CHENNAI: PMK leader Dr Anbumani Ramadoss on Friday urged the Tamil Nadu government to increase the paddy procurement price to Rs 3,500 per quintal.
The Centre has directed an increase of Rs 72 per quintal in the procurement price of paddy purchased by government agencies across the country. "With this raise, the procurement price for ordinary variety paddy will rise to Rs 2,441 per quintal. Farmers, however, are demanding a procurement price of Rs 3,500 per quintal and this increase is inadequate," Ramadoss said in a statement here.
The former union minister said that the central government has raised the paddy procurement price by 3 per cent (Rs 69 per quintal) last year, and has again increased it by the same small percentage this year. "This is very low when compared with the actual cost of paddy production."
He claimed that when the Centre's procurement prices are set very low, state governments provide an additional incentive subsidy to partially compensate farmers for the loss. "But during the previous five-year rule, the incentive paid toward procurement prices increased by only Rs 51. Because of that, the effective procurement price this year did not exceed Rs 2,500 per quintal," he said.
Odisha provides an incentive of Rs 800 per quintal, Andhra Pradesh and Telangana Rs 500 per quintal, and neighbouring Kerala Rs 631 per quintal. "The previous DMK government had given Rs 500 less", he said.
Stating that raising the procurement incentive will not impose an unbearable financial burden on the Tamil Nadu government, Anbumani said the state would need to grant an incentive of Rs 1,059 per quintal, which would cost the state only Rs 4,196 crore.
"Given that the Tamil Nadu government will present an annual budget of Rs 4.50 lakh crore, this amount is negligible," he said, adding, "Therefore, to enable farmers to receive a procurement price of Rs 3,500 per quintal, the Tamil Nadu government should raise the incentive to Rs1,059 per quintal and provide it promptly".