Procurement of paddy under MSP in Chhattisgarh region

An MoU has been signed between Government of India, State Government and Food Cooperation of India in both DCP and non – DCP States for procurement of paddy from farmers under 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 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 TPDS/ OWS, such excess quantity shall be treated to be outside the Central Pool”.

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 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 KMS 2020-21, the Government of Chhattisgarh had also published an advertisement / press release on 17.12.2020 detailing the Rajiv Gandhi Kisan Nyay Yojana that they will procure paddy from the farmers @ 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 bonus on procurement of paddy.

Accordingly, it has been decided to allow 24 lakh MT of rice to be delivered to FCI under central pool during KMS 2020-21 which is equivalent to the quantity as allowed in previous years.

APS/MS

(Release ID: 1685831)

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