Price Support Scheme (PSS)
- The Price Support Scheme (PSS) is being implemented by the Government of India in the state.
- Main crops of the state like Bajra, Jowar, Maize, Paddy, Cotton, Tur, Moong, Urad, Groundnut, Sesamum Wheat, Gram, Mustard, and Sugarcane etc. are covered.
- The Department of Agriculture & Cooperation implements the PSS for procurement of oil seeds, pulses and cotton, through NAFED which is the Central nodal agency, at the MSP declared by the government.
- NAFED undertakes procurement as and when prices fall below the MSP. Procurement under PSS is continued till prices stabilize at or above the MSP.
- Farmers of the State
- When prices of commodities fall below the MSP, State and central notified procurement nodal agencies purchase commodities directly from the farmers at MSP, Under specified FAQ ( fair Average Quality).
- By this way prices of the main commodities are procured and protect the farmers against the economical loss in farming.
How to get benefit of the scheme
- Farmers get benefit of the scheme by selling their produce at support price in APMC centers opened by Nodal procurement agency.
Minimum Support Price (MSP)
- Is market intervention by the GoI to insure agricultural producers against any sharp fall in farm prices.
- Announced at the beginning of the sowing season for certain crops
- MSP on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- MSP is price fixed to protect the producer – farmers – against excessive fall in price during bumper production years.
- The minimum support prices are a guarantee price for their produce from the Government.
Methods of calculation
- In formulating the level of MSP and other non-price measures, the CACP takes into account a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities.
- The CACP makes use of both micro-level data and aggregates at the level of district, state and the country.
- Other factors include
- cost of production,
- changes in input prices,
- input-output price parity,
- trends in market prices,
- demand and supply,
- inter-crop price parity,
- effect on industrial cost structure,
- effect on cost of living,
- effect on general price level,
- international price situation,
- parity between prices paid,
- prices received by the farmers ,
- effect on issue prices and implications for subsidy.