India Government reduced “levy rice” procurement percentage
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.