The state government is facing a procurement challenge for fine grain paddy this monsoon season. Despite opening procurement centers from the first week of October, no paddy has arrived at these facilities so far.
Farmers are showing little interest in bringing their fine grain paddy to government procurement centers. This is due to the attractive prices offered in the open market, where private traders are paying up to Rs. 3,900 per quintal.
Private traders are offering prices that exceed both the government's minimum support price and the announced bonus. Consequently, farmers are choosing to sell their paddy directly from their fields.
As of now, government procurement centers have not made any purchases. The demand for fine grain paddy remains high in the open market.
The state requires 24-26 lakh tonnes of fine rice annually for its Public Distribution System. To meet this need, approximately 36-38 lakh tonnes of paddy must be procured.
