The latest controversy over paddy procurement throughout the brief kuruvai season in Tamil Nadu has additional bolstered the necessity to rethink all the foodgrain procurement system. On this case, like many states, the Tamil Nadu Civil Provide Company (TNCSC), which procures paddy on behalf of the Meals Company of India (FCI), was stymied by extra time and corruption expenses. One motive is that acreage elevated by about 200,000 acres throughout the season, which was often called early as mid-August. It is because farmers really feel safer rising paddy than different crops as a result of a minimal return is assured.
Paddy procurement information
The oversupply is just not restricted to Tamil Nadu. In keeping with information from the Union Ministry of Shopper Affairs, Meals and Public Distribution, the procurement of paddy (in rice equal) throughout the nation was practically 119.86 million tonnes as of October 31, 2025, in comparison with 82.08 million tonnes on the identical day final 12 months. For the previous three years, for rice and wheat, quarterly opening stock positions as of October 1 have been constantly increased than these prescribed underneath central pool requirements. For rice, the advisable quantity is a minimum of twice the required quantity. Shares in October this 12 months had been 356.1 million tons, in comparison with the usual of 102.5 million tons.
In keeping with the Union authorities’s information for the final three years on procurement and import underneath the Nationwide Meals Safety Act (NFSA) and different schemes, rice stays plentiful in comparison with wheat. Throughout April 2022 to March 2025, rice procurement on the all-India degree hovered round 525 million tonnes to 547 million tonnes yearly, whereas annual rice procurement underneath public distribution system (PDS) ranged from 392 million tonnes to 427 million tonnes.
Considerably, within the case of wheat, utilization underneath PDS exceeded procurement in two of the previous three years (excluding 2024-25). On the identical time, it should be famous that the federal authorities spends round Rs 2 billion on meals subsidies yearly.
On the one hand, India is affected by surplus shares of rice, and however, large expenditures are incurred on importing pulses and oilseeds, that are important objects for each Indian family. Satirically, within the case of pulses, India is the world’s largest producer, producing 252.4 million tonnes in 2024-25. Over the two-year interval of 2023-24, there was a major decline within the procurement of notified pulses at minimal assist worth (MSP) by way of businesses together with the Nationwide Agricultural Cooperative Advertising and marketing Federation of India.
Import of edible oil
In keeping with the Union Ministry of Agriculture and Farmers Welfare’s annual report for 2024-25, the nation imported edible oil (Rs 120,000 crore) and pulses (Rs 30,000 crore) in 2023-24. Within the case of edible oil, roughly 55% of demand is met by way of imports alone. For sure, the Russia-Ukraine battle that started in February 2022 has contributed to the sharp rise in the price of edible oil imports, which amounted to round Rs 82,000 crore in 2020-21, whereas imports have hovered between 135,000 tonnes and 157,000 tonnes per 12 months up to now six years.
Satirically, the nation’s oilseed manufacturing has exceeded the 400 million ton mark solely as soon as since 2014, regardless that the world lined (roughly 25 million hectares) has not modified considerably. For about 25 years, consultants and the media have blamed the federal government’s determination within the Nineties to permit imports of cheaper cooking oils for the adverse affect on home manufacturing. Nonetheless, the response to counter its results is just not enough.
This case raises elementary questions on whether or not sustainable procurement insurance policies are being adopted, a minimum of in the case of rice, within the identify of making certain meals safety. Different associated questions additionally come up. Is paddy cultivation being inspired on the expense of crop rotation? Additionally, why have the nation’s efforts to enhance the manufacturing of pulses and oilseeds not achieved spectacular outcomes, in contrast to within the case of paddy and wheat some 55 years in the past? And will India proceed with the present preparations by one of many central businesses for the procurement, storage, transportation and distribution of bulk meals grains to international locations?
If a examine into leaks within the PDS (initially meant to handle provides throughout meals shortages) is performed, authorities could protest, as was the case a couple of 12 months in the past when a report by the Indian Council for Analysis in Worldwide Financial Relations (ICRIER) mentioned about 28% of rice and wheat was misplaced throughout distribution. It’s also well-known that this technique is way from good.
Encourage crop diversification
To separate paddy farmers from grains, crop diversification might be tried after conducting region-specific market analysis on provide and demand with the participation of all stakeholders. . One of many causes farmers are usually not capable of diversify in an enormous manner is the uncertainty about whether or not they are going to be profitable in the event that they change crops. Their fears can solely be alleviated by offering monetary assist and correct steerage. It’s clear that the nation is producing extra rice than it wants, so the federal government ought to permit farmers to export rice freely and never resort to opportunistic restrictions.
In lots of instances, major purveyors of agricultural merchandise are secretive about their suppliers. For instance, if papad producers had been to associate immediately with farmers who develop black gram or have the means to take action, it will create a win-win state of affairs. If such farmers can set up themselves into Farmer Producer Organizations (FPOs), the outcomes shall be extra sustainable. The Middle and states can facilitate such preparations.
FPOs as a company are nonetheless of their infancy. Their companies could also be utilized by authorities for a wide range of functions, together with educating farmers about soil well being. sensitize them in the direction of crop diversification; Put together the premise for market analysis and set up the availability chain.
As in West Bengal, utilizing FPOs for paddy procurement can cut back the burden on present gamers. Self-help teams and cooperatives also needs to be additional inspired on this regard. At any time when crucial, all such new entrants ought to be topic to capability constructing applications.
Change in advanced programs like this may not occur in a single day, however you can begin. The time is now for agricultural consultants, farmers, meals safety consultants, policymakers and planners to collectively take into account methods to shut, if not reform, the system’s loopholes.
issued – November 19, 2025 12:16am IST
