December 13: The state-owned Food Management and Trading Company (FMTC) Limited has started buying paddy from farmers. FMTC has set a target of purchasing 50,200 metric tons of paddy for Rs 1.74 billion this year. FMTC, which has always been late in purchasing paddy, has initiated the process on time this year.

Last year, FMTC started the process of purchasing 30,200 metric tons of paddy worth Rs 989.1 million. The company, which started procurement very late last year, did not even meet half of its target. Last year, FMTC purchased only 13,400 metric tons of paddy worth Rs 411.9 million.

Sharmila Subedi, information officer of the company, informed New Business Age that the company has already started purchasing paddy from Mahendranagar, Dhangadhi, Rajapur and Nepalganj areas. According to her, FMTC has already purchased 4,000 metric tons of paddy from these areas so far. Apart from this, FMTC is also preparing to buy paddy from Bhairahwa, Birgunj, Janakpur, Lahan, Biratnagar, Birtamod and Jumla.

“This year, we have started the procurement process with a big target. In the past few years, when we purchased late, we could not buy paddy as per the target. On top of that, we had to suffer food shortage. So this year, we have started purchasing paddy on time with a big target,” said Subedi, adding, “Procurement has been started in collaboration with local bodies even in places other than the main procurement center."

For the current fiscal year (FY), the government has set a minimum support price of Rs 3,098 per quintal for coarse paddy and Rs 3,362 per quintal for medium-sized paddy. This price is Rs 231 and Rs 234 higher than the price of previous year respectively.

This year, the FMTC aims to purchase a maximum of 9,500 metric tons of paddy from Rajapur area of Bardiya and a minimum of 200 metric tons from Jumla. FMTC will purchase local Marsi paddy from Jumla.