Bihar, Eastern UP farmers selling rice below MSP
Despite a significant increase in support prices and bumper production of rice, farmers in eastern states are forced to sell the grain at much lower prices due to the absence of suitable state intervention mechanism.
By Rituraj Tiwari, ET Bureau |
NEW DELHI: Despite a significant increase in support prices and bumper production of rice, farmers in eastern states are forced to sell the grain at much lower prices due to the absence of suitable state intervention mechanism.
Data show more than a 50% decline in rice procurement by Food Corporation of India (FCI) in Bihar and eastern Uttar Pradesh, the major rice producing states. Procurement, however, has improved in West Bengal and Odisha after a central team visited these states and examined the process.
"There is an absence of central buying agencies in Bihar and Uttar Pradesh leading to distress sales. Farmers are selling paddy for Rs 800-950 a quintal as against the minimum support price of Rs 1,250 a quintal. This is a serious issue," said an agriculture department official.
According to latest procurement figures, government agencies have bought 24,433 tonne of rice this year as against 52,564 tonne last year in Bihar. In Uttar Pradesh, procurement is abysmally low at 7.06 lakh tonne this year as against 15.8 lakh tonne last year.
"We are looking into the matter. There have been instances when the quality of rice was not up to the mark. We will expedite procurement in these two states. In other states, procurement is quite smooth," said a food ministry official.
The government has procured 18.6 million tonne of rice, which is up by 6% over last year. Major contribution is coming from Punjab (8.5 mt), Chhattisgarh (2.77 mt), Haryana (2.58 mt) and Andhra Pradesh (1.88 mt).
"Rice from eastern Uttar Pradesh and Bihar is being diverted to Chhattisgarh where the state government is buying in huge quantity for its food security programme. That could be the reason for low procurement in Bihar and Uttar Pradesh," another food ministry official said.
The government has set a target of 40 million tonnes (mt) rice procurement for the 2012-13 kharif season, which is higher by 14% from the previous year's 35 mt. This target is against the government's estimate of lower foodgrain production for 2012-13.
Data show more than a 50% decline in rice procurement by Food Corporation of India (FCI) in Bihar and eastern Uttar Pradesh, the major rice producing states. Procurement, however, has improved in West Bengal and Odisha after a central team visited these states and examined the process.
"There is an absence of central buying agencies in Bihar and Uttar Pradesh leading to distress sales. Farmers are selling paddy for Rs 800-950 a quintal as against the minimum support price of Rs 1,250 a quintal. This is a serious issue," said an agriculture department official.
According to latest procurement figures, government agencies have bought 24,433 tonne of rice this year as against 52,564 tonne last year in Bihar. In Uttar Pradesh, procurement is abysmally low at 7.06 lakh tonne this year as against 15.8 lakh tonne last year.
"We are looking into the matter. There have been instances when the quality of rice was not up to the mark. We will expedite procurement in these two states. In other states, procurement is quite smooth," said a food ministry official.
The government has procured 18.6 million tonne of rice, which is up by 6% over last year. Major contribution is coming from Punjab (8.5 mt), Chhattisgarh (2.77 mt), Haryana (2.58 mt) and Andhra Pradesh (1.88 mt).
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"Rice from eastern Uttar Pradesh and Bihar is being diverted to Chhattisgarh where the state government is buying in huge quantity for its food security programme. That could be the reason for low procurement in Bihar and Uttar Pradesh," another food ministry official said.
The government has set a target of 40 million tonnes (mt) rice procurement for the 2012-13 kharif season, which is higher by 14% from the previous year's 35 mt. This target is against the government's estimate of lower foodgrain production for 2012-13.
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