Editorial

Boosting paddy procurement in Assam

Assam scripted history when it procured record quantity of over 5.65 lakh MT of paddy during 2021-22 and this has boosted the confidence of the state government to set procurement target again at 10 Lakh MT (LMT) for 2022-23.

Sentinel Digital Desk

Assam scripted history when it procured record quantity of over 5.65 lakh MT of paddy during 2021-22 and this has boosted the confidence of the state government to set procurement target again at 10 Lakh MT (LMT) for 2022-23. Achievement of target will benefit more farmers and will help the state government set ambitious procurement targets matching its paddy production. Scaling up awareness drive among farmers will prevent distress selling and they will be motivated to hold back their stocks till official paddy procurement process starts. Assurance of procurement reaching the farmers well ahead of harvesting can help them negotiate higher prices with local rice traders and prevent selling of paddy much below the Minimum Support Price (MSP). Across the country, 759 LMT MT paddy (510 LMT in terms of rice) were procured in 2021-21. Assam being one of the ten rice producing states, procurement figures are a reminder that farmers in the state can benefit from paddy procurement at MSP if procurement is increased to the optimum level. The central government has increased the MSP for paddy to Rs 2040 a quintal for 2022-23 from Rs 1940 in 2021-22. Following introduction of mechanized threshing at paddy fields many farmers in the state can be seen availing the option of selling their paddies to traders on the spot as transporting paddy bags filled with threshed paddy back home to granaries involves a cost cutting down which help them save some money. In the process, the price negotiation takes a backseat and paddy procurement not coinciding with harvesting periods in most areas. This problem can be overcome by motivating farmers to take home their produce and government activating the paddy procurement system well ahead of the harvesting season. In traditional practice, which is still prevalent in some areas, farmers bring home harvested paddy for threshing and stocking in their granaries which involves hard manual labour and time consuming. Those having surplus paddy at home either sell it to traders or take milled rice to local markets for selling to traders or retail buyers. Besides, distribution of rice free of cost under the Prime Minister's Garib Kalyan Anna Yojana also led to erosion of motivation for farmers to stock paddies which unscrupulous traders exploit to purchase paddy from them at much less price than MSP. Early harvesters are often seen selling their produce on the spot instead of waiting for paddy procurement process to start. The procurement centres being located in places far away from villages is another key factor for procurement at MSP much less than potential. The primary objective of the government procurement is to absorb the marketable surplus of paddy and delivering it to the central pool through Food Corporation of India (FCI) for distribution amongst the public through various welfare schemes through public distribution system. Assam government offering 30% subsidy to set up rice mills and 1000 mini-trucks at subsidized rate have created opportunities for growth of rural entrepreneurs in agriculture sector but road connectivity and access to markets are crucial factors. The record quantity of paddy procurement in 2021-22 Kharif Market Season benefitted 43,000 farmers in the state while the achievement was about 56.35% of target set. The state having 27.50 lakh farm families with more than 85% of them belonging to small and marginal categories, paddy procurement covering maximum number of farm families can be a game changer for state economy. Drawing parallel with Haryana which produces less paddy than Assam but MSP benefitting 3.10 lakh farmers in Haryana compared to 43,000 in Assam presents a paradoxical situation which can be changed only by strengthening procurement system in the state. The central procurement agencies including the FCI scaling up procurement in the state is a critical factor that will determine if the target of 10 lakh MT would be achieved in 2022-23. The state government improving monitoring mechanism and periodic review at more frequent interval will make a difference. The central government instructing its agencies to increase procurement will support the state government's initiative to bolster paddy procurement in the state which is also crucial for achieving doubling farmers' income. The central government estimates that with the inclusion of Rabi paddy, it is expected that around 900 LMT paddy is going to be procured during the entire KMS 2022-23. The central government setting ambitious targets for procurement in Assam can boost procurement by its agencies. The state government taking initiatives for addressing post- harvest management issues raised by central agencies, including the FCI, is also equally important. While administrative deficiencies can be addressed by reviewing the procurement system and seeking suggestions of domain experts, building awareness among farmers about announcement of MSP support is key to motivating them to prevent distress selling and selling paddy at remunerative price. Farmers getting remunerative price is critical to sustainability of paddy cultivation.