According to the reserve prices, the grade A variety in new gunny bag was fixed at ₹2,100/quintal and in old gunny bag at ₹2,050/quintal
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NAGARA GOPAL
The Chhattisgarh government may have to bear a loss of ₹3,000-3,600 crore to sell an estimated over 30 lakh tonnes (lt) of surplus paddy after buyers quoted lower rates because of a demand slump. This has forced the State agency to fix the reserve price between ₹1,900 and ₹2,100 per quintal for the four categories of paddy marked as per quality, sources said.
In the first phase of the auction, as much 4 lt are likely to be lifted after the State government approved the reserved prices, sources said. Since the quantity sold is very less, the State government has decided to re-tender the remaining unsold quantity in the next phase, the sources said.
The Chhattisgarh State Cooperative Marketing Federation (MARKFED), which had purchased the paddy on behalf of the government, decided to sell the surplus of about 33 lt paddy in the open market after the Centre agreed to take only 104.48 lt of paddy (70 lt in terms of rice) for the Central Pool. This was since the State was buying at a higher than MSP rate. In 2023-24, the Centre purchased nearly 124 lt of paddy (83 lt in terms of rice) from Chhattisgarh.
Experts’ caution
According to the reserve prices, the grade A variety in new gunny bag was fixed at ₹2,100/quintal and in old gunny bag at ₹2,050/quintal. The common variety (mostly Swarna variety) has been fixed at ₹1,950/quintal in new gunny bag and ₹1,900/quintal in old bag. The paddy MSP, fixed by the Centre was ₹2,320/quintal for Grade A and ₹2,300/quintal for common variety during 2024-25.
Experts are cautioning against bonuses being declared by some States over and above the MSP, as it is distorting the open market prices and availability. However, the Centre is unable to control rising prices of rice in the open market as many farmers are growing the varieties which have a higher yield for the sole purpose of selling them to the government. This has led to lower availability of specialty rice varieties, which more consumers are buying now.
In the 2024-25, Chhattisgarh’s rice production has been estimated at 127 lt of paddy (85.35 lt in terms of rice)against nearly 145 lt of paddy (97.03 lt in terms of rice) in 2023-24, according to Union Agriculture Ministry data.
100% NFSA offtake
Out of 2.55 crore population in Chhattisgarh, as many as 2 crore people (about 80 per cent) are covered under NFSA and are entitled to receive free foodgrains at 5 kg per person per month. The Centre allocates about 14 lt of rice per year (no wheat is allocated) to the State and the offtake is almost 100 per cent.
Farmers in the State grow paddy only in the kharif season, and a very negligible quantity is sown during the rabi which is not taken into consideration for production estimate.
Chhattisgarh Chief Minister Vishnu Deo Sai on March 12 last year launched ‘Krishak Unnati Yojna’ to provide “input assistance” to farmers and released ₹13,289 crore to 24.72 lakh paddy growers who sold to the government at MSP of ₹2,203/quintal (Grade A variety). Sai said farmers were paid the difference amount (what was promised against the MSP). BJP had promised to procure paddy at ₹3,100 per quintal from farmers during the 2023 assembly polls.
Published on May 5, 2025