Lok Sabha Question No. 367 (UNSTARRED), answered on 2025-02-04
Subject: Sale of Paddy in Backward Districts
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Smt. Malvika Devi

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS' WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS' WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 367

TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2025

## SALE OF PADDY IN BACKWARD DISTRICTS

367. SMT. MALVIKA DEVI:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE कृ ͪष और ͩकसान कãयाण मंğी be pleased to state:

- (a) the  steps  being  taken  against  Millers  who  try  to  manipulate  poor  farmers  and control the sale of paddy in backward districts;
- (b) the steps being taken to make sure that farmers who have good quality paddy, do not have to face any loss because of the millers and lose 5-7 kgs; and
- (c) the steps being taken to ensure that the farmers get their insurance for the paddy loss due to untimely rain?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कã  याण राÏय मंğी (SHRI RAMNATH THAKUR)

- (a) & (b):  Government of India has discontinued levy system of procurement of rice with effect  from  Kharif  Marketing  Season  (KMS)  2015-16.  In  levy  system,  paddy  was procured by the millers and payment of Minimum Support Price (MSP) was also made by them. Based on the certificate (by designated State authority) regarding payment of MSP  by  millers  to  the  farmers,  a  certain  percentage  of  resultant  rice  used  to  be delivered to the Government.

At present, entire procurement of paddy from the farmers is done directly by the State Agencies/ Food Corporation of India (FCI). State agencies are allowed to engage cooperative  societies,  self  help  groups,  Primary  Agricultural  Credit  Societies  (PACS) etc.  for  procurement  of  paddy.  In  Punjab  and  Haryana,  paddy  is  procured  through arthias. But payment of MSP in both the above cases is to be released directly to the farmer's bank account through online transfer of amount by the concerned Government agencies. The State Government is not supposed to outsource procurement of paddy to millers in any direct or indirect manner.

Government of India has also promoted and encouraged Decentralised procurement  of  Food  Grains  by  the  State  Government  and  their  agencies  to  widen penetration of MSP operations to every nook & corner of the country. The expenditure incurred on various incidentals by the State Government /its agencies is reimbursed by the Government of India (GoI).

Minimum  Support  Price  (MSP)  operations  are  given  wide  publicity  through pamphlets, banners and other print and electronic media. Procurement of Paddy under MSP  operations  is  being  mandatorily  carried  out  through  State  Procurement  Portals which  has  brought substantial transparency  in the process  with introduction of registration  of  farmers  for  sale  of  their  produce  at  Government  Procurement  Centers/ mandis, online  land  verification  and  online  payment  of  MSP  directly  into  the  farmer's bank  account.  The  State  Procurement  Portals  have  been  integrated  with  Central Procurement  Food  Grains  Portal  (CFPP)  to  have  repository  of  information  on  almost real time basis for better monitoring, review and decision making.

(c): In  case  of  any  natural  calamities  like  untimely  rain,  relaxations  in  the  uniform specifications  of  affected  food  grains  are  provided  for  smooth  procurement  so  as  to prevent distress sale/rejection of food grains.

*****