Odisha: Paddy Procurement Crisis Sparks Statewide Farmer Stir

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Delays, Deductions, and Poor Infrastructure Leave Farmers Angry and Vulnerable as Rain-Damaged Paddy Goes Uncollected

By PRADEEP KUMAR PANDA

BHUBANESWAR, June 30, 2025 – Odisha’s paddy procurement process for the Rabi season has descended into chaos, sparking widespread protests across the state. Despite Food Supplies Minister Krushna Chandra Patra’s assurance that procurement would be completed by June 30, with a target of 18 lakh metric tonnes, thousands of farmers have been left in the lurch due to logistical bottlenecks, irregular deductions, and storage crises.

In several regions, farmers who received procurement tokens were turned away from mandis due to a lack of target allocations. Frustration has mounted over rampant deductions—between 8 and 15 kg per farmer—under the controversial ‘katni chhatni’ system. Despite the government’s deployment of 200 AI-based grain analyzers and 140 mobile paddy cleaning machines to ensure fair quality assessments, farmers allege these tools are inadequate and inconsistently applied across Odisha’s 600-plus mandis.

Adding to the woes, the state’s ₹5,000 crore allocation under the Samrudh Krushak Yojana for an ₹800-per-quintal paddy bonus has already been exhausted, with no additional provision in the supplementary budget. This fiscal constraint has stoked fears that the BJP-led government will be unable to fulfill its procurement commitments.

The crisis has triggered massive protests in Sambalpur, a key agricultural hub in Western Odisha, where farmers have blocked roads since June 8. Their anger stems from chronic procurement delays, worsened by unseasonal rains that damaged their harvested paddy. With bags of grain lying in the open, exposed to moisture, discoloration and spoilage have rendered much of the produce unfit for sale under Fair Average Quality (FAQ) norms.

Farmers’ grievances are long-standing and multifaceted:

Delays and Logistical Bottlenecks:
Insufficient procurement centers, inadequate storage, and sluggish lifting by rice millers have led to weeks-long delays.
Quality Disputes:
Digital grain analyzers are often unreliable or applied arbitrarily, with many farmers alleging unjust deductions for moisture or impurities—even when their produce meets standards.
Delayed Insurance Payments:
Despite existing crop insurance schemes, compensation for weather-induced losses is rarely timely, leaving farmers financially crippled.

Amid mounting unrest, millers themselves are now raising alarms. The All Odisha Rice Millers’ Association reports a severe storage crunch, citing a 70,000-quintal backlog from the 2023–24 Kharif season. Of the 21 lakh quintals allotted to 96 millers in one district, only 14.7 lakh were returned to state warehouses, worsening the current pile-up.

The procurement crisis has also spilled into other districts. Farmers in Koraput, Subarnapur, Binjharpur (Jajpur), and several western and southern regions like Deogarh, Bargarh, Kalahandi, and Nuapada have blocked highways, demanding immediate procurement—even of rain-damaged crops—at the revised rate of ₹3,100 per quintal and prompt payment of pending dues.

Food Supplies Minister Patra admitted to delays caused by pre-monsoon rains and storage issues but insisted procurement is now underway. Meanwhile, the millers argue they are overwhelmed and blame the government for failing to create adequate storage capacity.

Farmer groups, including the Navnirman Krushak Sangathan, have planned demonstrations in Bhubaneswar, accusing authorities of ignoring repeated warnings. They also allege that their attempts to voice concerns have been thwarted by administrative restrictions.

The crisis has united farmers across political lines in frustration. They accuse both ruling and opposition parties of neglecting their plight, and fear token lapses with mandis scheduled to close by June 30.

Responding to the escalating tensions, the Biju Janata Dal has urged the state government to extend the procurement deadline by a month and ensure that all paddy is procured transparently, without arbitrary deductions—fulfilling the promises made by Chief Minister Mohan Charan Majhi.

As Odisha’s agricultural distress deepens, the pressure on the state to act decisively is mounting. The coming days could see intensified protests if the system isn’t urgently reformed.

(This is an opinion piece; views expressed solely belong to the author)

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