New Delhi
June 28, 2013
Last Updated at 18:08 IST
Source: http://www.business-standard.com/article/markets/gujarat-does-it-again-ranks-first-in-terms-of-least-distortion-for-paddy-113062800745_1.html
Gujarat,
a marginal contributor to India’s overall annual rice production, tops
the list of states having least distorted rice markets in the country,
according to the first ever ranking of states on the basis of degree of market distortion for rice done by the Commission for Agriculture Costs and Prices (CACP).
Interestingly, the top rice producing states in the country like
Chhattisgarh, Punjab, Haryana, Odisha, Andhra Pradesh, Uttar Pradesh
have the most distorted market for the same.
Chhattisgarh, which has emerged as one of the biggest producers of paddy
in India, is ranked the lowest among the 18 states in the country where
rice is mainly grown during the kharif season. In 2011-12, Chhattisgarh
produced almost 6 million tonnes of rice, out of the total annual
production of 104 million tonnes.
“Interestingly the eight states with most distorted markets with
respect to paddy and rice procured about 62 percent of total marketed
surplus of rice in 2011-12. Thus, the magnitude of distortion in the
rice and paddy markets is clearly evident,” CACP said in its report.
The ranking was part of its kharif price policy recommendations made by
the Commission for 2013-14. The cabinet Thursday accepted the
Commissions recommendations to increase MSP of paddy by Rs 60 per
quintal for 2013-14.
West Bengal, which is the country’s biggest producer of rice, was
placed in the middle and was ranked 9th in the overall list. Gujarat
produced around 2 million tonnes of paddy in 2011-12.
Explaining the rationale, the Commission said that degree of market
distortion for rice has been calculated on the basis of taxes/levies on
rice as percentage of MSP, bonus on paddy announced by the state
governments, rice procurement as percentage share in rice production,
stock limits (on paddy and rice), levy rice and market reforms
undertaken by the state government.
The Commission in its recommendations advised the state governments to
get their markets right and bring back the focus on establishing a
single barrier free market, with minimum controls.
“State governments need to facilitate setting up adequate
infrastructure such as storage facilities by the private sector, milling
capacities; they also need to be discouraged from embarking on a high
procurement mission, as it discourages private sector participation.
State should come only as a last resort where the markets fail, and not
take over the functioning of markets as a first step,” the Commission
said.
States having least distorted paddy markets in India | |
States | Rank |
Gujarat | 1 |
Assam | 2 |
Himachal Pradesh | 3 |
Bihar | 4 |
Kerala | 5 |
Tamil Nadu | 6 |
Karnataka | 7 |
Maharashtra | 8 |
West Bengal | 9 |
Jharkhand | 10 |
Uttarakhand | 11 |
Madhya Pradesh | 12 |
Uttar Pradesh | 13 |
Odisha | 14 |
Haryana | 15 |
Punjab | 16 |
Andhra Pradesh | 17 |
Chattisgarh | 18 |
Source: CACP |
Source: http://www.business-standard.com/article/markets/gujarat-does-it-again-ranks-first-in-terms-of-least-distortion-for-paddy-113062800745_1.html
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