Paddy Procurement totaling 15,26,534 MT having MSP value of around Rs.2882 cores has been done from 1,27,832 farmers of Haryana, Punjab, Chandigarh, Uttar Pradesh, Kerala and Tamil Nadu till 6th October

The procurement of Paddy during Kharif Marketing Season 2020-21 has started from 26th September, 2020 in Haryana and Punjab. The Procurement of paddy has started from 1st October, 2020 in Western Uttar Pradesh and from 2nd October 2020 in Chandigarh and from 5th October 2020 in Tamil Nadu. Stating this at a Press Conference in New Delhi today, Shri Sudhanshu Pandey, Secretary, Food & Public Distribution, Government of India said that upto 06.10.2020, the Paddy Procurement of 4,82,656 MT in Haryana, 10,08,028 MT in Punjab, 6,945 MT in Chandigarh, 1545 MT in Uttar Pradesh and 1809 MT in Kerala and 25,551 MT in Tamil Nadu totaling 15,26,534 MT having MSP value of around Rs.2882 cores has been done from 1,27,832 farmers of Haryana, Punjab, Chandigarh, Uttar Pradesh, Kerala and Tamil Nadu.

Further, based on the proposal from the States, approval has been accorded for procurement of 30.17 LMT of Pulse and Oilseeds for Kharif Marketing Season 2020 for the States of Tamil Nadu, Karnataka, Maharashtra, Telangana, Gujarat, Haryana, Uttar Pradesh and Odisha. Sanction for procurement of 1.23 LMT of Copra (the perennial crop) for the State of Andhra Pradesh, Karnataka, Tamil Nadu and Kerala was also given. For other States/UTs approval will also be accorded on receipt of proposals for procurement of Pulses, Oilseeds and Copra under Price Support Scheme (PSS) so that procurement of FAQ grade of these crops can be made at notified MSP for the year 2020-21 directly from the registered farmers, if the market rate goes below MSP during the notified harvesting period in the respective States/UTs by the Central Nodal Agencies through State nominated procuring agencies.

Shri Pandey informed that upto 06.10.2020, the Government through its Nodal Agencies has procured 201.15 MT of Moong having MSP value of Rs.1.45 crore benefitting 161 farmers in Tamil Nadu and Haryana. Similarly, 5089 MT of copra having MSP value of Rs. 52.40 crore has been procured benefitting 3961 farmers in Karnataka and Tamil Nadu against the sanctioned quantity of 1.23 LMT for the Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. In respect of Copra and Urad, rates are ruling at or above MSP. Respective State Governments are making arrangements for commencement of procurement in respect of Moong.

Shri Sanjay Agrawal, Secretary, Agriculture, Government of India, said that the Government of India declares Minimum Support Price (MPS) for the Fair Average Quality (FAQ) of agricultural crops like Cereal, Pulses, Oilseeds and commercial crops every year at the beginning of the sowing season on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). Based on the recommendation of Swaminathan Committee report, the Government announced MSP to ensure minimum 1.5 time of cost of production since Kharif 2018-19 seasons onwards. Under the Price Support Policy, Government is committed to provide assurance of remunerative prices to farmers in case of fall in the market price of their produce. In addition to announcement of MSP, the Government also arranges procurement of MSP notified crops through Government/ Central Nodal Agencies.

Shri Sanjay Agrawal said that the procurement of MSP crops has increased many folds during the recent years. The comparative statement of procurement of major crops during the 2009-10 to 2013-14 and last five years are as under:-

Crop2009-10 to 2013-14Last 5 YearsIncrease in Times
Qty(in LMT )MSP Value(Rs in Crore)Qty(in LMT ).MSP Value
(Rs in Crore)
Qty.In MSP Value
Paddy1,7682,06,0593,0694,95,0431.742.4
Wheat1,3951,68,2021,6272,97,0731.171.77
Pulses1.52645112.2863,52373.9598.51
Oilseeds3.6514.5456.36249.7115.4417.17

In the recent years the Government has put special effort in making procurement of Pulses and oilseeds. The procurement of pulses under Price Support Scheme(PSS) and for making National Buffer Stock of Pulses has resulted in to 74 time increase in procurement  during 2016-17 to 2020-21( upto  Rabi 2020 season) than the procurement of pulses made during 2009-10 to 2013-14. Due to announcement of minimum 1.5 time of cost of production while announcing the MSP and sustained procurement policy of Government the production of pulses has increased substantially and making Aatamnirbhar Bharat in pulses production. Similarly, oilseeds procurement during 2016-17 to 2020-21(upto Rabi 2020 season) is almost 16 times higher than the procurement of oilseeds made during 2009-10 to 2013-14. 

Procurement operations did not stop due to threat posed by the pandemic and disruptions in logistic activities during the initial days of lock down time.  The number of procurement centres was increased by more than double in comparison to previous years. The Central Government is committed to continue the MSP operations to ensure the remunerative prices to the farmers in days to come. The arrival of KMS 2020-21 has just begun and the Government continues to procure Kharif 2020-21 crops at MSP from farmers.

Shri D.V.Prasad, CMD, Food Corporation of India, informed that the procurement of paddy from farmers across the country has registered an increase of 5% in current KMS till now as compared to corresponding period last year. Maximum procurement has happened in Punjab where 7,82,685 MT paddy has already been procured from the farmers through APMC system as against24,452 MT procured last year. The pace of procurement as well as the enthusiasm displayed by farmers in selling paddy stocks to FCI in Punjab and Haryana conclusively put to rest any misgivings the farmers of these states might have had regarding continuation of MSP procurement operations through APMCs after the introduction of new farm acts. FCI and state agencies have kept an ambitious target to procure 495 LMT rice (738 LMT paddy) from the farmers at MSP during current Kharif season throughout the country as against the quantity of 420 LMT rice ( 626 LMT paddy) during last Kharif season. Punjab and Haryana contributes maximum quantity to this with 23% and 9% respectively.

A total amount of Rs.2,02,696 crore has been paid to farmers by FCI and State Agencies during 2019-20 in whole of the country, out of which Rs.82,478 crore has been paid to Punjab and Haryana which comes out to be 40.69% of the total amount. During RMS 2020-21, approx. Rs.74,882 crore has been paid to the farmers across the country, out of which Rs.38,719 crore has been paid to farmers of Punjab and Haryana, which comes out to be 51.7% of total payment.

Shri Ravi Capoor, Secretary, Textiles, Government of India said that in 2019-20, area under cotton cultivation was 133.74 lakh hectares and cotton production at 357 lakh bales. Unprecedented procurement in the history of Cotton Corporation of India- 105.14 lakh bales in 12 states valuing Rs.28,500 crore. Post Global pandemic (April 2020 to September 2020), CCI procured 20.71 lakh bales valuing Rs.5615 crore.

In 2020-21, area under cotton cultivation is estimated at 133 lakh hectares and cotton production is expected to be 360 lakh bales. CCI has been geared up fully for smooth conduct of MSP operations. CCI has opened 430 procurement centres in 135 district of 12 cotton growing states. CCI will undertake MSP operations till last arrivals of all FAQ grade kapas from farmers without quantity restrictions.

Till 6th October 2020, kapas equivalent to 3.12 lakh bales have arrived in market. Therefore, CCI could procure 2311 bales in Haryana, Punjab and Rajasthan as against nil procurement in the corresponding period of last year. The value of MSP procurement is expected to be Rs. 35,000 crores.

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