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TN records all-time high paddy procurement of 64.2 lakh tonnes

Chennai, Aug 31 (IANS) Paddy purchases by Tamil Nadu government agencies surged to a record 64.2 lakh metric tonnes (MT) in 2025-26, strengthening the state’s rice stock for the public distribution system and reducing its dependence on supplies purchased from the Centre.

The procurement volume was 16.22 lakh MT higher than the 47.98 lakh MT recorded during the previous year. The purchases were undertaken at the minimum support price (MSP) by the Tamil Nadu Civil Supplies Corporation (TNCSC) and the National Cooperative Consumers’ Federation of India (NCCF) on behalf of the Food Corporation of India (FCI).

With the current season ending on a record note, preparations have begun for the 2026-27 kharif marketing season. Paddy procurement under the new season will start across Tamil Nadu on September 1, coinciding with the implementation of the revised MSP approved by the Union government.

The sharp increase has been linked to a combination of better price realisation, assured procurement, favourable climatic conditions and timely water releases from reservoirs. These factors encouraged more farmers to cultivate paddy and sell their produce through direct procurement centres.

Chief Minister C. Joseph Vijay on August 10 announced a substantial revision in the state incentive offered over and above the MSP. The incentive for fine-variety paddy was increased from Rs 156 to Rs 289 per quintal, while that for the common variety was raised from Rs 131 to Rs 159.

Consequently, farmers will receive a total procurement price of Rs 2,750 per quintal for fine-variety paddy and Rs 2,600 for the common variety.

TNCSC Managing Director Shilpa Prabhakar Satish said the assured support price had made sales through direct procurement centres more attractive to farmers.

Favourable cultivation conditions had also contributed to the increased arrivals. The 64.2 lakh MT of paddy procured during the season is expected to yield around 42.44 lakh MT of rice, comfortably exceeding Tamil Nadu’s annual PDS requirement of approximately 33.36 lakh MT.

The FCI currently supplies about 2.78 lakh MT of rice every month for distribution through fair price shops. Apart from this allocation, the state purchases nearly one lakh MT of rice from the Centre at Rs 23.20 per kg.

As the estimated rice output from the procured paddy exceeds the state’s annual distribution requirement by more than nine lakh MT, officials plan to preserve the balance as a reserve for subsequent months. The larger domestic stock is also likely to bring down expenditure on additional rice procured from the Union government.

Food and Civil Supplies Minister P. Venkataramanan said fine-variety paddy accounted for nearly 60 per cent of TNCSC’s total procurement.

As part of its efforts to improve the quality of grains supplied to cardholders, the government intends to distribute more fine-variety rice through fair price shops beginning in November.

–IANS

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