Prof K.V. Thomas, the Union Minister of State for Food and Consumer Affairs Minister, said the Government is working towards a policy to make it mandatory for food grain procurers to pay minimum support price to farmers only through cheque from April 2012. This is aimed to ensure that farmers across the country receive the MSP for rice.

He said the Centre would permit the export of additional quantity of non-basmati rice, given the comfortable stocks available and international price trends.

Prof. Thomas said so far about 22 lakhs of non-basmati rice was exported from India since the Government allowed the exports since last year. Out of this, about 15 lakh tonnes was from Andhra Pradesh.

“We will be allowing some more exports. After consultations with the State Governments and taking into account the stock position, we will close the export after it reached a particular level,” he told media persons here on Thursday.

He however pointed out that infrastructure at certain ports was not conducive to rice exports.

The Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, who was present at the news conference, said the State Government would take up on-line transfer of MSP to farmers, as a pilot project in two or three districts during the ensuing rabi.

PDS

Prof Thomas said the Ministry was embarking on a programme for end-to-end modernisation and computerisation of the public distribution system. This will cover the entire chain from the Food Corporation of India's procurement to the fair price shop.

“This is one of the issues that will be discussed at the two-day meet of state civil supplies and agriculture Ministers scheduled in Delhi from February 8,” he said.

The meeting will also discuss how States should be provided financial assistance to take up the PDS modernisation programme.

“Modernisation of the storage infrastructure so far has brought down loss from 2.5 per cent to 0.01 per cent,” he pointed out.

Prof Thomas said the Ministry will “positively consider” the plea of the AP Government to provide a bonus of Rs 120 over and above the MSP to farmers.