Centre keeps paddy procurement target unchanged despite lower acreage
The Centre has retained its paddy procurement target at 71.95 million tonnes for the Kharif Marketing Season (KMS) 2026-27, unchanged from earlier projections
Paddy acreage as of 18 September stood at 42.9 million hectares, down from 44.6 million hectares in the corresponding period a year earlier
The unchanged target is presented as a signal of confidence in adequate rice supplies for domestic consumption and food security needs
Procurement targets are finalised by the central government in consultation with state governments ahead of each marketing season
Minimum Support Price (MSP) Mechanism
MSP is the price at which the government commits to purchase specified crops from farmers, acting as a price floor to protect against market volatility. It is recommended by the Commission for Agricultural Costs and Prices (CACP), an attached office of the Ministry of Agriculture and Farmers Welfare, and approved by the Cabinet Committee on Economic Affairs (CCEA).
Paddy is a kharif crop covered under the MSP regime. Holding the procurement target steady despite lower sown acreage reflects the government's continued price-support commitment for the crop under the CACP-recommended MSP framework.
Kharif Marketing Season and Decentralised Procurement
The Kharif Marketing Season for paddy runs from 1 October to 30 September the following year. Procurement is carried out primarily by the Food Corporation of India (FCI) and state government agencies acting as its agents, under the Price Support Scheme (PSS).
Key Details
- Paddy and wheat are procured under the Price Support Scheme; coarse grains are procured by state agencies on the Centre's directions
- Under the Decentralised Procurement Scheme (DCP), state governments themselves procure, store, and distribute foodgrains, with the Centre reimbursing the economic cost, allowing greater local flexibility
- Procured stock enters the Central Pool, which is used for distribution under the Public Distribution System (PDS) and to maintain buffer stocks
- FCI's functions include procurement at MSP, storage in godowns/silos, movement of grain from surplus to deficit states, and distribution for welfare schemes
The 71.95 million tonne target for KMS 2026-27 is the quantity the FCI and state agencies aim to procure into the Central Pool during this cycle, feeding both PDS distribution and buffer stock requirements.
Food Security Architecture and Buffer Stock Norms
Procurement targets are calibrated not just to current-year production but to the government's obligations under the National Food Security Act (NFSA), 2013, and prescribed buffer stock norms, which is why a target can be held steady even when acreage contracts.
Key Details
- NFSA, 2013 gives roughly two-thirds of India's population a legal entitlement to subsidised foodgrain through the PDS, requiring assured procurement volumes
- The Central Pool must maintain quarterly buffer stock and strategic reserve norms (specified by the Department of Food and Public Distribution) as a cushion against production shortfalls
- Even with reduced acreage, higher per-hectare yields or larger carry-forward stocks can allow procurement targets to be maintained without threatening supply adequacy
By keeping the procurement target unchanged despite an acreage decline, the government is signalling that yield trends and existing stock levels are expected to be sufficient to meet NFSA distribution and buffer stock commitments.
- KMS 2026-27 paddy procurement target: 71.95 million tonnes
- Paddy acreage (18 September 2026): 42.9 million hectares, versus 44.6 million hectares a year earlier
- MSP is recommended by CACP and approved by the CCEA; covers 22 crops under the mandated list
- Government MSP formula: 1.5 times A2+FL cost of production (distinct from the C2-based Swaminathan formula)
- NFSA, 2013 covers about two-thirds of the population for subsidised foodgrain entitlements