Production, Procurement and Offtake of Cereals in India: An Analysis of Trends

Abstract

Drawing on data on food production, procurement and PDS offtake compiled from RBI Handbook of Statistics on Indian Economy, the present study finds that in India, the production of rice and wheat has shown a persistent upward trend over the years starting from 1964-65. But the growth rate of total cereal production has witnessed both ups and downs during the period from 1964-65 to 2021-22. The ratio of procurement of rice and wheat by the PDS to the total production has been increasing in India, showing increasing commitment on the part of the Government to meet food security objectives. In recent times, this ratio has peaked at 0.42 per cent for rice and 0.40 for wheat. Nevertheless, the trend in the level of procurement of both rice and wheat exceeding offtake from the PDS may impose extra cost burden on the PDS system, making it non-viable in the long run.