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Prime Minister Narendra Modi discussed on Tuesday the financial implication of the proposed procurement mechanism to ensure that farmers get the MSP if market prices fall below the rate of government reference.
In his 2018 budget speech, Finance Minister Arun Jaitley announced that the Niti Aayog think tank, in consultation with central and state governments, would put in place an infallible mechanism to ensure farmers receive the minimum price. Support. According to sources, senior officials of Niti Aayog made a presentation to the Prime Minister on the proposed purchase mechanism and its financial implications.
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Niti Aayog proposed that states have the option to choose between three models: Market Insurance (MAS), Purchase for Insufficient Prices (PDPS) and Purchase and Private Storage Plan. may be worth Rs 120-150 billion a year to compensate farmers if prices fall below the MSP for all crops except rice and wheat that are already purchased by the Food Corporation of India (FCI)
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The government wants to finalize these programs and announce them before the harvest of kharif crops that starts from The government had announced in the budget that the MSP of 14 reported Kharif harvests would be set at least 1.5 times higher than the cost of production.
As the CFI only procures wheat and rice public distribution system (PDS), the government wants to put in place a new mechanism to ensure that the rise of MSP also reaches farmers in other crops . According to the proposal of Niti Aayog, MAS will be implemented by state governments that will enter the market according to local conditions and will procure through their own state agencies or by any other private body authorized by the States.
States will be responsible for the purchase and liquidation of the purchased product.
The Center will compensate for the operational loss.
On the other hand, the scheme of purchases for lack of price was conceived in the same way as the Bhâvtan Bhôgtan Yojana launched by the government of Madhya Pradesh.
the price is lower than the model price, farmers would then be compensated for the difference between the MSP and the actual price, subject to certain conditions and ceilings.
Niti Aayog also proposed the private sector's involvement in PSM-related purchases. transparent electronic market platform
States would be allowed to form private enterprises through transparent auctions for the purchase of agricultural products when prices fall below the MSP. Sources of information will receive tax incentives and a commission, the sources add.
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