India - Bid to regulate paddy cultivation leads to tussle between state, seed manufacturers

The attempt to regulate paddy cultivation had led to a tussle between the state government, seed manufacturers and dealers.

The government has decided to discourage farmers from cultivating paddy in the rabi season from November, citing the Centre's decision not to procure boiled rice from Telangana state for the public distribution system (PDS) through the Food Corporation of India (FCI).

Seed dealers allege that agriculture department officials were threatening them with cancellation of their licences if they sell paddy seeds to farmers for the rabi season.

Dealers and manufacturers said that they would suffer huge losses if sales are banned as they have seed stocks of over 10 lakh quintals worth nearly Rs 400 crore. They said the state government-owned TS Seeds Corporation itself had 2 lakh quintals of paddy seeds in stock.

Manufacturers said that they had incurred expenditure of another Rs 250 crore on purchase, processing, storage and packaging of paddy seeds.

They said that the that government should inform the seed manufacturers and traders at least six months in advance about any policy change for the forthcoming season or else all stake-holder would suffer huge losses if such crucial decisions are implemented in the last minute.

Meanwhile, the agriculture department is holding awareness programmes in villages to dissuade farmers from sowing paddy in the rabi season as the government will not be in a position to procure food grains from them at the MSP (minimum support price) unlike in previous years, with Centre refusing to take boiled rice stocks from FCI.

Telangana usually produces boiled rice variety of crops in rabi season as they can suit state's climatic conditions and can withstand scorching heat during summer.