India: Govt. Considering Intervention Price Hike

Indian government has advanced its domestic rice-purchase program by a few days as it is considering an increase in the intervention price paid to farmers to boost procurement.

The government's rice procurement reached an all-time high of 27.6 million MT in 2005-06 but is estimated to have fallen to 25.2 million MT in 2006-07. It plans to procure 27 million MT in 2007-08.

In India, the government is the single largest buyer of wheat and rice from farmers by volume and uses its stocks for subsidized sales to consumers.