The Hindu : Tamil Nadu / Chennai News : State allowed to procure paddy for two more months

Online edition of India's National Newspaper
Wednesday, Aug 02, 2006

Tamil Nadu

Tamil Nadu - Chennai

State allowed to procure paddy for two more months

S.Vydhianathan

Direct purchase centres get paddy even after May

CHENNAI: The Centre has permitted Tamil Nadu to procure paddy for two more months under the decentralised system in view of the continued arrival at direct purchase centres in the State.

The Food Corporation of India usually stops its kharif procurement on July 31 every year. In Tamil Nadu, kharif (samba) procurement stops even earlier — on May 31. But this year, direct purchase centres in the Cauvery delta districts continue to get paddy even after May.

Fall in price

On an average, 2,000 tonnes arrive a day with Thanjavur district getting 1,000 tonnes. The average daily arrival in Tiruvarur is of the order of 600 tonnes and about 400 tonnes in Nagapattinam district.

So far, the corporation has procured 12.77 lakh tonnes as against its target of 12 lakh tonnes.

One reason for the continuous flow at 347 direct purchase centres even after May, sources say, is the fall in the open market price.

After the introduction of the Rs. 2 a kg rice scheme, the open market price of rice has come down drastically. Private traders are reluctant to purchase paddy from farmers.

The only alternative for the farmers to get a reasonable price is to sell to the Civil Supply Corporation, which pays Rs. 600 a quintal for fine variety and Rs. 580 for common variety.

Moreover, big and medium farmers who were holding their stock hoping for a better price have started selling to the corporation, the sources say.

Rice stock position

Referring to the rice stock position, the sources say that out of 12.25 lakh tonnes of paddy procured in the current season, 10 lakh tonnes have already been converted into rice. The rest will be hulled before September.

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