Executive Summary:
This document is an answer to Lok Sabha Unstarred Question No. 4463 regarding the Government of India's foodgrain procurement policy, to be answered on August 20, 2025. It details the policy's objectives of ensuring Minimum Support Price (MSP) for farmers and foodgrain availability for weaker sections. It outlines the procurement process and the benefits for farmers.
Key Points / Main Content:
Policy Objectives and Framework:
• The policy aims to ensure MSP to farmers and provide foodgrains to the weaker sections at no cost.
• It seeks to maintain stable prices through market intervention and enhance overall food security.
• The government announces MSP before each Rabi/Kharif crop season, based on recommendations from the Commission of Agricultural Costs and Prices (CACP).
• The CACP considers input costs and a reasonable margin for farmers.
Procurement Process:
• Food Corporation of India (FCI) and State Agencies procure wheat and paddy at MSP.
• State Government Agencies procure coarse grains/millets under a decentralized system.
• MSP is uniform across the country.
Support for Farmers:
• FCI and State Agencies establish purchase centers at mandis and key points, with locations determined by State Governments to maximize MSP operations.
• Government Agencies procure stocks conforming to specifications at MSP.
• Farmers are free to sell in the open market if they receive better prices.
• The presence of Government Agencies prevents distress sales by farmers.
Transparency and Technology:
• Procurement is conducted through State Procurement Portals, ensuring transparency via farmer registration, land/crop verification, and online MSP payments directly to farmers' bank accounts.
• State Procurement Portals are integrated with the Central Procurement Food Grains Portal (C:FPP) for real-time information and better monitoring.
Direct Benefit Transfer (DBT):
• One Nation, One MSP through DBT has been implemented nationwide since RMS 2021-22.
• MSP payments are directly deposited into farmers' accounts, promoting responsibility, transparency, and real-time monitoring.
Inclusivity:
• The government encourages the engagement of Cooperative societies, Self Help Groups, Panchayats, Primary Agriculture Credit Societies (PACS), and Farmers Producer Organisations (FPOs) to broaden the reach of MSP operations.
Impact Analysis:
Farmers:
• Impact: Ensures MSP for their produce, sustains income, prevents distress sales, and encourages investment in agriculture.
• Action Required: Register on State Procurement Portals, offer stocks conforming to specifications at purchase centers, and provide accurate bank account details for direct MSP payments.
Weaker Sections of Society:
• Impact: Ensures availability of foodgrains at no cost.
• Action Required: None specified.
State Government Agencies:
• Impact: Responsible for establishing purchase centers, procuring coarse grains/millets, and managing State Procurement Portals.
• Action Required: Establish and manage purchase centers, procure foodgrains efficiently, integrate State Portals with C:FPP, and engage with Cooperative societies, Self Help Groups, Panchayats, Primary Agriculture Credit Societies (PACS), and Farmers Producer Organisations (FPOs).
Food Corporation of India (FCI):
• Impact: Serves as the nodal central agency for procurement of wheat and paddy under MSP operations.
• Action Required: Coordinate with State Agencies, ensure efficient procurement processes, and monitor the implementation of MSP operations.
Key Entities Referenced
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION: A ministry of the Government of India responsible for consumer protection, food security, and public distribution.
LOK SABHA: The lower house of the Parliament of India.
SHRI ARUN KUMAR SAGAR: A member of parliament who raised a question regarding foodgrain procurement policy.
SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA: Minister of State for Ministry of Consumer Affairs, Food and Public Distribution, who provided the answer to the question.
Minimum Support Price MSP: A form of market intervention by the Government of India to ensure price support to farmers.
Rabi Kharif Crop: Refers to the two main cropping seasons in India, Rabi (winter) and Kharif (monsoon).
Commission of Agricultural Costs and Prices CACP: An advisory body that recommends Minimum Support Prices (MSP) to the government.
Food Corporation of India FCI: The nodal central agency of the Government of India responsible for procurement and distribution of foodgrains.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 4463
TO BE ANSWERED ON 20TH AUGUST, 2025
FOODGRAINS PROCUREMENT
4463 SHRI ARUN KUMAR SAGAR:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) whether the Government proposes to make a uniform foodgrains procurement policy;
(b) if so, the details thereof; and
(C) the extent to which the farmers are likely to be benefited from the said policy?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a) & (b): The Government’s policy of procurement of foodgrains has broad objectives
of ensuring Minimum Support Price (MSP) to the farmers and availability of foodgrains to
the weaker sections at free of cost. It also ensures effective market intervention thereby
keeping the prices under check and also adding to the overall food security of the country.
Before sowing season of each Rabi/ Kharif Crop, Government of India announces
MSP for procurement upon the recommendations by Commission of Agricultural Costs and
Prices (CACP) which along with other factors, takes into consideration the cost of various
agricultural inputs and the reasonable margin for the farmers for their produce.
Food Corporation of India (FCI), the nodal central agency of Government of India,
along with other State Agencies undertakes procurement of wheat and paddy under MSP
operation. Coarse grains/millets in central pool are procured by State Government Agencies
only under decentralized procurement system.
The Government Agencies purchase foodgrains at MSP which is uniform across the
country .
(c): The steps taken by the Government to support farmers through procurement
operations are as under:-2-
(i) FCI and various State Agencies in consultation with the State Government establish
a large number of purchase centers at various man(Iis and key points. The number of centers
and their locations are decided by the State Governments, based on various parameters, so
as to maximize the MSP operations. Such extensive & effective price support operations
have resulted in sustaining the income of farmers over a period and in providing the
required impetus for higher investment in agriculture sector for improved productivity.
(ii) Stocks conforming to the Government of India specifications which are offered by
the farmers at purchase centers are procured by the Government Agencies at MSP. If the
farmers get prices better than the support price in open market, they are free to sell their
produce. Presence of Government Agencies ensures prevention of distress sale of food
grains by the farmers.
(iii) Procurement of foodgrains under MSP operations is mandatorily being carried out
through State Procurement Portals which has brought in substantial transparency in the
process with introduction of registration of farmers for sale of their produce at govt.
procuring centers/ man(iis, land/crop verification and online payment of MSP directly into
the farmer’s bank account.
(iv) The State Procurement Portals have been integrated with Central Procurement Food
Grains Portal (C:FPP) to have repository of information on almost real time basis for better
monitoring, review and decision making.
(v) “One Nation, One MSP through DBT” implemented across the country from RMS
2021-22 onwards. Payment of MSP has been ensured directly into farmers’ account. DBT of
MSP has brought in responsibility, transparency & real time monitoring in the system.
(vi) in order to widen the reach of MSP operations for food grains, Government of India
has made a provision for engagement of Co-operative societies/ Self Help Groups/
Panchayats/ Primary Agriculture Credit Societies (PACS)/Farmers Producer Organisations
(FPOs) by the State procuring agencies so that maximum farmers, can avail the benefit of
Price support operations.
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