Odisha Seeks Immediate Release of ₹8,000 Crore Paddy Subsidy from Centre
State urges higher procurement targets and faster fund flow as it prepares to begin Kharif paddy purchase from December 25
Bhubaneswar: Odisha has pressed the Centre for urgent financial support ahead of the start of the Kharif Marketing Season (KMS), with Minister of Food Supplies and Consumer Welfare Krushna Chandra Patra meeting Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi in New Delhi. At the top of Odisha’s demand list is the release of nearly ₹8,000 crore in pending food subsidy claims for paddy procurement.
During the meeting, Patra submitted a detailed memorandum highlighting the state’s growing financial burden under the decentralised procurement system, where Odisha purchases paddy directly from farmers at the minimum support price. The Odisha State Civil Supplies Corporation (OSCSC), the nodal agency managing procurement through PACS, LAMPS, Pani Panchayats and women’s SHGs, has been struggling to bridge the funding gap.
Patra informed the Union minister that the state has set an ambitious procurement target of 93 lakh tonnes of paddy for the current KMS. With the state providing ₹800 per quintal as input assistance over and above the MSP, the total financial requirement is expected to exceed ₹28,000 crore. To keep procurement uninterrupted, OSCSC has been borrowing extensively from the open market, increasing its financial stress.
He emphasised that the timely release of the subsidy dues would be crucial to ensure smooth procurement and, more importantly, prompt payment to farmers. “The pending subsidy bill, once cleared, will significantly ease OSCSC’s burden and support seamless operations during the season,” Patra said.
The minister also urged the Centre to increase the paddy procurement target for Odisha for the 2025–26 KMS, noting the state’s consistent record of surplus production and its crucial role in supplying rice to the national pool. He further reminded Joshi of Odisha’s long-standing request to raise the Food Corporation of India’s rice lifting target to 7.5 lakh metric tonnes, stressing that this would ensure better stock management and reduce pressure on state godowns.
With Odisha scheduled to begin Kharif paddy procurement from December 25, Patra appealed for the immediate release of the state’s dues to avoid delays that could impact lakhs of farmers. Ensuring reliable cash flow, he said, is essential not just for procurement but also for sustaining farmer confidence in the state’s decentralised system.
The meeting was attended by Principal Secretary of Food Supplies and Consumer Welfare Sanjay Kumar Singh and other senior officials, who supported the state’s submissions with data and financial projections.
As Odisha braces for a heavy procurement season, the state’s appeal highlights the pressing need for coordinated Centre–State financial mechanisms to support farmers, streamline grain management, and sustain one of India’s most extensive paddy procurement operations.
