The Centre has advised States not to announce bonus over the minimum support price (MSP) on rice and wheat this year to check inflation. It also asked Food Corporation of India (FCI) to restrict procurement of food grains from such States and not to give subsidy to them on procurement and distribution of surplus food grains.Food Ministry said the directive would be effective from 2014-15 rice procurement seasons starting in October and wheat procurement season 2015-16 beginning in April.As per the directive, if decentralised procuring states (DCP) announce bonus over and above MSP of rice and wheat, the Centre will give subsidy only to food grains procured as required for Public Distribution System and other welfare schemes.AIR correspondent reports that DCP procure and distribute food grain themselves and the Centre on a quarterly basis releases subsidy after distribution of food grains.
News On AIR | July 19, 2014 1:13 PM
Centre advises States not to announce bonus over MSP on rice and wheat this year