Farmers have been forced to sell pre-monsoon paddy (Chaite dhan) at nearly half the minimum support price (MSP) set by the government. Despite the government declaring the minimum support price, government agencies have failed to purchase the paddy, leaving farmers with no option but to sell to local traders at low rates.
For the current fiscal year (FY 2024/25), the government fixed the MSP for pre-monsoon paddy with up to 18% moisture content at Rs 2,869 per quintal. For paddy with higher moisture content, the price is adjusted by deducting 1,200 grams per quintal for each percentage point of excess moisture. However, the Food Management and Trading Company Limited has not been able to procure the crop, putting farmers in a difficult situation.
According to Agni Aryal, coordinator of the Rajapur Paddy Super Zone in Bardiya, since the state-owned company has not bought the pre-monsoon paddy, farmers have been compelled to sell to local traders at prices ranging from Rs 1,500 to Rs 1,700 per quintal. He said most farmers in the Rajapur Super Zone cultivate pre-monsoon paddy, but they are now disheartened by the low returns. Traders are taking advantage of the situation by purchasing paddy from farmers at arbitrary prices.
“The government aims to expand the cultivation of pre-monsoon paddy to achieve self-sufficiency in rice. But how can production increase if the government does not even purchase the farmers' produce? In this situation, many farmers are planning not to cultivate pre-monsoon paddy next year,” Aryal added.
In the current fiscal year’s budget, the government has set a target to expand pre-monsoon paddy cultivation and achieve rice self-sufficiency within two years. The program aims to promote pre-monsoon paddy farming in 22 districts of the Inner Madhesh region, with a production target of 1.2 million metric tons. To support this goal, the government has allocated Rs 330 million for the development of irrigation infrastructure.
Amid growing complaints from farmers about not receiving fair prices for their pre-monsoon paddy, Minister for Agriculture and Livestock Development Ramnath Adhikari held discussions with Minister for Industry, Commerce and Supplies Damodar Bhandari on Monday. The two ministers agreed to explore ways to ensure the purchase of the farmers' paddy. Both ministers acknowledged that the Food Management and Trading Company has been unable to buy paddy due to a lack of storage space in its warehouses.
According to Ramesh Acharya, Chief Executive Officer of the company, they are also unable to purchase paddy with moisture content exceeding 18%, as they lack proper drying machines. “Farmers are bringing paddy with up to 32–33% moisture. In such conditions, we fear spoilage and cannot buy the crop,” Acharya explained.
He further noted that the company's warehouses are already full with rice produced from paddy purchased in December, leaving no space for new stock.
Minister Adhikari stressed that farmers must receive fair prices for their pre-monsoon paddy under any circumstance. Minister Bhandari said that efforts will be made, in coordination with the Ministries of Agriculture, Industry, Finance, and the National Planning Commission, to resolve the issue and develop a new strategy.
