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Odisha: Delay in opening mandis fuels illegal paddy trade

PNN
Updated: December 15th, 2025, 10:20 IST
in Business, State, Top Stories
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Pattamundai: Even as nearly 80 per cent of the kharif paddy harvest has been completed in Pattamundai subdivision and adjoining areas of Kendrapara district, the government is yet to open procurement mandis, pushing farmers into distress sale and fuelling illegal paddy trade.

With mandis remaining shut, farmers are unable to sell their produce through official channels and have been forced to store harvested paddy in open spaces, exposed to weather damage. Taking advantage of the situation, outside traders have become active in the area, purchasing paddy at prices far below the government-declared minimum support price (MSP).

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Farmers allege that agricultural cooperative societies in Pattamundai have virtually become defunct. Arbitrary functioning by some society secretaries has deprived many cultivators of institutional support, forcing them to depend on private moneylenders for cultivation. To repay these loans, farmers are now compelled to sell paddy at throwaway prices to private traders.

Also Read: Odisha ‘streamlines’ paddy procurement to ensure transparency, minister says

The situation has raised serious questions about the government’s agricultural procurement policy and triggered growing resentment among farmers. Several farmer organisations have demanded immediate opening of mandis to prevent further exploitation.

The government had introduced the mandi system through Primary Agricultural Cooperative Societies (PACS) to enable farmers to sell paddy conveniently. In the Pattamundai area, 16 PACS are officially operational. However, the Pattamundai PACS remains closed, while many others are reportedly crippled by mismanagement, loan defaults and administrative negligence.

Farmers say they have faced difficulties since the beginning of the current kharif season. Due to alleged apathy by departmental officials, many cultivators could not avail of benefits under government schemes. As a result, they borrowed money to meet cultivation expenses and household needs, later being forced to sell their produce to private traders to clear debts.

It is also alleged that due to negligence by cooperative society secretaries, the names of many genuine farmers were not included in official procurement lists. Despite repeated protests and agitations by farmers, the administration has failed to resolve the issue.

Earlier, reports had surfaced in the media regarding irregularities such as the allocation of agricultural loans using fake land records and favouritism in the issuance of paddy tokens. Farmers allege that some society secretaries continue to indulge in corrupt practices by leveraging political connections, while no effective action has been taken despite widespread allegations.

Meanwhile, mandis for the ongoing kharif season are yet to be opened, and officials have not clarified the reasons for the delay. Many farmers have expressed loss of faith in the token-based procurement system and said they no longer trust the mandi mechanism.

The district and block administrations have been urged to intervene immediately and ensure the opening of mandis in Pattamundai block. Leaders of the Naba Nirman Krushak Sangathan, including Dasarathi Sahu, Dolagobinda Sahu, Akrur Palai, Sisir Ojha, farmer leader Bijay Das and Prakash Mohanty, have collectively demanded urgent action to safeguard farmers’ interests.

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Tags: FarmerKendraparaOdishapaddy
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