Rice

Marketing

Marketing of Rice

Agencies for paddy marketing

  • Food Corporation of India.
  • State Agricultural Marketing Federation.
  • State Co-operative Societies.
  • Wholesale dealers, Rice millers
  • Retail Merchants.

Classification of paddy varieties as per Government norms

  • Central Government of India has earlier classified the paddy varieties into 3 grades namely,
  • Common variety which give short bold & long bold rice.
  • Fine variety which gives raise to medium slender rice.
  • Super fine variety which gives raise to long slender & short slender rice.
  • Common variety à Rice grain measures less than 6mm length.
  • Ratio of length & thickness is <2.5.
  • Fine Variety à Rice grain < 6mm length, ratio of length & thickness is in b/w 2.5 to 3 or rice rain length 4.5 mm with ratio of length & thickness as 2.0 to 2.5.
  • Superfine à Length of rice grain is <6mm & ratio of length and thickness is <3.0.
  • The grading of rice based on percent of full grain with number of brokens.
  • Premium grade à 95% full grain.
  • 1st grade à 85% full grain.
  • 2nd grade à 75% full grain.
  • 3rd grade à 65% full grain.

Marketing Channel

  • Channel-Ià Producer à Middleman à Rice Mill à Wholesale à Retailer à consumer
  • Channel-IIà Producer à Commission agent à Rice miller à
  • Govt. Procurement à Fiar price shop à Consumer
  • Mill owners are required to surrender 33¯ % of the paddy hulled on their own account and dealers and traders 33¯ % in the farm of paddy or 23 kgs of rice for every quintal at prices fixed by the Government of India (GOI) under the Karnataka Rice Procurement (Levy) order of 1984.
  • Deputy Commissioners issue release certificates to dealers, traders, millers and transporters who produce grain voucher & issued by the FCI for the paddy procured levy, milled and delivered to the central pool.
  • Bonafide agriculturists and agricultural labourers are exempted from levy upto 4 quintals and one quintal of paddy respectively per month.
  • The target was to procure 2.5 lakh metric tonnes of levy rice at the levy procurement prices fixed by the Government of India in Kharif & rabi.
  • The target for each district has been fixed taking into consideration the estimated produce and the number of rice mills.
  • The Food Corporation of India (FCI) is the sole agent of the state govt. for the procurement of levy rice.
  • It is also the nodal agency for price support for coarse grains.
  • The Karnataka food and civil supplies Corporation and the Karnataka State Co-operative marketing Federation undertake support price operations as sub-agents of FCI for paddy and coarse grains.
  • The purchase of these commodities is limited to FAQ (Fair Average Quality) varieties when open market prices fall below the minimum support price fixed by Govt. of India.
  • Millers and dealers are required to deliver the levy rice in 50 kg jute bags confirming to ISI specifications.
  • Existing checkposts and other infrastructure at the state border are used by the Department of Food and Civic supplies to check whether the rice or paddy transported outside the state is levy free.

Index numbers of wholesale prices and percentage variation all – India & Karnataka

Commodity group
Monthly average All India
% Variation October over March 99
March 99
Dec 99
All India
* Karnataka
Rice 421.1, 461.8 9.67 6.30

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Karnataka