Farmers turning away from growing paddy as profit dips

Jajpur: Farmers are gradually turning away from growing paddy crop due to declining profit, a report said. An analysis of the earnings of farmers from paddy cultivation in the last five years reveals that profit from the crop has been quite disappointing. This is despite the fact that the agriculturists have been working hard during summer, rain and winter seasons to raise the crop.

Reports said on average, farmers earn around Rs 607 to Rs 728 as profit from a quintal of paddy which is forcing many to turn away from the cultivation. The phenomenon has raised fears of a sharp rise in the prices of food products in the coming days. Observers attributed administrative negligence as the reason behind the declining profit of farmers from paddy cultivation.

Some farmers requesting anonymity claimed that if a quintal of paddy was not sold at Rs 3,100 per quintal, as per the announcement made by the Union government, their hopes of getting adequate profit would fade away. The declining profit from paddy cultivation has frustrated poor and marginal farmers and led to their migration to other states in search of alternative livelihoods. On the other hand, rapid industrialisation is directly, and indirectly, impacting rural life and agriculture. Climate change is also impacting cultivation as farmers have to battle drought and floods at frequent intervals to save the crop from destruction. Farmers are also facing losses due to the absence of irrigation facilities for cultivation, while irregularities and negligence in paddy procurement have hit them hard.

According to reports available from the state Agriculture and Farmers’ Empowerment Department, farmers spent Rs 1,208 per quintal of paddy cultivation in FY 2019-20, but sold the harvested paddy at Rs 1,815 per quintal.

Similarly, farmers spent Rs 1,245 per quintal and sold the crop at Rs 1,868 in 2020-21 fiscal, while Rs 1,293 was spent per quintal and sold at Rs 1,940 in 2021-22 FY. Farmers spent Rs 1,360 per quintal and sold at Rs 2,040 in 2022-23 FY, while they spent Rs 1,455 per quintal of paddy and sold it at Rs 2,183 per quintal in 2023-24 FY.

The district administration has strictly advised the regulated market committees (RMCs) to ensure that farmers do not face any problems during paddy procurement. Paddy should be procured there at the right time and steps be taken for hassle-free payment to the farmers. However, no one ever bothers if the paddy was procured at the right time, the number of PACs (primary agriculture cooperative societies) opened, and if farmers were paid properly or not. The elected political representatives also forget about the farmers.

As a result, the problems of the farmers receive little attention, and they continue to be fleeced due to the alleged negligence and bonhomie between the officials and middlemen. These loopholes frustrate the entire paddy procurement process which starts late every year to help the middlemen, it is alleged. As a result, farmers resort to distress sales and relieve their paddy stocks to middlemen at Rs 500 to Rs 600 below the per quintal MSP.

Earlier, farmers had to endure a lot of hardship as the paddy procurement process was dependent on millers. Realizing the problem, the state government started procuring paddy through the government or government-authorised PACs.

However, some unscrupulous officials in cahoots with middlemen started fleecing the farmers like before, it is alleged. Sources said that the mandis are opened late, or not opened at all. Officials are even allegedly manipulating the registration, and in providing tokens to the farmers for paddy procurement. This has only resulted in losses for the farmers and coming on the way of them becoming self-reliant.

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