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Presentation On Ragi 230425

The document outlines strategies for strengthening the rural economy in Karnataka through Minimum Support Price (MSP) procurement and distribution operations. It highlights the role of state and central governments in food grain procurement, analyzes past performance, and suggests measures to enhance procurement of crops like Ragi and Jowar. Key strategies include increasing PDS allotments, improving farmer outreach, and securing commitments from the Food Corporation of India for better procurement practices.

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0% found this document useful (0 votes)
47 views23 pages

Presentation On Ragi 230425

The document outlines strategies for strengthening the rural economy in Karnataka through Minimum Support Price (MSP) procurement and distribution operations. It highlights the role of state and central governments in food grain procurement, analyzes past performance, and suggests measures to enhance procurement of crops like Ragi and Jowar. Key strategies include increasing PDS allotments, improving farmer outreach, and securing commitments from the Food Corporation of India for better procurement practices.

Uploaded by

Surya 6A
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You are on page 1/ 23

STRENGTHENING RURAL ECONOMY

Through

Preparation & Planning


Agenda
1. Introduction-MSP Operations

2. State Procurement

3. Procurement Performance Past Seven years &


Analysis.

4. Strategies for enhancing


food grains’ procurement in Karnataka.

Strengthening Rural Economy Through


MSP Procurement & Distribution Operations
Introduction-MSP Operations
• Minimum Support Price(MSP) is a form of Market Intervention by
Govt.of India, with the following objectives
– To provide a guaranteed price to farmers

– To support farmers from distress sales and

– To procure food grains for public distribution

• MSP is fixed by GOI based on the recommendations of the


Commission for Agricultural Costs and Prices (CACP).
• Under the De-Centralized Procurement (DCP) scheme, State
Governments, on behalf of Central Government, undertake direct
purchase, store and distribute food grains for Targeted Public
Distribution System (TPDS) and other welfare schemes based on the
allocation made by the Central Government.
• Central Government undertakes to meet the expenditure on
the procurement operations as per approved Provisional Cost Sheet
(PCS) based on certain principles for each incidental.
Introduction-MSP Operations
 Under the Central Pool (CP) scheme, FCI/State Governments undertake the
direct purchase of food grains on behalf of Central Government and hands
over (sells) food grains to FCI for storage and subsequent distribution
against GOI allocations in the same State or movement to various other
deficit states.
 Punjab procures Wheat for DCP consumption, whereas it procures paddy for
Central Pool.

 Telangana, AP, Chhattisgarh etc.. procure paddy for DCP as well as for CP.

 As the scheme, and the respective expenditure is borne by the Central


Govt. it is imperative to understand that State / District administration has
no authority over any of the activities under MSP – DCP Operations on
specifications/ guidelines decided by the GoI
 It is the duty of the State/District administration to strictly adhere to
all GOI guidelines and ensure compliance of all instructions
communicated by GoI in the season wise procurement process but not to
amend any of the guidelines to suit local circumstances/
requirements.
Introduction: State Procurement
1. In Karnataka, the state government procures food
grains like Ragi, Jowar, and Paddy under the
Minimum Support Price (MSP) scheme directly from
farmers.

2. Under MSP operations in the State, following Food


grains are procured:
a) Paddy (Deficit in procurement)
b) Ragi (Surplus procurement)
c) Jowar (Sufficient for PDS distribution within the state)

3. In Karnataka, state conducts procurement through the


following agencies :
a) KFCSC(Civil Supplies Corp.)
b) KSCMF (MarkFed)
c) KSAMB(Agri. Marketing Board)
4. Procured food grains are then distributed in the PDS-
NFSA system as per the guidelines of GoI
Paddy Ragi Jowar
Procured Qty No of Value in Procured Qty No of Value in Rs. Procured Qty No of Value in Rs.
Year
in MT farmers Rs. Crores in MT farmers Crores in MT farmers Crores

2018-19 87,909.727 25,120 154.369 94,390.008 27,201 273.448 1,129.600 207 2.745

2019-20 61,379.664 27,123 111.404 1,93,243.068 93,100 608.716 9,256.350 2,727 23.604

2020-21 2,06,204.483 54,331 385.190 4,75,315.297 2,06,300 1,566.164 80,866.169 13,495 211.869

2021-22 2,18,681.076 73,161 424.241 4,04,783.700 2,67,076 1,366.955 1,03,919.790 23,331 284.532

2022-23 20,594.726 7,646 42.137 4,54,404.100 3,04,537 1,625.858 76,896.500 16,973 228.383

2023-24 0.000 0 0.000 2,26,575.500 1,10,810 871.409 1,90,421.250 22,673 605.540

2024-25 * 479.150 152 1.102 58,619.500 37,640 251.478 18,808.950 2,494 63.405

KMS 2024-25 procurement as on 31.03.2025

Introduction: Last 7 years' procurement


cumulative procurement (Paddy+ Ragi+ Jowar)
Procured Qty in No of Value in Rs.
Year MT farmers Crores

2018-19 1,83,429.34 52,528 430.56

2019-20 2,63,879.08 1,22,950 743.72

2020-21 7,62,385.95 2,74,126 2,163.22

2021-22 7,27,384.57 3,63,568 2,075.73

2022-23 5,51,895.33 3,29,156 1,896.38

2023-24 4,16,996.75 1,33,483 1,476.95

2024-25 * 77,907.60 40,286 315.99


KMS 2024-25 procurement as on 31.03.2025

Introduction: Last 7 years' procurement


 There is steady growth in the
procurement of all food grains from
the period of 2018-19 to 2021-22, from
1.83 LMT to 7.67 LMT overall
procurement. i.e. with 416% growth
over the period.
 However, during the last 2 KMS
seasons, there is a slight dip in the
overall procurement due to
unfavorable weather conditions in the
state.

Introduction: KMS wise procurement analysis


Reasons For Limited Procurement (Paddy)

 Paddy production is scattered in the State with very meagre production in

southern part of Karnataka.

 Further as fine varieties are being cultivated in northern parts of Karnataka,

for which the rate offered by traders in more than the MSP rates,

 As the overall procurement of paddy is very low the State has to depend on

Central Pool through FCI for meeting its PDS requirements


Reasons For Limited Procurement ( Ragi)
Reasons For Limited Procurement (Jowar)
Strategies for enhancing
Food grains’ procurement

1. Increasing allotment in PDS


distribution

2. Sales to other states under


Central Pool

3. Sale to other agencies


1. Increasing allotment under PDS
• Paddy procurement is less due to the fact that most of the produced paddy is
either being utilized for domestic consumption or for Exports or due to lower
MSP.

• State may increase the distribution of Ragi & Jowar as a substitute to fulfill the
total allotment, which also helps the local farmers economy.

• Improve nutritional status of the state population.

• Promote traditional crop grown in the state requiring less water.

• Improve rural economy by infusing procurement funds.

• Support small and marginal farmers who generally cultivate traditional crops
1.Increasing allotment under PDS Different Scale of Issues

Details Ragi Jowar


State Allotment / unit (in Kg) ( Scale of Issue) 2 kg 2 Kg

Total requirement for state 394713.57 Mts 338950.43 Mts


Additional Funds to be infused to Rural economy 1803 Crores 1220 Crores

Details Ragi Jowar


State Allotment / unit (in Kg) ( Scale of Issue) 2.5 Kg 2.5 Kg
Total requirement for state 493391.97 Mts 423688.04 Mts
Additional Funds to be infused to Rural economy 2253 Crores 1525 Crores
1. Increasing allotment under PDS
Details Ragi Jowar
State Allotment / unit (in Kg) 3 3

Total requirement for state 592070.36 508425.65

Additional Funds to be infused to Rural economy 2704 Crores 1830 Crores


2. Sale to other states under Central Pool
3. Sale to other Agencies :
4. Additional Ideas :
Measures to Increase Ragi & Jowar Procurement

Measure Description
Farmer Convene meetings via Raitha Samparka Kendras, PACS, etc.
Outreach Sensitize growers on rising demand across states and assured
offtake
State-Level Additional bonus of ₹50–₹100/quintal
Bonus 100% purchase guarantee with DBT straight to farmers
No intermediaries
Bonus cost borne entirely by State
Local Establish procurement centres in every Ragi/Jowar-cultivating
Procuremen hobli/panchayat
t Hubs
Operate through existing farmer societies
Measures to Increase Ragi & Jowar Procurement

Measure Impact
Acreage Ceiling Raise eligible area from 2 acres → 5 acres
Removal Enables more farmers to qualify
Procurement Ceiling Increase cap from 20 qtls → 50–75 qtls per farmer
Increase MSP access for larger holdings
Central-Pool Secure formal GOI commitment to accept Ragi/Jowar
Assurance under Central Pool MSP
De-risk State procurement and bonus outlay
Acreage Ceiling Raise eligible area from 2 acres → 5 acres
Removal Enables more farmers to qualify
Assurances Required from FCI for Central-Pool Ragi Distribution

Measure Action & Benefit


Formal Purchase Government of India (GoI) to confirm FCI will procure Ragi under
Assurance the Central Pool MSP scheme
FCI-Led Distribution FCI to handle all sales, movement, and handling—state agencies
relieved of these burdens (as with rice & wheat).
Integrated State to tag its Procurement Centres to FCI buffer godowns before
Procurement harvest. FCI reimburses acquisition cost within 5–7 working days
Planning per PCS. Improves state-agency cash flow.
Joint Quality State QC officials and FCI inspectors to jointly certify Ragi quality
Inspection at each procurement centre. Ensures seamless acceptance into
Central Pool.
Direct Transfer to Quality-approved Ragi stocks shipped straight to FCI buffer
FCI Godowns godowns—state storage & transport costs eliminated.
21
Additional GoI Support Required

Request Rationale & Impact

Procurement- Permit fresh-season Ragi procurement before exhausting previous-


Guideline year stocks (per 7-Dec-’21 letter). Enables up to 1–2 LMT additional
Relaxation Rabi-season purchases.

Enhanced Bonus Central subsidy or bonus to defray state’s cost of additional


Funding procurement incentives.
Expanded MSP Authorize MSP for larger acreage (raise from 2 acres to 5 acres;
Coverage ceiling from 20 qtls to 50–75 qtls). Broadens farmer participation.

Monitoring & FCI to share real-time distribution data, enabling GoI and State to
Reporting Support adjust allocations swiftly.

22
Thank you SIR

Presentation Title 23

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