State Trading: Historical background: The history of State trading dates back to 1942 when the British Government had imposed statutory rationing all over the country. The system of rationing was the direct consequence of the World War II which brought about conditions of acute scarcity and black-marketing of all consumer goods. Under the policy of rationing the Government procured the rationed commodities from the producers on the basis of compulsory levy, and the distribution was done through approved shops. The sale, purchase and transport of the rationed commodities by private parties was strictly prohibited. The extent of controls was gradually relaxed after the dawn of Independence and the controls were withdrawn in 1954.

With the rise in the prices of food-grains and sugar subsequently a multitude of imbalances were witnessed in the market. The prices of rice, wheat, jowar and other essential food-grains registered a steep rise during the years 1959, 1962, 1963 and 1964. This state of affairs forced the Government to meet the situation by opening more fair price shops. The general price situation took an adverse turn with the Pakistani aggression in September 1965 and the two consecutive droughts during the subsequent years.

The worsening food situation compelled the Government to introduce informal rationing and monopoly procurement of rice and jowar through its agencies. Under the procurement system, the Government started purchasing these food-grains from the producers at scheduled prices.

The system of monopoly procurement of jowar was implemented in the district in 1964-65 under the Maharashtra Jowar (Restriction on Purchase, Sale and Control on Movement) Order of 1964. During 1965-66 the Government issued a consolidated statutory order for procurement of jowar, rice and paddy, viz., Maharashtra Scheduled Food-grains (Stock Declaration and Procurement, Disposal, Acquisition, Transport and Price Control) Order of 1963. Similar control orders were issued by Government for the subsequent years.

Government has prohibited sale and purchase of jowar, rice and paddy. The producers are supposed to sell their produce of rice, paddy and jowar only to the Government. In no circumstances the private trade of these commodities is allowed and the transport and movement of these cereals is prohibited. But the agriculturists are, however, allowed to sell small quantities of these food-grains to bonafide consumers.

Ahmadnagar district is primarily a producer of rabi jowar. Among its thirteen talukas, Shevgaon, Nevasa, Karjat, Shrigonda and Jamkhed are famous for rabi jowar production. The kharif jowar production is, however, of little consequence in the district.

The details of quantities of jowar procured in the district from 1964-65 to 1968-69 are given below:-


Quantity in tonnes











The purchasing season starts from the month of February. There were 65 and 5 purchasing centres opened for the purchase of jowar and paddy, respectively under the monopoly procurement system in the year 1969-70. The number of such centres was 64 and 5 for jowar and paddy, respectively in 1970-71.

The food-grains procured by the Government are distributed through fair price shops. Almost every village and town has one or more fair price shops. There are, at present, 800 fair price shops in the district. These shops provide the inhabitants with their day-to-day requirements. Besides the scheduled grains, wheat and sugar are also distributed through these shops. The fair price shops are managed by co-operative societies, village panchayats, local bodies as also by authorised private shop-keepers. Co-operative societies and village panchayats are given preference over private shop-keepers for running fair price shops. They are controlled and inspected by the District Supply Officer or the Mamlatdar. For purchase of the food-grains under monopoly procurement system the Government has appointed the Maharashtra State Co-operative Marketing Federation Limited as a chief agent in the district.

The quantity and value of jowar and rice collected under monopoly procurement system and the food-grains disbursed through fair price shops is given in tables Nos. 39 and 40.