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Business News/ News / India/  Govt’s rice procurement tops 52 million tonne; pays 1.6 trillion MSP

Govt’s rice procurement tops 52 million tonne; pays ₹1.6 trillion MSP

The MSP for ‘common’ grade paddy was set at ₹2,040 per quintal, while ‘A’ grade paddy was priced at ₹2,060 per quintal for the current year.

Centre’s rice procurement concluded on May 22,Premium
Centre’s rice procurement concluded on May 22,

New Delhi: The Centre procured 52.06 million tonne of rice during the kharif marketing season (2022-23), resulting in a substantial minimum support price (MSP) payout of 1.6 trillion to over 1.1 crore farmers, according to official data released on Friday.

The Ministry of Consumer Affairs, Food & Public Distribution said the rice procurement, which concluded on May 22, was a central part of the government’s strategy to ensure MSP for farmers and provide affordable food to vulnerable social groups. The initiative also contributes to stabilising the market and strengthening overall food security.

The ministry stated the MSP for ‘common’ grade paddy was set at 2,040 per quintal, while ‘A’ grade paddy was priced at 2,060 per quintal for the current year.

As per the second advance estimate, the total production of rice for the kharif marketing season is projected to be 1,308.37 lakh metric tonne (LMTs), with an estimated procurement of 626.06 LMTs.

The ministry said paddy brought to the purchase centres which are within the prescribed quality specifications are purchased at the fixed MSP. If the farmers get prices better than the support price from other buyers such as traders/millers etc., they are free to sell their produce to them. FCI and the state government/agencies ensure that the farmers are not compelled to sell their produce below support price, it said.

FCI and most of the state governments have developed their own online procurement system through which farmers get latest/updated information regarding MSP declared, nearest purchase centre, date of procurement etc, it added.

The procurement of paddy under the price support scheme is primarily carried out by state governments and their agencies, with the Food Corporation of India (FCI) serving as the nodal central agency of the government.

Before each rabi and kharif crop season, the government announces the minimum support prices based on the recommendations of the commission of agricultural costs and prices. These prices take into account factors such as input costs and reasonable margins for farmers. To ensure wide awareness, MSP operations are extensively promoted through various media channels.

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Updated: 26 May 2023, 03:55 PM IST
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