Procurement of Farmers’ Crops by Private Players on MSP

PIB News Update: Minister of State for Consumer Affairs, Food & Public Distribution, Shri. Danve Raosaheb Dadarao has informed that Minimum Support Price (MSP) is announced by the Government every year before start of each marketing season (Kharif/Rabi). Wheat and paddy offered by farmers within the stipulated period and conforming to the specifications prescribed in advance by Government of India (GOI), are purchased at by the Government Agencies including Food Corporation of India (FCI) for Central Pool. Coarsegrains are procured by State Governments as per the procurement plan prepared in consultation with FCI and approved by the Central Government. However, if any producer/farmer gets better price in comparison to MSP, he/she is free to sell his/her produce in open market.  No such instance regarding procurement of Fair Average Quality (FAQ) stocks by private players below MSP in the mandies has been reported.

To give special focus to increase the spread of MSP operation in some states, private players for  procurement of paddy/rice were engaged in Jharkhand, West Bengal and Uttar Pradesh during KMS 2015-16 to KMS 2017-18.

Further, in order to ensure remunerative prices to farmers for their produce,  pilot of Private Procurement and Stockist Scheme (PPSS) has been launched under Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA).  Under this scheme, oilseeds producing states will have the option to roll out PPSS on pilot basis in district/selected Agricultural Produce Market Committee (APMC) of district involving the participation of private stockist.  The Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare is implementing the PPSS scheme for procurement of oilseeds.

There are set guidelines prescribed by Government of India for private players engaged by FCI for procurement of paddy. The private players so engaged procure paddy at MSP declared by Government of India.