India Government reduced “levy rice” procurement percentage

19/08/2014,

The Indian central Government has decided that all state Governments were to reduce the percentage of levy rice procured from millers to 25percent for the 2014-15 procurement season (October - September). According to the current levy rice mechanism, operational since 1978, states purchase the paddy directly from farmers at the minimum support prices and sell it to private millers. A percentage of the milled rice, known as the levy rice, has to be supplied back to the Government for the Public Distribution System and/or Market Price Stabilization schemes. Currently the levy rice quantities differ from state to state and varies between 30 – 75 percent of procurement. The decision to decrease the levy rice is to ensure additional rice availability in the open market and reduce inflation.