Lok Sabha Question No. 599 (UNSTARRED), answered on 2021-12-01
Subject: Rice Procurement policies
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Kavitha Malothu, Gaddam Ranjith Reddy, Dayakar Pasunoori, Venkatesh Netha Borlakunta

## GOVERNMENT OF INDIA

## MINISTTTY OF GONSUMER. AFFAIRS, FOOD & PUBLIC DISTRIBUTIOiI DEPARTMENT OF FOOD AND PUBLIC DTSTRIBUTION

## LOK SABHA UI{STARRED QUESTION NO.599 TO BE AI{SWERED ON {sr DECEMBER,2O2t

## RICE PROGUREMENT  POLIGIES

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SHRIMATI KAVITHA MALOTHU: DR. G. RANJITH REDDY: SHRI PASUNOORI DAYAXAR: SHRI VENKATESH NETHA BORLAKUNTA:

Wil! the Minister of  CONSUMER  AFFAIRS' FOOD AND PUBLIC DlsTRlBUTIoil scsltf,ar rrr$, ur<-t s+{ Tntf,fr6. ftfiq d'* be pleased to state:

- (a)  whether FGI is following rice procurement  Policies  which are creating confusion among States and if so, the details thereof;
- (b)  the reasons that FGt is not fixing target of procurement  for entlre year in one go;
- (c)  the reasons that FCt is not procuring rice commensurate u'ith the pace of production;
- (d)  whether States are not able to plan appropriate cropping pattern; and
- (e)  the number in which the Ministry is planning to address this problem as farmer are suffering?

## ANSWER

MINISTER OF STATE FOR MINISTRY OF RURAL DEVELOPMENT AND GONSUMER AFFAIRS, FOOD & PUBLIG DISTRIBUTIOI{ (sADHVl NIRANJAN JYOTI)

(a): There exists a transparent  & uniform Policy for procurement by Govt. Agencies across the country. There is no confusion  among States regarding rice procurement  policy of Government of India.

(b): The estimates for procurement  of Paddy (in terms Rice) are finalized by Government of lndia in consultation  with State Governments,  Ministry of Agriculture & Farmers Welfare (MoA&FW)  and Food Gorporation of lndia, before the commencement  of  each marketing season based upon estimated production, marketable surplus and agricultural crop pattemJuly/Aug  for Kharif and Feb/March for Rabi crops etc.

(c):  Procurement in a State depends not only upon productaon  but also upon other multiple factors like marketable surplus, MSP, prevailing market rate, demand & supply situation  and participation  of private traders etc.

Ratio of  procurement  to  production varies from State to  State depending upon actual marketable surplus quantaty which is deduced after factoring consumption in the state based upon local eating habits, varieties grown which may be suitable for local taste and/or commanding  higher market price, expof of rice from State to lnternational market and tading in the country etc.

ln any state only net marketable  surplus quantity is offered by the farmerc.

Production vis-i-vis  procurement (in terms of Rice) for the last three years is depicted as unden-

| KMS       | Production (in LMT)   | Procurement (in LMT)   |
|-----------|-----------------------|------------------------|
| 2018-{ !) | t'164.74              | It43.99                |
| 2019-21   | 1 188.70              | 518.26                 |
| 2020-2'l  | 1222,65               | 600.74                 |

From the above, it is obseryed that pacg of procurement  has been increasing continuously  in  comparison to  pace of  production which indicates  increased  outreach of Minimum Support Price operations to farmers.

(d): Government of lndia has advised all State Governments  to encourage farmers for crop diversification. Moreover, Government  of  lndia has substantially  increased Minimum Support Price of pulses / oilseeds / millets so as to encourage / incentivize the farmers to maximlze sowing of such crops and to get the remunerative  prices.

(e): lnterest  of farmers are always protected by Government  of lndia as outreach and volume of procurement has been increasing over yeats, thereby  percolating the benefit of MSP to large number of farmers.