The Tamil Nadu government on Monday announced a hike in procurement price of paddy. T N Ramanathan, secretary, (co-operation, food and consumer protection department, said the government decided to grant an incentive of Rs 50 per quintal for common variety and Rs 70 per quintal for Grade 'A' variety paddy during the procurement / kharif marketing season 2011-12 that started from October 1, 2011, over and above the minimum support price fixed by the Centre.
The procurement price per quintal would be Rs 1,100 for Grade 'A' or fine variety and Rs 1,050 for common variety during the kharif marketing season 2010-11 (Kuruvai 2010 season and Samba 2010-11 season).
The minimum support price is at Rs 1,110 per quintal for Grade 'A' variety of paddy and of Rs 1,080 per quintal for common variety of paddy for kharif marketing season 2011-12.
The state government has permitted the Tamil Nadu Civil Supplies Corporation to procure paddy under the decentralised procurement system during the kharif marketing season 2011-12 that is from October 1, 2011 to September 30, 2012 at the price of Rs 1,180 per quintal for Grade 'A' paddy and Rs 1,130 for common variety of paddy by opening adequate number of procurement centres in the Cauvery delta region and other paddy growing areas in the state in consultation with the district collectors.
In non-delta areas, District Collectors have been allowed to open direct purchase centres depending upon the arrival of paddy and the Registrar of Cooperative Societies could procure paddy through cooperative marketing societies and Primary Agricultural Cooperative Credit Societies.
Under the decentralised procurement scheme, the state government itself undertakes procurement of paddy/rice and wheat on behalf of the central government, and also stores and distributes these foodgrains under PDS and other welfare schemes.
The Union government reimburses the entire expenditure incurred by the state governments on the procurement operations, according to a government release.
