Government of India Ministry of Consumer Affairs, Food and Public Distribution Department of Food and Public Distribution Ram Vilas Paswan

P PEG godown at Dhuri Silos rocurement of Food Grains

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PEG godown at Dhuri

rocurement of Food Grains

The Central Government extends price support to paddy, wheat and coarse grains through the Food Corporation of India (FCI) and State Agencies. All the foodgrains conforming to the prescribed specifications offered for sale at specified centers are bought by the public procurement agencies at the Minimum Support Price (MSP). The producers have the option to sell their produce to FCI/State Agencies at MSP or in the open market as is advantageous to them. Foodgrains procured by the State Governments and their agencies are ultimately taken over by the FCI for distribution throughout the country.

To improve outreach of MSP operations to cover more farmers and extend direct benefits to them, the Government has discontinued the levy on rice since October, 2015. With a view to effect savings in the form of reduction in the outgo of food subsidy, enhancing the efficiency of procurement and PDS and encouraging local procurement to the maximum extent thereby extending the benefits of MSP to local farmers, scheme of Decentralized Procurement (DCP) of foodgrains was introduced in 1997-98. Under the DCP, the State Government itself undertakes direct purchase of paddy and wheat and procurement of levy rice on behalf of Government of India. The Central Government meets the entire expenditure incurred by the State Governments on the procurement operations as per the approved costing. Presently 14 States / UTs viz. West Bengal, Madhya Pradesh, Bihar, Chhattisgarh, Odisha, Tamil Nadu, Karnataka, Kerala, Uttarakhand, Gujarat, Punjab, Andhra Pradesh, Telangana and A&N Islands are undertaking paddy/wheat procurement under the scheme. In addition, the State of Rajasthan have partially adopted the scheme for limited number of districts.

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