Nepal : Farmers Sell Paddy Below Support Price Due to Delayed Government Procurement
Farmers in Nepal’s Kailali district are selling paddy below the government’s minimum support price because delayed state procurement forces immediate sales to private traders. One farmer received Rs 2,750 per quintal against the support price of Rs 3,660, while procurement awaits central approval.
Kailali. Farmers in Kailali are selling this year’s paddy production at low prices in the market. Farmers are in trouble because the state-owned Food Management and Trade Company Limited has not started purchasing paddy on time.
Due to waiting for government procurement, farmers are forced to sell paddy at prices set by private traders as it becomes difficult to plant winter crops and manage household expenses.
Shyam Rana of Ghuiyaghat in Dhangadhi Sub-Metropolitan City-10 sold 15.5 quintals of coarse paddy at Rs 2,750 per quintal on Wednesday. The government has set the minimum support price for coarse paddy at Rs 3,660 per quintal for the current season. However, due to the non-commencement of the government procurement process, Rana had to sell paddy at Rs 910 per quintal less than the determined support price.
Rana, who cultivated paddy on 1.5 bighas of land on adhiya, was in a hurry to sell the produce and prepare for wheat cultivation. He needed money immediately to buy chemical fertilizers and seeds for wheat and to manage household expenses, so he could not wait for government procurement. ‘If I had waited a few more days, I might have got a better price,’ Rana said, ‘but I have to buy fertilizer and seeds for wheat. I also have to manage household expenses. The income is not commensurate with the hard work and investment made in farming.’
Although paddy harvesting is in full swing in Kailali at this time, the price farmers are getting is much lower than the government’s support price. It is not new for farmers to be compelled to sell paddy at prices determined by traders in the market.
The market competition increases and private traders also raise prices only after the Food Company starts purchasing. However, due to delays in the government process, most farmers do not get the benefit in time.
Dhangadhi farmer Rambahadur Tharu also complains that genuine farmers are suffering due to delays in government procurement. He said that due to the lack of proper storage space for paddy, festival expenses, and the rush to plant winter crops, it is not easy for farmers to keep their produce stored at home for a long time. Having to sell paddy at a lower price to arrange immediate expenses, Tharu said, ‘Farmers do not get relief just by setting a support price. The government must arrange for timely procurement.’
Private grain traders, on the other hand, say that the price is determined based on the quality of the paddy brought by the farmers for sale. They argue that newly threshed paddy has high moisture content, mixed with dirt, and is not properly dried, posing risks in storage and processing if purchased immediately. Traders say that paddy that is well-dried and cleaned can be purchased at the price set by the government.
Meanwhile, the Provincial Office of Food Management and Trade Company Limited, Dhangadhi, has stated that the quota for purchasing paddy this year has not yet been approved by the central office. According to Office Chief Deepak Thapa, a proposal to purchase 60,000 quintals of paddy from Kailali this year has been sent to the center. He informed that the procurement process will start only after receiving the letter including the quota determination from the center.
Last year, paddy procurement in Kailali had started from November 11. Thapa said that this year, the delay in procurement is due to the late Dasain festival and the disruption of harvesting work due to rain. The office has stated that it cannot accept paddy that does not meet the specified standards, as the company has implemented standards related to moisture content, cleanliness, and quality for the paddy it purchases.
However, after the Food Company opens its procurement centers, there is a huge rush of farmers. Last year, farmers had to wait for three to four days in line to sell paddy at six centers including Tikapur, Satti, and Mohanpur. Chief Thapa said that last year, the target was to purchase 35,000 quintals, but due to the increased rush of farmers, 38,949 quintals of paddy were purchased, exceeding the target. The company processes the paddy purchased from Kailali and sends rice to various hilly districts of Sudurpashchim and Karnali.
According to the data of the Agriculture Knowledge Center Kailali, paddy is cultivated in about 63,500 hectares of land in the district, with a production of 4.7 metric tons per hectare. Although the government sets a support price every year with the objective of providing a fair price to farmers for their produce, the direct benefit does not reach the farmers due to the delay in the procurement process.
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Source : Ratopati
