It is well known fact that the Bihar has never achieved the procurement targetof food grains. Despite the sincere efforts of state government, rice procurement has been sluggish in current season also. The rice procurement was started in 2004-5 and FCI procured about 0 .72 lakh tonnes of rice. The state agency entered to procurement business in 2005-6 and procured about 87 per cent of rice in the first year. Food Corporation of India procured about one- third of rice in 2008-9 but its share declined almost at negligible level during last two years.The highest quantum of 22.87 lakh tonnes of rce was procured in Bihar in2011-12. Rice production is almost identical in our neighbouring states namely;Chhatishgarh and Orissa but their rice procurement has beenmore thanthree foldof rice procured in Bihar. In these states also ,state agencies played major role in rice procurement and FCI plays almost  insignificant role in rice procurement.

The Government of Bihar announced per quintal bonus of Rs 300 over procurement price of Rs 1360 per quintal rice ( un husked rice) in year 2014-15 but  procured only 19.85 lakh tonnes which is about one – fourth of rice produced in the state. Government seems to have cosmetic concern with the procurement business. There has been several irregularities have been reported in rice procurement but nothing moved to improve the situation. Some of PACS took  responsibility of procurement but the slow flow of fund to PACS  has been the main issue for poor procurement. There are some irregularities at PACS level also which have never been addressed properly by the state Government. On the whole farmers have not been benefited by procurement system operating in Bihar.

We have access to monthly prices of food grains from some villages of Bihar which reveals that  Bihar farmers had somehow managed to sell paddy at something around Rs 1100 to 1200 per quintal. This is nothing but a distress price, a classic example of ruthless exploitation by the private trade. Farmers are in loss in rice cultivation if they sell their paddy at Rs 1200 per quintal.

 Wheat procurement has been much sluggish in Bihar. It was also started in 2005-6 and  the highest procurement of 7.72 lakh tonnes was procured in  2012-13. In this year there is no report of wheat procurement from any part of Bihar. Farmers are selling wheat around Rs1100=--1200 per quintal against procurement price of Rs1450 .

Bihar farmers,particularly small landholders and tenant farmers donot have access to procurement centres. Sharecroppers are not allowed to sell their paddy at procurement centres because officials of procurement centres ask to show  current land revenue receipt which they donot have.

Farmers failed to sell their rice and wheat on procurement price but now they have to purchase poor quality seeds and chemical fertilizers from open market.  In Bihar, there is no institutional arrangement for providing quality seeds and fertilizers to farmers on reasonable price .The monitoring system for smooth supply of seeds and fertilizers is  ineffective. Some farmers complained to concerned authority about high price of fertilizers but they were asked to submit receipt of concerned transaction which is not available from retail business in Bihar.