Set of information and Guidelines for the Kharif Marketing Season (KMS) 205-16.
The Government extends price support to paddy and bajra through State Procuring Agencies and the Food Corporation of India (FCI). All the food-grains conforming to the prescribed specifications offered for sale at specified mandis and purchase centers are bought by the procurement agencies at the Minimum Support Price (MSP). The producers have the option to sell their produce to State Agencies/FCI at MSP or in the open market as is advantageous to them. Food-grains procured by the State Agencies are ultimately taken over by the FCI for distribution throughout the country. Objectives of food-grains procurement by Government Agencies are listed below:-
- (a) To ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale.
- (b) To service the TPDS and other welfare schemes of the Government so that subsidized food-grains are supplied to the poor and needy.
- (c) To build up buffer stocks of food-grains to ensure food-grain security.