\n\u201cPrices of rice may shoot up to reach a boiling point in the coming months as the stocks of the key staple cereal are depleting fast, owing to deficient rains and fall in output,\u201d Associated Chambers of Commerce and Industry of India (Assocham) said in a statement here.
\n\u201cAfter pulses, onion and some edible oils like mustard oil, rice may cause pain-in-stomach of the consumers if timely adequate safeguards are not taken,\u201d Assocham\u2019s latest study said.
\nThe industry chamber said though the government estimates kharif rice production at 90.61 million tonnes (MT), the target is unlikely to be achieved owing to severe deficit rains in Punjab, Haryana, Uttar Pradesh, Bihar, Maharashtra and Karnataka \u201cand the best that could be achieved is 89 MT\u201d. \u201cThe actual production may be around 103 MT during 2015-16. On the stock front, rice stocks have been steadily declining in the past three years,\u201d the study reported.
\n\u201cAs against the stocks of 24.59 MT in 2012, only 13.89 MT (plus unlimited paddy 3.61 MT) are in stock as of today,\u201d it added.
\nThe study titled \u201cImpact of weak\/deficient monsoon on agricultural production and prices\u201d said: \u201cIncreasing export outgo on account of PDS (Public Distribution System) and other welfare schemes will continue to weigh on availability in the open market\u201d.
\n\u201cUnless government is able to handle the situation prudently, depleting stocks will soon reflect on the open market prices.\u201d
\nIt said the deficient monsoon this year is likely to slow down the economy considerably and accentuate inflationary pressure coupled with shortages of essential food items across the country.
\n\u201cA recurring monsoon failure might push the country into a tight corner in respect of rice, sugar, etc.,\u201d it said.
\nAssocham suggested that Direct Seeded Rice (DSR) should be encouraged to conserve water.
\n\u201cPresently, less than 10 percent of paddy production is under DSR due to limitations in the availability of suitable equipment for DSR in clay soils. Urgent attention is needed in this regard to expand DSR acreage on war footing,\u201d the chamber said.
\n\u201cGiven the drop in kharif 2015 foodgrain production at 252.68 MT for 2014-15, against a record 265 MT for 2013-14, it is highly doubtful if India could reach even 250 MT for 2015-16, which is ominous,\u201d it added.<\/p>\n","protected":false},"excerpt":{"rendered":"