Bhubaneswar:
Odisha’s paddy procurement programme has expanded significantly over the past few years, evolving from a basic food security mechanism into a major rural income support tool. Under the Samrudha Krushak Yojana, farmers are offered an effective procurement price of ₹3,100 per quintal, which combines the Centre’s Minimum Support Price with additional state-funded input assistance.
The state’s 2025–26 annual budget increased allocations for agriculture and food supplies, while a further boost came in November through a ₹3,000 crore revolving fund announced in the Supplementary Budget. The fund is intended to ensure timely payments to farmers even when reimbursements from the Centre are delayed, reducing dependence on informal buyers and distress sales.
However, recent months have seen growing concern over how the procurement system is functioning on the ground. Reports from several districts indicate that procurement operations have been delayed or uneven, forcing some farmers to sell paddy below MSP to private traders. In districts such as Kendrapada, farmers have complained that mandis opened late, leaving them with limited options during peak harvest periods.
According to field reports and independent monitoring, farmers in parts of western and southern Odisha have also raised issues over paddy stocks lying in mandis despite tokens being issued, pointing to slow lifting by agencies and millers. Protests and road blockades were reported in districts including Koraput, Subarnapur, Sambalpur and Bargarh, with farmers demanding immediate procurement of token-backed paddy and faster payment cycles.
Officials have attributed the delays to logistical constraints, including storage capacity issues, weather-related disruptions and higher-than-expected arrivals. The government has said that procurement has picked up in recent weeks, though farmer groups continue to press for more transparency and predictability.
Looking ahead to the February 2026 budget, policymakers are expected to reinforce procurement support while addressing operational gaps. Analysts anticipate higher spending on post-harvest infrastructure such as storage, logistics and quality assessment, along with renewed focus on crop diversification incentives to reduce over-dependence on paddy.
As procurement volumes rise, the challenge for the state will be ensuring that increased fiscal support translates into timely and reliable benefits for farmers.
