Kharif Paddy Procurement At MSP Up 33% In Last 12 Days: Government
Drying rice stalk lies strewn across a road as a worker carries a bundle of the crop during a harvest in paddy fields near Thimmapuram, Tamil Nadu. (Photographer: Prashanth Vishwanathan/Bloomberg)

Kharif Paddy Procurement At MSP Up 33% In Last 12 Days: Government

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Paddy procurement at the minimum support price rose 33% to 20.37 lakh tonne so far in the 2020-21 Kharif marketing season over the same period last year, with buying gaining momentum in other states like Kerala, the Union Food Ministry said on Thursday.

The government is also procuring cotton, pulses and oilseeds in the ongoing 2020-21 Kharif marketing season, which normally begins from October, it said.

This year, the procurement of Kharif crops commenced early from Sept. 26 in Punjab and Haryana due to arrival of new crop, while in other states from Oct. 1 onwards.

"Paddy procurement for 2020-21 Kharif marketing season has now gained good momentum with the start of procurement in some other states like Kerala and increase in the pace in ongoing procuring states...," the ministry said in a statement.

As a result, a total 20,37,634 tonne of paddy has been procured from 1.7 lakh farmers at the MSP value of Rs 3,847.05 crore, it said.

"This is a whopping increase of over 33% vis-a-vis procurement in the corresponding period last year," it added.

For the current year, the centre has fixed the MSP of paddy (common grade) at Rs 1,868 per quintal, while that of A-grade variety has been fixed at Rs 1,888 per quintal.

Besides, the government through nodal agencies is buying pulses and oilseeds at MSP under the Price Support Scheme, which gets operationalised when market rates fall below the support price.

Till Sept. 7, about 376.65 tonne of moong at MSP value of Rs 2.71 crore has been procured from 269 farmers in Haryana and Tamil Nadu.

Similarly, 5,089 tonne of copra at MSP value of Rs 52.40 crore has been procured from 3,961 farmers in Karnataka and Tamil Nadu in the said period.

In respect of copra and urad, rates are ruling at or above MSP.

Respective state governments are making arrangements for the commencement of procurement in respect of Moong.

Also read: Government To Shell Out Rs 1.40 Lakh Crore For Procuring Paddy At MSP In Kharif Season

The Centre has given nod for procurement of 30.70 lakh tonne of Kharif pulses and oilseeds this year under the PSS in Tamil Nadu, Karnataka, Maharashtra, Telangana, Gujarat, Haryana and Uttar Pradesh as well as 1.23 tonnes of Copra in Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.

Approval for other states will be given on receipt of proposals for procurement as per PSS norms, the ministry added.

In case of cotton, state-run Cotton Corporation of India has procured 3,525 bales at MSP value of Rs 994.28 lakhs from 753 farmers in the last one week.

Also read: Why Modi’s Laws to Liberalize Farming Worry Farmers

Unlike before, the government is releasing the daily procurement data to send a message to farmers protesting against new farm laws that it has no intention of scrapping procurement at MSP.

Farmers in Punjab and Haryana and several other states are protesting against the new farm laws, which they feel will lead to procurement in the hands of corporates and the end of MSP regime.

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