Chhattisgarh Forest and Transport Minister Mohammad Akbar said the Ccntral government provides no grant, aid or loan to purchase paddy.
He told the media that there is a system of paddy procurement under which the state government buys it from farmers. It is custom milled.
The rice is deposited in the Central pool. The Central government makes payment at the rate fixed in lieu of the deposited rice.
He said the state government purchases paddy from the registered farmers and makes payments by taking loans from banks. In 2023-24, 125 lakh tonnes of paddy were estimated to be procured.
So far paddy was being procured from the farmers at the rate of 15 quintals per acre, which the state government has decided to increase to 20 quintals per acre, he added.
Akbar said the state government takes a loan of Rs 25,000 crore every year for the purchase of paddy. The money is taken through the Chhattisgarh State Cooperative Marketing Federation (Markfed). It is based on the guarantee of the state government.
Additional amount is provided as compensation under the Rajiv Gandhi Kisan Nyay Yojana in four installments. Thus, farmers are getting Rs.2,500 per quintal for paddy.
The Minister said the number of registered farmers selling paddy has increased from 18.96 lakh to 29.97 lakh. The area under paddy has increased from 24 lakh hectare to 32 lakh hectare.