Govt sets support price for paddy

Kathmandu, October 24

The government has fixed the support price of paddy for this fiscal year at Rs 2,532 per quintal and Rs 2,673 per quintal, based on the variety.

While the Ministry of Industry, Commerce and Supplies (MoICS) has fixed the support price of thick paddy at Rs 2,532 per quintal that of medium-sized paddy has been fixed at Rs 2,673 per quintal.

Based on the recommendations of MoICS and the Ministry of Agriculture and Livestock Development (MoAD), the Cabinet meeting this week had endorsed the aforementioned support prices of paddy. However, the Cabinet decisions were released by the government today.

Last year, the government had set the price of thick paddy and medium paddy at Rs 2,330 per quintal and Rs 2,460 per quintal, respectively.

“The support price for the cereal crop has been fixed much earlier this year as delay in formal announcement had been affecting farmers across the country who had completed harvesting the crop,” said Prakash Mathema, secretary at MoAD.

The government had resumed fixing support price for paddy from 2016-17, following complaints from farmers that they were being deprived of reasonable price for their produce.

The support price fixed by the government means that farmers will get a reasonable price for their harvest even if there is a huge drop in farm price. In case the market price of paddy drops below the base rate fixed by the government, the government is liable to purchase paddy from farmers at support price.

Due to a favourable monsoon this year, the government has set a target to produce a record high of over 5.6 million metric tonnes of paddy in the ongoing fiscal. Production of the cereal crop has been rising in recent years.