The Central Government extends price support to paddy, coarse grains and wheat through the Food Corporation of India and the State Agencies. All the foodgrains conforming to the prescribed specifications i.e. Fair Average Quality norms offered for sale at
specified centers are bought by the public procurement agencies. The producers have the option to sell their produce to FCI/State Agencies at support prices or in the open market as is advantageous to them.
Rice is collected by way of statutory levy on rice millers and rice dealers. The percentage of levy rice is fixed by State Governments with the approval of Central Government taking into account requirements for the Central Pool, domestic consumption and
marketable surplus. The levy percentage varies from State to State. Prices of levy rice are fixed before commencement of every Kharif Marketing Season.
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