The Government policy of procurement of Food grains has broad objectives of ensuring MSP to the farmers and availability of food grains to the weaker sections at affordable prices. It also ensures effective market intervention thereby keeping the prices under check and also adding to the overall food security of the country.
Agriculture Marketing is a State subject and concerned States/Union Territories regulate and facilitate marketing of agriculture produce under their respective State regulations. No specific study has been conducted by Government providing statistics about the quantity of his produce a farmer is selling on MSP and how much through middlemen and through distress sale. However, National Sample Survey Office (NSSO) conducts 'Situation Assessment of Agricultural Households' form time to time to provide a comprehensive assessment of situation of agricultural households in rural parts of the country. The last such Survey was conducted by NSSO during January 2013 to December 2013 to collect information on consumer expenditure, income and productive assets, indebtedness, farming practices and preferences, resource availability, awareness of technological developments and access to modern technology in the field of agriculture, information on crop loss, crop insurance and awareness about Minimum Support Price (MSP).