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Naveen urges Centre to fix provisional incidental cost for paddy procurement

Bhubaneswar: Chief Minister Naveen Patnaik has urged the Centre to fix the provisional incidental costs at reasonable level to ensure smooth procurement of paddy in Odisha.

“Under decentralized system of paddy procurement, state’s procurement grew from 0.60 lakh MT of paddy in 2003-04 to 52 lakh MT in 2016-17. The State has put in a lot of efforts to streamline the paddy procurement operations and to ensure that all the farmers get the Minimum Support Price,” Patnaik wrote in a letter to Union Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan on Friday.

Maintaining that the State is unable to pay incidental costs at fag end of paddy procurement for Kharif 2017-18 as Government of India has fixed them a very low level compared to markets, the CM said that there is a possibility of disruption in Rabi paddy procurement on non-payment of the incidental costs and sought the cost fixation at the earliest in greater interest of the farmers of the state.

Government of Odisha has already submitted accounts till 2015-16 and the updated accounts may be used for indexation to fix the costs

“Under such circumstances, I would request you to kindly instruct the Department of Food and Public Distribution to fix the provisional incidental costs at a reasonable level, may be equal to the last year, to facilitate smooth procurement of paddy in the State,” said Patnaik.

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