Paddy procurement with 60 lakh quintals target to commence from Dec 15 in Jharkhand

The announcement by Jharkhand to commence its paddy procurement season from December 15, targeting 60 lakh quintals at a rate of Rs 2,450 per quintal, along with an additional bonus of Rs 81 per quintal, is a significant development rooted in India's broader agricultural policy and farmer welfare initiatives. This move is not merely a state-specific economic decision but reflects a national commitment to ensuring food security and stabilizing farmer incomes.

**Background Context and Historical Roots:**

India's agricultural sector, employing a substantial portion of its workforce, has historically grappled with issues of price volatility, market access, and farmer distress. To address these challenges, the government introduced the Minimum Support Price (MSP) mechanism following the Green Revolution in the mid-1960s. The MSP is a guaranteed price for farmers' produce, set by the government to protect them from steep falls in market prices. It acts as a safety net, encouraging cultivation and ensuring that farmers receive a fair return on their investment. The Commission for Agricultural Costs and Prices (CACP) recommends MSPs for various crops, considering factors like cost of production, demand-supply, market price trends, and inter-crop price parity. Procurement, often done by central agencies like the Food Corporation of India (FCI) and state agencies, is the operational arm of the MSP policy, ensuring that the announced prices are realized by farmers.

**What Happened in Jharkhand:**

Jharkhand's decision to procure paddy at Rs 2,450 per quintal, which includes an additional bonus of Rs 81, signifies its commitment to supplementing the central government's MSP. For the Kharif Marketing Season (KMS) 2023-24, the central government had fixed the MSP for common paddy at Rs 2,183 per quintal and for Grade 'A' paddy at Rs 2,203 per quintal. Jharkhand's rate, inclusive of the bonus, is a substantial increase over the central MSP, making it more lucrative for farmers in the state. The target of 60 lakh quintals is ambitious and aims to cover a significant portion of the state's paddy output, thereby providing price assurance to a large number of cultivators. This procurement drive is crucial for the state's predominantly agrarian economy.

**Key Stakeholders Involved:**

1. **Farmers:** The primary beneficiaries, who gain price certainty, protection against market fluctuations, and improved income, especially small and marginal farmers. Their participation is vital for the success of the scheme.

2. **Jharkhand State Government:** The initiator and implementer of this specific bonus scheme, responsible for funding the additional bonus, setting up procurement centers, and ensuring smooth operations. They often work in tandem with state-level cooperative federations or marketing boards.

3. **Food Corporation of India (FCI):** While Jharkhand's state agencies will directly procure, the FCI plays a crucial role in the national food security architecture. State procurements often contribute to the central pool managed by FCI for the Public Distribution System (PDS) and buffer stock maintenance.

4. **Consumers:** Indirectly benefit from stable food grain availability and price stability, as procurement helps maintain buffer stocks necessary for food security programs like the National Food Security Act (NFSA).

5. **Millers and Traders:** These entities are often involved in the processing and logistics chain, converting raw paddy into rice and facilitating its movement.

**Significance for India and Broader Themes:**

This initiative holds immense significance for India. Firstly, it directly addresses **farmer welfare**, a critical concern given the persistent challenges of agricultural indebtedness and distress. By offering a price higher than the central MSP, Jharkhand aims to provide a stronger economic incentive to its farmers. Secondly, it contributes to **food security** by ensuring adequate availability of staple grains, which is fundamental to a nation of India's size and population. The procured paddy eventually feeds into the PDS, reaching vulnerable sections of society. Thirdly, it highlights the dynamics of **federalism** in India, where states have the autonomy to implement their own agricultural policies and supplement central schemes, demonstrating a collaborative yet independent approach to governance. Agriculture is primarily a State subject under Entry 14 of the State List (List II) of the Seventh Schedule of the Indian Constitution, while foodstuffs and trade in them fall under Entry 33 of the Concurrent List (List III), allowing both central and state governments to legislate. This procurement drive also aligns with the Directive Principles of State Policy (DPSP), particularly **Article 39(a)**, which mandates the state to direct its policy towards securing adequate means of livelihood for all citizens, and **Article 47**, which calls upon the state to raise the level of nutrition and the standard of living of its people. Such policies help in rural economic development and poverty alleviation.

**Future Implications:**

While beneficial for farmers, such procurement drives come with challenges. The financial burden of the bonus on the state exchequer needs careful management. Efficient storage and transportation infrastructure are crucial to prevent post-harvest losses. There is also the potential for market distortion if state-specific bonuses create significant price disparities between neighboring states. In the long term, the success of these schemes will depend on their sustainability, transparency, and ability to adapt to changing agricultural patterns and climate challenges. The increasing use of technology, such as online registration and direct benefit transfer (DBT) for payments, could streamline the process and reduce leakages, ensuring timely payments to farmers. This initiative could also encourage other states to offer similar bonuses, intensifying competition for farmer loyalty and potentially impacting national food grain movement.

In essence, Jharkhand's paddy procurement with a bonus is a strategic move to bolster its agricultural economy and support its farmers, reflecting the complex interplay of economic policy, social welfare, and federal governance in India.