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Remunerative Prices for Paddy Farmers

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Ministry of Agriculture &
Farmers Welfare

Remunerative Prices for Paddy Farmers


Posted On:
27 JUL 2021 6:54PM by PIB Delhi

The procurement of paddy at Minimum Support Price (MSP) is done through Food Corporation of India (FCI) and State Agencies. During Kharif Marketing Season (KMS) 2020-21, on MSP procurement of paddy, all time high 128.36 lakh  farmers (including the farmers of Chhattisgarh) benefitted so far as against 124.59 lakh farmers last year. Similarly, due to MSP procurement in Rabi Marketing Season (RMS) 2021-22, record 49.14 lakh farmers benefitted against 43.35 lakh last year.

There exists a transparent & uniform policy for MSP procurement of Food grains including paddy by Government agencies across the country. Under this policy, whatever food grains are offered by farmers within the stipulated procurement period, conforming to the specifications prescribed are purchased at MSP by the Government agencies including FCI. However, if any farmers/ producer get better price in comparison to MSP, they are free to sell his produce in open market.

The Minimum Support Price is announced by the Government at the beginning of the sowing season of crops on the basis of the recommendations of the Commission for Agricultural Cost s and Prices (CACP). This enables the farmer to take informed decision with regard to choice of crop to be grown.

MSP operations are given wide publicity through pamphlets, banners, sign boards radio, TV and advertisements though print & electronic media. Farmers are made aware of the quality specifications and purchase system etc. to facilitate the farmers to bring their produce conforming to the specifications. Large number of procurement centres are opened by respective State Government agencies/FCI taking into account the production, marketable surplus, convenience of farmers and availability of other logistics/infrastructure such as storage and transportation etc. Large number of temporary purchase centres in addition to the existing Mandis and depots/godowns are also established at key point for the convenience of the farmers.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha today.

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