Odisha to Introduce e-KYC System for Farmers in Paddy Procurement to Ensure Transparency
Bhubaneswar, July 1: In a significant move aimed at increasing transparency and curbing irregularities in the paddy procurement process, the Odisha government has decided to introduce an e-KYC (Electronic Know Your Customer) system for farmers. The new mechanism is expected to ensure that only genuine farmers from the state benefit from government procurement schemes and prevent the inflow of paddy from neighbouring states.

The decision was taken at an inter-ministerial review meeting held on Monday, chaired by Deputy Chief Minister K.V. Singh Deo, to assess the status of Rabi paddy procurement for the 2024–25 season.

According to official data shared during the meeting, Odisha has so far procured 19 lakh metric tonnes (MT) of paddy this Rabi season—exceeding the initial target of 14 lakh MT. This marks a significant rise from the 12 lakh MT procured during the same period last year and sets a new record in paddy procurement for the state.

Highlighting Odisha’s commitment to supporting farmers, officials noted that the state remains the only one in the country offering ₹3,100 per quintal for paddy procurement, which includes both the Minimum Support Price (MSP) and input assistance under the Samruddha Krushak Yojana for Rabi crops.

The meeting also explored the introduction of a new paddy procurement policy, which is currently under consideration by the state government.

As per government estimates, Odisha requires 27 lakh MT of rice annually for internal consumption. However, with a combined production of 93 lakh MT of paddy from both Kharif and Rabi seasons this year, the state is set to generate around 63 lakh MT of rice—far surpassing its internal demand.

To manage the surplus effectively, the government has made arrangements to supply paddy straw and broken rice to ethanol production units. This initiative will support the manufacturing of second-generation (2G) ethanol, promoting a circular economy and reducing agricultural waste.

The implementation of the e-KYC system and the strategic use of surplus paddy resources are seen as crucial steps in modernizing Odisha’s agricultural procurement system while safeguarding the interests of genuine farmers.