Levy on rice reduced to encourage direct procurement from farmers
The Government has decided to reduce the levy on rice upto maximum 25% in Kharif Marketing Season (KMS), which has started on 1st October 2014. With reduction in levy, the Government Agencies through cooperative societies/self help groups etc., are undertaking procurement of paddy directly from the farmers thereby ensuring direct payment of Minimum Support Price (MSP) to the farmers. This is to reduce irregularities which exist in levy procurement system and to evolve better outreach of the procurement machinery to the farmgate. Under direct procurement of paddy, the State Government & their agencies adopt various measures to safeguard interest of the farmers in marketing of their produce, such as proper grading & weighment of paddy, timely payment of MSP through cheque / online banking system, transportation of paddy from procurement centers to the storage points etc. In view of these benefits, the Government has further decided to stop procurement through levy system w.e.f. 1st October 2015.
This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Rajya Sabha today.
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