Delta farmers prefer to trade with TNCSC

By S. Vydhianathan

CHENNAI, JUNE 6. Farmers in the Cauvery delta area seem to prefer the Tamil Nadu Civil Supplies Corporation (TNCSC) to private traders while selling their paddy stocks.

This fact came to light in a review of the functioning of the parallel procurement scheme in the delta areas since March 21.

(Before that monopoly procurement was in vogue in the delta areas when private traders were not allowed to participate in procurement operation.)

In the last 75 days, the Corporation procured about 1.15 lakh tonnes compared to about 50,000 tonnes by private traders. This is despite the Corporation reducing the incentive from Rs. 50 to Rs. 35 a quintal for paddy purchased under parallel procurement, according to sources in the Corporation.

Their calculation is based on normal availability of 12.5 lakh tonnes of paddy during samba season. As the Corporation procured about 12 lakh tonnes till May 31, including 10.85 lakh tonnes in monopoly procurement, the rest of the stocks (50,000 tonnes) might have been purchased by private traders.

The sources said that in parallel procurement, farmers seldom sold their stocks to the Corporation and they preferred millers and traders, who offered better price. Except in 1998, in all other seasons when parallel procurement was in operation, the Corporation received less than two lakh tonnes for the entire season spanning over four months. But this time it received about 1.15 lakh tonnes in two and a half months.

The shift from traders to the Corporation was due to ``good price'' offered by the TNCSC besides immediate cash payment. Private millers and merchants, apart from being choosy, fixed different prices depending on quality. On the other hand, the Corporation purchased the entire quantity brought by the farmers, provided it was within the government prescribed specification.

Meanwhile, the procurement operation by the Corporation has almost come to an end. At present, only 85 DPCs are functioning in the delta areas as against 985 centres during the peak season. At present, centres are functioning in the composite Thanjavur district, and in a few taluks of Cuddalore and Pudukottai. The daily arrival to the DPCs has come down to about 300 tonnes compared to 35,000 tonnes during the peak season.

The Corporation in the current samba season procured 12 lakh tonnes till May 31, compared to 10.5 lakh tonnes in the 1999 season, 11.36 lakh tonnes in 1998 and 9.97 lakh tonnes in 1997.

Meanwhile, the rice stock position with the Corporation is extremely comfortable as it has about 5.35 lakh tonnes of rice and paddy equivalent to 4.08 lakh tonnes of rice. The current stock is more than sufficient for the public distribution system (PDS) for the next one year, the sources added.

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