FMTC’s Decision to Suspend Paddy Purchase Hits Local Farmers of Kailali

Farmers in Kailali are facing difficulties selling their paddy after the Food Management and Trading Company (FMTC) Limited suspended paddy purchases. With private traders offering lower-than-official prices, local farmers say they are struggling to recover production costs.

“Since the state-run company has stopped buying paddy, and private traders offer rates that barely cover expenses, we are in a tough situation,” said Subash Chaudhary, a farmer from Godawari Municipality. The FMTC halted procurement after reaching the quota assigned for the season.

Deepak Thapa, head of the FMTC’s regional office in Dhangadhi, said no decision has yet been made on purchasing additional paddy beyond the assigned quota. The office began buying rice from Mohanpur on October 29 and from Tikapur, Satti, Joshipur Bhajani, and Gauriganga areas on November 2.

Farmers complain that private traders are buying paddy at rates far below the government-set minimum support price, some offering as little as Rs 2,600 per quintal. Thapa said that while the quota for this year was 35,000 quintals, the company has already purchased an additional 3,000 quintals.

He added, “A team from the Ministry of Industry, Commerce and Supplies and the Food Management and Trading Company conducted a field study on farmers and production in Kailali. Until the quota is increased, further paddy purchases cannot be made.”

The government has set this year’s minimum support price at Rs 3,463.81 per quintal for coarse paddy and Rs 3,628.33 per quintal for medium-sized paddy. However, as in previous years, the company in Kailali has only been purchasing coarse paddy.

Farmers note that while the company’s procurement system ensures fair prices for some, many producers are unable to sell their paddy. Last year, a quota of nearly 50,000 quintals was set in Kailali, but only 34,501 quintals were purchased.

Farmers say timely government-set minimum support prices help stabilize market rates. Although Nepal imports paddy and rice worth Rs 20 billion from India annually, last year’s imports exceeded Rs 43 billion. Thapa noted that because cheaper imported paddy remains in traders’ warehouses, local paddy producers are struggling to access the market. -- RSS