New Procurement Policy 2020

The Government of India declares Minimum Support Price (MSP) for different crops every year to safeguard the interest of farmers. The Central and State Governments intervene by carrying out the procurement operations in case the trading prices fall below the MSP. The State Government also intervenes for the crops not covered under MSP, on case to case basis.

In spite of all these efforts, there are instances where farmers are selling their produce below the MSP either because of lack of awareness on the MSP or delay in declaration of MSP or the unavailability of the procurement centre near to the farm gate.

Government of Andhra Pradesh (GoAP) is taking arduous steps to safeguard the interest of farmers from price volatility and to ensure that the farmers get better realization for their produce. Govt of Andhra Pradesh has set up a Price Stabilization Fund (PSF) to achieve this objective. In the recent past, the Government has intervened either through procurement operations or through price subvention operations to ensure that farmers get just price for their agricultural commodities.

Procurement centres have been opened for pulses, maize, bajra etc; price subvention was carried out for Bengal gram. Currently, there are three agencies which do procurement operations. They are A.P Civil Supplies Corporation, A.P Markfed and A.P Oilfed. Hence, there is a need to evolve certain common policy for doing procurement or price subvention operations.

The New Procurement Policy

  1. The Government will notify designated centres as Permanent Procurement Centres (PPC) for every commodity coming under the MSP Operations. To achieve this, three procurement agencies i.e. AP state civil Supplies Corporation (APSCSC), A.P Markfed and A.P Oilfed shall give the village wise and crop-wise list of their procurement centres. Commissioner and Director Agriculture Marketing (CDAM) will issue the orders for notifying such centres as the PPCs.
  2. Each procurement agency shall prepare modalities for locating such Procurement Centres as near to the farm gate as possible, subject to the production quantity and availability of the logistic support.
  3. MSP shall be declared as early as possible preferably at the time of sowing itself and CDAM shall cause MSP to be published in each Rythu Bharosa Kendrum (RBKs).
  4. RBKs will have the details of crops grown in the village along with their MSP and SMSP, location of the nearest PPC, details of the concerned procurement agency, procurement period and such other details as deemed necessary.
  5. The Agriculture Marketing Yard and sub yards shall be notified as the additional Permanent Procurement Centres for the commodities grown within/ adjacent notified area. The procurement agencies i.e. APSCSC, Markfed, Oilfed or any other agency shall mandatorily include the market yards and sub yards for their procurement activities.
  6. Procurement agencies will procure over and above the quota fixed by the Central Government, if deemed necessary and in case of Markfed and Oilfed operations, the expenditure shall be met from the Price Stabilization Fund.
  7. The Procurement agencies will dispose the procured commodities procured through different channels like State Public Distribution System while dovetailing other Governmental schemes.
  8. The Procurement agencies will take up the intervention ie Direct Procurement or Price Subvention or any other method as deemed fit for the particular commodity duly obtaining approval of Government.
  9. CDAM and other procurement agencies shall ensure that the middlemen in the procurement chain are eliminated and all the benefits reach to the farmers.
  10. The Government will launch the dedicated toll-free number i.e. 1907 to attend the farmer’s grievances right from the crop planning to the marketing.
  11. For carrying out procurement operations or price subvention, e-crop data shall be taken as the basis. Each procurement agency will devise the suitable guidelines and operationalize IT solutions to ensure that procurement or price subvention is done to genuine farmers only.
  12. The services of Village Agricultural Assistants shall be used to create awareness about the above procurement process.

This order issued with the concurrence of the Finance Department vide their U.O.No.FIN01-FMU0ASD(AC)/111/2019-FMU-AC-CS-AH, dt26.12.2019.

The Special Commissioner and Director of Agricultural Marketing, A.P., Guntur shall take further necessary action in the matter.

Agricultural Marketing Department– New Procurement Policy, 2020 of the State of Andhra Pradesh – Orders – Issued. AGRICULTURE AND CO-OPERATION (Mktg.II) DEPARTMENT G.O.MS.No. 27 Dated: 09-01-2020

From the Spl. Commissioner and Director of Agricultural Marketing, A.P., Guntur, File No.AGC05-12022/5/2019-MRKT-RFMS-RTG, dated 24.12.2019.

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