Nodal agencies procure 1 cr quintal paddy on MSP

Gondia,  Government nodal agencies such as marketing federation (MF) and Tribal Development Corporation (TDC) have procured around 1 crore quintals of paddy on a MSP (minimum support price) of Rs 1,868 per quintal this season, from Vidarbha districts of Maharashtra.
This is for common grade in five Vidarbha districts of Gondia, Gadchiroli, Bhandara, Chandrapur and Nagpur, which lie under the major paddy cultivation belt.
Out of the procured paddy, the rice millers have lifted only about 3 lakh quintals of paddy for CMR (custom milling rice). And, looking to the low production of rice as per the norms, they have stopped the milling and have made demand for the upgradation of the conditions in view of the low production.
Rice Millers’ Association President Ashok C Agrawal said this season, the paddy crop was affected due to pest attack in the Central India that includes parts of Vidarbha, adjoining Madhya Pradesh and Chhattisgarh.
As a result, the paddy grains remain immature and because of which, the ratio of rice production came down as per normal.
“We are having production of about 62-63 per cent of rice per quintal whereas as per the norms, we have to deposit 67 per cent of rice behind per quintal. Similarly, the Chaki grain which should be only 3 per cent has raised to about 10 per cent,” he told.
Agrawal added that the ratio of rice broken, which is permissible up to 25 per cent, is also raised to between 45-50 per cent. All this resulting in losses for the rice millers and looking to non feasibility we have stopped lifting the paddy for CMR, he told.
Agrawal also said they have made correspondence with the Maharashtra Food Secretary Vilas Patil apprising him of the prevailing conditions.
He added that they have demanded the administration to have test milling themselves and take decision for the upgradation of the conditions as per the result of the test.
This season, the government is offering an MSP of Rs 1,868 per quintal for common grade. Besides, a bonus of Rs 700 per quintal had also been announced, making the effective price of Rs 2,568.
The cost of the procured 1 crore quintals of paddy would be around Rs 2,568 crore and if other charges like jute bags, loading and unloading are added, the cost will excel to around Rs 3,000 crore.
With no proper storage facility, about 70 per cent of the procured paddy is kept under open skies and the storage is covered with the tarpaulins, that could also led to the damages as season is taking change at times.
And, early decision is not taken by the government over the issue, which could result in bigger losses for them.
Agrawal said they have demanded Rs 200 per quintal upgradation, looking to the conditions and that means that the government has to bear about Rs 200 crore additional cost, whereas if delay is caused, the losses would be much bigger.
In the Gondia district alone, this season, nodal agencies have procured 29,47,719 quintals of paddy worth about Rs 550 crore from 1,12,708 farmers.
The government has made payments of Rs 407 crore towards the procurement and the remaining balance amount is also likely to be paid soon.
The procurement will continue till the end of this month. Though the farmers have demanded to extend the date; but as of now, no such decision has been taken. PTI