The much-awaited difference in amount of Rs 685 in paddy will be in the pockets of farmers of Chhattisgarh on May 21, the death anniversary of former Prime Minister Rajiv Gandhi.
The state cabinet on Wednesday decided that the amount would be disbursed into the bank accounts of farmers under the Rajiv Gandhi Kisan Nyay Yojana.
Agriculture Minister Ravindra Choubey said the state government was sensitive over the needs of farmers at a time when economic activity has derailed due to lockdown triggered by Covid-19.
The state government had earlier made a budgetary provision of Rs 5,100 crore for the paddy difference amount.
Chief Minister Bhupesh Baghel had declared payment of Rs 2,500 per quintal to farmers.
As per the union government’s instructions, the state procured paddy from farmers on the MSP prescribed by the Centre: MSP for common grade paddy at Rs 1,815 and at Rs 1,835 for Grade A crop per quintal.
The state government had promised that the paddy would be procured from its farmers at Rs 2,500 per quintal. But the Centre was unable to take the surplus rice from Chhattisgarh in the central pool under the National Food Security Act (NFSA) through the Food Corporation of India (FCI).
Keeping in view the technical difficulty, the government will now disburse the balance amount of Rs 685 per quintal into the bank account of the farmers to keep its promise of procuring paddy at Rs 2,500 per quintal.