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Govt Procures Paddy Worth Rs 159,660 Crore from Farmers at MSP

The distribution of payments to farmers for paddy procurement at MSP showcases the government's commitment to supporting agricultural practices and ensuring fair compensation for farmers.

Shivam Dwivedi
Govt Procures Paddy Worth Rs 159,660 Crore from Farmers at MSP ( Photo Source: Pixabay)
Govt Procures Paddy Worth Rs 159,660 Crore from Farmers at MSP ( Photo Source: Pixabay)

The Union food ministry announced on May 26, that the central government has disbursed payments amounting to Rs 159,659.59 crore to approximately 1.12 crore farmers for the procurement of paddy at Minimum Support Price (MSP).

The Food Corporation of India, the primary central agency responsible for this task, along with other state agencies, engages in the procurement of paddy under the price support scheme, ensuring the welfare of farmers. The procured paddy is then processed into rice and distributed to the public through various food security schemes.

It is important to note that farmers are not legally obligated to sell their produce solely to government agencies. They have the freedom to sell their crops anywhere and at any price they find suitable. The Ministry of Food clarified this aspect, that If the farmers receive prices higher than the support price from other buyers such as traders or millers, they are free to sell their produce to them. The Food Corporation of India, in collaboration with state governments and agencies, ensures that farmers are not compelled to sell their produce below the support price.

The central government declares the minimum support prices (MSP) for procurement before each Rabi or Kharif crop season. For the year 2022-23, the MSP for paddy is set at Rs 2,040-2,060. In India, there are three primary cropping seasons: summer, kharif, and rabi.

The kharif season involves crops sown during June-July and harvested between October and November. The rabi season consists of crops sown from October to November, with the harvest taking place from January to March, depending on the maturity of the crops. Summer crops are cultivated after the rabi season but before the kharif season.

In related news, the Ministry of Agriculture released the third advance estimates of major crop production for the agricultural year 2022-23 on Thursday. These estimates revealed that the total foodgrain production in the country reached a record high of 330.5 million tonnes, surpassing the previous year's production by approximately 15 million tonnes.

With the significant increase in foodgrain production, India is poised to strengthen its food security and contribute to meeting the nutritional needs of its population.

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