With the yield of paddy and other crops expected to rise significantly over the next couple of years, the Civil Supplies Corporation is preparing plans in advance to tackle the glut situation.
The corporation procured 36 lakh tonne paddy during the just concluded rabi and another 18 lakh tonne during the kharif, taking the total to 54 lakh tonne. In the process, the corporation has ensured that farmers are paid minimum support price of over ₹1,500 a quintal assured for paddy, incurring around ₹8,600 crore for the two seasons.
Given the pace at which works on projects like Kaleshwaram are progressing, the corporation is anticipating that the yield is likely to cross one crore tonne sooner than later. The State has a total storage space of 31 lakh tonne, after adding 19 lakh tonne storage space since the formation of Telangana, but this would barely suffice the requirement. Moreover, the payment of MSP will become a major challenge as it will entail huge expenditure.
The situation, according to sources, calls for planning in advance to avoid situation like Punjab where farmers registered their protest against steep drop in the prices by throwing their produce on roads. The corporation, accordingly, had decided to ensure effective market linkages to farmers in addition to exploring options for selling the produce in the States where it is required. While market linkages enable farmers to sell part of their produce directly, agreements with other States would help lift a significant chunk of the produce from farmers.
Civil Supplies Corporation chairman P. Sudarshan Reddy recalled how the State could supply over three lakh tonne of boiled rice to Tamil Nadu during the last season and said similar arrangements would be worked out in advance from the next season. The time has come for the corporation to set up a separate entity to look into the commercial aspects so that strategies could be prepared for adding value to the farmers’ produce and ensure that they can tap markets outside the State.