Centre directs States to stop bonus on MSP of paddy

The central government has issued a letter to the Odisha government and other states asking it to stop bonus payment on and above the minimum support price (MSP) of paddy as fixed by the Ministry of Consumer Affairs, Food & Public Distribution.

The Department of Food and Public Distribution on the recommendation of different state governments and experts, the committee for MSP has fixed the price of common grade paddy and Grade-A paddy at the rate of Rs 1,360 per quintal and Rs 1,400 per quintal respectively, which indirectly includes milling cost. The bonus declared above MSP by some states not only distorts the market of concerned commodity and drives private buyers out of the market but also generates possibilities of malpractices. 

Further, the Department has clarified that the Central government will limit the procurement for central pool up to the extent of requirement of food grains under Targeted Public Distribution System, if any surplus state declares bonus on paddy or wheat from the coming Kharif Marketing Season 2014-15.