Tamil Nadu Farmers Face Bribe Demands and Low Sales at Government Procurement Centers

Farmers in the Cauvery delta region of Tamil Nadu, including Thanjavur, Tiruvarur, Nagapattinam, and Mayiladuthurai districts, are once again facing a crisis in selling their harvested paddy. The government-run Direct Purchase Centres (DPCs) of the Tamil Nadu Civil Supply Corporation, which are meant to procure paddy at the Minimum Support Price (MSP) announced by the Central government, are reportedly engaging in malpractices.

Reports indicate that farmers are being compelled to pay bribes, ranging from ₹30 to ₹45 for every 40 kg bag, to get their produce accepted. Additionally, allegations include deliberate reduction of recorded weight or rejection of crops under the pretext of high moisture content or poor quality. These practices have caused significant anger among farmers and the public.

While India has achieved record paddy production, Tamil Nadu's procurement performance remains weak. Only about 25% of its production is procured through state agencies, compared to 85-90% in states like Punjab and Haryana. This forces farmers to sell in the open market at prices substantially below the MSP of ₹2,500 per quintal, fetching only around ₹1,750 per quintal. This recurring problem is attributed to insufficient procurement centers, late openings, staff shortages, lack of transparency in quality checks, and arbitrary rejections used to solicit bribes.

Impact on Farmers: These issues lead to huge income losses, pushing farmers deeper into debt due to rising input costs. Farmers in Tamil Nadu are among the most indebted in India, with bribes reportedly costing ₹2500-₹3000 per hectare annually. This situation compromises their ability to reinvest for future crops.

Government Action and Reforms Needed: Despite farmer grievances, state government intervention has been slow. Experts and farmer associations are calling for structural reforms, including expanding procurement centers, ensuring transparent operations, establishing a dedicated grievance cell with swift investigation mechanisms, prompt digital payments, and computerizing the entire process. The Union Ministry of Agriculture is urged to investigate.

Impact: This situation directly affects Indian farmers, the agricultural sector, and the rural economy, which are vital components of the Indian economy. The systemic corruption and inefficiency in procurement highlight a critical failure in supporting farmer livelihoods. This news has a high impact on the Indian market and its agricultural economy.

Impact Rating: 8/10

Difficult Terms: * **Cauvery Delta Region**: A fertile area in Tamil Nadu fed by the Cauvery River, known for intensive agriculture, particularly paddy cultivation. * **Direct Purchase Centres (DPCs)**: Government-established facilities where farmers can sell their produce directly at government-determined prices. * **Minimum Support Price (MSP)**: A guaranteed price set by the government for agricultural produce to protect farmers from market volatility. * **Paddy**: Rice in its unhusked form. * **Quintal**: A unit of weight equivalent to 100 kilograms. * **Procurement**: The process of purchasing agricultural produce, typically by the government from farmers. * **Input Costs**: Expenses incurred by farmers for necessary agricultural resources like seeds, fertilizers, pesticides, and labor.