AP govt demands rollback of new levy rice policy

The Andhra Pradesh government today said the Centre should roll back its decision to lower the cap on purchasing levy rice - the portion that states buy from millers for public distribution system.
To meet PDS demand, un-divided Andhra Pradesh normally purchased 75 per cent levy rice, processed from the paddy purchased by millers at a minimum support price (MSP) directly from farmers.
However, the new government has directed all states to cap the levy rice purchases for PDS at 25 per cent.
After discussing the issue with the Union Food Minister Ram Vilas Paswan, the state Food Minister P Sunitha said: "We have requested the Centre to roll back the decision and to give sufficient time for implementing the new policy."

If rollback of the new levy rice policy is not possible, the state has requested it to allow buying 50 per cent levy rice from millers to meet the PDS demand, she added.
The kharif rice procurement will begin soon in the state and the new levy rice policy cannot be implemented as the "civil supplies corporation does not have adequate staff as well as wherewithal like godowns, logistics and credit line to replace the activity of the rice millers," the state government said in a representation made to the Centre.

That apart, the state does not have the required technical capacity, staff, necessary equipment and amenities at purchase centres, it added.

In the absence of adequate state procurement machinery, the state government said both farmers and PDS consumers will suffer. "It is likely to result in shortage of rice for PDS."
The PDS rice requirement in the state is 24 lakh tonnes per annum and the availability of levy rice under the new policy would be only 14 lakh tonnes. This will result in shortage of 10 lakh tonnes which would have to be moved from other states, the state said.
It added that since millers, who are procuring on behalf of the state government, are paying more than the MSP to farmers, the existing procurement mechanism carried out by millers should continue till the state strengthens its purchasing centres.