The Centre has allowed States to distribute jowar in six months after the procurement period gets over under the minimum support price (MSP) scheme and ragi in seven months from the purchase. Besides, States can pass on the surplus grains to the Food Corporation of India (FCI) for distribution in other consuming States. This may help States to increase the quantity of purchase as the earlier stipulation of three months were found insufficient to dispose of the stock.
Average mandi prices of jowar in Madhya Pradesh, the biggest producer, were ₹2,080 per quintal between October 1 and December 8, against MSP of ₹2,738, according to the Agmarknet portal. Similarly, prices of ragi in Karnataka were around ₹ 2,223/quintal, down from MSP ₹3,377 in the same period.
Coarse cereals stock with the Food Corporation of India (FCI) used to be 1-3 lakh tonnes since 2011 until it rose to 10 lakh tonnes in December 2020.
States are allowed to procure coarse grains from farmers at MSP under Central Pool after prior approval of the Centre on the detailed procurement plan. The whole quantity was earlier prescribed to be distributed through ration shops within the State in three months from the end of procurement period.
Provision of inter-State transportation of surplus coarse grains through FCI is incorporated to cater for advance demand placed by consuming States before the start of procurement, the Food Ministry said in a statement. Even as the selling price of coarse grains through ration shops is ₹1/kg under the National Food Security Act (NFSA), the offtake is not high since beneficiaries prefer wheat and rice which are also available at ₹2 and ₹3, respectively. Some States are also subsidising further and selling rice and wheat at ₹1/kg to the NFSA beneficiaries.
During November, out of 1.19 lakh tonnes of coarse grains allocated by the Centre for distribution under NFSA, only 36 per cent could be sold, official data show. Unless the difference between selling prices of coarse grains and rice/wheat is raised, there may be difficulties in increasing the off take, experts said.
To obviate difficulties faced by some States in distribution of coarse grains and to increase procurement of these cereals, discussions were held with various stakeholders, Food Ministry said. Based on the discussion with stakeholders, the government has amended the guidelines on December 7, it added.