FCI, the nodal central agency of Government of India, along with other State Agencies undertakes procurement of wheat and paddy under price support scheme. 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. 

The Government of India announces the minimum support prices (MSP) for procurement before the harvest during each Rabi / Kharif Crop season.HSWC Procures wheat.paddy & Bajra for Central Pool as per the direction issued by Government of India/ State Govt.  from  time to time. It started with procuring only two items i.e. wheat and paddy w.e.f. 1983-84 and 1997-98 respectively.

The procurement under Price Support is taken up mainly to ensure remunerative prices to the farmers for their produce which works as an incentive for achieving better production.