UP likely to miss paddy procurement target, seeks to match last yr's level

Paddy procurement in Uttar Pradesh has slowed down with state agencies purchasing about 2.2 million tonnes (MT) of the cash crop till December 31 compared to 2.7 MT procured in the corresponding period last year.

The procurement is almost 20% lower this year and makes the government's target of acquiring 5 MT paddy in the current kharif marketing season difficult.

With 90 days of the total five months of paddy procurement in the October-February period gone, agencies will be hard pressed to achieve the remaining procurement of 2.8 MT in another 60 days.

Earlier, chief minister Yogi Adityanath had expressed displeasure over the slow pace of procurement and asked food department officials to expedite the process

In 2016-17 and 2017-18, the state had posted paddy procurement figures of 3.5 MT and 4.3 MT respectively against the target of 5 MT. Now, the government hopes it can improve on last year’s procurement target of 4.3 MT if it cannot meet not the entire 5 MT mark.

So far, state paddy farmers have been paid nearly Rs 40 billion against procurement and the total payments are expected to touch Rs 80 billion by the end of season.

A senior food and civil supplies department official said procurement had slowed down due to amended norms, but he was confident the process would gain pace in the coming weeks to achieve last year’s level.

“We have relaxed the norm of online verification for paddy procurement of up to 10 tonnes, which has speeded up purchase,” he informed. The state cabinet had allowed 3% subsidy on the purchase of hybrid paddy to further ease procurement at the centres.

Paddy procurement started from October 1 in western UP and some central UP districts. It will continue until the end of January 2019. The process in eastern UP and the remaining central UP districts started from November 1. This will continue until the end of February 2019.

This year, the government had increased minimum support price (MSP) of paddy by Rs 180 to Rs 200 per quintal (100 kg). While the price was revised from Rs 1,550 per quintal to Rs 1,750 per quintal for the common variety, the corresponding figure for Grade-A paddy was upped from Rs 1,590 per quintal to Rs 1,770 per quintal.

The state had also announced a bonus of Rs 20 per quintal over the MSP, up from the Rs 15 per quintal bonus last year. UP paddy acreage is estimated at 6 million hectares (MH). The state is one of the topmost food grains producers, including paddy, wheat, maize, apart from millets and coarse grains.