Hyderabad: An agreement has been reached between the state government and the rice millers for the current Kharif 2024 marketing season regarding the custom milling of rice. However, the substantial increase in paddy production this Kharif season presents certain challenges for the procurement of paddy.
The rice millers have consented to provide a bank guarantee of 10% of the procurement value of their rice stock. Millers who have defaulted or been found to have committed irregularities in the past, but have since made payments along with fines, are required to provide a 20 percent bank guarantee. Those who have defaulted, or made payments, but have not paid the fine must furnish a 25 percent bank guarantee.
Paddy has been cultivated across 66.77 lakh acres in the state, with an estimated production exceeding 150 lakh tonnes for this Kharif season. Among this, fine grain varieties have been cultivated on 40.44 lakh acres, while coarse grain varieties occupy 26.33 lakh acres.
As of Monday, November 18, a total of 13.13 lakh tonnes of paddy worth Rs 3,045.76 crore has been procured at the Paddy Procurement Centres (PPCs) established by the government. Rs 1,560.70 crore has been disbursed into farmers’ accounts, according to Civil Supplies Commissioner D.S. Chauhan, who also informed the media that Rs 9.21 crore has been paid as a bonus to farmers producing any of the 32 varieties of fine grain paddy.
The state government has announced a bonus of Rs 500 per quintal for fine grain varieties such as Chintlu, Puja, Rama Thulasi, Samba Masuri, Telangana Sona, BPT, and Kunaram Sannalu. With a minimum support price (MSP) set at Rs 2,300 per quintal for fine grain varieties, farmers growing these types will receive Rs 2,800 per quintal. The state government has defined fine-grain rice as having a length measurement of 2.5 mm; any rice longer than this will be classified as a non-fine grain.
According to Srinivas, a leader from the Rice Millers Association in Miyalaguda, the state government plans to deliver 66 lakh tonnes of paddy to the Food Corporation of India (FCI), in addition to procuring fine grain rice for distribution to white ration card holders, Anganwadi centres, and other government institutions. In total, the state government aims to procure 90 lakh tonnes of paddy this Kharif season.
However, significant challenges have emerged in the procurement process. Farmers’ union leaders report delays in procuring and lifting paddy from PPCs.
Akula Papaiah, a leader from the All India Kisan Mazdoor Sabha in Nizamabad, noted that there is a considerable backlog of paddy at PPCs compared to the number of trucks dispatched to transport it to mills, causing procurement delays. He also highlighted inadequate storage facilities in godowns belonging to agricultural marketing committees, which are primarily used by traders for storing their stock. This situation has prevented farmers from utilising these facilities without incurring interest charges on stored paddy.
Papaiah emphasised the necessity for constructing ‘Kallalu,’ open storage areas where farmers can dry their produce. He mentioned that although there is a central government scheme for building these barns, it was not effectively implemented by the previous state government. Farmers in Nizamabad have reportedly been waiting nearly ten days at PPCs for their paddy to be procured and lifted.
There is also strong demand for paddy in the open market; private traders are actively purchasing paddy directly from farmers across the state. In Nizamabad, private traders are offering prices between Rs 2,300 and Rs 2,450 per quintal for paddy, while around Rs 2,350 is being paid to farmers in Wanaparthy.
Prices may vary depending on the location and logistics involved. Additionally, private players are procuring coarse grain varieties directly from farmers in the Siddipet district for export purposes.
