Lok Sabha Question No. 1711 (UNSTARRED), answered on 2025-12-10
Subject: Review of Procurement and Compensation Mechanisms
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Dharambir Singh

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 1711

TO BE ANSWERED ON 10TH DECEMBER, 2025

## REVIEW  OF PROCUREMENT AND COMPENSATION MECHANISMS

## 1711. SHRI DHARAMBIR SINGH:

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

- (a) whether  the  Government has  reviewed current  procurement and  compensation mechanisms to  protect the nation's food  security while  ensuring remunerative prices to farmers, if  so, the details thereof;
- (b) the details of  targeted measures is likely  to be taken to protect farmers of  BhiwaniMahendragarh who  faced both flood  losses and market price  shortfalls  including  improved MSP procurement,  interim  relief  and water-management support;
- (c) the details of  central assistance for  States to  strengthen procurement infrastructure and ensure MSP-based purchase during  distress;
- (d) the details of  plans to  fast-track crop loss assessment and time-bound compensation for affected farmers in Bhiwani-Mahendragarh;
- (e) the details of  measures to  relax  moisture/quality  parameters and allocate additional storage/transport to prevent distress sales;
- (f) the details  of  support for  short-term  credit/interest relief  and compensation-linked credit moratorium; and
- (g) the  details  of schemes for community  rainwater  harvesting,  micro-irrigation subsidies and crop diversification support to reduce repeated flood/water  stress risks?

## ANSWER

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

(SHRIM ATI NIMUBEN JAYANTIBHAI  BAMBHANIYA)

- (a): Government fixes Minimum  Support Prices (MSPs) for  22 mandated agricultural crops and Fair &  Remunerative Price (FRP) for  sugarcane, on the basis of recommendations of  the  Commission for  Agricultural  Costs &  Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned. While recommending MSPs, CACP considers important factors such as cost of production,

overall demand-supply  conditions, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely  effect on the rest of  the economy, besides ensuring rational utilization of  land,  water and other production resources and a minimum  of 50 percent as the margin  over cost of production.

The Government's policy  of procurements of food  grains at MSP has broad objectives of ensuring minimum support prices to the farmers and availability of  food grains to the weaker sections at affordable rates. Food security remains protected, with adequate operational and buffer  stocks of rice and wheat maintained under the central pool.

Further, farmers' interests  are prioritised  through fair  and transparent procurement systems at Minimum  Support Price (MSP). Provisions have also been incorporated in the MoU  with States to  ensure timely  payments to  farmers, mandating release of  payment preferably within 48 hours of procurement.

Besides, DAFW  is also implementing various schemes, namely Price  Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Market Intervention Scheme (MIS) under the integrated scheme ofPradhan  Mantri  Annadata Aay  Sanrakshan Abhiyan  (PMAASHA).

(b): As informed  by the Government of  Haryana, during procurement of bajra in KMS 2025-26, the differential amount is paid to the farmers under Bhawantar Bharpai Yojna, in case of market price shortfall. During KMS 2025-26, 230.05 MT  of Bajra has been procured by  State procuring  agencies and only  6.47 LMT  of  Bajra  was purchased by Private  traders  in the state.

(c): There  exists  a  transparent  & uniform policy for procurement  of  foodgrains  by Government Agencies across the  country. Under this  policy,  stocks conforming to  the Government of  India (GoI) specifications which are  offered by  the  farmers  at  Purchase centers are procured by the Government Agencies at MSP. However, if  the farmers get prices better than MSP in open market, they are free to sell their produce.

During KMS  2025-26, Haryana has met its  target of  36 MT  for  procurement of paddy.

(d): Government of  Haryana has  launched the  e-Kshatipurti portal  to  bring  the transparency in the system of crop loss assessment, verification and compensation to the affected farmers due to natural calamities such as Flood/Heavy Rain/Hailstorm/PestAttack/Fire/Cloud Burst/Earthquake etc.  The affected farmers  can register claims of  their  crop damage on this portal against Khasra number already entered on Meri  Fasal Mera Byora portal. Thereafter, verification of these claims will  be done by the field  official/officers for  actual damage assessment. Before making payment of compensation, entries of  Khasra, claim  and assessment done on e-Kshatipurti  portal will  be cross checked with  entries of sale of crops on e-kharid portal. Thereafter, disbursement of compensation  shall  be  made as per  Govt.  of  India  Norms  as well  as State Government. Norms.

During  the  monsoon  season 2025,  considering  the  impact  of  heavy  rain/water logging on crop kharif 2025 and recommendations  received from all Deputy Commissioners of the State including Mahendergarh and Bhiwani,  Government had opened the e-Kshatipurti portal  till 15.09.2025 for  uploading the claims by the affected farmers towards their crop damage.

(e): in order to safeguard farmers interests and prevent distress sale. Department of Food &  Public  Distribution (DFPD)  considers requests received  from  the  state governments seeking relaxations in Uniform  Specifications. No request for relaxation in moisture/quality parameters has been received from the State Government of Haryana for KMS 2025-26.

Department of Food & Public Distribution (DFPD) is augmenting its storage capacity by creating capacities through Food Corporation of India (FCI). FCI  continuously assesses and monitors the storage capacity and based on the storage gap assessment, storage capacities are created/hired, through  following schemes:

- i. Private  Entrepreneurs Guarantee (PEG) Scheme
- ii. Central Sector Scheme (CSS) 'Storage & Go clowns' (Focus on NE)
- iii.  Hiring ofgodown from CWC/SWCs/State Agencies
- iv.  Private Warehousing Scheme (PWS)
- v.  Creation ofgodown  under Asset Monetization
- vi.  Construction of SILOs under Public Private Partner-ship (PPP) mode

(f): The Government is implementing a 100% centrally funded Central Sector Scheme known  as Modified Interest  Subvention Scheme (MISS)  across the  country. This  scheme aims to  provide concessional interest rates on short term agriculture loans obtained by farmers to Kisan Credit Cards (KCC)  for  their  working  capital requirements. Under the scheme, farmers received KCC  loans at a subsidized interest rate of  7%. Additionaljy, farmers who repay their  loans promptly  receive a  3% Prompt Repayment Incentive, effectively reducing the interest  rate to 4% per annum.

(g): Under the category 'Public works relating to Natural Resource Management' of Mahatma Gandhi National  Rural  Employment  Guarantee Act  (MGNREGA), measures are being taken for  Water Conservation and water harvesting structures to  augment and improve  ground water like underground dykes, earthen dams, stop dams, check dams and roof  top  rain  water  harvesting structures in  Government or  Panchayat buildings, with special focus on recharging ground water including drinking water sources. Micro  and minor irrigation works and creation, renovation and maintenance of irrigation canal and drains are also taken up under the scheme.

The Government is also implementing Crop Diversification Programme (CDP) under Pradhan Mantri  - Rashtriya Krishi  Vikas  Yojana (PM-RKVY) scheme in Haryana, Punjab &  Western Uttar Pradesh since 2013-14 to divert the area of water intensive paddy crop to alternative  crops, which  require  less water  such as pulses, oilseeds, coarse cereals, nutri cereals, cotton etc. Under CDP, assistance is given for alternative crop demonstrations, farm  mechanization and value addition, site specific activities and contingency for awareness and capacity building.  Further, CDP has been extended to major tobacco growing states  to encourage tobacco growing farmers to shift to alternate crops/cropping  system w.e.f.  2015-16.

A  Centrally  Sponsored Scheme, 'Per Drop  More  Crop  (PDMC)' is  under operation since 2015-16. PDMC  focuses on enhancing water use efficiency  at farm level through Micro  Irrigation, namely Drip  and Sprinkler Irrigation  Systems. The PDMC is  being implemented under the Pradhan Mantri  Rashtriya Krishi  Vikas  Yojana (PM-RKVY) since 2022-23. Under the scheme, financial assistance @ 55% for small and marginal farmers and @ 45% for other farmers is provided for installation of Drip and Sprinkler  systems under the PDMC. The assistance for  installation of  Micro Irrigation systems is limited to  5 hectares per beneficiary.

+eSc RSc  +: it