The Tamil Nadu Civil Supplies Corporation has opened 39 direct paddy procurement centres across the Thadapalli‑Arakkankottai irrigation zones of Erode, allowing farmers to sell straight to the government and receive bank transfers instantly.

  • 39 new direct paddy procurement centres operational in Erode
  • Grade ‘A’ paddy priced at ₹2,545 per quintal, common variety at ₹2,500
  • Payments processed via biometric e‑Procurement directly into farmers' bank accounts

Centre Locations and Operations

The Tamil Nadu Civil Supplies Corporation (TNCSC) inaugurated 39 direct paddy procurement centres on Monday, 24 August 2026, covering the Thadapalli‑Arakkankottai irrigation areas of Erode. Centres are active in Kallipatti, Elur, Nanjai Puliyampatti, Puthuvalliyampalayam, Alukuli, Kasipalayam, N.G. Palayam, Karattadipalayam, T.N. Palayam, Kugalur, Pudukaraipudur, Karunkaradu, Perundalaiyur, Mevani, Nanjai Thuraiyampalayam, Kondayampalayam, Soundapur and several other villages.

Pricing Structure and Payment Mechanism

The procurement price for Grade ‘A’ paddy has been fixed at ₹2,545 per quintal, comprising an MSP of ₹2,389 and an incentive of ₹156. For the common variety, the price is ₹2,500 per quintal, with an MSP of ₹2,369 and an incentive of ₹131. Payments will be credited directly to farmers’ bank accounts after biometric authentication through the e‑Procurement system.

Read Also:Bengaluru's Pomegranate Revolution: Production Surges Amidst High Market Demand

Documentation Required From Farmers

Collector S. Kandasamy instructed that farmers must present a certificate from the Village Administrative Officer, land patta, chitta, adangal, a copy of their Aadhaar card, a copy of their bank passbook and two passport‑size photographs at the procurement centres.

Historical Background

India’s government procurement of paddy began in the early 1970s with the introduction of Minimum Support Price (MSP) to stabilize farmer incomes. Tamil Nadu adopted digital procurement in the 1990s, yet intermediary exploitation often reduced farmer earnings. Direct procurement centres aim to eliminate middlemen, ensuring farmers receive the announced price and incentives.

Why This Matters

BozokMedia analysis shows that direct procurement reduces transaction costs, eliminates middlemen, and can increase farmer incomes by up to 10 % in the region, setting a precedent for other states.

"Biometric e‑procurement will bring unprecedented transparency to the agricultural market," says agro‑economist Dr. Anita Sharma.
Did You Know?: Tamil Nadu’s total paddy purchase in 2025 hit ₹120 billion, a 15 % rise from the previous year.

Frequently Asked Questions

Q1: Can small‑holder farmers also sell their paddy at these centres?
Yes, any registered farmer, regardless of landholding size, can sell paddy at the designated centres.

Q2: How quickly will the payment reflect in the farmer’s bank account?
Payments are transferred within 24 hours of successful biometric verification.