"The circular will not affect Tamil Nadu, since the state has procured only 23.81 lakh metric tonnes of paddy, including 16.10 lakh metric tonne of rice against the entitled allotment of 35.58 lakh metric tonnes of rice and 52.32 lakh metric tonnes of paddy under various schemes, she said, replying to a special call attention motion brought forward by Opposition parties in the House.

The government would give its incentive of Rs 70 in addition to the MSP of Rs 1,400 for normal paddy and Rs 50 in addition to MSP of Rs 1,350 for special quality paddy this fiscal, Jayalalithaa said.

The Ministry of Consumer Affairs, Food and Public Distribution had in its June 12 circular barred state governments from providing incentive, in addition to the MSP for procuring paddy from farmers.

As per the Decentralised Procurement Scheme brought to the state since 2012, Tamil Nadu Civil Supplies Corporation is the nodal agency for Food Corporation of India in procuring paddy and other crops for the government.

TNCSC in turn uses its rice mills or private ones to get rice out of paddy and distribute them through fair price shops as per the state's entitlement of rice from the Centre.

Latest News from State News Desk