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Procurement of paddy under MSP in Chhattisgarh

ANI | Updated: Jan 03, 2021 21:56 IST

New Delhi [India], January 3 (ANI): An Memorandum of Understanding (MoU) has been signed between Government of India, State Government and Food Cooperation of India in both Scheme of Decentralised procurement (DCP) and non-DCP states for procurement of paddy from farmers under the central pool.
As per Clause No.3 of MoU of DCP State, "in the situation of State giving any bonus/ financial incentive in direct or indirect form, over and above Minimum Support Price (MSP), if the overall procurement of the State is in excess of the total allocation of the State made by the Government of India under Targeted Public Distribution System (TPDS)/ Other Welfare Schemes (OWS), such excess quantity shall be treated to be outside the Central Pool," Ministry of Consumer Affairs, Food and Public Distribution said in an official press release.
Initial targets are only estimates settled with States and States are asked if they are giving incentive or not. Some states including Madhya Pradesh and Chhattisgarh were found to be giving incentive so Central Government procurement is restricted to the quantity which was procured in past without bonus/incentive. Central Government is following a uniform policy and supporting farmers across the Country. Same is followed in Chhattisgarh procurement.

During Kharif Market Season (KMS) 2020-21, the Government of Chhattisgarh had also informed that under the Rajiv Gandhi Kisan Nyay Yojana, they will procure paddy from the farmers at Rs.2500/- per quintal during KMS 2020-21 by paying Rs.10,000/- per acre which is a form of indirect incentive over and above the MSP which is as good as a bonus on procurement of paddy.
Accordingly, it has been decided to allow 24 lakh million tonne (MT) of rice to be delivered to Food Corporation of India (FCI) under central pool during KMS 2020-21 which is equivalent to the quantity as allowed in previous years.
On December 28, 2020, Chhattisgarh Chief Minister Bhupesh Baghel wrote to Union Minister of Consumer Affairs, Food and Public Distribution Piyush Goyal and urged him to give permission as per the 'in-principle approval' for procurement of 26 lakh metric tonnes of usna (par-boiled) rice and 14 lakh metric tonnes of arwa rice by the Food Corporation of India (FCI) in the Kharif marketing year 2020-21. (ANI)