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Loyaltybond:AreGandhisaboveCongress?

LIVENOW

LevyricesystemtogofromOctober
DipakKDash|TNN|Mar2,2015,06.55AMIST
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NEWDELHI:Initsbidtopushstategovernmentstosetupprocurementmechanismforpaddyandtoensurefarmersgettheminimumsupportprice(MSP),the
Centrehasstoppedthedecadesoldpracticeof"levyrice"fromOctoberthisyear.
Levyriceisamandatorysystemunderwhichmillersalsoundertakericeprocurementforthepublicdistributionsystem(PDS)bybuyingpaddydirectlyfrom
farmerslikeFoodCorporationofIndia(FCI)andstategovernmentagencies.Atpresent,indifferentstates,it'scompulsoryformillerstosupplyupto25%oftheir
annualproduceforpublicdistributionsystemataratefixedbythegovernment.
Sourcessaidthereweretworeasonsfordoingawaywiththispractice.First,thereisnoeffectivesysteminplacetosupervisewhethermillersarepayingMSPto
farmerswhilebuyingpaddyand,two,therearechancesofmillersdivertingbetterqualityricetotheopenmarket.
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Theyaddedthatthemillersinmanycasessuppliedinferiorqualityriceforthepublicdistributionsystem.
"WithaviewtoensurepaymentofremunerativepricestofarmersatMSPoraboveandtoimproveoutreachofprocurementsystemtothefarmgatefortheirbetter
coverage,ithasbeendecidednowthatstategovernmentsshouldnotimposeanylevyonricefrommillersfromOctober1,"arecentnotificationissuedbythefood
ministrysaid.
PunjabandHaryanaareamongthemajorriceproducingstatesthathavealreadyabolishedthelevyricesystem.However,itisstillprevalentinUttarPradesh,
Uttarakhand,AndhraPradesh,TelanganaandWestBengal.
SincetheNDAgovernmentcametopower,therehasbeengreaterfocusonexpandingthegovernmentsystemforprocurementofbothpaddyandwheatinstates
wheresuchmechanismiseithermissingorinadequate.
Recently,thePMappointedhighlevelcommitteeonrestructuringFCIhadrecommendedthattheagencyshouldoutsourceallprocurementoperationstostatesthat
havegainedsufficientexperiencesuchasPunjabandHaryana.IthadurgedFCItomovetootherstateswherefarmersmayberesortingtodistresssales,suchas
UttarPradesh,Bihar,WestBengalandAssam.
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