Union cabinet approves new procurement policy for farmers
In relief to farmers a year before the general elections, the union cabinet headed by PM Modi has approved a new procurement policy for the farmers, under which one scheme will focus on compensating oil seeds farmers if rates fall below the MSP, while the other policy will allow states to rope in private players for procurement.
This year, the government had announced that it will put in place a fool-proof mechanism to ensure minimum support price (MSP) to farmers.
As per information, the Agriculture Ministry’s proposal on new procurement policy ‘Annadata Maulya Samrakshana Yojana’ was taken up for discussion in the Cabinet.
The state governments will be given an option to choose multiple schemes to protect farmers when prices fall below the MSP.
Under the PDP, the government will pay to farmers the difference between the MSP and monthly average price of oilseeds quoted in wholesale market. This would be implemented for up to 25 per cent of the oilseeds production in a state.
Under the new policy, the states will also have an option to choose the existing Price Support Scheme (PSS), under which central agencies procure commodities covered under the MSP policy when prices fall below the MSP.
“The states can choose either PSS or PDP or engage private players in procurement to ensure MSP to farmers,” the sources added.
The Food Corporation of India (FCI) has already procures wheat and rice at MSP for supply through ration shops and welfare schemes.