The Indian government is considering procuring 100% of pulses and oilseeds from farmers at a minimum support price (MSP) this year, Press Reader wrote.

In a meeting of the Cent­ral Zonal Coun­cil, co­oper­a­tion min­is­ter Amit Shah reportedly said that agri co­oper­at­ive Nafed would be asked to buy 100% of farm­ers’ pro­duc­e at min­imum sup­port prices (MSPs) this year, the 11 October report said.

However, offi­cial pro­cure­ment would depend on prices at agri­cul­ture mar­kets (mandis) as prices for some of these crops were higher or on a par at the time of the report.

The move followed the government’s decision on 6 June to remove its limit on procurement of tur, urad and masur under the Price Support Scheme (PSS) for 2023/24 in a bid to encourage farmers to expand planted area and increase production, the report said.

Under the PSS, the gov­ern­ment buys a max­imum of 25% of pro­duc­tion of pulses and oil­seeds from farm­ers at their min­imum sup­port prices (MSPs) when mandi rates fall below these bench­mark prices. However, the ceiling can be increased to 40% at the government’s request.

Prices were expected to be higher this year as planted area for some crops, including for pulses and oil­seeds, was lower.

The pro­cure­ment policy would also help the gov­ern­ment to build its invent­or­ies, par­tic­u­larly for rice, the report said.