– NEW DELHI: Market distortion due to some states giving bonus over minimum support price (MSP) for paddy and open ended procurement policy have led to accumulation of rice stocks much higher than the stocking norms, CACP has said in its report released on Wednesday.Govt fixes MSP for crops on the recommendations of the Commission for Agricultural Costs and Prices (CACP).The commission in its kharif crops marketing season (2026-27) report has recommended imposing a limit on procurement, especially in surplus states that offer bonus over the MSP and have high market fee and other charges. It also has recommended a comprehensive review of open-ended procurement policy for paddy.The report noted that as against 76.6 lakh tonne of stocking norms of rice for central pool as on Jan 1, total rice stocks were 336.7 lakh tonne, nearly 4.4 times higher. “Many state govts pay direct or indirect bonus, which adversely affects crop diversification initiatives, restrict private trade participation and competition and result in excess stocks,” it said.Last month, the expenditure department had told states to refrain from announcing bonus over MSP for paddy and wheat procurement. “Bumper production of wheat and paddy has resulted in wheat and rice stocks far exceeding requirements for the public distribution system (PDS), buffer norms and other welfare and contingency needs. The surplus continues to rise year after year, creating a significant and recurring burden on the public exchequer,” expenditure secretary V Vualnam had said in a communication to Tamil Nadu govt.At present, Odisha gives input subsidy of Rs 800 per quintal over the paddy MSP while Chhattisgarh pays Rs 9,000 an acre with a ceiling of 15 quintal paddy per acre. Kerala had announced, state incentive bonus for paddy farmers at Rs 631 per quintal for kharif marketing season 2025-26 over the centre’s MSP of Rs 2,389.CACP has said that while govt’s food subsidy expenditure currently over Rs 2 lakh crore annually has ensured food security for the poor, the subsidy burden has risen substantially over the years. This is due to rising economic cost of foodgrains and the non-revision of the central issue price (rice provided free to states for distribution under the food security scheme).End of ArticleFollow Us On Social MediaVideosEx-Army Chief Naravane Backs People-To-People Ties To Improve India Pak RelationsAir India Cuts 29 International Routes As West Asia War Drives Up Fuel Costs And DisruptionsVijay Reverses Astrologer Appointment; PM Modi Orders Nearly 50% Convoy | Headlines@9EPS Removes Rebel Leaders Backing Vijay Government As AIADMK Internal Crisis DeepensPostmortem Reveals Massive Blood Clot In Lungs Caused Prateek Yadav’s Death | WatchHimanta Biswa Sarma Announces UCC Bill For Assam As State Moves Towards Uniform Civil LawNEET UG 2026 Cancellation Sparks Rajasthan Political Storm As BJP And Congress Clash Over LeakPosters Against Rahul Gandhi Surface As KC Venugopal Emerges Frontrunner For Kerala CMSuvendu Adhikari Chooses Bhabanipur Over Nandigram, Sparks Fresh Political Battle In BengalCM Vijay Revokes Astrologer Vettrivel’s OSD Appointment Amid Political Storm In Tamil Nadu123PhotostoriesStop throwing away mango peel: 6 delicious ways to use them in your kitchen5 weird things people do in love and why, as per psychologyWhy these 5 vegetable DIY remedies are harmful for your skin8 Indian states where women can travel free on government buses; West Bengal becomes the latest to join the list5 deadliest insects on the planet: Small creatures with a massive global impactThe silent vitamin deficiency experts say could increase your cancer risk over timeCommon snakes found in Florida and how to keep them away from home and gardenThe hygiene myths experts are trying to break5 summer morning drinks that beat hunger and keep you energized for longerLate nights, high stress, rising BP: Why poor sleep is becoming India’s new urban health emergency123Hot PicksCBSE class 12 resultUS Iran warPrateek YadavHaryana election resultForeign outflowNEET exam cancelledTamil Nadu assemblyTop TrendingNashik AstrologerTamil Nadu NewsIPL Points TablePM Internship SchemeIPL Match TodayHimanta Biswa SarmaIPL Orange Cap 2026Aparna YadavAir India FlightsPrateek Yadav

– NEW DELHI: Market distortion due to some states giving bonus over minimum support price (MSP) for paddy and open ended procurement policy have led to accumulation of rice stocks much higher than the stocking norms, CACP has said in its report released on Wednesday.Govt fixes MSP for crops on the recommendations of the Commission for Agricultural Costs and Prices (CACP).The commission in its kharif crops marketing season (2026-27) report has recommended imposing a limit on procurement, especially in surplus states that offer bonus over the MSP and have high market fee and other charges. It also has recommended a comprehensive review of open-ended procurement policy for paddy.The report noted that as against 76.6 lakh tonne of stocking norms of rice for central pool as on Jan 1, total rice stocks were 336.7 lakh tonne, nearly 4.4 times higher. “Many state govts pay direct or indirect bonus, which adversely affects crop diversification initiatives, restrict private trade participation and competition and result in excess stocks,” it said.Last month, the expenditure department had told states to refrain from announcing bonus over MSP for paddy and wheat procurement. “Bumper production of wheat and paddy has resulted in wheat and rice stocks far exceeding requirements for the public distribution system (PDS), buffer norms and other welfare and contingency needs. The surplus continues to rise year after year, creating a significant and recurring burden on the public exchequer,” expenditure secretary V Vualnam had said in a communication to Tamil Nadu govt.At present, Odisha gives input subsidy of Rs 800 per quintal over the paddy MSP while Chhattisgarh pays Rs 9,000 an acre with a ceiling of 15 quintal paddy per acre. Kerala had announced, state incentive bonus for paddy farmers at Rs 631 per quintal for kharif marketing season 2025-26 over the centre’s MSP of Rs 2,389.CACP has said that while govt’s food subsidy expenditure currently over Rs 2 lakh crore annually has ensured food security for the poor, the subsidy burden has risen substantially over the years. This is due to rising economic cost of foodgrains and the non-revision of the central issue price (rice provided free to states for distribution under the food security scheme).End of ArticleFollow Us On Social MediaVideosEx-Army Chief Naravane Backs People-To-People Ties To Improve India Pak RelationsAir India Cuts 29 International Routes As West Asia War Drives Up Fuel Costs And DisruptionsVijay Reverses Astrologer Appointment; PM Modi Orders Nearly 50% Convoy | Headlines@9EPS Removes Rebel Leaders Backing Vijay Government As AIADMK Internal Crisis DeepensPostmortem Reveals Massive Blood Clot In Lungs Caused Prateek Yadav’s Death | WatchHimanta Biswa Sarma Announces UCC Bill For Assam As State Moves Towards Uniform Civil LawNEET UG 2026 Cancellation Sparks Rajasthan Political Storm As BJP And Congress Clash Over LeakPosters Against Rahul Gandhi Surface As KC Venugopal Emerges Frontrunner For Kerala CMSuvendu Adhikari Chooses Bhabanipur Over Nandigram, Sparks Fresh Political Battle In BengalCM Vijay Revokes Astrologer Vettrivel’s OSD Appointment Amid Political Storm In Tamil Nadu123PhotostoriesStop throwing away mango peel: 6 delicious ways to use them in your kitchen5 weird things people do in love and why, as per psychologyWhy these 5 vegetable DIY remedies are harmful for your skin8 Indian states where women can travel free on government buses; West Bengal becomes the latest to join the list5 deadliest insects on the planet: Small creatures with a massive global impactThe silent vitamin deficiency experts say could increase your cancer risk over timeCommon snakes found in Florida and how to keep them away from home and gardenThe hygiene myths experts are trying to break5 summer morning drinks that beat hunger and keep you energized for longerLate nights, high stress, rising BP: Why poor sleep is becoming India’s new urban health emergency123Hot PicksCBSE class 12 resultUS Iran warPrateek YadavHaryana election resultForeign outflowNEET exam cancelledTamil Nadu assemblyTop TrendingNashik AstrologerTamil Nadu NewsIPL Points TablePM Internship SchemeIPL Match TodayHimanta Biswa SarmaIPL Orange Cap 2026Aparna YadavAir India FlightsPrateek Yadav


State MSP bonuses fuelling excess rice procurement, warns CACP

NEW DELHI: Market distortion due to some states giving bonus over minimum support price (MSP) for paddy and open ended procurement policy have led to accumulation of rice stocks much higher than the stocking norms, CACP has said in its report released on Wednesday.Govt fixes MSP for crops on the recommendations of the Commission for Agricultural Costs and Prices (CACP).The commission in its kharif crops marketing season (2026-27) report has recommended imposing a limit on procurement, especially in surplus states that offer bonus over the MSP and have high market fee and other charges. It also has recommended a comprehensive review of open-ended procurement policy for paddy.The report noted that as against 76.6 lakh tonne of stocking norms of rice for central pool as on Jan 1, total rice stocks were 336.7 lakh tonne, nearly 4.4 times higher. “Many state govts pay direct or indirect bonus, which adversely affects crop diversification initiatives, restrict private trade participation and competition and result in excess stocks,” it said.Last month, the expenditure department had told states to refrain from announcing bonus over MSP for paddy and wheat procurement. “Bumper production of wheat and paddy has resulted in wheat and rice stocks far exceeding requirements for the public distribution system (PDS), buffer norms and other welfare and contingency needs. The surplus continues to rise year after year, creating a significant and recurring burden on the public exchequer,” expenditure secretary V Vualnam had said in a communication to Tamil Nadu govt.At present, Odisha gives input subsidy of Rs 800 per quintal over the paddy MSP while Chhattisgarh pays Rs 9,000 an acre with a ceiling of 15 quintal paddy per acre. Kerala had announced, state incentive bonus for paddy farmers at Rs 631 per quintal for kharif marketing season 2025-26 over the centre’s MSP of Rs 2,389.CACP has said that while govt’s food subsidy expenditure currently over Rs 2 lakh crore annually has ensured food security for the poor, the subsidy burden has risen substantially over the years. This is due to rising economic cost of foodgrains and the non-revision of the central issue price (rice provided free to states for distribution under the food security scheme).



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