Procurement of Foodgrains

To nurture the Green Revolution, the Government of India introduced the scheme of minimum assured price of food grains which are announced well before the commencement of the crop seasons, after taking into account the cost of production/inter-crop price parity, market prices and other relevant factors.

♤ The Food Corporation of India along with other Government agencies provide effective price assurance for wheat, paddy and coarse grains.

♤ FCI and the State Govt. agencies in consultation with the concerned State Govts. establish large number of purchase centres throughout the state to facilitate purchase of foodgrains.

♤ Centres are selected in such a manner that the farmers are not required to cover more than 10 kms. to bring their produce to the nearest purchase centres of major procuring states.

♤ Price support purchases are organized in more than 12,000 centers for wheat and also more than 12,000 centers for paddy every year in the immediate post-harvest season.

♤ Such extensive and 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 for improved productivity.

♤ Each year, the Food Corporation purchases roughly 15-20% of India's wheat production and 12-15% of its rice production.

♤ This helps to meet the commitments of the Public Distribution System and for building pipeline and buffer stock.