The Central Government extends price support to wheat and paddy through FCI and state Agencies. Procurement at MSP is open ended i.e., whatever foodgrains are offered by farmers
The Central Government extends price support to wheat and paddy through FCI and State Agencies. Procurement at MSP is open ended i.e., whatever foodgrains are offered by the farmers within the stipulated procurement period and which conforms to the quality specifications prescribed by Government of India, are purchased at MSP (and bonus / incentive, if any) by the Government agencies including FCI for central Pool. Some States also declare State bonus on wheat and paddy over and above MSP. Government agencies undertake MSP operation at mandis/ temporary purchase centres/aggregation points. Location and number of purchase centres to be opened are decided in consultation with /by the State governments.
The system of procurement is Custom Milled Rice (CMR) CMR is manufactured by milling paddy procured by State govt. /State agencies and FCI. In the states like A.P, Telangana, Punjab, Haryana, Chhattisgarh, Odisha, MP, Tamil Nadu, Maharashtra, UP & Bihar paddy is mainly procured by State government / State agencies and the resultant rice is delivered to State Government and FCI by getting the paddy milled from rice millers. Major responsibility of procurement of wheat and paddy is borne by the State agencies whereas FCI procures almost 70% of total rice procured for Central Pool.
