Shortfall in Procurement of Foodgrains

Shortfall in Procurement of Foodgrains
Posted On: 23 JUL 2019 3:33PM by PIB Delhi

Department of Food & Public Distribution deals with procurement of wheat, paddy and coarsegrains at the Minimum Support Price (MSP). However, if any producer/farmer gets better price in comparison to MSP, he is free to sell his produce in open market.
Government fixes MSPs for 22 mandated agricultural crops and fair & remunerative price (FRP) for sugarcane on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.
As informed by the Department of Agriculture Cooperation & Farmers Welfare, the Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at a level of at least one and half times of the cost of production. Accordingly, Government had increased MSPs for all mandated crops with a return of at least 50 percent over all India weighted average cost of production for the season 2018-19. Government has recently increased the MSPs for all Kharif crops for 2019-20 season in line with the principle of providing at least 50 percent return over all India weighted average cost of production.



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