Food corporation of India purchases rice, wheat, coarse grains
from various states to provide price support to farmers.
thegovernment has Cabinet committee on Economic affairs that
takes the recommendations of Commission for agriculture costs
and prices C.A.C.P.while deciding the Minimum support prices
of food grains. The states are encouraged to have
decentralized procurement norms. This involve giving autonomy
to states to procure and distribute and keeping the surplus
with the central pool so that it can be allocated to deficit
Procurement Policy of F.C.I
Open ended procurement policy:
Wheat and rice are procured under this policy. Hence any
farmer who wants to sell can approach the F.C.I and get
M.S.P for his produce.
Closed ended procurement policy:
Here the farmers can only sell to the F.C.I if the price of
his produce becomes less than the M.S.P.
Warehouse development and Regulatory Authority
For the growth and development of warehousing sector and
improve credit flow to farm sector the Negotiable warehouse
system was started by the Indian government. W.D.R.A became
the statutory authority under this act to implement it.
The Negotiable warehouse receipts are issued to farmers in
lieu of the stored produce in warehouses registered with
W.D.R.A. These N.W.R can be given to banks to obtain loans
for next agriculture cycle. The farmers can be protected
from distress sale of produce and banks will have a safety
net for loans as they are issued against the N.W.R. These
N.W.R's can be used to access the stored produce which can
be then sold in the market by banks to recover loans or by
farmers when the market is favorable.
Sugarcane pricing policy
India is the largest consumer and second largest producer
of sugar in the World. To ensure the farmers are protected
from price shocks the MSP system for sugarcane was replaced
by the FRP - Fair and Remunerative prices for sugarcane.
Under this the farmer is assured of fair price for his stock
as well as a profit from the sale. This system also rewards
the farmers if there is a higher recovery of sugar from his
The FRP is determined by the Cabinet committee on economic
affairs after the consultations with Comission for
agriculture costs and prices CACP, sugar industry and farmer
Consumer Welfare Fund
This is operated by the Dept of Consumer Affairs. This fund
is where the unclaimed central excise refunds go to. All
agencies which have worked in the field of consumer welfare
for 5 years can be eligible for financial grant under this.
This is a three tier system of quasi judicial forum which
settles disputes of consumers. The district forum hears
complaints upto Rs 20 lakh. The state commission hears
appeals from district forums and cases where amount involved
in Rs 20 lakh to Rs 1 crore. The national forum hears
appeals from state commission and complaints where amount
involved is Rs 1 crore and above.
Cases should be filed within 2 years of occurance and
receipt of defective goods or service is compulsory.
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