Odisha's Paddy Procurement Crisis: Broken Promises, Broken Farmers

A pall of despair and gloom hangs over Odisha's paddy markets. Farmers across the state are facing immense problems due to systemic logistic issues related to procurement. 

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Take the case of Kailash Pradhan, a farmer from Buduli in Ganjam district's Bhanjanagar block, is the best example as to what’s happening in the Paddy market aka mandi. Last year, he sold 70 quintals of paddy at market yards. This year, he has managed to sell only 25 quintals through official channels. Forced to sell remaining stock to middlemen, he received a mere ₹20 per kilo, significantly much below what government fixed prices. Kailash describes current market conditions as unbearable and he feels he is been isolated due to government slack attitude. His experience is not the only farmer thousands of farmers like him across Odisha are facing similar situation. They are unable to sell their produce through official channels and are forced to accept drastically lower prices from private traders.

Due to unseasonal rains, farmers expected leniency in the fair average Quality standards, as promised by government assurances. However, local administrations and millers disregarded these assurances, prioritizing millers' interests over farmers. This strict enforcement of FAQ criteria has created significant hurdles for farmers at market yards. Many farmers are frustrated and are forced or compelled to sell their paddy at a very low prices. This market process and economics has affected a major chunk of farmers across Odisha, from coastal and southern regions to western and northern districts.

Government had earlier announced a Minimum Support Price (MSP) of ₹3100 for paddy with a caveat – that is on quality (Fair Average Quality – FAQ). This announcement initially brought joy to the farming fraternity. However, this happiness short-lived as farmers encountered the harsh realities of the procurement process. Many farmers are forced to spend days at market yards, guarding their paddy stocks. Others, facing urgent financial needs, resort to selling through agents, often at a very low rates. Though government and administration are aware of these problems, yet they are having an ostrich approach. At the current situation farmers are helpless across Odisha. 

This situation exposes contrasting policy between government announcements and ground realities. While MSP were increased and announced, but when it came to implementation it was zero and farmers are in lurch. The procurement has exposed, the disconnect between policy and execution, with the farmers bearing the brunt.