23rd June, 2003
Ministry of Consumer Affairs, Food & Public Distribution  


PADDY PROCUREMENT BY FCI IN ORISSA


The Government of India through the Food Corporation of India (FCI), for the first time has opened 20 procurement centres in the paddy growing areas of the State from the commencement of the procurement season on 1st November, 2002 itself. The FCI had specially deputed officers from outside the State to man the centres. In the past the FCI had purchased only levy rice from the millers. Due to drought conditions in the state this year the Kharif crop was poor and the grain was of poor quality and inspite of the best efforts of the FCI, paddy of the requisite quality was not available for purchase. The FCI has been monitoring the situation throughout the season and there have been no complaints from farmers with regard to the distress sale of paddy.

The High Court of Orissa in its judgement dated 25th April, 2002 had directed the State of Orissa, its Civil Supplies Department, the Union of India, the Food Corporation of India and its officials to procure paddy from the farmers in Bolangir district at the Minimum Support prices as fixed by the central government. The objective of the judgement was to ensure that there was no distress sale and that the millers should not be the sole procurers in the State.

The FCI took immediate steps to commence procurement operations in the State and established procurement centres in the State. The State Government, however, filed an SLP in the Supreme Court stating that they were not in a position to take up any procurement activity. The Government has been urging the State Government to fulfill its role in protecting the interest of farmers by taking up procurement operations under the Decentralised Procurement Scheme as has been done in other States. The State Government has not taken any action in the matter.

To ensure procurement of paddy in the current Rabi crop, on a request of the State Government the government has relaxed the specifications of paddy to mitigate the hardship of farmers in the State. Now the paddy can be procured containing damaged the discoloured grain upto 5% and immature, shrunken and shrivelled grain upto 5% against the previous limit of 3%. All the paddy purchase centres are fully geared to procure paddy from the farmers in the Rabi Season and so far 513 quintals have been procured.