• Page last updated on: 25 November 2019
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Introduction

 

The Central Government extends price support to paddy and wheat through the FCI and State Agencies across the country. The procurement policy is open ended. Under this policy, whatever wheat and paddy are offered by farmers, within the stipulated period & conforming to the specifications prescribed by Government of India, are purchased at Minimum Support Price (MSP) by the State Government agencies including Food Corporation of India (FCI) for Central Pool. However, if producer/farmer gets better price in comparison to MSP, they are free to sell their produce in open market i.e. to private trader/ anyone. The objective of foodgrains procurement by Government agencies is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale. It aims to service the NFSA and other welfare schemes of the Government so that subsidised foodgrains are supplied to the poor and needy, and to build up buffer stocks of foodgrains to ensure foodgrain security.

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