Sambalpur / Baragarh, June 18 (UDN): A sharp slowdown in rice procurement by the Food Corporation of India (FCI) has triggered serious concerns over paddy procurement and storage management across Odisha, with Baragarh emerging as one of the worst-affected districts.
Farmers and millers across western Odisha allege that FCI is now lifting significantly lower quantities of custom milled rice (CMR) compared to previous years, creating a bottleneck in the entire procurement chain. As a result, rice stocks are piling up in mills, disrupting fresh paddy procurement from farmers during the ongoing season.
According to official supply data, Odisha is expected to receive 52.49 lakh metric tonnes of rice from 77.48 lakh metric tonnes of paddy procured during the kharif season. However, only around 20% of the custom milling rice has been deposited so far in the current rabi cycle, raising operational concerns across procurement agencies.
In comparison to last year, when FCI had lifted over 11.04 lakh metric tonnes of rice during the same period, procurement this year has dropped sharply to just around 3.59 lakh metric tonnes. This steep decline has led to rising stock accumulation in government warehouses, which currently hold about 7.14 lakh metric tonnes of rice.
Baragarh district, one of Odisha’s largest paddy-producing regions, is facing the most severe impact, with only about 13% of rice milling completion reported. Other western Odisha districts, including Sambalpur, Subarnapur, Bolangir, Boudh, Kalahandi, Jharsuguda, Nuapada, and Sundargarh, are also witnessing varying levels of backlog in custom milling operations.
Officials and stakeholders say the situation is now affecting the procurement cycle itself. Millers, who are ready to supply rice, are unable to clear existing stock due to reduced lifting by FCI, leading to a cascading delay in new paddy procurement from farmers. In some cases, farmers are reportedly shifting their produce to neighbouring states for better sales options.
Previously, delays in millers supplying rice had created tension in the system. However, the current scenario has reversed the problem, with millers holding stock due to FCI’s slow offtake.
Stakeholders warn that if the situation continues, it could severely disrupt the state’s paddy procurement system, strain storage capacity, and impact farmers during the peak procurement cycle. Experts have urged immediate coordination between state agencies and FCI to stabilise the supply chain and prevent further escalation of the crisis.
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