Centre Provides No Grant, Aid or Loan For Paddy: Chhattisgarh Minister

Raipur: Chhattisgarh Forest and Transport Minister Mohammad Akbar has stated that the central government does not provide any grants, aid, or loans for paddy purchases.

In an interaction with the media, he explained that the state government has a system for procuring paddy directly from farmers, which is then custom milled and deposited in the central pool. The central government makes payments based on the fixed rate for the deposited rice.

The minister further mentioned that the state government purchases paddy from registered farmers and makes payments by securing loans from banks. In the upcoming year 2023-24, an estimated 125 lakh metric tonnes of paddy will be procured.

Previously, paddy was procured from farmers at a rate of 15 quintals per acre, but the state government has decided to increase it to 20 quintals per acre.

The minister highlighted that the state government annually borrows Rs. 25,000 crore through the Chhattisgarh State Cooperative Marketing Federation (Markfed) for paddy purchases. The state government provides additional compensation under the Rajiv Gandhi Kisan Nyay Yojana in four installments, amounting to Rs. 2,500 per quintal for paddy.

He also noted that the number of registered farmers selling paddy has increased from 18.96 lakh to 29.97 lakh, and the paddy cultivation area has expanded from 24 lakh hectares to 32 lakh hectares.