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One Nation, One MSP: Revolutionizing Paddy Procurement for Farmers

The world of farming, where hard work and dedication come together to create bountiful harvests. As a farmer, your role in ensuring food security and economic stability is crucial. The Government of India recognizes the importance of your contributions and has implemented a robust procurement policy for paddy that aims to provide you with fair prices, guarantee food availability for all, and maintain market stability. In this overview, we will delve into the key aspects of this policy, including its objectives, the procurement process, payment mechanisms, and the benefits it brings to farmers like you.


The Government policy of procurement of paddy has broad objectives encompassing the welfare of farmers and the food security of the nation. It strives to ensure that farmers receive a Minimum Support Price (MSP) for their produce, making farming a financially viable profession. Simultaneously, it ensures the availability of food at affordable prices for the weaker sections of society. This policy also plays a vital role in market intervention, effectively managing prices and contributing to the overall food security of the country.

Key Points

1. Production and Procurement Statistics

  • As per the second advance estimate, the production of rice during the Kharif Marketing Season (KMS) 2022-23 is projected to reach 1308.37 LMTs, showcasing a significant contribution to the agricultural landscape.
  • The estimated procurement of rice for the same season is 626.06 LMTs, with an actual quantity of rice procured standing at 520.63 LMTs.
  • This procurement has led to a significant MSP payment of Rs. 159,659.59 Crores, benefiting a total of 1,12,96,159 farmers.

2. Agencies Involved in Procurement

  • The Food Corporation of India (FCI), along with other State Agencies, acts as the nodal central agency for the Government of India in the procurement of paddy.
  • The procurement operations are primarily carried out by State Governments and their agencies, ensuring a decentralized and localized approach.

3. Minimum Support Price (MSP) and Awareness

  • Before each Rabi/Kharif Crop season, the Government declares the MSP for procurement based on the recommendations of the Commission of Agricultural Costs and Prices (CACP).
  • Multiple communication channels are utilized to generate extensive awareness about the Minimum Support Price (MSP) operations. These include diverse platforms like pamphlets, banners, signboards, radio, television, print media, and electronic media, ensuring widespread publicity and information dissemination.
  • Farmers are made aware of quality specifications and the purchase system to help them bring their produce in line with the required standards.

4. Procurement Centers and Convenience

  • FCI and Respective State Government agencies strategically establish procurement centers, taking into account various factors like production levels, marketable surplus, convenience for farmers, and the availability of logistical infrastructure.
  • Additional temporary purchase centers are established at key points to facilitate farmers, ensuring convenience and reducing waiting periods.

5. One Nation, One MSP through DBT

  • To strengthen the system and ensure direct MSP payments to farmers, the “One Nation, One MSP through Direct Benefit Transfer (DBT)” initiative has been implemented since RMS 2021-22.
  • This initiative eliminates fictitious farmers, reduces payment diversion and duplication, and brings transparency, accountability, and probity to the system.

6. Online Procurement System

  • To enhance transparency and convenience for farmers, both FCI and several State Governments have developed their own online procurement systems, revolutionizing the procurement process. These digital platforms provide farmers with easy access to information, ensure transparency in operations, and streamline the overall procurement experience.
  • Farmers can access updated information regarding MSP, nearest purchase centers, and procurement dates through these systems, reducing waiting periods and allowing flexible delivery.

7. Procurement Systems

  •  There are two systems for the procurement of paddy: the Centralized (Non-DCP) system and the Decentralized (DCP) system. Under these systems, paddy is acquired through different approaches, each serving specific purposes in the overall procurement process.
  • In the centralized system, procurement is undertaken by FCI or State Government Agencies, with the quantity procured by State agencies being handed over to FCI for storage and distribution.
  • The DCP scheme, introduced in 1997-98, encourages local procurement by State Governments to benefit local farmers, enhance procurement efficiency, and save on transit costs.

8. Minimum Support Prices

  • The Minimum Support Price (MSP) for paddy is fixed by the Department of Agriculture & Cooperation, Government of India, based on the recommendations of the CACP.
  • The MSP for paddy has seen a consistent increase from KMS 2018-19 to KMS 2022-23, ensuring better remuneration for farmers.


The Government’s procurement policy for paddy is designed to empower farmers by providing fair prices, ensuring food availability for all, and maintaining market stability. Through the implementation of transparent systems, direct benefit transfers, and widespread awareness campaigns, the policy aims to bring transparency, convenience, and financial security to farmers across the country. Your hard work and dedication are the backbone of our nation’s food security, and the Government is committed to supporting you every step of the way.

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