Just 17% of Paddy Farmers Gain from MSP Purchase, According to CACP
Report: Only 17.3% of Paddy Farmers Benefited from MSP Procurement, Says CACP
A recent report by the Commission for Agricultural Costs and Prices (CACP) has revealed that only 17.3% of paddy farmers in India have benefited from Minimum Support Price (MSP) procurement operations between 2021 and 2024. The report highlights that states like Punjab and Telangana are leading in farmer participation, while major producers such as Uttar Pradesh and West Bengal are lagging behind. CACP emphasizes the need for improved procurement, storage, and infrastructure to boost farmer participation and enhance rice stock efficiency.
Analysis of Procurement Operations
According to the report, states like Punjab (94%), Telangana (76%), and Chhattisgarh (58.8%) have shown higher rates of farmers benefiting from MSP purchase operations, conducted by the Food Corporation of India (FCI) and state agencies. On the other hand, states like Odisha (33.7%), West Bengal (15.6%), Uttar Pradesh (5.8%), and Bihar (4.1%) have reported lower coverage of farmers during the three-year period ending in 2023-24. The report also underscores the need for focused efforts to strengthen procurement operations in states with low farmer participation.
Challenges and Recommendations
The CACP report points out that there has been a decline in the number of beneficiary farmers from 2021-22 onwards, attributed to high market prices. Efforts should be made to address this decline and enhance procurement operations in states like Bihar, West Bengal, Uttar Pradesh, and Tamil Nadu. The commission also emphasizes the importance of improving storage and warehousing infrastructure, as well as institutional mechanisms to increase procurement.
Key Takeaways
Key contributors to the central pool rice stock include states like Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Odisha, Andhra Pradesh, and Telangana, which collectively account for over 90% of rice procurement in the country. The report highlights the need for maintaining buffer stocks with FCI and enhancing the paddy to rice conversion process to optimize procurement efficiency.
