India aims to buy more rice from local farmers despite poor monsoon

NEW DELHI Mon Aug 4, 2014 8:32pm IST

A worker rests inside a rice mill on the outskirts of Agartala, Tripura August 1, 2014. REUTERS/Jayanta Dey

A worker rests inside a rice mill on the outskirts of Agartala, Tripura August 1, 2014.

Credit: Reuters/Jayanta Dey

Related Topics

NEW DELHI (Reuters) - India will buy 30 million tonnes of rice from local farmers in the 12 months starting in October, nearly 13 percent more than the previous year, a government statement said.

While August rains will still largely determine the size of summer-sown crops such as rice, the higher purchase target indicates the government is expecting robust production despite a patchy start to the monsoon season.

India, the world's second-biggest rice producer, buys the grain from local farmers at a fixed price to run its mammoth food welfare programme. Guaranteed prices encourage farmers to produce more.

The first month of the June-September season was the driest in five years, raising fears of the first drought since 2009 when the monsoon was the weakest in nearly four decades.

But rains have picked up since then, easing concerns of a severe drought in a country where half of the farmland lacks irrigation systems.

(Reporting by Mayank Bhardwaj; editing by David Clarke)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Asian Markets

Asian Markets

Asian shares shine on U.S. tech results, ECB hopes  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Ebola Outbreak

Ebola Outbreak

India to step up travel surveillance to stop any Ebola outbreak  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage