what is minimum support price ? how it is implementing in your area
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The data refers to the Minimum Support Price/Procurement Price for Crops (Crop year basis) for various years. Minimum Support Price is the price at which government purchases crops for the farmers, to safeguard the interests of the farmers.
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The Centre's new procurement mechanism will focus on all 23 crops which come within the ambit of minimum support price (MSP), unlike the existing practice where wheat and paddy get all the attention and that too in a few states.
Though procurement of pulses, oilseeds and cotton is done under a 'price support scheme' (PSS), the procurement method has so far failed to get relief for farmers. At present, farmers get lower than MSP prices for a majority of the 23 notified crops including groundnut, soyabean, ragi, maize, bajra and jowar.
Since implementation of MSP for all 23 crops requires coordinated efforts and cost sharing between states and the Centre, the government is now all set to come out with an institutional mechanism for proper implementation of the support price system across the country.
It is learnt that the government is ready with the mechanism and is likely to discuss it in the Cabinet on Wednesday. Many states have already been consulted on three proposals to this effect.
These proposals include market assurance scheme (MAS) which involves decentralised procurement and disposal by state agencies. The second proposal is the price deficiency payment scheme (PDPS) - like the one which is operational in Madhya Pradesh - while the third one is about involving duly empanelled private agencies for procurement at MSP.
With most of the states favouring the MAS, sources in agriculture ministry said that the new mechanism will keep the scheme as a key option before the states. The states will, however, be free to opt for the PDPS and involve private agencies for procurement. The MAS will, in fact, replace the PSS and cover all the crops.
Under the MAS, the state agencies will procure farmers' produce and the state governments will be required to ensure direct payment of MSP into Aadhaar-linked farmers' accounts. The Centre will bear the cost of expenditure to some point (maximum 15%) and there will be some sharing between Centre and states beyond that point.
"It is for the Cabinet to take a call on extent of support for the loss and the overall cost sharing", said an official.
The states which are in favour of the MAS include Bihar, Gujarat, Haryana, Jharkhand, Karnataka, Rajasthan, Uttarakhand and Tamil Nadu among others. On the other hand, Madhya Pradesh which has already experimented with the PDPS (Bhavantar) would go for this scheme. Besides, Odisha, Telangana and Chhattisgarh have also given their nod for the scheme.
"States will also be free to involve private players in implementing either of these two schemes or both the schemes for their choice of crops", said the official.
Though procurement of pulses, oilseeds and cotton is done under a 'price support scheme' (PSS), the procurement method has so far failed to get relief for farmers. At present, farmers get lower than MSP prices for a majority of the 23 notified crops including groundnut, soyabean, ragi, maize, bajra and jowar.
Since implementation of MSP for all 23 crops requires coordinated efforts and cost sharing between states and the Centre, the government is now all set to come out with an institutional mechanism for proper implementation of the support price system across the country.
It is learnt that the government is ready with the mechanism and is likely to discuss it in the Cabinet on Wednesday. Many states have already been consulted on three proposals to this effect.
These proposals include market assurance scheme (MAS) which involves decentralised procurement and disposal by state agencies. The second proposal is the price deficiency payment scheme (PDPS) - like the one which is operational in Madhya Pradesh - while the third one is about involving duly empanelled private agencies for procurement at MSP.
With most of the states favouring the MAS, sources in agriculture ministry said that the new mechanism will keep the scheme as a key option before the states. The states will, however, be free to opt for the PDPS and involve private agencies for procurement. The MAS will, in fact, replace the PSS and cover all the crops.
Under the MAS, the state agencies will procure farmers' produce and the state governments will be required to ensure direct payment of MSP into Aadhaar-linked farmers' accounts. The Centre will bear the cost of expenditure to some point (maximum 15%) and there will be some sharing between Centre and states beyond that point.
"It is for the Cabinet to take a call on extent of support for the loss and the overall cost sharing", said an official.
The states which are in favour of the MAS include Bihar, Gujarat, Haryana, Jharkhand, Karnataka, Rajasthan, Uttarakhand and Tamil Nadu among others. On the other hand, Madhya Pradesh which has already experimented with the PDPS (Bhavantar) would go for this scheme. Besides, Odisha, Telangana and Chhattisgarh have also given their nod for the scheme.
"States will also be free to involve private players in implementing either of these two schemes or both the schemes for their choice of crops", said the official.
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