(a) whether the Government proposes to formulate any scheme for procuring wheat on the
lines of private companies during the ensuing wheat procurement season for the Public
Distribution System and other schemes;
(b) if so, the details thereof;
(c) whether the Government proposes to permit Government agencies to buy wheat directly
from market and farmers like private companies; and
(d) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF
CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (DR. AKHILESH PRASAD SINGH)
(a) & (b): Under the existing Policy of Foodgrains Procurement, the Central Government
extends price support to wheat through the Food Corporation of India (FCI) and the State
Agencies. The wheat conforming to the prescribed specifications offered for sale at specified
centers is bought by the public procurement agencies. The farmers have the option to sell
their wheat either to FCI/State Agencies at Minimum Support Price or in the open market, as
is advantageous to them.
(c) & (d): FCI and State agencies procure wheat from farmers at Minimum Support Price.
The Government has permitted Food Corporation of India (FCI) for direct procurement of wheat
from farmers in FCI depots during Rabi Marketing Seasons (RMS) 2006-07 and 2007-08. FCI has
been further instructed to give an incentive of Rs 10 per quintal to the farmers for direct
procurement of wheat in FCI depots.