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Paddy procurement in West Bengal, which has rather been laggard so far this season, might witness a further slowdown as prices in the open market are almost at par with the minimum support price (MSP) offered by the State government under its procurement programme. This is encouraging farmers to sell their produce in the open market.
Their hopes have brightened with paddy production being lower in Uttar Pradesh and Bihar.
The State government has reportedly procured nearly 26 lakh tonnes (lt) of paddy so far this season, which translates into roughly 47 per cent of the targeted procurement of 55 lt. This is considered to be tardy given that harvesting of kharif paddy started in mid-November and procurement typically gathers steam during the harvesting period.
Sounding confident
West Bengal government had achieved close to 96 per cent of its targeted procurement of 52 lt last crop year at around 50 lt.
However, the State government is confident of meeting its procurement target this year. “The procurement is happening at full pace and we are confident of achieving the target,” Sobhandeb Chattopadhyay, West Bengal Agriculture Minister told businessline on the sidelines of a recent event.
The State is likely to rope in farmer producer organisations (FPOs) in some of the key rice-growing districts to step up procurement. The State produces close to 240 lt of paddy across the three seasons including kharif, boro and rabi.
According to industry sources, open market prices for paddy in West Bengal are ruling at around ₹1,950-60 a quintal currently and the Government procurement price is close to ₹2,060. The lower crop in Bihar and Uttar Pradesh has created a short supply in the system leading to anticipation of better prices moving forward, sources said.
“The state government is estimated to have procured close to 30 lt of paddy so far against the target of 55 lt this year. There is still time for procurement but currently, the open market price is almost close to the government procurement prices. This may slow down government procurement to some extent as farmers may prefer selling in the open market,” Sushil Kumar Choudhury, President, Bengal Rice Mills Association said.
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