**Executive Summary**
This document is a response from the Minister of State for Ministry of Consumer Affairs, Food & Public Distribution to a parliamentary question regarding paddy procurement in Odisha during 2025-26. It provides details on the quantity of paddy procured, the number of farmers involved, and the Minimum Support Price (MSP) paid. The paddy procurement season KMS 2025-26 (Kharif crop) has commenced from 01.11.2025 and will continue upto 31.03.2026.
**Key Points / Main Content**
* **Paddy Procurement:**
* Paddy procurement operations in Odisha are undertaken by the State Government under the Decentralized Procurement (DCP) system.
* Procurement for KMS 2025-26 (Kharif crop) started on 01.11.2025 and continues up to 31.03.2026.
* District-wise details of paddy procured, number of farmers, and MSP paid are in Annexure I.
* **Role of State Government/Agencies:**
* Odisha is a DCP State, so procurement is carried out by the State Government/State Agencies.
* **Expenditure and Reimbursement:**
* The Government of India reimburses the expenditure to states, including Odisha, that have opted for DCP mode, for the distribution of foodgrains to beneficiaries of Central Schemes, as per the allocation made by the Government of India.
* The difference between the Economic Cost and the Central Issue Price (CIP) is reimbursed to the Food Corporation of India (FCI) and DCP States as a food subsidy.
* The food subsidy released to the Government of Odisha for FY 2025-26 (as of 30.01.2026) is Rs. 6140.07 Crore.
* Admissible food subsidy is calculated on the basis of Economic Cost which covers all incidentals such as MSP, Statutory Charges, Gunny, Transportation, Handling, Storage, Interest, Commission to Societies, Milling, Driage, Administrative charges, etc.
* **Delivery and Payments:**
* Delivery of CMR of KMS 2025-26 has not been started yet.
* No payment is pending with FCI, as FCI does not procure paddy directly from farmers in Odisha.
**Impact Analysis**
**Government of Odisha**
*Impact:*
The Government of Odisha is responsible for paddy procurement operations under the DCP system and disbursing MSP payments to farmers. They are the recipient of food subsidies from the Government of India to cover the costs associated with food distribution under Central Schemes.
*Action Required:*
Continue paddy procurement as per DCP guidelines, distribute food grains to beneficiaries, and ensure timely submission of subsidy claims to the Government of India.
**Farmers in Odisha**
*Impact:*
Farmers are able to sell their paddy to the State Government under MSP, ensuring a minimum price for their produce. The timely procurement of paddy by the State Government directly impacts their income and livelihoods.
*Action Required:*
Register with the State Government for paddy procurement, sell their produce according to established procedures, and ensure they receive MSP payments for their sales.
**Food Corporation of India (FCI)**
*Impact:*
FCI is responsible for the overall management of food subsidy distribution and ensuring that states are reimbursed for their expenses. They are not involved with procurement from farmers.
*Action Required:*
Process subsidy claims from the Government of Odisha, ensure accurate reconciliation of accounts, and coordinate with the State Government on the distribution of food grains under Central Schemes.
Key Entities Referenced
Odisha: The state where paddy procurement is being discussed.
Minimum Support Price (MSP): The price paid to farmers for their paddy during procurement.
Food Corporation of India (FCI): An organization involved in the procurement and distribution of food grains.
Decentralised Procurement (DCP) system: The procurement system under which the State Government undertakes paddy procurement.
Ministry of Consumer Affairs, Food & Public Distribution: The Union Government ministry responsible for paddy procurement policy.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 713
TO BE ANSWERED ON 4TH FEBRUARY, 2026
PADDY PROCUREMENT IN ODISHA
713. SHRI PRADEEP PUROHIT:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a): whether the Government has undertaken paddy procurement in Odisha during 2025–26;
(b) if so, the quantity of paddy procured in Odisha during 2025–26, district-wise along with the
number of registered farmers and Minimum Support Price (MSP) paid to them;
(c) the quantity of paddy procured by the Food Corporation of India (PCI) in Odisha during the
current year, district-wise;
(d): the total procurement expenditure incurred by the Union Government for paddy
procurement in Odisha during 2025–26 including MSP payment, transportation, storage and
other incidental costs;
(e): the details of quantity of boiled and non-boiled (raw) paddy lifted by the Government in
Odisha during 2025–26, separately; and
(f): whether any payment to farmers or State agencies is pending with FCI and if so, the
details thereof along with the reasons for delay and the timeline for clearance?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a): Paddy procurement operations in Odisha are undertaken by the State Government under the
Decentralised Procurement (DCP) system. Paddy procurement in the State during KMS 2025-26
(Kharif crop) has commenced from 01.11.2025 and will continue upto 3 1.03.2026.
(b): The district-wise quantity of paddy procured, number of farmers sold paddy under MSP
procurement and MSP paid by the State Government of Odisha during KMS 2025-26 are at
Annexure.
(c): Odisha being a DCP State, procurement of paddy is carried out by the State
Government/State Agencies.
(d): Government of India reimburses the expenditure incurred by States (including Odisha), that
have opted for DCP mode for distribution of foodgrains to the beneficiaries of Central Schemes as
per allocation made by Government of India. The difference between Economic Cost and Central
Issue Price (CIP), at which foodgrains are issued to States, is reimbursed to Food Corporation ofIndia (FCI) and DCP States as food subsidy. The admissible food subsidy is calculated on the basis
of Economic Cost which covers all incidentals such as MSP, Statutory Charges, Gunny,
Transportation, Handling, Storage, Interest, Commission to Societies, Milling, Driage,
Administrative charges etc. The release of food subsidy is an ongoing and continuous process.
The subsidy claims are processed keeping in view the opening and closing balance of stocks,
procurement , allocation and distribution of food grains under various Central Schemes, Food
Corporation of India’s reconciliation, utilization Certificates received, economic cost of food grains
etc. The food subsidy released to Govt. of Odisha for FY 2025-26 (as on 30.01.2026) is Rs.
6 1 40.07 Crore.
(e): Delivery of CMR of KMS 2025-26 has not been started yet.
(f): As FCI does not procure paddy from farmers in Odisha, no payment is pending with FCI.
SeSc+eSc SeeAnnexure I
District-wise quantity of paddy procured, number of registered farmers
and MSP paid in Odisha during KMS 2025-26
Quantity of No. of
SI MSP Value
District Paddy Procured Farmer Sold
No (in Cr.)
(in MT) Paddy
1 ANGUL 35,83 1 b,828 66.08
2 BALASORE 65,569 1,803 122.09
3 BARGARH 62,296 25,584 1,237.07
4 BHADRAK 22,370 5,436 14.46
5 BOLANGIR 329, 1 3 1 80,627 71 8.49
6 BOUDH 115,990 25,887 245.69
7 cuTrACK 42,301 13,506 77.50
8 DEOGARH 40,22 1 12,314 77.12
9 DHENKANAL 22,678 6,65 1 41.09
10 GAJAPATI 27, 1 82 6, 130 47.54
11 GANJAM 257,743 71,408 489.36
12 JAGATSINGHPUR 5,503 1 ,434 no
13 JAJPUR 21 ,960 5,681 22.45
14 JHARSUGUDA 63,783 15,852 141.57
15 KALAHANDI 5 1 0, 840 101,291 1,114.31
16 KANDHAMAL 3,472 947 5.58
17 KENDRAPARA 21,350 5,440 26.04
18 KEONJHAR 79,4 1 5 21,136 146.96
19 KHORDHA 41 ,432 12,080 75.92
20 KORAPUT 2 1 9,036 38, 105 427.55
21 MALKANGIRI 74,864 22,357 142.62
22 MAYURBHANJ 89,643 24,234 1 87.85
23 NAWARANGPUR 115,392 24,790 213.52
24 NAYAGARH 24,3 15 7,984 34.77
25 NUAPADA 227,369 46,383 505.93
26 PURI 11,394 3,024 15.82
27 RAYAGADA 69,578 13,446 126.85
28 SAMBALPUR 311,120 62,805 715.47
29 SUBARNAPUR 334, 1 08 64,638 73 1 .60
30 SUNDARGARH 11 7,388 28,29 1 253.03
Sub-Total 3,863,275 882,092 8,030.35