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Arzoo Rice Mill to buy 10,000 metric tonnes of paddy

{{TAG_OPEN_div_40} Kathmandu. With an aim to provide fair price and assured market to the farmers of Madhes Province, which is the largest producer of paddy in the country, Arzoo Rice Mill Pvt. Ltd. has put forward a plan to purchase about 10,000 metric tonnes of Jeera Masino variety of paddy from Madhes Province, especially Sarlahi and Rautahat. The total value of the proposed purchase will be more than Rs 39 crore.

Birendra Bahadur Basnet, executive chairman of Arzoo Rice Mill, has written a letter to the Chief Minister of Madhesh Province urging him to purchase the paddy produced by the farmers on the basis of the pre-announced minimum support price and to connect the farmers directly with the market. According to the mill’s proposal, market, transportation, collection and quality management will be carried out in an integrated manner so that the farmers can get the real benefit of the minimum support price.TAG_OPEN_div_38

Although Madhesh Province is one of the major rice producing regions of Nepal, farmers have been facing problems of proper market, price and transportation after production. Even though the government has fixed the minimum support price, farmers are not able to take full advantage of the transportation cost of transporting paddy to the purchase center or mill.TAG_OPEN_div_36

Arzoo Rice Mill aims to create a definite market for farmers by purchasing paddy from farmers on the basis of pre-announced minimum support price. The mill has proposed a provision to fix the price of paddy according to the prescribed quality and get a higher price if the quality is good. This is expected to reduce the compulsion of farmers to search for market to sell their produce and reduce uncertainty in prices.TAG_OPEN_div_34

This initiative is expected to provide farmers with an assured market, fair prices, less dependence on middlemen, reduction of post-harvest losses and the opportunity to sell paddy collectively. The mill believes that if the collection of paddy can be managed through farmers’ groups, farmer producer organizations and cooperatives, transportation and other costs can also be reduced.TAG_OPEN_div_32

Fine varieties of paddy will be transported to the mill gate, 20 per cent moisture and 5 per cent husk (khakri) will be fixed at Rs 3500 per quintal. Similarly, if the moisture content is low, 1200 grams of one per cent moisture will be added and 1 kg will be added for 1 per cent husk. For example, if the paddy is good and the moisture content is 14 per cent and the rice is without chaff, then the price of paddy will be Rs 3962 per quintal.

Arzoo Rice Mill has urged the Madhes Province government to make policy arrangements for necessary support and facilitation in the transportation of paddy to the paddy mill or purchase center as the transportation cost is important for the farmers to get the real benefit of the minimum support price.TAG_OPEN_div_28

The coordination among the provincial government, local level, agriculture office, farmers’ groups, cooperatives and the private sector is expected to facilitate the farmers in the collection, storage, quality management and transportation of paddy, which is expected to develop long-term business relations between the farmers and the mills.TAG_OPEN_div_26

Arzoo Rice Mill has expressed confidence that if a clear provision is implemented to purchase paddy at the minimum support price, the tendency of local traders to buy paddy from farmers at a very low price will be reduced. This is expected to help in increasing the security of the farmers to get a fair price for their produce by creating a practical basis for the minimum price in the market.TAG_OPEN_div_24

The proposal of the mill has pointed out the possibility of increasing the participation and ownership of farmers not only in the purchase of paddy immediately but also in the long-term rice processing and rice industry in Madhes Province. Arzoo Rice Mill believes that if the farmers can be assured of market, transportation and long-term sale, the participation of farmers and investment in the establishment and development of rice mills in Madhes Province can increase in the future.TAG_OPEN_div_22

} The mill has committed to keeping the quality, weight, price and payment process transparent while purchasing paddy. Arzoo Rice Mill believes that the policy cooperation of the provincial government and the effective linking of the market and management capacity of the private sector with the farmers will contribute significantly to making rice farming in Madhesh Province more commercial, competitive and profitable.

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