TN govt steps in to settle Rs 143 crore dues to farmers after NCCF delays payment

IANS June 24, 2025 495 views

The Tamil Nadu government has intervened to settle Rs 143 crore in pending dues owed to farmers due to delays by the National Cooperative Consumers' Federation (NCCF). This decision follows NCCF's halt in paddy procurement in eight districts, which caused significant unrest among farmers. The state directed the Tamil Nadu Civil Supplies Corporation to promptly disburse payments, ensuring financial relief to 5,000 affected farmers. With TNCSC assuming control of procurement operations, the move aims to restore trust and streamline future processes.

"The amount will later be recovered from the NCCF." - Official Statement
Chennai, June 24: In a major relief to thousands of farmers affected by delayed payments, the Tamil Nadu government has stepped in to disburse Rs 143 crore in pending dues following procurement lapses by the National Cooperative Consumers' Federation (NCCF), a central agency functioning under the Union Department of Consumer Affairs.

Key Points

1

Tamil Nadu pays Rs 143 crore to farmers

2

NCCF procurement failures prompt state intervention

3

TNCSC takes over paddy procurement operations

The NCCF had halted paddy procurement operations in eight non-delta districts -- Tiruvannamalai, Kancheepuram, Tirunelveli, Ramanathapuram, Vellore, Ranipet, Villupuram, and Thiruvallur -- amid peak harvesting, triggering protests from farmers who were left unpaid.

In response, the state has directed the Tamil Nadu Civil Supplies Corporation (TNCSC) to immediately settle the dues to approximately 5,000 affected farmers within the next 7 to 10 days. The amount will later be recovered from the NCCF, officials confirmed.

The decision follows a formal request from the Union Government urging Tamil Nadu to intervene and resolve the crisis caused by the NCCF's operational failures.

Under an earlier agreement, the NCCF had been authorised to procure paddy from the eight districts at the Minimum Support Price (MSP) and convert the paddy into rice for delivery to TNCSC.

TNCSC, in turn, would pay the NCCF upon receipt of the rice. However, officials revealed that while NCCF procured approximately 3.6 lakh metric tonnes (MT) of paddy from nearly 24,000 farmers -- worth Rs 810 crore -- it managed to process and deliver less than 40 per cent of the stock.

This disruption in the conversion process caused a cascading delay in the payment cycle.

Much of the procured paddy reportedly remained stored in open Direct Procurement Centres (DPCs), leading to excessive moisture accumulation and spoilage during rains. The deterioration in stock quality further complicated the processing and payment procedures, ultimately forcing the NCCF to suspend procurement activities in the eight districts.

In light of the ongoing issues, TNCSC has decided to assume direct control of paddy procurement operations in the affected districts, ending NCCF's role in the process.

Officials of the Tamil Nadu agriculture department said that TNCSC and NCCF have jointly disbursed Rs 9,396 crore to 4.71 lakh farmers, and the remaining Rs 143 crore will be paid within 10 days.

Despite the challenges, paddy procurement figures in Tamil Nadu have shown a significant year-on-year increase.

During the current Kharif Marketing Season (2025-26), over 39 lakh MT of paddy has been procured, compared to 29 lakh MT during the same period last year.

Officials expect this year's total procurement to exceed last year's by 8 to 9 lakh MT.

The swift intervention by the state government is expected to restore confidence among farmers and ensure smoother procurement operations in the upcoming months.

Reader Comments

K
Karthik R.
Good move by TN govt! Farmers shouldn't suffer due to central agency's inefficiency. But why was paddy stored in open DPCs? Such negligence is unacceptable when farmers' livelihoods are at stake. Hope strict action is taken against responsible officials. 🙏
P
Priya M.
As someone from a farming family in Tiruvannamalai, this intervention is a huge relief. My uncle was waiting for his payment for months. Central agencies must be more accountable - farmers work hard in the fields, they shouldn't have to beg for their rightful MSP payments.
R
Rajesh K.
While I appreciate the state's quick action, this shows the systemic issues in our procurement system. 3.6 lakh MT procured but only 40% processed? And stored improperly? This is taxpayers' money being wasted. Need complete overhaul of NCCF operations.
S
Saranya V.
Happy to see procurement numbers increasing year on year! 🎉 But quality matters as much as quantity. Hope TNCSC's direct control will bring better management. Farmers are the backbone of our nation - they deserve timely payments and proper storage facilities.
M
Manoj T.
This is why cooperative federalism matters. When central agencies fail, states must step in. But Rs 143 crore is a huge amount - hope TN govt recovers it fully from NCCF. Farmers' patience shouldn't be taken for granted.
A
Anitha P.
The article mentions 5,000 affected farmers - that's 5,000 families who couldn't pay school fees, medical bills or buy seeds for next season because of this delay. Systems must be farmer-centric, not bureaucratic. Kudos to TN govt for acting fast!

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Tags:
Tamil Nadu farmers payment NCCF delay TNCSC procurement Paddy procurement crisis