Banner Policy & FCI

Issue of Levy Orders

Levy System: Central Government had decided to restrict the delegation of powers to the State Governments made vide Gazette Notification NO. GSR 800 (E) dated 09.06.1978 under section 5 of Essential Commodities Act, 1955 (Act 10 of 1955) with regard to imposition of levy on rice from the millers/dealers through their levy orders in such a manner that no state could impose any such levy on rice exceeding the limit prescribed by GoI of the rice purchased or procured or held by millers for marketing season. All the State Governments were directed to take necessary steps to comply with this order of Central Government.

Procurement of Levy Rice

DFPD implemented a uniform decision to reduce the levy rice percentage progressively for whole country to bring it down to zero. DFPD has promoted rice procurement i.e. Customed Milled Rice (CMR), which has proved better than levy system due to direct purchase from the Farmer subsequently direct benefit of Minimum Support Price (MSP) to the Farmers. Reduction in levy rice percentage diminish chances of malpractices involve in the levy system. Progressive reduction in levy is given below:

Season Prescribed Upper limit (%) of Levy
For KMS 2013-14 75
For KMS 2014-15 25
KMS 2015-16 onwards 0

Back to Top