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.
