Farmers struggling for Rabi sowing due to Kharif crop loss and slow procurement

Due to losses in Kharif crops and the slow pace of both government and private procurement, farmers are now facing difficulties in securing the necessary funds for Rabi sowing. Unexpected rainfall and cyclones in the month of October have damaged crops, leading to a decline in production. Additionally, traders are withholding purchases due to currently high market prices, resulting in a cash crunch for farmers.

This problem is clearly evident in the case of Reena Kumari, a paddy farmer from Budaun district of Uttar Pradesh. She cultivates paddy on approximately 5 acres and usually obtains a yield of 20 to 25 quintals, but this season her production has dropped to only 10 to 12 quintals. When the cyclone arrived in October, the crop was ready in the field, causing damage. She had spent ₹ 40,000 to ₹ 50,000 to grow this crop.

According to Reena Kumari, the Minimum Support Price (MSP) for paddy is ₹ 24.41 per kg, but currently, market prices are around ₹ 35 to ₹ 36 per kg. Due to these high prices, traders are delaying purchases. According to Agmarknet mandi price data, on 4 November, the model price for ordinary paddy in Budaun was approximately ₹ 3,300 per quintal or ₹ 33 per kg.

According to Anand Chandra, Co-founder and CEO of Arya.ag, prices of three major Kharif crops—soybean, paddy, and maize—are currently high, providing an opportunity for farmers to earn more profit. However, processors believe that prices will fall when the arrival of goods in the market increases, so they are waiting by withholding purchases for now. This is making it difficult for farmers to immediately convert their produce into cash.

According to Anand Chandra's observation, delays in Kharif crop harvesting may change the arrival of goods, and farmers have less time to sell their produce and arrange funds for Rabi sowing. He is also monitoring whether this pressure changes farmers' storage decisions and their demand for short-term loans against harvested crops.

A decline has also been observed in government procurement figures. According to a report by Hindustan Times, between 1 October and 28 October, the Food Corporation of India (FCI) and state agencies procured 13 million tonnes of paddy, compared to 16.9 million tonnes during the same period last year. This means there has been a decline of approximately 23% in procurement.

This economic pressure is increasing as the Rabi sowing season begins. According to data released by the Union Ministry of Agriculture, as of 30 October, the total area under Rabi crops in the country was 3.76 million hectares, compared to 6.90 million hectares during the same period last year. Wheat sowing was done in only 19,000 hectares, compared to 334,000 hectares last year. The area under mustard reached 2.05 million hectares, compared to 3.81 million hectares last year.

Kharif crop is the first major crop of the year, generally sown during the monsoon, and its production is determined by rainfall. Rabi crop is the second major crop of the year, sown during the winter, and the income farmers receive from the Kharif crop is very crucial for Rabi sowing.