Lakhs of farmers from across the country have a reason to cheer. Rice procurement has started and has been estimated by the Central Government at 518 lakh metric tones (LMT) during Kharif Marketing Season (KMS) 2022-23 for central pool, as against 509.82 LMT procured during last KMS 2021-22 (Kharif crop). Further, all the states are geared up for hassle free procurement in the days to come. Procurement of paddy in the Tamil Nadu has already commenced and about 2.71 lakh metric tonnes of paddy has been procured upto 29th of September, 2022 as compared to nil procurement last year.
Based on the information furnished by the state governments, state-wise procurement estimates and timelines of procurement and milling has been finalized in the state food secretaries’ meeting held on 30.08.2022 chaired by Secretary (DFPD), GoI. In order to supplement the nutritional requirements of public at large, it has been mandated by the Government of India to procure rice in the form of fortified rice during this year.
Further, a quantity of 13.71 LMT coarse grains which are considered as ‘Nutri-Cereals’, have also been proposed for procurement by the states during the forthcoming KMS 2022-23 as against actual procurement of 6.30 LMT during KMS 2021-22.
Innovations to be incentivized
Issues relating to adoption of mechanized procurement operations, borrowing at lower interest rate, reduction in cost of procurement operations, adoption of innovative techniques, quality control mechanism, promotion of millets, gunny bags requirements, online settlement of food subsidy claims have also been discussed during the meeting. It was also suggested that such innovations should be incentivized.
Focus on millets
The government agencies have kept their focus on procurement of millets, not only on account of International Year of Millet-2023, but also because of climate changes. Climate changes have been adversely affecting wheat and rice and resulting in reduction in their production.
Super food
A quantity of 13.70 LMT coarse grains which are termed as ‘super food’, has been proposed for procurement by the states during the forthcoming KMS 2022-23 as against actual procurement of 6.30 LMT as on date.
Procurement of rice increased
For the central pool, procurement of rice has increased over the last four years. From 382 lakh tonnes in Kharif Marketing Season 2017-18 to 599 lakh tonnes in 2020-21, it is on continuous upward trends.
Objectives of procurement
The government policy of procurement of food grains has broad objectives of ensuring MSP to the farmers and availability of food grains for the weaker sections of the society at affordable prices. It also ensures effective market intervention to keep the prices under check and also adds to the overall food security of the country.
Price support through agencies
The Central Government extends price support to wheat and paddy through FCI and state agencies. Procurement at MSP is open ended as whatever foodgrains are offered by the farmers within the stipulated procurement period and which conforms to the quality specifications prescribed by government, are purchased at MSP by the agencies including FCI for central pool. In the meantime, some states also declare state bonus on wheat and paddy over and above MSP.
Role of Mandis
Government agencies undertake MSP operation at mandis or temporary purchase centres or aggregation points. Location and number of purchase centres are decided in consultation with or by the state governments. The number of centers and their locations are decided by the state governments, based on various parameters to maximize the MSP operations.
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