Paddy glut and farmer distress in Andhra Pradesh

Abstract

The artificial glut in paddy in Andhra Pradesh after the 2011 rabi was created by millers who cut down their purchases after an excellent harvest. This caused severe distress to farmers, a majority of whom sold their produce at less than the minimum support price. A record procurement of the rabi crop by state agencies could not mitigate the crisis, which has become an annual phenomenon. The lopsided policy of the Food Corporation of India in Andhra Pradesh of procuring rice instead of paddy is the root cause of the problem.