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Rice mountains & rising political heat

Business Standard

|

March 02, 2026

As Odisha battles procurement protests and Kerala defends bonuses, mounting rice stocks intensify questions over subsidy- fuelled paddy expansion.

- Ramani Ranjan Mohapatra

Rice mountains & rising political heat

Last week, a farmer in Odisha's Kendrapara district died of a heart attack at his home after allegedly spending four days outside a rice mill attempting to sell his paddy.

While an investigation is on, his family said the 53-year-old was distressed by delays in procurement despite having received a token, a digital mechanism used for sales at mandis through primary agriculture cooperative societies (PACS).

The incident came to the fore amid sustained protests by Opposition parties alleging widespread mismanagement in paddy procurement across Odisha. More than 70 per cent of the state's population depends on agriculture, with paddy accounting for 44 per cent of gross cropped area in 2024-25.

After taking office in 2024, the Bharatiya Janata Party (BJP) government implemented a key election pledge to procure paddy at ₹3,100 per quintal, matching neighbouring Chhattisgarh, by providing an input subsidy of 800 per quintal. It also promised to abolish katni-chhatni, a local term for the deduction of 7 kg per quintal at state-run mandis on grounds of moisture content and fair average quality norms. The Opposition Biju Janata Dal (BJD) and Congress allege the practice persists.

With panchayat elections a year away, the BJD last week organised a state-level farmers₹ rally in Bhubaneswar, where Leader of the Opposition Naveen Patnaik accused the government of "systemic exploitation" of farmers. In the Assembly, Chief Minister Mohan Charan Majhi blamed the mandi ecosystem of the previous 24-year regime and vowed justice for farmers.

Amid mounting protests, the government has extended the validity of procurement tokens until March 31. Food Supplies Minister KC Patra said more than 1.96 million farmers have registered and procurement this season has crossed 6.4 million tonnes (mt).

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