The Scheme was aimed at ensuring remunerative prices to the farmers for their produce
As announced in the Union Budget for 2018-19 the new Umbrella Scheme includes the mechanism of ensuring remunerative prices to the farmers and is comprised of three sub schemes:
Price Support Scheme (PSS)
In the Price Support Scheme (PSS), physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with the proactive role of State governments.
In addition to NAFED, Food Corporation of India (FCI) will take up PSS operations in states /districts.
The procurement expenditure and losses due to procurement will be borne by Central Government as per norms.
Price Deficiency Payment Scheme (PDPS)
Under Price Deficiency Payment Scheme this scheme (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.
This scheme does notinvolve any physical procurement of crops as farmers are paid the difference between the
MSP price and Sale/modal price on disposal in notified market. The support of the central government for PDPS will be given as per norms.
Pilot of Private Procurement & Stockist Scheme (PPSS)
A private agency shall procurethe 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.