India: FCI Short Of Rice Procurement Target

India's Food Corporation of India (FCI) is unlikely to meet its rice procurement target in the ongoing kharif marketing season (October-September) due to a default in levy rice obligations by millers in northern state of Punjab.

The millers in the major-rice producing states have an obligation to sell a certain percentage of their produce to the union government as levy at a price decided by the government. This levy obligation of Punjab millers has risen from 75% to 90% for current season and the millers in Punjab who owe nearly 500,000 tons of rice have been defaulting to take advantage of the higher open market prices, FCI official said.