Central govt provides no financial assistance for paddy procurement, says forest min Akbar
Raipur: Forest minister Mohammad Akbar said that the Chhattisgarh Government considers paddy procurement a vital scheme which involves procuring paddy from registered farmers and making payments by securing loans from banks. Notably, no financial assistance or loans are provided by the Central Government for this purpose. The State Government systematically procures paddy from farmers and then sends it for custom milling. Subsequently, the rice obtained is stored in a central pool, and payments are made based on the fixed rates announced by the Central Government in exchange for the deposited rice. For the upcoming fiscal year 2023–24, the State Government estimates the procurement of approximately 125 lakh metric tonnes of paddy.
He was addressing the media persons today regarding the upcoming paddy procurement season.
Akbar further revealed that the state government has decided to raise the limit to procure paddy from 15 quintals per acre to 20 quintals per acre, a decision aimed at benefiting the farmers.
He emphasised the importance of the paddy procurement scheme in Chhattisgarh. He stated that the procurement of paddy is the most extensive scheme implemented by the State Government, requiring an annual loan of Rs 20 to 25 thousand crores. These loans are obtained from banks and institutions like NABARD through the Chhattisgarh State Cooperative Marketing Federation (Markfed).
The Central Government does not provide any assistance, grants, or loans for the paddy procurement process. Instead, the State Government guarantees the loans acquired from banks and NABARD. Chhattisgarh is the only state in the country where, since the government’s formation, farmers have been receiving the support price for their paddy along with additional input subsidies under the ‘Rajiv Gandhi Kisan NYAY Yojana’. As a result, farmers are receiving Rs. 2,500 per quintal for their paddy, providing them with significant financial support.
Farmers receive payments through Cooperative Societies
Akbar stated that the Chhattisgarh Government has increased the number of operational cooperative societies from 1333 to 2058 to facilitate paddy farmers. Payments for paddy sold through these societies are issued by the cooperative department of the Chhattisgarh Government. Farmers selling paddy can register through the ‘Chhattisgarh Unified Farmer Portal’, which streamlines the process and ensures efficient management of the procurement system.
State govt undertakes loan responsibility for paddy procurement
Akbar explained the process of paddy procurement undertaken by the State Government, which involves transportation, custom milling, and depositing the rice in both the Food Corporation of India (FCI) and the Civil Supplies Corporation. The Central Government only pays for the rice deposited in the Food Corporation of India (FCI) and the Civil Supplies Corporation. Notably, no financial assistance is received from the Central Government for the procurement of paddy. Furthermore, he clarified that the loans taken by the State Government from banks and other institutions for paddy procurement, including the principal and interest amounts, are managed and deposited by the State Government. In the fiscal year 2022-23, the State Government acquired a total loan of Rs 19,209 crore. This amount includes Rs 8,500 crore from the National Cooperative Development Corporation (NCDC), Rs 4,000 crore from NABARD, Rs 1,599 crore from Indian Bank, Rs 1,110 crore from Punjab National Bank, Rs 2,000 crore from Bank of India, and Rs 2,000 crore from Bank of Baroda. These loans play a crucial role in facilitating the paddy procurement process in the state.
