The Hindu Business Line : AP Govt urged to pay incentive for paddy

Visakhapatnam, Nov. 18 The Andhra Pradesh Government, which has worked to secure a price of Rs 1,000 per quintal of paddy on a par with wheat, has failed in its attempt and the Union Government has only agreed to pay an additional bonus of Rs 50 per quintal and therefore at least the State should come to the rescue of the farmer by paying an incentive, says Dr Y. Sivjai, a former member of the Rajya Sabha and president of the AP Tobacco Growers’ Association, Guntur.

He said that the response of the Union Government was very disappointing and now the fine varieties of paddy would be paid Rs 775 per quintal and the common varieties Rs 745.

“Therefore, I urge the State Government to announce a special incentive of Rs 75 more per tonne and procure paddy directly from the farmers through State agencies. This will inject the necessary buoyancy in the market,” he said.

The prevailing system of the millers procuring paddy from the farmers and providing the levy rice to the FCI was not at all beneficial to the farmer, but the miller was gaining heavily by selling the byproducts, he said.

“This system should be changed and the State Government should enter the market directly. If the State Government buys at least 15-20 lakh tonnes of paddy directly from the farmers, I think the millers will also increase the prices to the farmers. The cost to the State Government’s exchequer will not be more than Rs 110 crore,” he said.