MSP of Rs 1.6 lakh cr paid for paddy procurement in KMS 2022-23

New Delhi, May 26 (FN Bureau) Over 1.12 crore farmers have benefitted from minimum support price (MSP) payment to the tune of Rs 1,59,659.59 crore for paddy procurement during the ongoing Kharif Marketing Season (KMS) 2022-23, an official statement said on Friday. “During the Kharif Marketing Season (KMS) 2022-23, (upto 22.05.2023), the production of rice is 1308.37 LMTs (as per second advance estimate), procurement estimate of rice is 626.06 LMTs (lakh metric tonnes) and quantity of rice procured is 520.63 LMTs,” Ministry of Consumer Affairs, Food & Public Distribution said in a release.

“In KMS 2022-23 (upto 22.05.2023), this has led to MSP payment of Rs. 1,59,659.59 crores and bene?tted 1,12,96,159 farmers,” it further said. Food Corporation of India (FCI), the nodal central agency of Government of India, along with other state agencies undertakes procurement of paddy under price support scheme. The procurement operations are majorly carried out by state governments and its agencies. Procurement of paddy has broad objectives of ensuring MSP to the farmers and availability of food to the weaker sections of the society at affordable prices. It also ensures effective market intervention thereby keeping the prices under check.

The MSP for paddy is fixed by the Department of Agriculture & Cooperation on the recommendations of Commission for Agricultural Costs & Prices (CACP). Before the harvest, during each Rabi/Kharif crop season, the government declares the MSP for procurement on the basis of the recommendation of the CACP which along with other factors, takes into consideration the cost of various agricultural inputs and the reasonable margin for the farmers for their produce.