Farmers in the State are in a fix after the government set in motion the procurement of paddy.
Procurement by government agencies through paddy procurement centres (PPC) is viewed as an ideal opportunity for farmers to secure the assured minimum support price for their produce. But, farmers fear the money will not be directly paid to them, as it is likely to be credited to their accounts, and it will, in turn, be accounted for servicing their debts. Apprehensions on securing the MSP for their produce continue to haunt the farming community notwithstanding the government’s loan waiver scheme.
Meanwhile, the government said 10.6 lakh tonnes of paddy had been purchased through PPCs in eight districts till January 15. This is nearly 15 per cent of the estimated kharif (2014-15) yield of 75 lakh tonnes. Though the government is keen that farmers sell their produce at PPCs, there are several reasons for farmers not to go for them. YSRC Farmers’ Wing chairman M.V.S. Nagireddy said the agricultural credit system was never more disturbed than it was now. This is mainly because of the faulty loan waiver scheme. While tenant farmers could never afford the luxury of selling their produce at PPC, this time several regular farmers, who were forced to take loans from commission agents and private money-lenders, face the obligation of selling the grain to those who extended credit to them.
Another reason for farmers bypassing PCCs is the fear of paddy being either rejected or declared cheaper on the basis of quality. Moisture, colour and impurities are often cited as reasons for rejection, and farmers are often burdened with double the transport costs. The commission agents, however, accept the produce without much fuss, but, of course, at a lower price.
“The government had announced an MSP of Rs. 1,310 a quintal of paddy last year, but it was sold for Rs. 1,360. This year, the government announced an MSP of Rs. 1,360 a quintal, but farmers sold paddy for Rs. 970 to Rs. 1,000 a quintal for various reasons,” Mr. Nagireddy said. The reduction of levy quota from millers to 25 per cent by the Centre has also reduced the buoyancy in the open market.
