Left Menu
Development News Edition

Centre refuses to procure entire paddy produce from Chhattisgarh due to higher MSP


Centre refuses to procure entire paddy produce from Chhattisgarh due to higher MSP

The Congress party's electoral promise to raise the procurement rate of paddy at Rs 2,500 per quintal in Chhattisgarh is set to put an additional burden on the state treasury. This is because the Centre has refused to procure the entire produce from the state citing violation of the prescribed norms as the state has set a higher procurement price. As per rough estimates, Chhattisgarh, which last week presented a Rs 91,542 crore budget for 2019-20, would have to shell out another Rs 11,600 crore for paddy procurement - but has budgeted only Rs 5,000 crore.

According to a Food Ministry official, the Chhattisgarh government has been informed that the Food Corp of India (FCI) would procure about 2.4 million tonnes of rice for the public distribution programmes and 2.4 million tonnes of boiled rice - both at Rs 1,750 per quintal - the Minimum Support Price (MSP) fixed by the Centre. Total paddy production the state is expected to touch 8 million tonnes this year against 7.1 million tonnes last year. The FCI would procure 4.8 million tonnes, which means the state government will have to bear the entire expense for purchasing the remaining 3.2 million tonnes.

In addition, for the 4.8 million tonnes, it will have to shell out the difference between the state announced rate and the central government's MSP, which comes to an additional Rs 750 per quintal. "We are procuring 2.4 million tonnes of paddy that will be used for the welfare schemes including the National Food Security Mission. Despite the violation of the norms, we have granted an exemption. We will also procure 2.4 million tonnes of boiled rice, all at the MSP of Rs 1,750 per quintal," said the official.

The Chhattisgarh government has allotted Rs 21,597 crore for the agriculture sector in the 2019-20 budget, earmarking Rs 5,000 for paddy procurement. It's unclear where the remaining Rs 6,600 crore will come from. Apart from the state's own production, a significant chunk of farmers from adjoining states of Odisha, Madhya Pradesh, Telangana and Maharashtra are likely to sell their paddy produce in Chhattisgarh because of the attractive price it offers.

Even if the state government takes care of the expenses, the central government is concerned over the increase in the paddy acreage and challenges from the World Trade Organisation (WTO) for violating multilateral trading rules due to farm subsidy. "We are trying to divert a part of cultivation to cereal grains as they are nutritious and require less water. The Chhattisgarh government's decision will not just encourage farmers to go for paddy cultivation but it may lead to farmers from the other states seeking higher rates as well," said a source.

(With inputs from agencies.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

Guneet Monga plans to remake 'Soorarai Pottru' in Hindi

Oscar-winning film producer Guneet Monga said she plans to make a Hindi version of her upcoming Tamil production Soorarai Pottru. Directed by Sudha Kongara and featuring South superstar Suriya, the film is based on the life of Air Deccan fo...

Blocks for commercial coal mining should be pre-cleared from environmental angle: Cos tell Govt

Companies including Tata Steel, JSW Steel and Adani Power among others have requested the government to ensure that the blocks proposed to be auctioned for commercial coal mining should have prior-environmental clearance so that issues like...

Earthquake of magnitude 5.7 strikes Turkey-Iran border region - EMSC

An earthquake of magnitude 5.7 struck the Turkey-Iran border region early on Sunday, the European Mediterranean Seismological Centre EMSC said.The quake had a depth of 5 kilometers 3.1 miles, according to EMSC....

Delhi PWD orders door-to-door survey of govt flats to find out illegal occupants

Cracking the whip on illegal occupants of government flats, the Delhi PWD has ordered a door-to-door survey of all the housing units and asked senior officials to submit a report by February 24. The Public Works Department of the Delhi gove...

Give Feedback