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Madhya Pradesh Seeks Exit From Decentralised Grain Procurement, Draws Opposition Criticism

Citing mounting losses from delayed reimbursements, the state frames a move to FCI-led buying as fiscal relief.

Overview

  • The chief minister’s letter requesting a shift to centralised procurement through the FCI became public this week, prompting attacks from Congress leaders.
  • The government says delayed cost settlements under the DCP have strained finances and that bank borrowings tied to procurement are difficult to service.
  • Procurement volumes have grown to about 77.74 lakh metric tonnes of wheat and 43.49 lakh metric tonnes of paddy in recent years, according to the CM’s letter.
  • Food and Civil Supplies Minister Govind Singh Rajput says MSP purchases will continue with existing registration, centres and societies, describing the change as an accounting adjustment.
  • New Delhi has not announced a decision on the request, while the Congress demands a rollback and threatens statewide agitation.