Optimizing paddy procurement in Assam

Farmers have begun harvesting paddy in Assam but the remunerative price of surplus paddy they sell is still a distant dream. The Assam government allocating Rs 200 crore for paddy procurement has triggered hopes but distress selling by farmers continues as the government procurement process is yet to start. The sustainability of agricultural practices is critical to ensuring food security but is dependent on farmers getting remunerative prices for their produce. It is a paradox that despite being one of the top ten rice-producing states in India, farmers in Assam are left at the mercy of traders when it comes to determining the paddy price. Food Corporation of India (FCI) data show that in the current marketing season FCI has already procured 8.58 lakh metric tonnes of paddy that includes 4.86 lakh MT in Haryana, 3.66 lakh MT in Punjab and 0.01 lakh MT in Chandigarh speaks volumes about robust procurement system in these states. In Assam, the number of farmers benefited by FCI procurement declined from 26,537 in 2019-20 to 20,401 in 2020-21 Kharif Marketing Season (KMS) when the total number of farmers benefitted in the country increased from 1.24 crore to 1.31 crore. No farmer has been benefited in Assam from FCI procurement during Rabi Marketing Season (RMS) from 2016-17 till 2020-21, while 49.19 lakh farmers benefited in the country in 2021-22 RMS. Paddy procurement by FCI at MSP ensures that farmers do not have to resort to distress selling. The Central Government has fixed MSP for paddy procurement at Rs 1940 for each quintal of common variety and Rs 1960 for Grade A variety but farmers in several districts in Assam are found to have been selling at prices ranging Rs 500 to Rs 1000/1100 per quintal. The FCI has fixed the paddy procurement period in the state from December to May 2022 and the period for custom milling/delivery of rice is June 2022 and estimates procurement of 3.35 lakh MT for KMS 2021-22. The window for procurement in states like Punjab, Harayana, Uttar Pradesh, Bihar, West Bengal starts in October/November while for two major rice-growing states in the northeast – Assam and Tripura – it is opened in December. Wide publicity among the farmers in these two states about the period of procurement will motivate the farmers to store paddy for a month instead of rushing to sell it to traders and middlemen immediately after harvesting it. A major reason often cited by FCI for low paddy procurement is due to the high moisture content in paddy produced in the state. Awareness drives among farmers by the Agriculture Department, Assam State Agricultural Marketing Board (ASAMB) to dry the harvested paddy and estimate the moisture content can facilitate more paddy and rice procurement by FCI in the state. Maximum moisture content in paddy fixed by FCI in Schedule of Uniform specification for paddy is 17% and 14% for raw/parboiled/single parboiled rice. Increasing the number of paddy procurement centres in the state is crucial as farmers in villages far away from existing procurement centres cannot afford the high transportation cost and end selling its prices determined by traders who buy it from their doorstep or nearest market. The State government expediting the integration of Land Record Portal with State Procurement Portal has become an urgent necessity after the Department of Food and Public Distribution, of the Central Government has developed an application ecosystem that integrates procurement portals of all states having Multiple Threshold Parameters (MTP) to keep middlemen at bay. The MTPs include online registration of farmers/sharecroppers, their bank and Aadhar details, land details, integration of registered farmer data with State's land record portal, integration of digitised mandi/procurement centre operations, generation of buyer/seller forms, bill of sale proceeds etc. The allocation made by the State Government for paddy procurement is huge and if it can be fully utilized the farmers will be immensely benefited. Paddy procurement will put more cash in their hand circulation of which can strengthen the rural economy. As the announcement for paddy procurement in a big way and earmarking the allocation of Rs 200 crore in the state budget was made in July, the procurement agencies like ASAMB were expected to tone up the procurement system well in advance. Farmers resorting to distress selling of paddy in some parts point towards gaps in the system which needs to be rectified. As paddy procurement is a temporary measure, setting up permanent procurement centres well equipped with technology and well connected with good quality roads in all rice-growing pockets in the state needs to be prioritized. The state government supporting young entrepreneurs to set up more rice mills will not only increase the procurement of custom milled rice by FCI, but it will also generate rural employment.