Madhya Pradesh has asked the Centre to review its directive that instructed state governments not to announce bonus over and above the minimum support price (MSP) on rice and wheat this year.
Madhya Pradesh government has asked Centre to reconsider its directive, sources said.
In a directive issued by the Union Food Ministry, the Centre said that state-run Food Corporation of India (FCI) will restrict procurement of foodgrains from such states and will not give subsidy to states on procurement and distribution of surplus foodgrains.
Madhya Pradesh Food Minister today met Union Food Minister Ram Vilas Paswan and discussed the bonus issue, sources added.
The directive issued by the Union Food Ministry will be effective from the 2014-15 rice procurement season starting October and 2015-16 wheat procurement season beginning April.
According to the directive, "If decentralised procuring (DCP) states announce bonus over and above MSP of rice and wheat for this year, the Centre will give subsidy only on foodgrains procured as required for PDS and welfare schemes."
A DCP state procures and distributes foodgrains itself and foodgrain subsidy is released by the Centre on a quarterly basis after distribution of grains by the state government.
DCP is carried out in Chhattisgarh, Madhya Pradesh, Bihar, Gujarat, Kerala, Odisha, Tamil Nadu, West Bengal and parts of Andhra Pradesh and Rajasthan.
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