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Central Government extends price support to farmers for
purchase of paddy, wheat and coarse grains through FCI and
State Agencies.
Food grains conforming to the prescribed specifications are
bought by the Government procurement agencies at the
Minimum Support Price (MSP) plus incentive bonus announced,
if any.
Farmers have the option to sell their produce to FCI/State
Agencies at MSP or in the open market.
 Procurement at MSP is open ended.
System of Procurement
 In DCP (Decentralized procurement) States, the State Governments take entire
responsibility of procurement, storage and distribution for TPDS/OWS/NFSA.
 GOI reimburses expenditure incurred by the States.
 Foodgrains procured in excess of TDPS/OWS/NFSA requirements of States are
handed over to FCI.
 Government encourages DCP system to ensure better reach of MSP, making
available local varieties to PDS beneficiaries and cost-saving on transportation and
storage.
 In non-DCP States, State Agencies handover foodgrains to FCI for issue within the
State or movement to other States.
 Major responsibility of procurement of wheat and paddy is borne by State Govts.
And their agencies.
 Orissa, Chhattisgarh, Kerala, Tamil Nadu have increased their procurement of
paddy/rice, while Rajasthan in wheat and MP in both paddy/ rice and wheat
substantially increased their procurement in the last few years.
 Rice is accepted by FCI entirely in non DCP states and surplus in DCP states.
Procurement Policy
Production, Procurement of Rice & MSP of
Paddy
918
933 966 991
890
959 1053 1052 1065 1054
1034 1088.6
276
251 287.4 341 320.3 341.9
350.6
340.44
318.4
320.4
342.17
320.65
570 620 745
900 1000
1000 1080
1250 1310
1360
1410 1470
0
200
400
600
800
1000
1200
1400
1600
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17*
Year KMS- wise
Production
Procurement
MSP Common
*under progress(Data as on 22.03.2017)
Production, Procurement & MSP of Wheat
807 808
869
939 935 956 957.64 935.0
254 225
283
381
251 280.23 280.88 229.6
1080 1100
1170
1285
1350 1400 1450
1525
0
200
400
600
800
1000
1200
1400
1600
1800
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Quantity
in
LMT
Rs/Qtls
Year(RMS-Wise)
Production
Procurement
MSP
Procurement of Pulses
• To build up buffer of Pulses, DF&PD nominated FCI as
a nodal agency.
• Creation of buffer is to stabilize market procurement
of Pulses.

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System for purchase of grains.pptx

  • 1. Central Government extends price support to farmers for purchase of paddy, wheat and coarse grains through FCI and State Agencies. Food grains conforming to the prescribed specifications are bought by the Government procurement agencies at the Minimum Support Price (MSP) plus incentive bonus announced, if any. Farmers have the option to sell their produce to FCI/State Agencies at MSP or in the open market.  Procurement at MSP is open ended. System of Procurement
  • 2.  In DCP (Decentralized procurement) States, the State Governments take entire responsibility of procurement, storage and distribution for TPDS/OWS/NFSA.  GOI reimburses expenditure incurred by the States.  Foodgrains procured in excess of TDPS/OWS/NFSA requirements of States are handed over to FCI.  Government encourages DCP system to ensure better reach of MSP, making available local varieties to PDS beneficiaries and cost-saving on transportation and storage.  In non-DCP States, State Agencies handover foodgrains to FCI for issue within the State or movement to other States.  Major responsibility of procurement of wheat and paddy is borne by State Govts. And their agencies.  Orissa, Chhattisgarh, Kerala, Tamil Nadu have increased their procurement of paddy/rice, while Rajasthan in wheat and MP in both paddy/ rice and wheat substantially increased their procurement in the last few years.  Rice is accepted by FCI entirely in non DCP states and surplus in DCP states. Procurement Policy
  • 3. Production, Procurement of Rice & MSP of Paddy 918 933 966 991 890 959 1053 1052 1065 1054 1034 1088.6 276 251 287.4 341 320.3 341.9 350.6 340.44 318.4 320.4 342.17 320.65 570 620 745 900 1000 1000 1080 1250 1310 1360 1410 1470 0 200 400 600 800 1000 1200 1400 1600 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17* Year KMS- wise Production Procurement MSP Common *under progress(Data as on 22.03.2017)
  • 4. Production, Procurement & MSP of Wheat 807 808 869 939 935 956 957.64 935.0 254 225 283 381 251 280.23 280.88 229.6 1080 1100 1170 1285 1350 1400 1450 1525 0 200 400 600 800 1000 1200 1400 1600 1800 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Quantity in LMT Rs/Qtls Year(RMS-Wise) Production Procurement MSP
  • 5. Procurement of Pulses • To build up buffer of Pulses, DF&PD nominated FCI as a nodal agency. • Creation of buffer is to stabilize market procurement of Pulses.