Procurement of surplus farm produces

There exists a transparent and Uniform Policy for procurement by Government Agencies across the country. Under this policy, whatever wheat and paddy are offered by farmers within the stipulated period, conforming to the specifications prescribed by Government of India (GOI), is purchased at Minimum Support Price (MSP) by the Government Agencies including Food Corporation of India (FCI), for Central Pool.

The different types of coarse grains are procured by State Governments itself in consultation with FCI to the extent that the concerned State Government may utilise the same for distribution under National Food Security Act (NFSA) as well as Other Welfare Schemes (OWS).

Price Support Scheme (PSS) is implemented for procurement of oil seeds, pulses and cotton through Central Nodal Agencies at the Minimum Support Price (MSP) declared by the Government. This scheme is implemented at the request of the concerned state government which agrees to exempt the procured commodities from levy of mandi tax and assist central nodal agencies in logistic arrangements including gunny bags, provide working capital for state agencies, creation of revolving fund for PSS operations etc. as required under the Scheme guidelines. The basic objectives of PSS are to provide remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of consumers by making available supplies at reasonable prices with low cost of intermediation.

However, if any producer/farmer gets better price in comparison to MSP, he is free to sell his produce in Open market.

The various steps like wide publicity of procurement operations, opening of adequate procurement centre by State Government Agencies/FCI and making timely payment to farmers through Real Time Gross Settlement (RTGS)/ National Electronic Fund Transfer (NEFT) and account payee cheque are taken to ensure remunerative price to farmers.

This was stated by Shri C.R.Chaudhary ,MoS ,Ministry of Consumer affairs,Food and Public distribution in a written reply in Rajya sabha today.



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