The Orissa government has entered into an MoU with NAFED on December 20, 2006 for creating suitable market linkages for procuring marketable agricultural commodities such as oilseeds, pulses and cereals etc. In the meantime, State Government has appointed NAFED as a state agent for procurement of paddy, maize and ragi during kharif marketing season (KMS) 2007-08.
Maize is grown abundantly by the tribal farmers of Nawarangpur (KBK district). The market arrival of maize has been estimated to be around 1.25 lakh MT during the current year. Even though the Central government has fixed the MSP for maize at Rs 620 per quintal for this season, the farmers are now selling at a distress price of Rs 600 per quintal in Nawaranpur district.
The maize procurement is largely controlled by the private traders and middle men across the state. Thus, the tribal farmers are subjected to unfair trade practices and not able to get remunerative price for their maize produce.
The presence of NAFED in the Umerkote and Raighar Market Yards of Regulated Market Committee (RMC) Nawarangpur will resulted in farmers getting competitive price for their produce in the market, said a senior official of the cooperation department. The tribal farmers would experience the benefit of NAFED intervention which would caused the selling price becoming competitively demand driven to the advantage of producer-farmers, he added.
NAFED has made elaborate arrangement to step-in the procurement operation of maize from November 16, 2007 in the market yards of Nawarangpur RMC. The procurement will be at MSP of Rs 620/- per quintal to begin with and would continue under commercial operation at market competitive rate onwards.
The procurement operation of maize by NAFED in the district of Nawarangpur will also be followed with procurement in other Maize growing districts like Mayurbhanj, Keonjhar, Koraput and Rayagada, said a NAFED official.