Process of foodgrain Procurement at MSP in India

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16 March 2021, New Delhi: Government extends price support to wheat and paddy through FCI and State Agencies. Under this scheme, registration of the farmers are done through online portal  and whatever foodgrains are offered by such registered farmers, within the stipulated procurement period and which conforms to the prescribed quality specifications, are purchased at MSP  by the Government agencies including FCI. The Government agencies undertake MSP operation at Agriculture Produce Market Committees (APMCs)/ temporary purchase centres/aggregation points. Location and number of purchase centres are opened in consultation with /by the State governments.

Procurement of pulses at MSP are also done under Price Support Scheme (PSS) of PM-AASHA based on the request of the concerned State government. The procurements under PSS are done by central nodal agencies through state designated procuring agencies directly from the farmers registered in online portal. The procurement centres are opened by the Central Nodal Agencies in consultation with the State Government considering the convenience of the farmers.   

The farmers have option to sell their food grains at the Government purchase centers and if they get better terms and price in comparison to MSP, they are free to sell their produce in open market. Moreover, the overall market also responds to declaration of MSP and Government’s procurement operations which results in private procurement on or above the MSP for various notified food grains.

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

Also Read: Indian Government releases data of beneficiaries under Pradhan Mantri Fasal Bima Yojana (PMFBY) 2019-20

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