Administrative crackdown exposes irregularities; debate intensifies over shifting toward demand-based paddy procurement system
Published on: April 16, 2026
By: BTNI
Location: Rajnandgaon, India
This year’s paddy procurement under Minimum Support Price (MSP) in Chhattisgarh has sent strong policy signals. While strict administrative action helped curb irregularities and prevented potential losses worth crores of rupees, the continuation of paddy auctions for the second consecutive year has raised serious questions about the functioning of the procurement system.
Administrative Crackdown Under Collector’s Leadership
In Rajnandgaon, unprecedented strictness was witnessed in paddy procurement under the leadership of Collector Jitendra Yadav. The mandi administration, SDMs, and Deputy Collectors were directed to maintain round-the-clock monitoring.
Continuous field visits, land verification exercises, and enhanced surveillance in border areas brought ground realities to the forefront for the first time.
The impact of this strict monitoring was significant. A joint administrative action led to the seizure of 23,726 quintals of paddy. Had this stock entered the procurement system, the government could have suffered a loss of nearly ₹2.5 crore, considering the price difference of approximately ₹1000–₹1100 per quintal.
In effect, a single administrative intervention prevented potential financial damage worth crores.
Large Quantity Prevented from Entering Procurement Centres
Experts believe that due to the strict approach adopted by Collector Jitendra Yadav, nearly 70,000 to 75,000 quintals of paddy never reached procurement centres this season.
In several areas, the stock reportedly remained stuck with middlemen, while in border regions it could not move into the official procurement chain. This directly impacted procurement figures.
As a result, total procurement in the district this year dropped to around 62 lakh quintals, against the official target of 72 lakh quintals.
Auction Reality Raises Economic Concerns
However, another equally important aspect has emerged.
The government procured paddy from farmers at approximately ₹3100 per quintal, while the same stock is now being auctioned in the market at nearly ₹2000 per quintal. The difference of about ₹1000–₹1100 per quintal indicates growing financial pressure on the system.
This situation is not new. Last year too, large-scale paddy auctions were conducted across the state, and the trend is repeating this year. The continuation of auctions for two consecutive years suggests a mismatch between procurement targets and actual consumption or storage requirements.
Possibility of Demand-Based Procurement Policy
Although the government has not issued any official statement regarding reduction in procurement targets, current developments indicate that policy discussions may gradually move toward a “procurement based on requirement” model.
If implemented, such a shift could transform the entire system — from the number of procurement centres to transportation logistics, storage infrastructure, and milling operations.
Need for Structural Reform in MSP Procurement System
Overall, this year’s strict monitoring has not only saved crores of rupees but has also exposed structural realities within the procurement mechanism.
At the same time, repeated auctions signal that future paddy procurement may no longer be driven by targets alone but by actual demand.
It is widely acknowledged that MSP procurement has consistently benefited farmers and particularly rice millers. However, corruption has gradually tightened its grip over the system like an octopus, making comprehensive structural reforms an urgent necessity.
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