May 11, Kathmandu – This year, the government’s timely fixation of the minimum support price (MSP) for Chaite paddy had sparked hope among farmers across the country: ‘This time we will get a fair price!’ In previous years, the government established the price only after the paddy was harvested or sold cheaply to traders, but this time it set the price in the last week of Chaitra. However, when the farmers went to sell their hard-earned paddy in the market, their hopes were dashed. The government-fixed price remains only on paper, forcing farmers from eastern Siraha through central Chitwan to western Kailali to endure the same fate as before. They are compelled to sell their produce at bargain prices due to intermediaries’ manipulation.
Although the price was fixed timely, implementation fell short. Initiated by Agriculture, Forestry and Environment Minister Gita Chaudhary, the MSP for Chaite paddy in the current fiscal year was set at NPR 2,856.49 per quintal in the last week of Chaitra. This is NPR 55.08 higher than last year’s rate of NPR 2,800 per quintal. The government set the price assuming 18 percent moisture content in the paddy. When moisture exceeds 18 percent, a technical provision reduces the weight by 1.2 kilograms per quintal to calculate the price accordingly. Yet, despite the MSP fixation, the lack of an effective procurement mechanism and monitoring has prevented farmers from receiving the promised price.
Farmers have faced similar challenges in previous years. Paddy must be harvested during the rains of Jestha and Asar, which prevents proper drying. Traders and rice mill operators exploit this ‘excess moisture’ as an excuse to purchase paddy at prices far below the government-fixed MSP, a trend that continues this year. While the government sets the support price, state entities such as the Food Management and Trading Company fail to conduct village-level procurement. Consequently, farmers are forced to sell their paddy cheaply to local traders.
