Source: Press Information Bureau
Aim
The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced
Components
The three components outlined under the scheme are thus aimed towards enhancing agricultural productivity, reducing the cost of cultivation which will enable boosting and securing farmer’s income in the long run. The components are;
- Price Support Scheme (PSS)
- Price Deficiency Payment Scheme (PDPS)
- The pilot of Private Procurement & Stockist Scheme (PPPS)
The other existing schemes of Department of Food and Public Distribution (DFPD) for procurement of paddy, wheat and Nutri-cereals/coarse grains and of Ministry of Textile for cotton and jute will be continued for providing MSP to farmers for these crops.
Price Support Scheme (PSS)
- In the Price Support Scheme (PSS), the physical procurement of pulses, oilseeds, and Copra will be done by Central Nodal Agencies with proactive role of State governments.
- In addition to the National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED), Food Cooperation of India (FCI) will take up PSS operations in states /districts. The procurement expenditure and losses due to procurement will be borne by the Central Government as per norms.
Price Deficiency Payment Scheme (PDPS)
- Under PDPS, it is proposed to cover all oilseeds for which MSP is notified.
- In this direct payment of the difference between the MSP and the selling/modal price will be made to pre-registered farmers selling his produce in the notified market yard through a transparent auction process. All payments will be done directly into registered bank account of the farmer.
- This scheme does not involve any physical procurement of crops as farmers are paid the difference between the MSP price and Sale/modal price on disposal in the notified market.
- The support of the central government for PDPS will be given as per norms.
The pilot of Private Procurement & Stockist Scheme (PPPS)
- It has been decided that for oilseeds, states have the option to roll out the Private Procurement Stockist Scheme (PPSS) on pilot basis in selected district/APMC(s) of district involving the participation of private stockiest.
- The pilot district/selected APMC(s) of the district will cover one or more crop of oilseeds for which MSP is notified. Since this is akin to PSS, in that it involves physical procurement of the notified commodity, it shall substitute PSS/PDPS in the pilot districts.
- The selected private agency shall procure the commodity at MSP in the notified markets during the notified period from the registered farmers in consonance with the PPSS Guidelines, whenever the prices in the market fall below the notified MSP and whenever authorized by the state/UT government to enter the market and maximum service charges up to 15% of the notified MSP will be payable.
