The recommendations of the Commission for Agriculture Costs and Prices (CACP) on minimum support prices (MSPs) for various crops should not be tampered with because of political reasons. The commencement of marketing season should not be brought forward. Bringing forward of the marketing season results in procurement of grains laden with high moisture content. If the levy route of rice procurement is introduced, both the state and the central government can wash their hands of the responsibility of procuring paddy directly from farmers or the commission agents. The farmers will sell their paddy to the millers directly at the MSP fixed for different quality and grades.

The FCI and other procuring agencies will procure rice from millers at fixed levy prices for different quality and grades. This will save the FCI from the hassles of stocking the paddy procured and getting it milled. There will be a considerable saving on the food subsidy bill and FCI will have adequate space to store the milled rice and wheat. The farmers will be able to develop direct linkages with the mills without the help of any middleman and the capacity utilisation of mills will increase. The FCI and other procuring agencies need not pay heavy mandi taxes for procuring paddy. The ERC, in its report, has observed that the purchase of paddy by millers in Punjab was generally high and it peaked to 98.52 per cent in 1988-89. Subsequently, it declined to 23.89 per cent in 1999-2000. As a result, the procuring agencies for the central pool bought a large amount of paddy directly from farmers and the commission agents after negotiating out-of-turn and compromising on prescribed quality.

Direct procurement of paddy from farmers and getting them milled has also bred corruption as it has given a lot of discretion to officials. Such cases had earlier come before the CBI with a reported loss of Rs 400. In most cases state agencies procuring for the central pool store paddy in mills and claim storage charges from the Centre.