Bhubaneswar: Compared to an estimated cost of production of paddy at Rs 2,403 a quintal in Odisha, farmers in the state lose Rs 588 per quintal when they sell their produce to the government at the Minimum Support Price (MSP).
This was evident from the statement of Odisha's agriculture minister Arun Kumar Sahoo in the Assembly Wednesday.
"According to an estimation done for 2018-19 crop year, the cost of production of a quintal of paddy in Odisha is Rs 2,403," Sahoo said while replying to a question of BJP member Mohan Majhi.
Since the Centre has this time fixed the MSP of paddy at Rs 1,815 per quintal, the farmers in Odisha lose Rs 588 per quintal, he said.
Sahoo said the Commission for Agricultural Costs and Prices (CACP) under the Union Ministry of Agriculture and Farmers Welfare, fixes the rate on per quintal production of paddy in different states.
The CACP's projected cost of production of paddy for Kharif crops during the marketing season, 2018-19 in Odisha was Rs 1,713 per quintal, Sahoo said.
The cost of production per quintal of paddy in Maharashtra is, however, highest at Rs 2,418, Sahoo said.
The state had proposed to fix the MSP of paddy at Rs 2,930 per quintal after the Assembly unanimously adopted a resolution on the issue, but the Centre sanctioned only Rs 1815 per quintal, Sahoo said outside the House.
The minister said the state government has been taking several measures to reduce the cost of production of paddy by supplying better quality seeds at subsidised price, soil health test, technical assistance to grow more grain in limited area and others.