KATHMANDU, June 25: Following a rise in the production of spring paddy (Chaite Dhaan), farmers are facing problems in its sale and distribution. A decline in demand has led to a drop in market prices, making it difficult for farmers to recover their investment.
Last year, about 200,000 metric tons of paddy were produced, which was insufficient to meet market demand. In the current fiscal year, production is estimated to have reached nearly 400,000 metric tons. According to Mahananda Joshi, Information Officer at the Ministry of Agriculture and Livestock Development, farmers doubled their production this year after earning good income last year, which has now led to problems in storage and distribution.
Production of spring paddy up by 20 percent in Chitwan
Last year, the government had set the minimum support price (MSP) of paddy at Rs 2,808 per quintal. The MSP is determined based on factors like new seed varieties, irrigation systems, and production costs. At present, the paddy is reportedly being sold at a regular market price of around Rs 1,800 per quintal.
To address the issue, the Ministry of Agriculture has sent a letter to the Food Management and Trading Company Limited, under the Ministry of Industry, to purchase paddy at the support price, store it, and manage its sale. The Ministry of Finance is preparing to cover any shortfall in funding.
Harvesting of Chaite paddy is currently underway in about 35 districts of the Terai and Inner Madhesh regions. A total of 130,000 hectares of land have been cultivated with paddy. The government has set the MSP at Rs 2,858 per quintal for the current fiscal year.
Balram Baskota, in-charge of the All Nepal Peasants Federation, expressed concern that farmers have been unable to recover their investment from spring paddy and urged the government to immediately explore alternatives.