The study was undertaken to estimate marketable surplus of different farm size groups and their channels of marketing with respect to Aman paddy. The extent of farmer participation in selling paddy to the government procurement centre was also examined. The study indicated that all size groups sell paddy immediately after harvest though about half of them buy back in the off-season at a higher price. The main cause of immediate sales was the need for consumption goods. The government procurement programme of paddy benefited the intermediaries more than the farmers because the mechanism of procurement provided little incentive to farmers for selling at the procurement centres.