FMTC starts purchasing paddy, targets to buy over 73,000 tonnes

By A Staff Reporter

Kathmandu, Nov. 12:  Food Management and Trading Company (FMTC) has started buying paddy from farmers.

The company started purchasing paddy from its various depots before Tihar festival, said Sarmila Neupane Subedi, information Officer of FMTC.

Stating that paddy procurement has started in Tulsipur, Mahendranagar, Dhangadhi, Rajapur and Nepalgunj, she said that the company has planned to purchase paddy from various places of 13 different districts.

The company will purchase paddy from Mahendranagar, Dhangadhi, Nepalgunj, Bhairahawa, Birgunj, Janakpur, Lahan, Rajapur, Biratnagar, Birtamod, Tulsipur and Pokhara, among others, she said. 

She said that the FMCT will purchase paddy from other districts if the local bodies coordinate with the FMTC for the procurement of paddy.

“We have already instructed related depots of the districts to purchase paddy. However, some depots have started purchasing paddy after farmers brought the paddy to the depots. Some depots have not started purchasing paddy as the farmers have not brought the paddy for sale,” she said.

According to her, the company has been purchasing paddy based on the minimum support price fixed by the government and the market price.

"In the case of coarse and medium rice, the FMTC will purchase as per the price fixed by the government. But for long grain rice and local, the primary purchase committee formed under the coordination of Chief District Officer determines the price. We will buy paddy as per the rate fixed by the committee," she said.

The government has fixed the price of coarse paddy at Rs. 3,410.51 per quintal and of medium quality paddy at Rs. 3,580.62 per quintal for this year.

According to her, the FMTC has planned to purchase around 73,620 tonnes of paddy this year. For this, the FMTC has approved a budget of Rs. 2.65 billion.

Subedi said that till now around 14,859 quintals of paddy have been purchased in Tulsipur, Mahendranagar, Dhangadhi, Rajapur and Nepalgunj.

Although the FMTC was unable to purchase paddy as per the target last year, the FMTC is expected to purchase paddy as per the target this year, she said.

Last year, the FMTC was unable to purchase paddy as per the target due to the higher price given by the traders than the minimum support price.

The FMTC purchased only 46,000 quintals of paddy from farmers last year. FMTC had set a target to purchase 500,000 quintals of paddy last year.

The FMTC sells its own brand of rice by threshing the paddy bought from the farmers.

According to Subedi, the company would purchase paddy from the farmers with priority at first as the government and the FMTC aim to ensure the purchase paddy from farmers.

She, however, said that paddy is purchased based on recommendations from the ward to purchase rice from farmers. 

"Our priority is the producer farmers," she said. “The ward will know who is a farmer or not, and will purchase rice based on the recommendation."

The FMTC has been supplying food to 26 highly food-deficit districts -- Taplejung, Sankhuwasabha, Bhojpur, Solukhumbu, Okhaldhunga, Khotang, Manang, Gorkha, Mustang, Rukum East, Rukum West, Rolpa, Dailekh, Jajarkot, Humla, Jumla, Mugu, Dolpa, Kalikot, Bajhang, Bajura, Achham, Baitadi and Darchula.