Govt sets paddy procurement target at 708.64 lakh tons in KMS 2026-27, lower than actuals of last 3 yrs
The paddy procurement target for the Kharif Marketing Season (KMS) 2026-27 has been fixed at 708.64 lakh tonnes, a figure lower than the actual procurement achieved in each of the preceding three seasons.
Coarse grain procurement estimates for 2026-27 show an increase over previous years, even as the paddy target is scaled down.
Rice specifications for central pool procurement are being tightened this season, with stricter broken-grain norms applied to custom-milled rice delivered by millers.
The push continues on expanding foodgrain storage capacity and adopting technology for stock monitoring and quality assessment across the procurement and distribution chain.
Minimum Support Price (MSP) Mechanism
MSP is the floor price at which the government commits to purchase specified crops from farmers, insulating them from distress sales during market gluts. The Commission for Agricultural Costs and Prices (CACP), an advisory body under the Ministry of Agriculture set up in 1965, recommends MSPs for 23 crops each season based on cost-of-cultivation surveys, input costs, demand-supply trends, and inter-crop price parity. Its recommendations are advisory, not binding; the actual MSP is fixed by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister.
The 708.64 lakh tonne KMS 2026-27 target is the operational figure set by the Department of Food and Public Distribution for actual physical procurement through state agencies and the Food Corporation of India (FCI), applying the MSP fixed earlier in the CCEA process.
Foodgrain Procurement and Central Pool Management
Procurement is the process by which government agencies (FCI and state procurement agencies) buy foodgrains at MSP directly from farmers, mainly through mandis, to build a "central pool" for the Public Distribution System (PDS) and welfare schemes such as the National Food Security Act (NFSA), 2013. Procured paddy is milled into rice by empanelled millers before entering the central pool, subject to Fair Average Quality (FAQ) and uniform specification norms issued annually by the Department of Food and Public Distribution.
Key Details
- FCI, established in 1965 under the Food Corporations Act, 1964, manages procurement, storage, and distribution of foodgrains for the central pool.
- Under the NFSA, 2013, up to 75% of the rural and 50% of the urban population is entitled to subsidized foodgrain, making assured procurement volumes critical for stock adequacy.
- A pilot tightening of broken-rice norms restricts millers to a maximum of 10% broken grains in custom-milled rice delivered to FCI, down from the earlier 25% norm; the additional broken rice generated is being diverted toward ethanol blending and animal feed industries.
The tighter broken-grain specification cited for KMS 2026-27 procurement reflects this quality-upgrade push, aimed at improving central pool rice quality while creating a dedicated broken-rice feedstock stream for the ethanol blending programme.
Coarse Grains and Nutri-Cereal Procurement
Coarse grains (jowar, bajra, maize, ragi, and other millets, collectively promoted as "Shree Anna" or nutri-cereals) receive MSP support and are increasingly procured to diversify the central pool beyond rice and wheat, supporting crop diversification and nutritional security goals.
Key Details
- The Government declared 2023 as the International Year of Millets, following a UN resolution moved by India, boosting policy focus on coarse grain procurement.
- Coarse grains also fall under the CACP's MSP recommendation ambit alongside paddy, wheat, and pulses.
The reported increase in coarse grain procurement estimates for 2026-27, even as the paddy target is moderated, aligns with the broader diversification push in central pool composition.
- Paddy procurement target for KMS 2026-27: 708.64 lakh tonnes, lower than actual procurement in the last three seasons.
- Paddy MSP for KMS 2026-27: Rs 2,441/quintal (common variety), Rs 2,461/quintal (A-grade) — a rise of Rs 72 over the previous season.
- Estimated annual paddy procurement value for 2026-27: Rs 2.60 lakh crore payout, against an estimated 824.41 lakh tonnes procurement base used at the time of MSP announcement.
- Tightened broken-rice norm: maximum 10% broken grains for custom-milled rice, versus the earlier 25% FCI norm.
- CACP was set up in 1965; MSP is finally approved by the Cabinet Committee on Economic Affairs (CCEA).