The Hindu Business Line : FCI to buy paddy directly in Orissa on experimental basis

THE Food Corporation of India (FCI) will undertake direct procurement of paddy from farmers in paddy surplus districts of Orissa, as it is currently doing in other States such as Punjab, Haryana and Andhra Pradesh.

The decision has been taken following a meeting between the Prime Minister, Mr Atal Bihari Vajpayee, and the Orissa Cheif Minister, Mr Naveen Patnaik, here on Monday.

Highlighting the problem of distress sale of paddy in the State, Mr Patnaik brought to the Prime Minister's notice the order by the Orissa High Court, directing FCI/State Government to take up direct procurement of paddy from farmers in Bolangir district.

"After discussion, it was decided that in compliance with the High Court's orders, FCI will procure paddy directly from the farmers in Bolangir on an experimental basis,'' a State Government release said.

In his meeting, Mr Patnaik also raised the issue of shortage of space for storage of foodgrains in Orissa and requested that FCI provide a seven-year guarantee for construction of additional godown capacity of one million tonnes in the State.

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