Central Government had allowed State to deliver 24 lakh MT rice to FCI


The Government of India had allowed Chhattisgarh to deliver 24 lakh MT of rice to the Food Corporation of India (FCI) under central pool during Kharif Marketing Season 2020-21. The quantity is equivalent to previous year’s quantum.

The Centre had categorically stated that it could not purchase excess paddy procured by the states by giving bonus and incentives citing the clauses of agreement. A Memorandum of Understanding (MoU) has been signed between Government of India, State Government and Food Corporation of India in both Scheme of Decentralized procurement (DCP) and non DCP States for procurement of paddy from farmers under central pool.

As per Clause No.3 of the MoU of DCP State, it states “in the situation of State giving any bonus/financial incentive in direct or indirect form, over and above MSP, if the overall procurement of the State is in excess of the total allocation of the State made by the Government of India under TPDS/OWS, such excess quantity shall be treated to be outside the Central Pool.”

Initial targets are only estimates settled with States and the States were asked if they are giving incentive or not. Some states including Madhya Pradesh and Chhattisgarh were found to be giving incentives so Central Government procurement is restricted to quantity which was procured in the past without bonus/incentive. The Central Government is following a uniform policy and supporting farmers across the Country. Same is followed in Chhattisgarh procurement.

During Kharif Marketing Season 2020-21, the Government of Chhattisgarh had also published an advertisement and issued press release on December 17, 2020 detailing the Rajiv Gandhi Kisan Nyay Yojana that they would procure paddy from the farmers at Rs 2500 per quintal during Kharif Marketing Season 2020-21 by paying Rs 10,000 per acre which is a form of indirect incentive over and above the MSP which is as good as bonus on procurement of paddy.

Accordingly, it has been decided to allow 24 lakh MT of rice to be delivered to FCI under central pool during Kharif Marketing Season 2020-21, which is equivalent to the quantity as allowed in previous years.


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