) tonnes against 204 lakh (20.4 million) tonnes last season, the lowest in four years. If the average offtake of rice from the central pool including exports continues to average at 20 lakh (2 million) tonnes every month then by August next year rice stocks may fall to 120 lakh (12 million) tonnes.

With decline in wheat procurement this season to 190 lakh (19 million) tonnes from 206 lakh (20.6 million) tonnes last year, there has been a sobering affect on the overall grain stocks in the central pool which on August one stood at 597.83 lakh (59.8 million) tonnes.

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