Massive Fraud Uncovered in Madhya Pradesh's Paddy Procurement System
In a shocking revelation from Bhopal, even deceased individuals appeared eager to sell paddy at Minimum Support Price (MSP) in Madhya Pradesh. As the state government concluded its procurement season, a thorough audit exposed widespread manipulation in farmer registrations that could have resulted in substantial financial losses.
Dead Farmers' Names Used for Fraudulent Registrations
Data analysis of farmer registrations for paddy sales has uncovered a disturbing pattern: entries were made in the names of 1,407 farmers who had already passed away. Through rigorous field verification, authorities have conclusively confirmed at least 90 of these registrations belonged to deceased individuals whose identities were misused for fraudulent purposes.
"The registrations were created using the names of farmers who are no longer alive," explained a senior official from the MP food, civil supplies and consumer protection department. "This represents a systematic attempt to bypass procurement norms and exploit the system."
Thousands of Fake Landless Cultivators Identified
The scrutiny didn't stop with deceased farmers. Officials also examined registrations under the Sikmidar category – landless cultivators who farm leased land and are entitled to sell their produce at MSP. What they discovered was staggering: 9,147 out of 29,752 farmers registered as Sikmidars were completely fake.
These fraudulent Sikmidar registrations claimed paddy cultivation across 24,763 hectares of land, yet not a single procurement transaction was completed from these registrations thanks to timely intervention.
How the Verification Process Prevented Major Losses
The procurement season, which ran from mid-November 2025 to January 20, 2026, saw unprecedented scrutiny measures implemented by authorities. Officials conducted pre-procurement audits and cross-verified farmer registrations using multiple government databases including:
- Revenue records
- Civil registration documents
- Aadhaar-linked identity verification
- Land ownership and lease documentation
"Multiple filters helped intercept irregular transactions before they could cause financial damage," revealed a senior department official. "Procurement from most suspect registrations was stopped in time, limiting potential losses to the exchequer."
Why Madhya Pradesh's System Became Vulnerable
Sources within the department pointed to Madhya Pradesh's relatively higher MSP compared to neighboring states as a key factor making the procurement system vulnerable to abuse. This price differential allegedly encouraged middlemen to source paddy at lower rates from outside the state and route it into MP's procurement centers using fake or misused identities.
Under normal procurement norms, farmers must register in advance by providing:
- Aadhaar-linked identity details
- Land ownership records
- For Sikmidars: verified lease agreements for cultivated land
However, sources indicated that these provisions had been misused in previous seasons to create fraudulent registrations with forged or unverifiable documents, prompting the department to implement stricter verification protocols this procurement season.
The Scale of Legitimate Procurement
Despite the fraud attempts, Madhya Pradesh successfully procured 51.7 lakh metric tons of paddy from 8.54 lakh genuine farmers at the MSP rate of Rs 2,350 per quintal. The state's proactive verification measures ensured that only legitimate farmers benefited from the procurement program while weeding out potential fraudsters.
The department's drive to plug loopholes in the procurement system has set a precedent for agricultural procurement processes across India, demonstrating how technology and rigorous verification can protect public funds while ensuring genuine farmers receive their due benefits.
