Consumer Affairs, Food & Civil Supplies

Government of Andhra Pradesh

                                    
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MSP OPERATIONS  OF PADDY AND PROCUREMENT OF RICE

Objective: The main objective of the MSP operations is to provide remunerative price to the farmers, Government of Andhra Pradesh has been implementing the M.S.P. operations for the purchase of paddy, maize and other coarsegrains and pulses. The Government have taken timely and prompt action by opening of required number of paddy / maize purchase centres in the districts by the Collector(CS) concerned.

Commodities covered under MSP operations:
1) Paddy
2) Maize
3) Jowar
4) Bajra
5) Ragi and
6) Pulses


MSP rates fixed by the Government of India for the KMS 2006-07 and 2007-08 .

Uniform Specifications of Paddy, Maize, Bajra, Jowar, Ragi and Rice for the KMS 2007-08 are as follows:

Paddy will be classified into Grade 'A' and Common groups.
Schedule of specification.

            As there is no statutory levy for procurement of paddy, to ensure remunerative price for the paddy, Government have undertaken a pro-active and massive MSP operations for paddy. To achieve this objective, the following three strategic  instruments have been adopted.
1.         The main instrument to ensure remunerative price to the paddy farmers, is procurement of rice through Food Corporation of India.
2.         The second instrument is to effectively intervene in procurement of paddy through F.C.I., and State Agencies.
3.         The third instrument is procurement of paddy by millers / traders through regulated markets yards.
        With the above objectives,  M.S.P. of paddy was ensured. The State Agencies viz;  the FCI, and AP State Civil Supplies Corporation Ltd.,  have entered the market and purchased paddy of FAQ from the farmers at MSP.  In order to facilitate disposal of paddy which was not conforming to the specifications, the Government relaxed specifications or purchase of paddy  by the rice millers imposing value cuts.

The Salient  features of M.S.P Operations:

               The Office of the  Commissioner of Civil Supplies & Ex-Officio Secretary, Food & Civil Supplies, Govt. of Andhra Pradesh shall be the “Nodal Agency” for MSP operations of paddy, custom milling of paddy and  procurement of levy rice.
ii)         The procurement of paddy by FCI, State agencies such as  A.P State Civil Supplies Corporation shall  be  supplemental to the paddy purchases made by the  millers  at MSP and above price, which will entitle them for delivery of levy.
iii)        All the Heads of Departments, Collectors and procuring agencies concerned with the procurement of paddy and rice, shall furnish weekly reports on paddy purchases at MSP/below MSP, in case of value custs for non-FAQ paddy, levy rice procurement, prevailing market rates for paddy in market yards and movement of rice to other States.

Role of Commissioner of Civil Supplies:
           
    Commissioner of Civil Supplies & E.O. Secretary shall be in constant touch with Govt. of India on procurement and movement of stocks by railways. Reserve Bank of India  on the matters of credit, flow of finance and the district administration for  levy delivery and MSP operations.
Commissioner of  Civil Supplies  will open a Control Room in his office with phone No. 040 -  23394637 for communicating details of paddy. This Control Room will obtain daily situation report/progress of procurement/MSP operations throughout the State and report to Government of Andhra Pradesh and Government of India.  This Control Room shall receive complaints pertaining to MSP operations and get them redressed at the earliest.

Commissioner of  Civil Supplies  shall conduct frequent video conferences/  review of the various operations with the Collectors and other  District Officers and report to the Government on the progress of procurement of paddy by the millers, FCI.  Civil Supplies Corporation/ Markfed, delivery of levy rice to FCI and  delivery of custom milled   rice to the FCI.
           

Paddy / Maize for the last seven years and also procured during the present KMS 2007-08.
paddy
Maiz

A.P. Markfed procured Bajra and Jowar during the crop year 2003-04:


 
Year Agency Quantity purchased ( In Mts)
Bajra 2003-04(Kharif) Markfed 2174
Jowar 2003-04(Rabi) Markfed 4274

            Instructions were issued by the Government to  procure Maize at MSP. The State  Agencies viz; A.P. Markfed  have been requested to take advance action plan for opening as many purchases centres for procuring the maize at MSP. 
            Under Decentralised Procurement of Maize, for the first time in the Country, the A.P. Markfed  have been procuring the maize  at the door step of the farmers
           

Role of District Administration in brief:
     Collector shall be the overall in charge for  ensuring MSP operations assisted by the DSO at the district level and RDO at the divisional  level.
      A control room shall be opened at the Collectorate. The DSO shall get the information from time to time  and transmit to the Joint Collector, Collector and Commissioner of Civil Supplies through on line facility. 
    The District Level Committee with Joint Collector as Chairman, Joint Director, Agriculture,  District Supply Officer, Dist. Manager, Civil Supplies Corporation,        Dy. Director / Assistant Director, Marketing shall review the arrangements from time to time to ensure MSP for paddy arriving in the markets, Paddy Purchase Centres set up by the Government and notified mill purchase points.
     The Dist. Collector shall identify and notify various markets over and above the existing market yards within his/her district jurisdiction  and inform to the farmers, traders and millers about the procurement of  paddy of FAQ under MSP.

The Collectors shall ensure that payment of value of paddy sold by the farmers  is made by the rice millers within 7 days positively.
     A Grievance Redressal Cell shall be opened in the MRO’s Office. The complaints received shall be registered  properly. They shall be got enquired into by  the supervisory teams having jurisdiction over the area on priority.  The result of enquiry should be recorded in the register.  The complainant should be informed of the result of enquiry.  This shall also be made available to the senior officers to enable them to cross check during their visits,
 

Procurement of rice:   ( Rs per quintal)


Variety
KMS 2006-07 KMS 2007-08 Increase
  Raw Boiled Raw Boiled Raw Boiled
Common 1087.60 1087.50 1282.62 1279.69 195.02 192.19
Grade A 1137.00 1136.20 1332.01 1328.36 195.01 192.16

The main instrument to ensure remunerative price to the paddy farmers, is procurement of rice through Food Corporation of India.

At present the mill levy percentage is 75%.
Procurement of rice for the last (10) years

STATISTICS:

MSP FOR PADDY

MSP FOR PADDY AND WHEAT

AREA,PRODUCTION AND PRODUCTIVITY OF RICE

PADDY PURCHASES

PROCUREMENT PRICES OF RICE

PROCUREMENT OF RICE

GOVT OF INDIA-SUPPORT PRICES

PROCUREMENT OF MAIZE

MSP, AREA AND PRODUCTION OF PULSES

Copyright 2017                 Consumer Affairs, Food & Civil Supplies Department, Government of Andhra Pradesh
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