Hemant Government’s ₹1000 Crore Loan for Paddy Procurement Boosts Farmer Support
Jharkhand’s Hemant government gears up to secure a massive loan for paddy procurement, aiming to enhance the state’s agricultural economy and farmer welfare.
RANCHI, December 24 – The Jharkhand government is making a significant move to bolster its agricultural sector, particularly in support of farmers.
The Hemant government plans to obtain a loan of Rs 1000 thousand crore from banks for paddy procurement, an initiative spearheaded by the Food Supply Department.
This process, currently in its final stages, is a strategic step to increase the state’s paddy procurement target to 60 lakh quintals.
Yatindra Prasad, the managing director of Jharkhand State Food Corporation (JSFC), has called for bank loans through an Expression of Interest (EoI), setting 26th December as the tender opening deadline.
Following approval from the Finance Department, the government will commence paddy purchasing.
This year’s heightened procurement target reflects the government’s commitment to supporting the agricultural community.
The Central Government has set the Minimum Support Price (MSP) for ordinary paddy at Rs 2,183 per quintal and Rs 2,203 per quintal for Grade-A paddy.
Additionally, Jharkhand’s state government will offer a bonus of Rs 117 per quintal, enabling farmers to receive Rs 2300 per quintal for normal paddy and Rs 2320 for Grade-A paddy.
Rice mills participating in this scheme will receive an incentive of Rs 60 per quintal, resulting in a total expenditure of Rs 70.20 crore for the initiative.
The state’s ambitious target involves purchasing 60 lakh quintals of paddy, with 23 lakh quintals for the Jharkhand State Food Security Scheme and 37 lakh quintals for the National Food Security Act.
Farmers will receive 50 percent of the MSP at the time of procurement, with the balance and bonus paid after delivery to warehouses.
Although the exact date for paddy purchase hasn’t been finalized, it’s anticipated to occur around March 31, 2024.
To ensure broad participation, the Food Supply Department has capped individual farmer sales at 200 quintals of paddy.
Exceptions for higher quantities will be subject to local investigation and approval by the Deputy Commissioner.
This initiative marks a robust effort by the Jharkhand government to strengthen farmer support and boost the state’s agricultural economy.
