Boro procurement target, price yet to be fixed

The government is still in a dilemma over fixation of both prices and procurement target of 'boro', mainly due to prevailing volatility in rice market, although the farmers have started harvesting the country's largest cereal crop. "We are still watching various critical aspects before launching the official boro purchase drive," a top official, close to the government procurement process, told the FE. The official also said factors like current inflationary pressure, production cost at farmer level, and the government's stock position are taken into consideration for fixation of both price and procurement target of boro rice and paddy. "The authorities concerned are working to rationalise both the price and collection target of boro crops in line with the present market trend and the government's stock," said the official. "If prices of rice to be procured are fixed below the open market prices, rice-millers won't supply it to the government. On the contrary, fixation of rice purchase price at higher than the market prices would fuel rice prices in the domestic market." The procurement prices of rice and paddy are to be fixed in such a manner that local farmers can achieve at least 20 per cent gain on their crop production cost, officials said. Responding to a query about whether the launching of boro purchase drive is being delayed or not, an official said although harvest of boro has started in some areas, especially in the 'haor' areas, the mainstream harvest is yet to begin in full swing. "The government is observing a wait and see policy on announcement of boro procurement drive. The arrival of newly harvested boro in the market will give us an idea about the price trend of the crop," he said.