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FCI urged to buy paddy directly from AP farmers

Our Bureau

VIJAYAWADA, Jan. 4

THE crisis in Andhra Pradesh rice market can be attributed to the Centre's faulty procurement policy and relief measures can be brought about only if the Food Corporation of India (FCI) procures paddy directly from the farmers, as in Punjab, and if expor ts are encouraged through the Kakinada port, Dr. Y. Sivaji, President of the Virginia Tobacco Growers' Association, has said. Dr Sivaji, chief proponent of the tobacco crop holiday concept, said at a press meet here on Thursday, that the paddy farmers in the State were encountering much hardship like the tobacco farmers in selling their produce at reasonable rates and the rice millers ``are resorting to the same tricks as the tobacco trade did''. However, as paddy happens to be a food crop, a holiday co uld not be advocated.

Alleging a nexus between FCI officials and millers at all levels, he said the procurement system in vogue in the State was detrimental to the interests of the consumer as well the farmer.

He alleged that nearly Rs 100 crore was being paid to the FCI staff and officials concerned every crop year to perpetuate the system loaded in favour of the miller. He wondered why FCI, which could procure paddy in Punjab, Uttar Pradesh and Haryana, was not able to do so in Andhra Pradesh.

Dr Sivaji said Andhra Pradesh was producing nearly 100 lakh tonnes of rice every year, but this year the production was estimated at 110 lakh tonnes or so. Of this, FCI would procure 50-55 lakh tonnes and the farmers would use 25 lakh tonnes or so for lo cal needs and the rest would find its way into the market. ``Ironically, in all the principal paddy producing centres in the Krishna-Godavari zone, prices of rice in the open market are high and the farmer never gets a fair price,'' he said. The miller, as a middleman between the farmer and FCI, should be eliminated, he demanded.

The rice milling industry in the State was in a primitive state and the millers had never used the profits to upgrade the mills, he said. ``Though the rice milling industry in Andhra Pradesh is 130-year-old, even now very few mills have generators and th ere are no large godowns. They depend solely on FCI procurement and are unable to export quality rice at competitive rates,'' he said.

Dr Sivaji urged the Centre and the State to promote rice exports through the Kakinada port. As the international prices of rice were currently lower than the domestic prices, an export subsidy of Rs 200 crore or so would be required to export 25 lakh ton nes. This would bring about buoyancy in the market.

He said the State Government was earning Rs 700 crore per annum through cess on paddy and it should not mind parting with Rs 100 crore to help the farmer.

He also urged FCI to procure 50,000 tonnes of discoloured rice in Guntur district under the relaxation scheme, as the farmers had to harvest the crop hurriedly in December due to the cyclone threat. That had led to the discoloration and the farmers had o bserved bandh at Tenali on Tuesday to press their demand.