The agriculture ministry to take the big step to ensure MSP to farmers

In the next step to ensure MSP to farmers, the agriculture ministry will move a Cabinet note seeking approval for a new policy. According to reports, the new policy aims to join hands with states and private firms in procurement of crops other than wheat and paddy. Reports suggest that the existing Price Support Scheme (PSS) and Market Intervention Scheme (MIS) will be discontinued once the new policy is in place.

The objective of the proposed policy is to improve the speed of response and effectiveness of procurement in cases when prices drop below the minimum support price. The ministry has proposed three models, Market Assurance Scheme (MAS), Price Deficiency Procurement Scheme (PDPS) and Private Procurement and Stockists Scheme as part of the new MSP policy.

“The agriculture ministry is preparing a Cabinet note on this. The policy aims to give liberty to states to implement either one of the models of procurement,” the senior government official told PTI. The MAS and PDPS are primarily government-owned and driven schemes. The central government wants to bring in private sector players to supplement its schemes. The proposed policy has the potential to mobilise thousands of crore into the agricultural sector if all three schemes are implemented by all states in all MSP notified crops.

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