Parallel procurement to continue

By Our Special Correspondent

CHENNAI, AUG. 26. The State Government will continue with the system of ``parallel procurement'' of paddy for this year's `Kuruvai' (short-term) season, like last year.

This was decided at a meeting of the State Cabinet, presided by the Chief Minister, Mr. M. Karunanidhi, at the Secretariat here today.

Under this system, with farmers free to sell their kuruvai paddy in the open market as well, the Cabinet decided to open Direct Purchase Centres (DPC) in the Cauvery delta areas from September 1.

The Cabinet also decided to continue with the ``incidental expenses'' payable to farmers, while the Tamil Nadu Civil Supplies Corporation procured the paddy offered to it by them, at Rs. 35 per quintal, for both ordinary and A grade varieties of paddy, over and above the Centre's minimum support price (MSP).

Sources said as the Centre was yet to fix the MSP for paddy for the current `Kharif' season, the incidental charges would be in addition to the existing MSP of Rs. 490 per quintal for common variety and Rs. 520 per quintal for A grade variety of paddy.

The quantum of paddy procured under this system would depend on the open market price, sources said, adding, with a low market price this year, the Government expected to procure two lakh tonnes of paddy during Kuruvai 2000.

Kuruvai paddy crop has been cultivated in 1.23 lakh hectares this year and the output expected was about six lakh tonnes to seven lakh tonnes. Of this ``we expect about 40 per cent to come to the DPCs on a conservative estimate,'' sources said.

Once the Centre announced the MSP, farmers would automatically get the benefit of the additional price, sources added.

The Cabinet meeting, which, apart from this, discussed a number of ``routine matters,'' earlier observed a minute's silence in paying homage to the late Revenue Minister, Nanjil K. Manoharan, who died on August 1.

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Section  : Southern States
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