The Government of India has decided to end the levy rice procurement system from the forthcoming 2015/16 (October-September) marketing year. Currently, millers purchase paddy directly from farmers with their own resources at government’s stipulated Minimum Support Prices (MSP) and the levy rice system requires that a percentage of this rice has to be sold to the Government for the Public Distribution System and/or Market Price Stabilization schemes. For the ongoing 2014/15 procurement season (October/September), levy rice quantities to be sold to the Government are set at 25 percent of the total rice procured by millers, while the remaining 75 percent can be sold into the open market. The Government buys around 33 million tonnes of rice annually, out of which 5 million tonnes are bought from millers, while the remaining quantities directly from farmers. The removal of the system would mean government agencies such as Food Corporation of India (FCI) and state government-owned agencies would entirely adopt the custom milled rice (CMR) mode. Under CMR mode these agencies would purchase paddy directly from farmers by paying the Minimum Support Price (MSP) and get it milled from registered millers.