Lok Sabha Question No. 4463 (UNSTARRED), answered on 2025-08-20
Subject: Foodgrains Procurement
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Arun Kumar Sagar

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 4463

## TO BE ANSWERED ON 20TH AUGUST, 2025

## FOODGRAINS PROCUREMENT

## 4463  SHRI ARUN KUMAR SAGAR:

Will  the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state:

- (a) whether the Government proposes to make a uniform  foodgrains procurement policy;
- (b) if  so, the details thereof; and
- (C) the extent to which the farmers are likely to be benefited from the said policy?

## ANSWER

MINISTER  OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) &  (b): The Government's policy  of procurement of foodgrains has broad objectives of  ensuring Minimum  Support Price (MSP) to the farmers and availability  of foodgrains to the weaker sections at free of  cost. It  also ensures effective market intervention thereby keeping the prices under check and also adding to the overall  food security of the country.

Before  sowing  season of  each Rabi/  Kharif Crop,  Government  of  India  announces MSP for procurement upon the recommendations by Commission of Agricultural Costs and Prices (CACP) which  along with  other factors, takes into consideration the cost of various agricultural inputs and the reasonable margin for the farmers for their produce.

Food Corporation of India (FCI),  the nodal central agency of Government of India, along with  other State Agencies undertakes procurement of wheat and paddy under MSP operation. Coarse grains/millets in central pool are procured by State Government Agencies only under decentralized procurement system.

The Government Agencies purchase foodgrains at MSP which  is uniform across the country .

(c): The  steps  taken by  the Government  to support farmers through  procurement operations are as under:

(i) FCI  and various  State Agencies  in  consultation  with  the State Government establish a large number of purchase centers at various man(Iis and key points.  The number of centers and their locations are decided by the State Governments, based on various parameters, so as to  maximize  the MSP  operations. Such extensive &  effective  price support operations have resulted in  sustaining the income of  farmers over a period and in  providing the required impetus for higher investment in agriculture sector for improved productivity.

(ii) Stocks conforming to the Government of India specifications which are offered by the farmers at purchase centers are procured by the Government Agencies at MSP. If  the farmers get prices better than the  support price in  open market, they  are free to sell their produce. Presence of  Government Agencies  ensures prevention  of  distress sale of  food grains by the farmers.

(iii) Procurement of  foodgrains under MSP operations is  mandatorily being carried out through  State Procurement Portals  which  has brought  in  substantial transparency in  the process with introduction of  registration of  farmers  for sale  of  their  produce  at  govt. procuring centers/ man(iis, land/crop verification  and online payment of MSP directly  into the farmer's  bank account.

(iv) The State Procurement Portals have been integrated with  Central Procurement Food Grains Portal (C:FPP) to have repository of information  on almost real time basis for better monitoring, review and decision making.

(v) 'One Nation, One MSP through DBT'  implemented across the country from RMS 2021-22 onwards. Payment of MSP has been ensured directly  into  farmers' account. DBT  of MSP has brought in responsibility, transparency & real time monitoring  in the system.

(vi) in order to widen the reach of MSP operations for food grains, Government of India has made a  provision  for  engagement of  Co-operative societies/ Self  Help  Groups/ Panchayats/ Primary  Agriculture Credit  Societies (PACS)/Farmers  Producer Organisations (FPOs) by the State procuring agencies so that maximum farmers, can avail the benefit of Price support operations.

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