Odisha Farmers Face Exploitation During Paddy Procurement, Former CM Alleges ‘Systemic Failure’
Bhubaneswar – Odisha’s opposition leader Naveen Patnaik has accused the state government of failing to protect farmers during the current Kharif paddy procurement season, alleging widespread “systemic exploitation” at state-run mandis (agricultural marketplaces). Patnaik, a former chief minister, claims farmers are facing arbitrary deductions and delays in payment, despite assurances from the ruling Bharatiya Janata Party (BJP).
In a strongly worded letter to Chief Minister Mohan Charan Majhi on Monday, February 9, 2026, Patnaik described the procurement season as a period of “profound struggle” for farmers. He attributed the crisis to administrative negligence and the BJP government’s failure to honor its 2024 election promises.
At the heart of the farmers’ grievances, Patnaik wrote, is the continued practice of “katni chhatni”— arbitrary and illegal deductions from agricultural produce at procurement centers. During the 2024 elections, the BJP pledged to enhance the Minimum Support Price (MSP) and eliminate katni chhatni, but Patnaik asserts the reality on the ground tells a story of “betrayal.”
Farmers are reportedly facing deductions of 5-7 kg per quintal, or even more, based on dubious pretexts such as excess moisture content or inferior grain quality. “In many districts, this exploitation is happening in broad daylight, often with the alleged collusion of millers and local officials, forcing farmers into a ‘mutual agreement’ that robs them of their hard-earned income,” Patnaik stated in his letter.
Patnaik also criticized the government’s decision to cap an input subsidy of ₹800 per quintal at 150 quintals per farmer, calling it a “clear breach of trust” that penalizes productive farmers and contradicts the BJP’s electoral promises.
Beyond the deductions and subsidy limitations, Patnaik highlighted operational issues at procurement sites. He pointed to sluggish paddy lifting, leaving farmers forced to guard their harvested stock overnight in severe winter conditions to prevent theft or deterioration. “The lack of basic facilities, the failure of the token system, and the delay in payment, which was promised within 48 hours through DBT but is taking weeks in many cases, have pushed the farmers to the brink of agitation,” he wrote.
These delays, coupled with the arbitrary deductions, are reportedly driving debt-ridden farmers to sell their produce to private traders and millers at prices significantly below the official MSP.
Patnaik urged the chief minister to take immediate action, including deploying special monitoring squads to eliminate katni chhatni, removing the 150-quintal ceiling on the input subsidy, ensuring farmer payments within 48 hours through Direct Benefit Transfer (DBT), and guaranteeing 100% lifting of paddy, particularly stocks stored in the open, within 72 hours.
“Failure to address these grievances will leave the farming community with no choice but to intensify their protests across the state,” Patnaik warned. “I hope your government will rise above rhetoric and fulfill its promises to the farmers of Odisha.”
Officials suggest the problems stem from a significant expansion of agricultural production in the state since 2000. With approximately 19.7 million tonnes harvested, state agencies have only been able to procure around 9.2 million tonnes at the MSP of ₹2,300 per quintal (plus a ₹800 state bonus). This leaves roughly 10 million tonnes that farmers are forced to sell on the open market at lower prices. A key constraint is the state’s limited storage capacity, hindering its ability to store rice produced from the procured paddy.
